ScoreWhy is The Southern Co. ?
1
Weak Long Term Fundamental Strength with a 7.18% CAGR growth in Operating Profits over the last 5 years
- Low ability to service debt as the company has a high Debt to EBITDA ratio of 5.59 times
- The company has been able to generate a Return on Capital Employed (avg) of 6.62% signifying low profitability per unit of total capital (equity and debt)
- OPERATING CASH FLOW(Y) Highest at USD 9,220 MM
- DIVIDEND PER SHARE(HY) Highest at USD 6.58
2
With ROCE of 7.19%, it has a expensive valuation with a 1.63 Enterprise value to Capital Employed
- The stock is trading at a discount compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of 1.78%, its profits have risen by 8.1% ; the PEG ratio of the company is 3
3
Underperformed the market in the last 1 year
- The stock has generated a return of 1.78% in the last 1 year, much lower than market (S&P 500) returns of 14.11%
Real-Time Research ReportHow much should you sell?
- All quantity irrespective of whether you are making profits or losses
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Power)
When to re-enter? - We will constantly monitor the company and review our call based on new data
Is The Southern Co. for you?
Low Risk, Low Return
Absolute
Risk Adjusted
Volatility
The Southern Co.
3.5%
0.41
17.61%
S&P 500
14.9%
0.70
20.15%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
7.86%
EBIT Growth (5y)
7.70%
EBIT to Interest (avg)
2.81
Debt to EBITDA (avg)
5.59
Net Debt to Equity (avg)
1.96
Sales to Capital Employed (avg)
0.27
Tax Ratio
18.71%
Dividend Payout Ratio
75.11%
Pledged Shares
0
Institutional Holding
74.64%
ROCE (avg)
6.62%
ROE (avg)
12.95%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
27
Industry P/E
Price to Book Value
3.08
EV to EBIT
24.85
EV to EBITDA
13.61
EV to Capital Employed
1.71
EV to Sales
6.14
PEG Ratio
20.02
Dividend Yield
3.63%
ROCE (Latest)
6.86%
ROE (Latest)
11.49%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Mildly Bearish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bullish
Mildly Bullish
Moving Averages
Bullish (Daily)
KST
Bullish
Mildly Bearish
Dow Theory
Mildly Bullish
Mildly Bullish
OBV
Mildly Bearish
Bullish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend8What is working for the Company
OPERATING CASH FLOW(Y)
Highest at USD 9,802 MM
DIVIDEND PER SHARE(HY)
Highest at USD 7.07
DIVIDEND PAYOUT RATIO(Y)
Highest at 198.98%
CASH AND EQV(HY)
Highest at USD 4,982 MM
DEBTORS TURNOVER RATIO(HY)
Highest at 7.07 times
-13What is not working for the Company
ROCE(HY)
Lowest at 12.54%
INTEREST(Q)
At USD 895 MM has Grown at 16.99%
INTEREST COVERAGE RATIO(Q)
Lowest at 281.12
RAW MATERIAL COST(Y)
Grown by 7.62% (YoY
PRE-TAX PROFIT(Q)
Lowest at USD 177 MM
NET PROFIT(Q)
Lowest at USD 397 MM
EPS(Q)
Lowest at USD 0.37
Here's what is working for The Southern Co.
Operating Cash Flow
Highest at USD 9,802 MM and Grown
In each year in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (USD MM)
Dividend per share
Highest at USD 7.07 and Grown
In each year in the last five yearsMOJO Watch
Company is distributing higher dividend from profits generated
DPS (USD)
Cash and Eqv
Highest at USD 4,982 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is improving
Cash and Cash Equivalents
Debtors Turnover Ratio
Highest at 7.07 times
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its Debtors faster
Debtors Turnover Ratio
Dividend Payout Ratio
Highest at 198.98%
in the last five yearsMOJO Watch
Company is distributing higher proportion of profits generated as dividend
DPR (%)
Depreciation
Highest at USD 1,605 MM
in the last five periodsMOJO Watch
The expenditure on assets done by the company may have gone into operation
Depreciation (USD MM)
Here's what is not working for The Southern Co.
Pre-Tax Profit
At USD 177 MM has Fallen at -59.12%
Year on Year (YoY)MOJO Watch
Near term Pre-Tax Profit trend is very negative
Pre-Tax Profit (USD MM)
Interest
At USD 895 MM has Grown at 16.99%
period on period (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (USD MM)
Interest Coverage Ratio
Lowest at 281.12
in the last five periodsMOJO Watch
The company's ability to manage interest payments is deteriorating
Operating Profit to Interest
Pre-Tax Profit
Lowest at USD 177 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is negative
Pre-Tax Profit (USD MM)
Net Profit
Lowest at USD 397 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is negative
Net Profit (USD MM)
EPS
Lowest at USD 0.37
in the last five periodsMOJO Watch
Declining profitability; company has created lower earnings for shareholders
EPS (USD)
Raw Material Cost
Grown by 7.62% (YoY)
MOJO Watch
The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin
Raw Material Cost as a percentage of Sales
Non Operating Income
Highest at USD 0.82 MM
in the last five periodsMOJO Watch
Increased income from non business activities may not be sustainable
Non Operating income
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
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