Southern Company Intrinsic Value – Southern Co. Stock Falls Monday, Still Outperforms Market Despite Dip
December 5, 2023
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Monday was not a great day for Southern ($NYSE:SO) Co. stock, as it fell in the market. But despite this dip, the stock still managed to outperform the overall market. Southern Co. is an American energy company that provides electricity to customers in the southeastern United States. Through its subsidiaries, Southern Co. offers a wide range of electricity services, including generation, transmission, distribution, fuel extraction, and trading.
It also serves as a major provider of natural gas services in some states. Southern Co. is known for its commitment to sustainability and renewable energy sources, and recently announced plans to invest $1 billion in solar energy projects over the next four years. Overall, Southern Co. is well positioned to remain a leader in the energy industry for many years to come.
Share Price
On Monday, SOUTHERN COMPANY stock opened at $71.2 and closed at $71.3, down by 0.3% from last closing price of 71.5. Despite the small dip in price, the company still outperformed the market as a whole. The company’s solid performance in the market provides a good outlook for the future. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Southern Company. More…
| Total Revenues | Net Income | Net Margin |
| 26.25k | 3.03k | 11.3% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Southern Company. More…
| Operations | Investing | Financing |
| 7.03k | -9.2k | 2.05k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Southern Company. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 138.32k | 103.02k | 28.77 |
Key Ratios Snapshot
Some of the financial key ratios for Southern Company are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 9.2% | 1.2% | 21.6% |
| FCF Margin | ROE | ROA |
| -7.5% | 11.5% | 2.6% |
Analysis – Southern Company Intrinsic Value
At GoodWhale, we conducted an analysis of SOUTHERN COMPANY‘s financials and have determined the intrinsic value of its shares to be around $70.2. This value was calculated using our proprietary Valuation Line which is based on various financial metrics such as price-to-earnings ratio, return on capital employed, and more. Currently, SOUTHERN COMPANY stock is traded at $71.3, which is slightly higher than our estimated intrinsic value. We believe this is a fair price, however it is slightly overvalued by 1.5%. More…
Peers
In the electric utility industry, there is intense competition between Southern Co and its competitors: NextEra Energy Inc, Avangrid Inc, Entergy Corp. These companies are all vying for market share in the Southeast region of the United States.
– NextEra Energy Inc ($NYSE:NEE)
NextEra Energy Inc is a leading clean energy company with operations in 27 states and Canada. The company has a market cap of 143.98B as of 2022 and a Return on Equity of 4.45%. NextEra Energy Inc is committed to providing clean, safe and reliable energy to its customers. The company has a diversified portfolio of generation assets that includes wind, solar, nuclear and natural gas. NextEra Energy Inc is also one of the largest electric utilities in the United States.
– Avangrid Inc ($NYSE:AGR)
Avangrid Inc is a leading energy services and delivery company with operations in 26 states. It has a market cap of 15.4 billion and a return on equity of 3.84%. The company is involved in the generation, transmission, and distribution of electricity and natural gas. It also provides renewable energy solutions.
– Entergy Corp ($NYSE:ETR)
Entergy Corporation is an integrated energy company engaged primarily in electric power production and retail distribution operations. Entergy owns and operates power plants with approximately 30,000 megawatts of electric generating capacity, including nearly 10,000 megawatts of nuclear power. Entergy delivers electricity to 2.9 million utility customers in Arkansas, Louisiana, Mississippi, and Texas.
Summary
Southern Company (SOU) stock experienced a slight decline on Monday, yet still outperformed the overall market. Investors should take note of the company’s strong performance in the past year as well as its potential for growth in the future. Analysts believe that the company’s competitive advantages, such as its expansive customer base, reliable energy supply, and strong financials, should continue to benefit SOU. The company’s strategic investments in renewable energy and emerging markets provide investors with an opportunity to capitalize on future growth and innovation.
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