Southern Company Stock Analysis, Valuation (NYSE:SO)

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$47.15 $0.43 (0.92%) SO stock closing price Aug 15, 2018 (Closing)

Take a look at Amigobulls Southern Company stock analysis video. Our analyst opinion covering the buy and sell arguments for SO stock is shown in the video.

Note: Amigobulls stock rating is our opinion based on the historical performance of the company's fundamentals. It is not indicative of the future performance of the stock.

Southern Co Stock Rating 3.1/5

We at Amigobulls use various financial measures including profit margins, revenue growth and dividends for SO stock analysis. We also use relative valuation metrics like PE ratio and price to sales ratio for Southern Company valuation analysis. Southern Company stock rating is our opinion about the business fundamentals of the company.

Should you buy SO stock?

  • The Year Over Year (YoY) revenue growth for Southern Company was 10.4% in 2018-03.
  • Long term revenue growth has been strong with a 5 year compounded annual growth of 7.
  • Net margins stood at a healthy 4.9% (average) for Southern Company in the Trailing Twelve Months.
  • The company has an operating cash flow which is 1.6019 times the net income.
  • The Southern Company stock currently trades at a price to earnings ratio of 14.1, compared to the sector average of 19.6. We rate this as a positive.
  • The company has a healthy dividend yield of 5.01.

Should you sell SO stock?

  • With a debt/equity ratio of 1.9, Southern Company is highly leveraged in comparison to Utilities peers.
  • The company has a negative free cash flow margin of -2.2.

Comments on this video and Southern Company stock

Amigobulls Southern Company stock analysis helps investors in understanding how the company's fundamentals have performed in the last few quarters. Fundamentals of a company give detailed information which helps in making invesment decisions.

While doing a study of the company financials, Southern Company revenue growth and profit or net income are two main metrics which help in identifying whether SO stock is overvalued or undervalued. Investors could make use of SO technical analysis to check whether the fundamental story is reflected in the market sentiment.