Southern Company (SO) Stock Analysis — PE Ratio, PS Ratio, Intrinsic Value & 2030 Price Target
Southern Company stock (SO) is currently trading at $94.61. Southern Company PE ratio is 24.14. Southern Company PS ratio (Price-to-Sales) is 3.58. Analyst consensus price target for SO is $101.24. WallStSmart rates SO as Underperform.
- SO PE ratio analysis and historical PE chart
- SO PS ratio (Price-to-Sales) history and trend
- SO intrinsic value — DCF, Graham Number, EPV models
- SO stock price prediction 2025 2026 2027 2028 2029 2030
- SO fair value vs current price
- SO insider transactions and insider buying
- Is SO undervalued or overvalued?
- Southern Company financial analysis — revenue, earnings, cash flow
- SO Piotroski F-Score and Altman Z-Score
- SO analyst price target and Smart Rating
Southern Company
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SO Intrinsic Value Analysis for Value Investors
Benjamin Graham Formula · Southern Company (SO)
SO trades 255% above its Graham fair value of $26.66, indicating the stock may be overvalued at current levels.
Based on Benjamin Graham Formula. Growth rate capped at 25%. For informational purposes only. Not financial advice.
Smart Analysis
Southern Company (SO) · 10 metrics scored
Smart Score
Category Performance
WallStSmart pulls financial metrics like revenue growth, profit margins, and valuation ratios and scores each one from 0 to 10 based on how strong or weak it is. Those 10 scores are grouped into 4 categories: Growth, Profitability, Valuation, and Quality — which form the 4 axes of the spider chart you see. The categories are then combined into a final score out of 100, but not equally. Growth and Profitability together count for 60% of the total, because a fast-growing profitable business matters more than just a cheap one. That final number maps to a rating (Strong Buy, Buy, Hold, Avoid) and a letter grade, giving you one clear Stock Rating.
Investment Thesis
Strong fundamentals in market cap, institutional own.. Concerns around eps growth. Fundamentals are solid but monitor weak areas for improvement.
Southern Company (SO) Key Strengths (2)
72.78% of shares held by major funds and institutions
Large-cap company with substantial market presence
Southern Company (SO) Areas to Watch (8)
Earnings declining -22.10%, profits shrinking
Paying a premium for growth, expensive relative to earnings expansion
Thin operating margins with cost pressures present
Moderate profitability with room for improvement
Revenue is fairly priced at 3.58x sales
Fairly priced relative to book value
Solid revenue growth at 10.10% per year
Decent profitability, keeps $15 per $100 revenue
Southern Company (SO) Detailed Analysis Report
Overall Assessment
This company scores 54/100 in our Smart Analysis, earning a C- grade. Out of 10 metrics analyzed, 2 register as strengths (avg 9.5/10) while 8 fall into concern territory (avg 4.6/10). The category breakdown reveals uneven performance, with some areas requiring attention.
The Bull Case
The strongest argument centers on Institutional Own., Market Cap.
The Bear Case
The primary concerns are EPS Growth, PEG Ratio, Operating Margin. Some valuation metrics including PEG Ratio (2.67), Price/Sales (3.58), Price/Book (2.90) suggest expensive pricing. Growth concerns include Revenue Growth at 10.10%, EPS Growth at -22.10%, which may limit upside. Profitability pressure is visible in Return on Equity at 11.00%, Operating Margin at 12.70%, Profit Margin at 14.70%.
Key Dynamics to Monitor
Three factors to monitor going forward. First, whether EPS Growth improves, as this is the primary drag on the overall score. Second, margin trajectory, with Return on Equity at 11.00% needing improvement to support the investment thesis. Third, growth sustainability, with Revenue Growth at 10.10% needing to reaccelerate.
Risk Considerations
Based on the metric profile, this is a moderate-to-high risk investment. There are more areas of concern than strength, warranting a more conservative position size. Investors should size positions according to their risk tolerance and maintain diversification.
Bottom Line
Mixed fundamentals with both positives (Institutional Own., Market Cap) and negatives (EPS Growth, PEG Ratio). A cautious approach is warranted. Monitor for improvement in weak areas before increasing conviction.
Disclaimer: Smart Analysis is a scoring system developed by WallStSmart Team. Scores update daily using multi-model valuation framework. Always conduct your own research and consult with financial advisors before making investment decisions.
SO Price-to-Sales(PS) Ratio Chart
Historical valuation based on market cap ÷ trailing 12-month revenue
SO's Price-to-Sales ratio of 3.58x trades at a 36% premium to its historical average of 2.64x (97th percentile). The current valuation is 4% below its historical high of 3.72x set in Mar 2026, and 96% above its historical low of 1.83x in May 2009.
WallStSmart Analysis Synopsis
Data-driven financial summary for Southern Company (SO) · UTILITIES › UTILITIES - REGULATED ELECTRIC
The Big Picture
Southern Company operates as a stable business with moderate growth and solid fundamentals. Revenue reached 29.6B with 10% growth year-over-year. Profit margins of 14.7% are healthy, with room for further expansion as the business scales.
Key Findings
ROE of 1100.0% means the company generates strong returns on shareholder equity. Above 20% is considered top-tier.
Free cash flow is -1.9B, meaning the company is burning cash. This may be acceptable for high-growth companies investing heavily.
What to Watch Next
Margin expansion: can Southern Company push profit margins above 15% as the business scales?
Dividend sustainability with a current yield of 3.1%. Watch payout ratio and free cash flow coverage.
Sector dynamics: monitor UTILITIES - REGULATED ELECTRIC industry trends, competitive moves, and regulatory changes that could impact Southern Company.
Bottom Line
Southern Company offers stability with moderate growth and solid fundamentals. The valuation may present an opportunity for patient investors, though limited growth means returns will likely come from dividends and modest capital appreciation rather than explosive gains.
This synopsis is generated from publicly available financial data. It is not financial advice. Always conduct your own research and consult a qualified financial advisor before making investment decisions.
Insider Transactions
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About Southern Company(SO)
NYSE
UTILITIES
UTILITIES - REGULATED ELECTRIC
USA
Southern Company is an American gas and electric utility holding company based in the southern United States. It is headquartered in Atlanta, Georgia, with executive offices also located in Birmingham, Alabama.