Overall Fundamental outlook

Business Operations:

Sector: Utilities
Industry: Utilities - Regulated Electric

The Southern Company, through its subsidiaries, engages in the sale of electricity. The company offers electric service to retail customers and wholesale customers; and energy-related products and services to natural gas choice markets. It also develops, constructs, acquires, owns, operates, and manages power generation assets, as well as battery energy storage projects; sells electricity at market-based rates in the wholesale market; and deploys microgrids for commercial, industrial, governmental, and utility customers. In addition, the company is involved in the distribution of natural gas in Illinois, Georgia, Virginia, and Tennessee; distributes energy and resilience solutions; and invests in telecommunications. The Southern Company was incorporated in 1945 and is headquartered in Atlanta, Georgia.

Revenue projections:

Revenue projections for SO
Revenue projections for SO

The projected decline in The Southern Company's revenues compared to last year is expected to make investors cautious. A drop in revenue often has a direct negative effect on the company's bottom line, signaling potential challenges that could undermine investor confidence and reduce overall profitability.

Financial Ratios:

currentRatio 0.646000
forwardPE 19.658543
debtToEquity 190.586000
earningsGrowth -0.221000
revenueGrowth 0.101000
grossMargins 0.484690
operatingMargins 0.127350
trailingEps 3.910000
forwardEps 4.919490

The Southern Company's current ratio being 0.646 suggests its cash reserves and current assets may not be adequate to cover short-term debt. This raises concerns about liquidity, indicating that The Southern Company might face challenges in meeting its immediate financial commitments.
SO's Forward PE ratio suggests the stock price is reasonable in relation to earnings. It's not overpriced, providing room for future growth, making the stock a potentially valuable investment for those seeking long-term gains.
SO's high debt-to-equity ratio indicates significant leverage, meaning the company has more debt compared to its equity. While this can accelerate growth, it also increases financial risk if revenue or profits decline.
SO's low earnings and revenue growth highlight a potential decline in profitability. This suggests that the company's financial health may be weakening, and profits could shrink as a result.
The Southern Company's negative gross and operating margins indicate that the company is unprofitable, struggling to cover its production and operational costs. This reflects potential weaknesses in cost management or declining sales performance.
With The Southern Company's forward EPS higher than its trailing EPS, the company is expected to be more profitable in the current financial year. This signals confidence in The Southern Company's growth potential, as improved earnings are forecasted compared to the prior year's performance.

Price projections:

Price projections for SO
Price projections for SO

Price projections for SO have consistently been revised upward, indicating positive sentiment toward the company. This gradual adjustment reflects growing confidence in SO's future potential and financial outlook among analysts.

Insider Transactions:

Insider Transactions for SO
Insider Transactions for SO


SO saw 12 transactions in which shares were sold with market price at 93.74083264668782.Throughout the period under consideration, there were no sell transactions.With more buys than sells around SO's current price, there seems to be increased confidence among investors. This shift may indicate a favorable outlook, as the buying behavior suggests optimism for the stock's future growth or resilience.

Recommendation changes over time:

Recommendations trend for SO
Recommendations trend for SO


SO has been receiving a buy bias from analysts, signaling strong confidence in the stock's future performance. This positive outlook might drive investors to view SO as an attractive option for their portfolios, positioning the company as a stable and profitable investment choice.