The Southern Company Fundamental Analysis (XETRA: SOT.DE)
The Southern Company (XETRA: SOT.DE) shows moderate financial fundamentals with a PE ratio of 21.08, profit margin of 15.70%, and ROE of 13.40%. The company generates $31.8B in annual revenue with strong year-over-year growth of 10.59%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 34.7/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze SOT.DE's fundamental strength across five key dimensions:
Efficiency Score
WeakSOT.DE struggles to generate sufficient returns from assets.
Valuation Score
ModerateSOT.DE shows balanced valuation metrics.
Growth Score
ModerateSOT.DE shows steady but slowing expansion.
Financial Health Score
WeakSOT.DE carries high financial risk with limited liquidity.
Profitability Score
WeakSOT.DE struggles to sustain strong margins.
Key Financial Metrics
Is SOT.DE Expensive or Cheap?
P/E Ratio
SOT.DE trades at 21.08 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, SOT.DE's PEG of 2.68 indicates potential overvaluation.
Price to Book
The market values The Southern Company at 2.68 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 2.36 times EBITDA. This is generally considered low.
How Well Does SOT.DE Make Money?
Net Profit Margin
For every $100 in sales, The Southern Company keeps $15.70 as profit after all expenses.
Operating Margin
Core operations generate 24.56 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $13.40 in profit for every $100 of shareholder equity.
ROA
The Southern Company generates $3.05 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
The Southern Company generates strong operating cash flow of $10.77B, reflecting robust business health.
Free Cash Flow
The Southern Company generates weak or negative free cash flow of $-4.23B, restricting financial flexibility.
FCF Per Share
Each share generates $-3.68 in free cash annually.
FCF Yield
SOT.DE converts -3.89% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
21.08
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
2.68
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.68
vs 25 benchmark
P/S Ratio
Price to sales ratio
3.41
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.95
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.79
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.13
vs 25 benchmark
ROA
Return on assets percentage
0.03
vs 25 benchmark
ROCE
Return on capital employed
0.05
vs 25 benchmark
How SOT.DE Stacks Against Its Sector Peers
| Metric | SOT.DE Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 21.08 | 19.18 | Neutral |
| ROE | 13.40% | 986.00% | Weak |
| Net Margin | 15.70% | -519.00% (disorted) | Strong |
| Debt/Equity | 1.95 | 1.78 | Neutral |
| Current Ratio | 0.79 | 1.70 | Weak Liquidity |
| ROA | 3.05% | 289.00% | Weak |
SOT.DE outperforms its industry in 1 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews The Southern Company's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
39.13%
Industry Style: Defensive, Dividend, Income
High GrowthEPS CAGR
32.86%
Industry Style: Defensive, Dividend, Income
High GrowthFCF CAGR
40.41%
Industry Style: Defensive, Dividend, Income
High Growth