Southern Company (The) Series 2 (SOJE) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

-71.5%

$26.88

vs $94.30 price

Levered DCF

-$149.42

After debt service

Piotroski score

5 / 9

Average

Altman Z-score

—

Rating

A-

Overall 4 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
P/E	22.13×	20.48×	19.46×	21.77×	30.35×	20.82×	14.16×	20.43×
P/B	2.67×	2.72×	2.46×	2.52×	2.58×	2.3×	2.41×	1.82×
P/S	3.25×	3.38×	3.06×	2.62×	3.15×	3.19×	3.13×	1.93×
EV / EBITDA	11.76×	11.74×	11.9×	13×	15.08×	12.47×	9.8×	11.16×
Gross margin	29.8%	49.9%	46.4%	36.3%	44.3%	48.6%	44.8%	40.9%
Operating margin	24.6%	26.4%	23.1%	18.3%	16.0%	24.0%	36.1%	17.8%
Net margin	14.7%	16.5%	15.7%	12.1%	10.4%	15.4%	22.2%	9.5%
Current ratio	0.65×	0.67×	0.77×	0.66×	0.82×	0.71×	0.78×	0.67×
Debt / equity	2.06×	2×	2.02×	1.94×	1.97×	1.81×	1.75×	1.87×
Interest coverage	2.2×	2.58×	2.38×	2.66×	2.01×	2.68×	4.46×	2.28×
Dividend yield	3.1%	3.3%	3.9%	3.8%	3.8%	4.1%	3.8%	5.3%
Payout ratio	69.5%	67.1%	76.3%	82.2%	115.3%	85.7%	54.1%	108.2%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	12.1%	13.3%	12.6%	11.6%	8.5%	11.1%	17.1%	9.0%
Return on invested capital	4.2%	4.3%	3.9%	3.5%	2.8%	3.8%	5.0%	3.2%
Return on assets	2.8%	3.0%	2.9%	2.6%	1.9%	2.5%	4.0%	1.9%
Free cash flow yield	-3.1%	0.9%	-2.0%	-2.1%	-1.5%	-1.1%	-2.6%	-2.3%
Earnings yield	4.5%	4.9%	5.1%	4.6%	3.3%	4.8%	7.1%	4.9%
Enterprise value	$168.6B	$155.4B	$140.1B	$134B	$126.4B	$115B	$113.8B	$90.9B
Net debt / EBITDA	5.05×	4.93×	5.33×	5.55×	6.4×	5.42×	4.02×	5.58×
Cash conversion cycle (days)	44	50	70	30	52	49	53	36