AI Spotlight on SO
Company Description
The Southern Company, through its subsidiaries, engages in the generation, transmission, and distribution of electricity.It operates through Gas Distribution Operations, Gas Pipeline Investments, Wholesale Gas Services, and Gas Marketing Services segments.The company also develops, constructs, acquires, owns, and manages power generation assets, including renewable energy projects and sells electricity in the wholesale market; and distributes natural gas in Illinois, Georgia, Virginia, and Tennessee, as well as provides gas marketing services, wholesale gas services, and gas pipeline investments operations.
In addition, it owns and/or operates 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 facility; and constructs, operates, and maintains 76,289 miles of natural gas pipelines and 14 storage facilities with total capacity of 157 Bcf to provide natural gas to residential, commercial, and industrial customers.The company serves approximately 8.7 million electric and gas utility customers.Further, the company offers digital wireless communications and fiber optics services.
The Southern Company was incorporated in 1945 and is headquartered in Atlanta, Georgia.
Market Data
Last Price | 84.69 |
Change Percentage | -0.28% |
Open | 83.8 |
Previous Close | 84.93 |
Market Cap ( Millions) | 92793 |
Volume | 156825 |
Year High | 94.45 |
Year Low | 65.8 |
M A 50 | 84.39 |
M A 200 | 83.57 |
Financial Ratios
FCF Yield | 0.44% |
Dividend Yield | 3.38% |
ROE | 14.63% |
Debt / Equity | 195.45% |
Net Debt / EBIDTA | 485.41% |
Price To Book | 2.79 |
Price Earnings Ratio | 19.67 |
Price To FCF | 228.55 |
Price To sales | 3.51 |
EV / EBITDA | 11.88 |
News
- Jan -30 - SoCalGas Declares Preferred Dividends
- Jan -30 - California Resources Corporation Announces $100,000 DonationΒ to Southern California Wildfire Relief and Recovery Efforts
- Jan -30 - Alabama Power's Charitable Trust provides Alabamians impacted by winter weather with $250K in emergency bill assistance
- Jan -30 - Southern Company Gas and its charitable foundation award $11 million to nonprofits in 2024
- Jan -30 - Norfolk Southern Posts Q4 Beat, Analysts Expect Continued Productivity Gains
- Jan -30 - New Preferred Stock IPOs, January 2025
- Jan -30 - Southern Co. (SO) Declines More Than Market: Some Information for Investors
- Jan -29 - Southern Cross Drills 204.1 g/t gold over 1.7 metres in 350 metre Down Dip Extension at Christina
- Jan -29 - Tariffs are an uncertainty but not a worry, railroad operator Norfolk Southern says
- Jan -29 - Watch CNBC's full interview with Norfolk Southern CEO Mark George
- Jan -29 - Norfolk Southern Tops EPS Forecast
- Jan -29 - Norfolk Southern Q4 Earnings Surpass Estimates, Revenues Lag
- Jan -29 - Norfolk Southern beats profit estimates helped by cost cuts, insurance recovery
- Jan -29 - Norfolk Southern reports fourth quarter and full year 2024 results
- Jan -28 - Southern Company announces quarterly dividend
- Jan -28 - Norfolk Southern Declares Quarterly Dividend
- Jan -28 - Here's Why Hold Strategy is Apt for Southern Company Stock Now
- Jan -28 - Southern First Reports Fourth Quarter 2024 Results
- Jan -27 - Norfolk Southern names Lori J. Ryerkerk to board of directors
- Jan -27 - Southern Company Enters Deal to Supply Energy Credit to Keysight
Business Breakdown
Expected Mid-Term Growth
Segment nΒ°1 -> Traditional Electric Operating Companies
Expected Growth : 3.5 %
What the company do ?
Traditional Electric Operating Companies from The Southern Company refers to four regulated electric utilities: Alabama Power, Georgia Power, Gulf Power, and Mississippi Power, serving 9 million customers across the southeastern United States.
Why we expect these perspectives ?
The Southern Company's traditional electric operating companies' 3.5% growth is driven by increasing demand for electricity, fueled by population growth and economic expansion in the Southeast. Additionally, investments in grid modernization, renewable energy, and energy efficiency programs contribute to growth. Rate base growth from infrastructure upgrades and favorable regulatory environments also support this growth rate.
Segment nΒ°2 -> Southern Company Gas
Expected Growth : 3.8 %
What the company do ?
Southern Company Gas is a subsidiary of The Southern Company, providing natural gas distribution services to customers in the southeastern United States.
Why we expect these perspectives ?
Southern Company Gas' 3.8% growth is driven by increasing demand for natural gas, strategic acquisitions, and infrastructure investments. The segment benefits from a strong customer base, favorable regulatory environment, and a growing need for clean energy solutions. Additionally, the company's focus on operational efficiency and cost management contributes to its steady growth.
Segment nΒ°3 -> Southern Power
Expected Growth : 4.0 %
What the company do ?
Southern Power, a subsidiary of The Southern Company, is a wholesale energy provider that develops, constructs, and operates power generation assets across the US.
Why we expect these perspectives ?
Southern Power's 4.0% growth is driven by increasing demand for renewable energy, strategic acquisitions, and expansion into new markets. Additionally, investments in grid modernization and energy storage contribute to growth. The company's focus on sustainability and reducing carbon emissions also supports growth, as customers increasingly prioritize environmentally friendly energy solutions.
Segment nΒ°4 -> All Other
Expected Growth : 3.2 %
What the company do ?
All Other from The Southern Company refers to a segment that includes the Southern Company's other business activities, such as telecommunications, and other investments.
Why we expect these perspectives ?
The 3.2% growth in All Other segment of The Southern Company is driven by increasing demand for energy efficiency solutions, expansion of renewable energy projects, and strategic investments in grid modernization. Additionally, the company's focus on innovation and technology advancements, such as smart grid infrastructure, is expected to contribute to the segment's growth.
Segment nΒ°5 -> Eliminations
Expected Growth : 0.0 %
What the company do ?
The Southern Company's Eliminations segment represents the elimination of intercompany transactions and accounts between its subsidiaries.
Why we expect these perspectives ?
The Southern Company's eliminations segment shows 0.0% growth, driven by flat wholesale energy sales, stable transmission and distribution revenues, and minimal changes in intercompany eliminations, indicating a steady-state operation with no significant growth catalysts.
The Southern Company Products
Product Range | What is it ? |
---|---|
Electricity Generation | The Southern Company generates electricity through various sources including fossil fuels, nuclear, and renewable energy. |
Electricity Transmission | The Southern Company owns and operates a vast network of transmission lines, substations, and switchyards to transport electricity. |
Electricity Distribution | The Southern Company distributes electricity to customers through a network of power lines, transformers, and distribution substations. |
Natural Gas Distribution | The Southern Company distributes natural gas to customers through a network of pipelines and distribution systems. |
Renewable Energy Solutions | The Southern Company offers renewable energy solutions, including solar, wind, and biomass energy. |
Energy Efficiency Services | The Southern Company offers energy efficiency services, including energy audits, retrofitting, and energy management solutions. |
Smart Grid Solutions | The Southern Company implements smart grid technologies to enhance grid reliability, efficiency, and customer experience. |
The Southern Company's Porter Forces
Threat Of Substitutes
The threat of substitutes for The Southern Company is medium due to the presence of alternative energy sources such as solar and wind power. However, the company's diversified energy portfolio and strong brand presence mitigate this threat.
Bargaining Power Of Customers
The bargaining power of customers for The Southern Company is low due to the lack of alternative energy providers in the region. The company's strong market presence and diversified energy portfolio also reduce the bargaining power of customers.
Bargaining Power Of Suppliers
The bargaining power of suppliers for The Southern Company is medium due to the presence of multiple fuel suppliers. However, the company's large scale of operations and diversified energy portfolio reduce the bargaining power of suppliers.
Threat Of New Entrants
The threat of new entrants for The Southern Company is low due to the high barriers to entry in the energy industry, including significant capital requirements and regulatory hurdles.
Intensity Of Rivalry
The intensity of rivalry for The Southern Company is high due to the presence of multiple energy providers in the region, including Duke Energy and Exelon. The company's strong brand presence and diversified energy portfolio help to mitigate this threat.
Capital Structure
Value | |
---|---|
Debt Weight | 66.88% |
Debt Cost | 4.35% |
Equity Weight | 33.12% |
Equity Cost | 6.32% |
WACC | 5.00% |
Leverage | 201.91% |
The Southern Company : Quality Control
The Southern Company passed 1 out of 9 key points:
Historical Valuation
Price/Earnings Ratio
Margin Valuation
Peers Valuation
Competitors
Company | Rational |
---|---|
PEG | Public Service Enterprise Group Incorporated, through its subsidiaries, operates as an energy company primarily in the Northeastern and Mid-Atlantic United States. It operates through two segments, PSE&G and PSEG Power. β¦ |
ED | Consolidated Edison, Inc., through its subsidiaries, engages in the regulated electric, gas, and steam delivery businesses in the United States. It offers electric services to approximately 3.5 million customers in β¦ |
DUK | Duke Energy Corporation, together with its subsidiaries, operates as an energy company in the United States. It operates through three segments: Electric Utilities and Infrastructure, Gas Utilities and Infrastructure, and β¦ |
EIX | Edison International, through its subsidiaries, generates and distributes electric power. It delivers electricity to 15 million residential, commercial, industrial, public authorities, agricultural, and other customers across Southern, Central, and Coastal β¦ |
AEP | American Electric Power Company, Inc., an electric public utility holding company, engages in the generation, transmission, and distribution of electricity for sale to retail and wholesale customers in the United β¦ |