August 18, 2025 a 08:00 am
SO: Fundamental Ratio Analysis - The Southern Company
The Southern Company operates in the electric utility industry through a variety of services, including renewable energy projects and natural gas distribution across several states. Despite the on-going market volatility, the company maintains a stable position with an extensive range of power generation assets and customer base. With a strong foothold in regulated utilities, the company aims for steady growth.
Fundamental Rating
The Southern Company's current rating highlights its operational efficiency and financial strategies. While the debt-to-equity ratio indicates caution, the overall scores are promising.
| Category | Score | Score Bar |
|---|---|---|
| Overall | 3 | |
| Discounted Cash Flow | 4 | |
| Return on Equity | 4 | |
| Return on Assets | 3 | |
| Debt to Equity | 1 | |
| Price to Earnings | 2 | |
| Price to Book | 1 |
Historical Rating
The historical ratings present a consistent performance by The Southern Company, with slight improvements noted recently.
| Date | Overall | DCF | ROE | ROA | Debt to Equity | PE? | PB |
|---|---|---|---|---|---|---|---|
| 2025-08-15 | 3 | 4 | 4 | 3 | 1 | 2 | 1 |
| Previous | 0 | 4 | 4 | 3 | 1 | 2 | 1 |
Analyst Price Targets
Analyst price targets suggest limited growth with a consistent consensus, reflecting steady investor confidence.
| High | Low | Median | Consensus |
|---|---|---|---|
| 91 | 91 | 91 | 91 |
Analyst Sentiment
The analyst sentiment provides a balanced view, with the majority holding a 'Hold' status, indicating cautious optimism.
| Recommendation | Number | Distribution |
|---|---|---|
| Strong Buy | 0 | |
| Buy | 13 | |
| Hold | 16 | |
| Sell | 2 | |
| Strong Sell | 0 |
Conclusion
The Southern Company provides a stable investment opportunity in the regulated utilities sector, with its comprehensive portfolio of energy generation and distribution services. Although the company's growth may be moderate, it offers reliable returns and financial stability amidst market uncertainties. The company's focus on renewable energy projects could enhance its long-term growth potential. Analysts generally recommend holding the stock, reflecting a balanced risk-reward profile. However, investors should be mindful of its debt positions and proceed with cautious optimism.