The Southern Company (SO) AI Stock Analysis

The Southern Company specializes in the generation, transmission, and distribution of electric power across multiple states, operating segments such as Gas Distribution Operations, Gas Pipeline Investments, Wholesale Gas Services, and Gas Marketing Services. Its generation portfolio features 30 hydroelectric generating stations, 24 fossil fuel generating stations, three nuclear generating stations, 13 combined cycle/cogeneration stations, 45 solar facilities, 15 wind facilities, one fuel cell facility, and four battery storage facilities. The company also distributes natural gas across Illinois, Georgia, Virginia, and Tennessee through approximately 76,289 miles of pipelines and 14 storage facilities with 157 billion cubic feet of capacity.

Revenue rose from $23.11B in FY2021 to $29.28B in FY2022, fell 13.8% to $25.25B in FY2023, and then expanded to $26.72B in FY2024 and $29.55B in FY2025. Over this timeframe, net income increased from $2.41B in FY2021 to $4.34B in FY2025, with EPS advancing from $3.41 to $4.30. Net margin was 14.7% in FY2025, down from 16.5% in FY2024, while operating margin reached 24.6%. For the trailing twelve months ended June 30, 2026, revenue stood at $30.18B with an operating margin of 29.6%. In the latest quarter ended June 30, 2026, quarterly revenue grew 0.1% year-over-year, while quarterly earnings grew 30.4%.

As of June 30, 2026, The Southern Company held $2.98B in cash and short-term investments alongside total debt of $77.09B, resulting in net debt of $74.10B. Its current ratio stood at 0.79 and debt-to-equity was 1.95 against shareholders' equity of $39.57B. In FY2025, operating cash flow reached $9.80B, but capital expenditures of $12.74B led to free cash flow of -$2.94B. The company paid $3.02B in dividends and raised $1.62B via share issuances in FY2025.

At a last close of $91.18, The Southern Company trades at a trailing P/E of 22.0x and a forward P/E of 17.0x, compared to the median of its S&P 500 Utilities peers of 20.9x and 16.0x, respectively. Its enterprise value to EBITDA ratio is 11.5x, below the peer median of 12.2x, while its price-to-sales of 3.5x exceeds the peer median of 2.9x. Over the past year, the stock declined 4.3%, trailing the S&P 500 return of 16.8%. Over five years, the stock gained 73.4% compared to 83.0% for the index.

The Southern Company pays a quarterly dividend with an annual forward payout of $3.04, reflecting a dividend yield of 3.33%. The payout ratio stands at 65.2%. The company has paid consecutive dividends for 45 years, achieving a 5-year annualized dividend growth rate of 3.0%. Its most recent ex-dividend date was August 17, 2026.

Wall Street analysts provide 6 Strong Buy, 1 Buy, 14 Hold, 0 Sell, and 2 Strong Sell ratings on the stock. The mean price target is $96.29, representing 5.6% upside from the last close of $91.18. For the current fiscal year ending December 31, 2026, consensus estimates project EPS of $4.59 on revenue of $30.92B. The company beat EPS estimates in 3 of the last 4 quarters. The next earnings date is November 5, 2026.

This page is an AI-written research summary of The Southern Company (SO). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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