Fundamental analysis · SEC EDGAR · TTM through 31/03/2026

Fundamental analysis of Southern Co

SO · NYSE · Utilities

Fundamental quality

DEMANDING

53

out of 100

Southern Co earns a fundamental-quality score of 53 out of 100, profiling it as a company with demanding fundamentals. Its score rests mainly on its profitability (net margin 14.5%). Its weakest area is its financial strength (net debt 5.03× EBITDA). Whether it's cheap or expensive depends on the current price, which you can compute in the tool.

What the company does

Southern Company is the big utility of the U.S. South (Georgia, Alabama, Mississippi). It operates under state regulation and made news building the first new U.S. nuclear reactors in decades (Vogtle) — hugely expensive, but now running.

What will shape its future

  • Georgia's data-center boom, one of the hottest pockets of power demand in the country.
  • Its Vogtle reactors: firm, clean power right when it's most valued.
  • State regulation and interest rates, the two dials governing every utility.

Breakdown by area

I.Growth
50

EPS growth: 5.7% · Revenue growth: 7.8%

II.Profitability
69

Net margin: 14.5% · ROE: 10.9% · ROIC: 5.7%

III.Financial health
28

Net debt/EBITDA: 5.03x · FCF: -11.5%

Source: SEC EDGAR · TTM through 31/03/2026

The score includes +4 for dividend strength: 18 consecutive years of increases. Keeping that streak demands growing cash generation and balance-sheet discipline.

The score combines growth, profitability and financial strength. Here its profitability weighs in its favor, while its financial strength drags it down the most.

Versus its sector

Percentile against the other 24 Utilities companies in our coverage: how far it beats them on each metric (100 = best in sector).

Net marginbeats 63%
ROEbeats 50%
Growthbeats 54%
Cash generationbeats 24%
Less debtbeats 57%

Computed from the daily dataset scores. A high percentile places the company among the best in its sector on that metric; it is not a buy recommendation.

Key concepts

What do these metrics mean? Fundamental analysis · What is the P/E · What is EPS · What is ROE · Net & gross margin · Free cash flow

Southern Co strengths

  • Solid net margin (14.5%): the business is clearly profitable.

Southern Co risks and weaknesses

  • Negative free cash flow: the business burns cash.
  • Very high leverage (net debt of 5.03× EBITDA): more exposed to rates and to a rough patch.
  • Its net debt has grown over the period.
  • Erratic free cash flow, with several years in the red.

Southern Co historical evolution

YearRevenueNet incomeFree cash flowNet debt
202020,3753,103-82644,617
202123,1132,309-1,41749,762
202229,2793,428-1,62151,348
202325,2533,976-1,54258,776
202426,7244,40183359,036
202529,5534,341-2,93564,732

Between 2020 and 2025, revenue went from $20,375M to $29,553M (+45%) and net income went from $3,103M to $4,341M (+40%).

Annual figures in millions of U.S. dollars ($M) per SEC filings. Net debt is total debt minus cash.

Latest results

Versus the same period a year earlier

Figures for the quarter ended March 31, 2026, versus the quarter ended March 31, 2025 (SEC filings):

  • Revenue+8%
  • Net income+1.6%

Automatic comparison between the two most recent periods filed with the SEC. One quarter doesn't make a trend: read it alongside the historical evolution above.

Dividend

$2.94

per share, yearly

69.5% of earnings

Payout

at least 18 straight years raising it

Growth

That is what we can verify in the SEC filings, whose structured data only starts in 2008 and which many companies begin tagging later. The real streak may be considerably longer.

The dividend yield depends on today's price. Compute it in the analyzer → · See all dividend-paying stocks →

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Is Southern Co cheap or expensive?

That depends on the current price. Look it up, enter it in the tool and get the full valuation verdict (P/E against its sector).

Compute the valuation →

Frequently asked questions

Is Southern Co a good company to invest in?

In terms of business quality, Southern Co scores 53 out of 100 in our analysis, placing it as a company with demanding fundamentals. That said, this isn't a recommendation: whether it's a good investment also depends on its current price and your goals.

Is Southern Co a profitable company?

Yes. Southern Co shows a net margin of 14.5% and an ROE of 10.9%, a sign of a profitable business.

Does Southern Co have a lot of debt?

Yes, its leverage is high: net debt is 5.03 times its EBITDA, and it has been rising.

Is Southern Co growing?

Its revenue has grown 7.8% annualized in recent years and its earnings per share 5.7%.

Does Southern Co generate cash?

Over the last twelve months its free cash flow was negative.

The thresholds are general and the system doesn't judge qualitative factors. See the full methodology and use this analysis as a first filter, never as a final decision.

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