NYSE · Utilities

The Southern Company

SO · Utilities - Regulated Electric

$96.00

▼ -0.71 (-0.73%)

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Mr. Market is currently offering The Southern Company at $96.00.

The business passes only 3 of 7 of Graham's defensive criteria — well below his required standard.

Overall Grade

Defensive

Enterprising

Profitability A

Gross Profit Margin 48.5%

Operating Margin 24.7%

Net Income Margin 14.7%

Fin. Health F

Years to Pay Off Debt 17.1 yrs

Working Capital vs Long-Term Debt -$71.6B

Working Capital -$6.0B

Valuation F

Margin of Safety 0.0%

Price-to-Book 3.00x

Cash Flow F

Free Cash Flow -$2.9B

CapEx % of Net Income 293.4%

Owner Earnings $23.1B

3/7

Graham Score

Speculative

Defensive — Graham's strict criteria (P/B, P/E, dividends, stability) · Enterprising — Profitability & cash flow focused, accepts higher valuations for quality

Market Data

Market Cap $108.2B

Enterprise Value $186.8B

P/E (TTM) 24.55

Dividend Yield 3.06%

Exchange NYSE

Key Margins

Gross Profit 48.5%

Operating Margin 24.7%

Net Margin 14.7%

Company Info

Sector Utilities

Industry Utilities - Regulated Electric

Employees 29502

Country United States

Visit website

📖

Full Graham Analysis

Mr. Market is currently offering The Southern Company at $96.00.

The business passes only 3 of 7 of Graham's defensive criteria — well below his required standard.

At $96.00, the stock trades at a 81% premium to its Graham Number of $53.08. Graham would consider this price speculative.

There is no margin of safety at the current price. Graham would advise patience and waiting for a better entry point.

Negative NCAV — liabilities exceed current assets. Common in capital-return businesses (buybacks, debt-funded dividends) and capital-intensive industries. Not automatically a warning sign..

Conclusion: By Graham's standards, this stock is speculative at its current price. The intelligent investor would look elsewhere or wait.

About The Southern Company

The Southern Company, through its subsidiaries, engages in the sale of electricity. The company offers electric service to retail customers and wholesale customers; and energy-related products and services to natural gas choice markets. It also develops, constructs, acquires, owns, operates, and manages power generation assets, as well as battery energy storage projects; sells electricity at market-based rates in the wholesale market; and deploys microgrids for commercial, industrial, governmental, and utility customers. In addition, the company is involved in the distribution of natural gas in Illinois, Georgia, Virginia, and Tennessee; distributes energy and resilience solutions; and invests in telecommunications. The Southern Company was incorporated in 1945 and is headquartered in Atlanta, Georgia.

Showing Key Metrics

Income Highlights

Metric	2025	2024	2023	2022	2021
Gross Profit %	48.5% ▼	50.0%	46.6%	36.3%	N/A
Operating Margin %	24.7% ▼	26.4%	23.1%	18.3%	N/A
Net Income %	14.7% ▼	16.5%	15.7%	12.1%	N/A
Diluted EPS	3.92 ▼	3.99	3.62	3.26	N/A

Balance Sheet Highlights

Metric	2025	2024	2023	2022	2021
Total Assets	$155.7B	$145.2B	$139.3B	$134.9B	N/A
Total Debt	$74.1B ↑	$66.3B	$63.5B	$59.1B	N/A
Working Capital	-$6.0B ▼	-$5.3B	-$3.0B	-$5.3B	N/A
Years to Pay Debt	17.06	15.06	15.97	16.73	N/A

Cash Flow Highlights

Metric	2025	2024	2023	2022	2021
Free Cash Flow	-$2.9B ▼	$833M	-$1.5B	-$1.6B	N/A
Owner Earnings	$23.1B	$18.6B	$18.1B	$15.5B	N/A
CapEx % of Net Income	293.4%	203.5%	228.7%	224.1%	N/A

Income Statement

	2025	2024	2023	2022	2021
Tax Effect Of Unusual Items	56,440	43,475	30,552	42,112
Tax Rate For Calcs	0	0	0	0
Normalized EBITDA	13,927,000	13,003,000	11,509,000	10,085,000
Total Unusual Items	340,000	235,000	268,000	224,000
Total Unusual Items Excluding Goodwill	340,000	235,000	268,000	224,000
Net Income From Continuing Operation Net Minority Interest	4,341,000	4,401,000	3,976,000	3,535,000
Reconciled Depreciation	6,030,000	5,266,000	4,986,000	4,064,000
Reconciled Cost Of Revenue	14,700,000	12,850,000	13,016,000	18,251,000
EBITDA	14,267,000	13,238,000	11,777,000	10,309,000
EBIT	8,237,000	7,972,000	6,791,000	6,245,000
Net Interest Income	-3,238,000	-2,743,000	-2,446,000	-2,022,000
Interest Expense	3,238,000	2,743,000	2,446,000	2,022,000
Normalized Income	4,057,440	4,209,475	3,738,552	3,353,112
Net Income From Continuing And Discontinued Operation	4,341,000	4,401,000	3,976,000	3,535,000
Total Expenses	22,268,000	19,656,000	19,427,000	23,909,000
Total Operating Income As Reported	7,285,000	7,068,000	5,826,000	5,370,000
Diluted Average Shares	1,109,000	1,103,008	1,098,000	1,080,982
Basic Average Shares	1,103,000	1,096,000	1,092,000	1,075,000
Diluted EPS	0	0	0	0
Basic EPS	0	0	0	0
Diluted NI Availto Com Stockholders	4,341,000	4,401,000	3,976,000	3,524,000
Net Income Common Stockholders	4,341,000	4,401,000	3,976,000	3,524,000
Preferred Stock Dividends				11,000	15,000
Net Income	4,341,000	4,401,000	3,976,000	3,535,000
Minority Interests	170,000	141,000	127,000	107,000
Net Income Including Noncontrolling Interests	4,171,000	4,260,000	3,849,000	3,428,000
Net Income Continuous Operations	4,171,000	4,260,000	3,849,000	3,428,000
Tax Provision	828,000	969,000	496,000	795,000
Pretax Income	4,999,000	5,229,000	4,345,000	4,223,000
Other Income Expense	952,000	904,000	965,000	875,000
Other Non Operating Income Expenses	500,000	530,000	553,000	500,000
Special Income Charges	340,000	235,000	268,000	224,000
Gain On Sale Of Business				57,000	186,000
Other Special Charges	-340,000	-235,000	-268,000	-224,000
Write Off			0	251,000	2,000
Impairment Of Capital Assets				0	7,000
Earnings From Equity Interest	112,000	139,000	144,000	151,000
Net Non Operating Interest Income Expense	-3,238,000	-2,743,000	-2,446,000	-2,022,000
Interest Expense Non Operating	3,238,000	2,743,000	2,446,000	2,022,000
Operating Income	7,285,000	7,068,000	5,826,000	5,370,000
Operating Expense	7,039,000	6,295,000	5,950,000	5,257,000
Other Operating Expenses		-21,000	-68,000	183,000	1,692,000
Other Taxes	1,538,000	1,540,000	1,425,000	1,411,000
Depreciation Amortization Depletion Income Statement	5,501,000	4,755,000	4,525,000	3,663,000
Depreciation And Amortization In Income Statement	5,501,000	4,755,000	4,525,000	3,663,000
Gross Profit	14,324,000	13,363,000	11,776,000	10,627,000
Cost Of Revenue	15,229,000	13,361,000	13,477,000	18,652,000
Total Revenue	29,553,000	26,724,000	25,253,000	29,279,000
Operating Revenue	28,269,000	25,573,000	24,304,000	28,547,000

Balance Sheet

	2025	2024	2023	2022	2021
Treasury Shares Number	1,000	1,000	1,000	1,000
Ordinary Shares Number	1,119,237	1,099,000	1,090,815	1,099,000
Share Issued	1,120,237	1,100,000	1,091,815	1,100,000
Net Debt	70,952,000	63,754,000	61,252,000	55,633,000
Total Debt	74,075,000	66,277,000	63,490,000	59,135,000
Tangible Book Value	30,555,000	27,715,000	25,915,000	24,841,000
Invested Capital	108,607,000	98,032,000	93,444,000	87,958,000
Working Capital	-5,971,000	-5,299,000	-3,035,000	-5,308,000
Net Tangible Assets	30,555,000	27,715,000	25,915,000	24,841,000
Capital Lease Obligations	1,484,000	1,453,000	1,490,000	1,585,000
Common Stock Equity	36,016,000	33,208,000	31,444,000	30,408,000
Preferred Stock Equity					291,000
Total Capitalization	101,665,000	91,976,000	88,654,000	81,064,000
Total Equity Gross Minority Interest	38,867,000	36,674,000	35,225,000	34,532,000
Minority Interest	2,851,000	3,466,000	3,781,000	4,124,000
Stockholders Equity	36,016,000	33,208,000	31,444,000	30,408,000
Gains Losses Not Affecting Retained Earnings	-75,000	-78,000	-177,000	-167,000
Other Equity Adjustments	-75,000	-78,000	-177,000	-167,000
Treasury Stock	59,000	59,000	59,000	53,000
Retained Earnings	14,856,000	13,750,000	12,482,000	11,538,000
Additional Paid In Capital	15,740,000	14,149,000	13,775,000	13,673,000
Capital Stock	5,554,000	5,446,000	5,423,000	5,417,000
Common Stock	5,554,000	5,446,000	5,423,000	5,417,000
Preferred Stock				0	291,000
Total Liabilities Net Minority Interest	116,853,000	108,506,000	104,106,000	100,359,000
Total Non Current Liabilities Net Minority Interest	99,965,000	92,513,000	90,639,000	84,635,000
Other Non Current Liabilities	2,036,000	2,016,000	1,957,000	1,903,000
Employee Benefits	980,000	1,011,000	1,115,000	1,238,000
Non Current Deferred Liabilities	20,352,000	19,570,000	18,762,000	18,571,000
Non Current Deferred Taxes Liabilities	18,847,000	18,220,000	17,731,000	17,404,000
Long Term Debt And Capital Lease Obligation	66,936,000	60,021,000	58,517,000	52,044,000
Long Term Capital Lease Obligation	1,287,000	1,253,000	1,307,000	1,388,000
Long Term Debt	65,649,000	58,768,000	57,210,000	50,656,000
Long Term Provisions	8,939,000	9,203,000	9,573,000	10,146,000
Current Liabilities	16,888,000	15,993,000	13,467,000	15,724,000
Other Current Liabilities	1,673,000	1,822,000	1,678,000	1,347,000
Current Deferred Liabilities	475,000	486,000	503,000	502,000
Current Deferred Revenue	475,000	486,000	503,000	502,000
Current Debt And Capital Lease Obligation	7,139,000	6,256,000	4,973,000	7,091,000
Current Capital Lease Obligation	197,000	200,000	183,000	197,000
Current Debt	6,942,000	6,056,000	4,790,000	6,894,000
Other Current Borrowings	6,220,000	4,718,000	2,476,000	4,285,000
Current Notes Payable	722,000	1,338,000	2,314,000	2,609,000
Pensionand Other Post Retirement Benefit Plans Current	1,418,000	1,261,000	1,151,000	1,127,000
Current Provisions	662,000	731,000	744,000	694,000
Payables And Accrued Expenses	5,521,000	5,437,000	4,418,000	4,963,000
Current Accrued Expenses	807,000	682,000	652,000	614,000
Interest Payable	807,000	682,000	652,000	614,000
Payables	4,714,000	4,755,000	3,766,000	4,349,000
Total Tax Payable	1,004,000	1,054,000	868,000	824,000
Income Tax Payable	22,000	57,000	8,000	60,000
Accounts Payable	3,710,000	3,701,000	2,898,000	3,525,000
Total Assets	155,720,000	145,180,000	139,331,000	134,891,000
Total Non Current Assets	144,803,000	134,486,000	128,899,000	124,475,000
Non Current Prepaid Assets	3,257,000	2,674,000	2,079,000	2,290,000
Non Current Deferred Assets	2,823,000	3,044,000	3,835,000	4,645,000
Investments And Advances	4,265,000	4,037,000	3,792,000	3,588,000
Other Investments	2,947,000	2,621,000	2,424,000	2,145,000
Long Term Equity Investment	1,318,000	1,416,000	1,368,000	1,443,000
Investmentsin Subsidiariesat Cost	1,318,000	1,416,000	1,368,000	1,443,000
Goodwill And Other Intangible Assets	5,461,000	5,493,000	5,529,000	5,567,000
Other Intangible Assets	300,000	332,000	368,000	406,000
Goodwill	5,161,000	5,161,000	5,161,000	5,161,000
Net PPE	116,441,000	106,743,000	101,941,000	96,703,000
Accumulated Depreciation	-43,483,000	-40,126,000	-37,725,000	-35,297,000
Gross PPE	159,924,000	146,869,000	139,666,000	132,000,000
Construction In Progress	10,534,000	6,389,000	7,784,000	10,896,000
Other Properties	2,969,000	2,927,000	2,955,000	2,976,000
Current Assets	10,917,000	10,694,000	10,432,000	10,416,000
Other Current Assets	1,486,000	1,633,000	1,927,000	1,644,000
Hedging Assets Current	63,000	39,000	36,000	115,000
Prepaid Assets	327,000	294,000	406,000	347,000
Inventory	3,333,000	3,369,000	3,352,000	2,677,000
Other Inventories	396,000	388,000	420,000	438,000
Receivables	4,069,000	4,289,000	3,963,000	3,716,000
Receivables Adjustments Allowances	-84,000	-74,000	-68,000	-71,000
Other Receivables	971,000	1,310,000	1,215,000	647,000
Accounts Receivable	2,251,000	2,228,000	2,030,000	2,128,000
Cash Cash Equivalents And Short Term Investments	1,639,000	1,070,000	748,000	1,917,000
Cash And Cash Equivalents	1,639,000	1,070,000	748,000	1,917,000

Cash Flow

	2025	2024	2023	2022	2021
Free Cash Flow	-2,935,000	833,000	-1,542,000	-1,621,000
Repurchase Of Capital Stock		0	0	-298,000	0
Repayment Of Debt	-5,878,000	-3,890,000	-5,924,000	-3,645,000
Issuance Of Debt	12,670,000	6,859,000	10,295,000	7,782,000
Issuance Of Capital Stock	1,623,000	143,000	36,000	1,808,000
Capital Expenditure	-12,737,000	-8,955,000	-9,095,000	-7,923,000
Interest Paid Supplemental Data	2,692,000	2,538,000	2,184,000	1,758,000
Income Tax Paid Supplemental Data	284,000	176,000	132,000	146,000
End Cash Position	1,640,000	1,101,000	921,000	2,037,000
Beginning Cash Position	1,101,000	921,000	2,037,000	1,829,000
Changes In Cash	539,000	180,000	-1,116,000	208,000
Financing Cash Flow	4,696,000	-208,000	999,000	2,336,000
Cash Flow From Continuing Financing Activities	4,696,000	-208,000	999,000	2,336,000
Net Other Financing Charges	-704,000	-366,000	-373,000	-404,000
Cash Dividends Paid	-3,015,000	-2,954,000	-3,035,000	-2,907,000
Common Stock Dividend Paid	-3,015,000	-2,954,000	-3,035,000	-2,907,000
Net Preferred Stock Issuance		0	0	-298,000	0
Preferred Stock Payments		0	0	-298,000	0
Net Common Stock Issuance	1,623,000	143,000	36,000	1,808,000
Common Stock Issuance	1,623,000	143,000	36,000	1,808,000
Net Issuance Payments Of Debt	6,792,000	2,969,000	4,371,000	4,137,000
Net Short Term Debt Issuance	-214,000	-968,000	-307,000	1,163,000
Short Term Debt Payments	-414,000	-1,668,000	-1,630,000	-1,487,000
Short Term Debt Issuance	200,000	700,000	1,323,000	2,650,000
Net Long Term Debt Issuance	7,006,000	3,937,000	4,678,000	2,974,000
Long Term Debt Payments	-5,464,000	-2,222,000	-4,294,000	-2,158,000
Long Term Debt Issuance	12,470,000	6,159,000	8,972,000	5,132,000
Investing Cash Flow	-13,959,000	-9,400,000	-9,668,000	-8,430,000
Cash Flow From Continuing Investing Activities	-13,959,000	-9,400,000	-9,668,000	-8,430,000
Net Other Investing Changes	-571,000	-798,000	-716,000	-769,000
Net Investment Purchase And Sale	-17,000	-16,000	-21,000	-13,000
Sale Of Investment	1,685,000	1,535,000	1,121,000	1,112,000
Purchase Of Investment	-1,702,000	-1,551,000	-1,142,000	-1,125,000
Net Business Purchase And Sale	-634,000	369,000	164,000	275,000
Sale Of Business	1,000	369,000	164,000	275,000
Purchase Of Business	-635,000	0	0		-345,000
Net PPE Purchase And Sale	-12,737,000	-8,955,000	-9,095,000	-7,923,000
Purchase Of PPE	-12,737,000	-8,955,000	-9,095,000	-7,923,000
Operating Cash Flow	9,802,000	9,788,000	7,553,000	6,302,000
Cash Flow From Continuing Operating Activities	9,802,000	9,788,000	7,553,000	6,302,000
Change In Working Capital	399,000	1,421,000	-135,000	160,000
Change In Other Working Capital	534,000	1,046,000	851,000	19,000
Change In Other Current Liabilities	99,000	115,000	149,000	153,000
Change In Other Current Assets	47,000	-47,000	-106,000	-186,000
Change In Payables And Accrued Expense	-201,000	728,000	-798,000	1,072,000
Change In Accrued Expense	125,000	30,000	42,000
Change In Interest Payable	125,000	30,000	42,000
Change In Payable	-326,000	698,000	-840,000	1,072,000
Change In Account Payable	-290,000	492,000	-863,000	1,021,000
Change In Tax Payable	-36,000	206,000	23,000	51,000
Change In Income Tax Payable	-36,000	206,000	23,000	51,000
Change In Inventory	44,000	-49,000	-713,000	-127,000
Change In Receivables	-124,000	-372,000	482,000	-771,000
Other Non Cash Items	-1,225,000	-1,361,000	-1,173,000	-1,799,000
Stock Based Compensation	136,000	132,000	137,000	127,000
Asset Impairment Charge			0	251,000	91,000
Deferred Tax	618,000	626,000	416,000	758,000
Deferred Income Tax	618,000	626,000	416,000	758,000
Depreciation Amortization Depletion	6,030,000	5,266,000	4,986,000	4,064,000
Depreciation And Amortization	6,030,000	5,266,000	4,986,000	4,064,000
Operating Gains Losses	-327,000	-556,000	-527,000	-436,000
Pension And Employee Benefit Expense	-579,000	-556,000	-527,000	-436,000
Gain Loss On Sale Of Business					-176,000
Net Income From Continuing Operations	4,171,000	4,260,000	3,849,000	3,428,000

These metrics estimate what The Southern Company is worth based on its fundamentals — independent of what the market currently prices it at. Graham's Fair Value and NCAV are conservative floors rooted in 1930s–60s principles. EPV assumes zero growth. None are price targets — they are reference points for judging whether the current price offers a margin of safety.

Graham's Fair Value

$53.08

Margin of Safety

Market Cap ÷ Company Value

2.62

P/B Ratio

3.00

Warren's Owner Earnings

$23.1B

Latest fiscal year

Graham's 7 Criteria

Defensive Investor Checklist

3/7 — Speculative Investor

✅ Adequate Size

$29.6B

vs > $1.5B revenue

❌ Strong Financial Condition

0.65x

vs Current Ratio > 2.0x

✅ Earnings Stability

No loss years (4 yrs data)

vs No negative EPS years

✅ Dividend Record

3.06%

vs Uninterrupted dividends

❌ Earnings Growth

+20.2% EPS growth

vs > 33% EPS growth

❌ Moderate P/E Ratio

24.6x

vs P/E ≤ 15.0x

❌ Moderate Price-to-Book

3.00x P/B (P/E×P/B: 73.8)

vs P/B ≤ 1.5x | P/E × P/B ≤ 22.5

Net Current Asset Value

$-93.97

Negative NCAV — liabilities exceed current assets. Common in capital-return businesses (buybacks, debt-funded dividends) and capital-intensive industries. Not automatically a warning sign.

"Buy at two-thirds of net current assets." — Graham

Earnings Power Value

$71.80

Per share, no-growth floor. Compare to current price.

Cash Flow Analysis

Metric	2025	2024	2023	2022	2021
Capital Expenditure % of Net Income	293.4%	203.5%	228.7%	224.1%	N/A
Repurchase of Capital Stock	N/A	$0M	$0M	-$298M	$0M
Free Cash Flow	-$2.9B ▼	$833M ▲	-$1.5B ▲	-$1.6B •	N/A •
Warren's Owner Earnings	$23.1B	$18.6B	$18.1B	$15.5B	N/A

Peers & Industry

No auto-detected peers for Utilities - Regulated Electric. You can manually compare SO against any stock using the Compare tool.

"The management of a business is its most important single factor — more important than market position, patents, or financial structure."

— Benjamin Graham

Capital Allocation & Alignment

Insider Ownership

0.10%

Low — management has little skin in the game

Return on Equity (ROE)

12.1%

Adequate — returns are moderate

Return on Assets (ROA)

2.8%

Fair — average asset utilization

Debt Trend YoY

+11.8% YoY

Debt is growing — management is leveraging up

Leadership Team

Christopher Womack

CEO, President & Chairman

Age 67

Pay: $5,431,992

0.125% of net income

David Poroch

Executive VP & CFO

Age 55

Pay: $1,599,434

0.037% of net income

Stanley Connally Jr.

Executive VP & COO

Age 56

Pay: $2,327,228

0.054% of net income

Kimberly Scheibe Greene

Chairman, President & CEO of Georgia Power

Age 59

Pay: $2,873,203

0.066% of net income

Jeffrey Peoples

Chairman, President & CEO of Alabama Power Company

Age 65

Pay: $2,460,797

0.057% of net income

Top Institutional Holders

Institution	% Owned	Shares
Vanguard Group Inc	9.59%	108,057,413
Blackrock Inc.	7.86%	88,563,758
JPMORGAN CHASE & CO	5.48%	61,770,419
State Street Corporation	5.45%	61,490,694
Capital World Investors	3.65%	41,142,076
Price (T.Rowe) Associates Inc	3.06%	34,459,462
Geode Capital Management, LLC	2.42%	27,259,125
FMR, LLC	2.04%	23,006,431

⚠️ Current ratio below 1 — liquidity risk

Risk Analysis

Beta (Market Risk)

0.36

Low volatility — more stable than the market

Short Interest

2.2% of float

Low short interest — market is not heavily bearish

Debt-to-Equity

1.90x

Moderate leverage

Current Ratio