- Investing.com
Energy Transition | Southern Company's shift to cleaner energy sources and nuclear power expansion positions it for sustainable growth and regulatory favo |
Financial Strength | Strong Q1 2024 results and projected EPS growth of 5-7% underscore Southern's robust financial performance and positive outlook |
Valuation Concerns | Trading at a significant premium to peers raises questions about Southern's ability to outperform in the near term |
Dividend Reliability | With 23 years of consecutive dividend increases and a yield of 3.6%, Southern remains an attractive option for income-focused investors |
The Southern Company, through its subsidiaries, engages in the generation, transmission, and distribution of electricity. 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, gas distribution operations, and gas pipeline investments operations. In addition, it owns and operates nuclear, coal, hydro, cogeneration, solar, wind, battery storage, and fuel cell facilities. Further, the constructs, operates, and maintains approximately 77,900 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 8.9 million electric and gas utility customers. Further, it develops distributed energy and resilience solutions; deploys microgrids for commercial, industrial, governmental, and utility customers; and offers digital wireless communications and fiber optics services. The Southern Company was incorporated in 1945 and is headquartered in Atlanta, Georgia.
Metrics to compare | SO | Sector Sector - Average of metrics from a broad group of related Utilities sector companies | Relationship RelationshipSOPeersSector | |
---|---|---|---|---|
P/E Ratio | 21.5x | 19.1x | 12.0x | |
PEG Ratio | 0.44 | 1.26 | 0.02 | |
Price/Book | 3.1x | 2.0x | 1.3x | |
Price / LTM Sales | 3.8x | 2.6x | 1.6x | |
Upside (Analyst Target) | −0.2% | 3.5% | 13.8% | |
Fair Value Upside | Unlock | −16.3% | 1.8% | Unlock |