November 24, 2025 a 06:01 pm
SO: Fundamental Ratio Analysis - The Southern Company
The Southern Company has a stable business model within the utility sector, providing essential services like electricity and gas to a broad customer base. Its diversified operations across multiple states and its utility infrastructure give it a strong foundation in the regulated electric industry. However, the stock faces challenges with higher debt levels compared to its peers, which may impact its future financial flexibility.
Fundamental Rating
The Southern Company demonstrates solid fundamentals with strong scores in cash flow and return metrics, though its debt-to-equity position is weaker.
| Category | Score | Visual |
|---|---|---|
| Discounted Cash Flow | 4 | |
| Return on Equity | 4 | |
| Return on Assets | 4 | |
| Debt to Equity | 1 | |
| Price to Earnings | 2 | |
| Price to Book | 1 |
Historical Rating
Over the past periods, The Southern Company maintained consistent scores, reflecting its stable financial performance. Scores have seen little variation, indicating a predictable business environment.
| Date | Overall | DCF | ROE | ROA | Debt/Equity | P/E | P/B |
|---|---|---|---|---|---|---|---|
| 2025-11-24 | 3 | 4 | 4 | 4 | 1 | 2 | 1 |
| N/A | 0 | 4 | 4 | 4 | 1 | 2 | 1 |
Analyst Price Targets
Analysts project a median price target for The Southern Company at $99, with predictions ranging between $87 and $107.
| High | Low | Median | Consensus |
|---|---|---|---|
| $107 | $87 | $99 | $98.67 |
Analyst Sentiments
Analyst sentiments show a predominant inclination towards holding the stock, with a minority of buy ratings.
| Recommendation | Number | Distribution |
|---|---|---|
| Strong Buy | 0 | |
| Buy | 9 | |
| Hold | 21 | |
| Sell | 2 | |
| Strong Sell | 0 |
Conclusion
The Southern Company operates with a reliable business model in a heavily regulated industry, providing essential utilities. Its diverse portfolio, particularly in renewable energy, positions it well for future growth. However, its financial positioning is dampened by higher debt levels, which could restrict strategic flexibilites. Analysts predominantly recommend holding the stock amidst stable future outlooks. Short-term volatility may be expected, but overall it provides a conservative investment opportunity within the utility sector.