-0.28%
2.88%
-6.96%
1.40%
21.82%
21.87%
20.30%

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

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

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.

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.

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.

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.

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%

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. …
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 …
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 …
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 …
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 …

Peers Metrics

DCF BETA

Parameters

Short Term Growth
Short term Time
Long-Term Growth
WACC
Target Price
84.69$
Current Price
84.69$
Potential
-0.00%

Expected Cash-Flows

Scoring Insights

Peers Group Analysis

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