Is Southern Company Stock Worth Investing In?
January 7, 2024
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When looking for a sound stock to invest in, Southern Company ($NYSE:SO) can be an attractive option. The company is an energy-based holding company in the United States, with operations in electric utilities, natural gas, and other energy businesses. With such a large and successful corporation, it is no surprise that many investors are considering Southern Company stock for their portfolio. The question remains, however: should an investor purchase Southern Company stock? The answer is a qualified yes. The company has a history of consistent financial performance and steady overall growth. Currently, Southern Company’s stock price is about half of its five-year high, making it an attractive value play for investors looking to build long-term wealth.
Additionally, its dividend yield of over 4% is competitive compared to other stocks in the same sector. Overall, investors have good reasons to consider Southern Company stock for their portfolio. Its long history of reliable performance, attractive current price, and competitive dividend yield all make it an appealing choice for investors looking to increase their capital and maximize returns.
Stock Price
Southern Company stock opened at $69.7 on Tuesday and closed at $70.8, up by 1.0% from prior closing price of 70.1. This makes it an attractive investment option for investors who are looking to benefit from the stock’s current trajectory. The company has a proven track record of success and has consistently delivered strong financial results.
Additionally, the company offers a wide range of services and products that have a strong potential for growth in the future. Southern Company has also been actively involved in various initiatives to promote sustainability and reduce its carbon footprint. As such, investing in Southern Company stock could be a wise decision for those looking for a company with potential for long-term success. 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
At GoodWhale, we have conducted an analysis of SOUTHERN COMPANY‘s fundamentals. Our star chart shows that SOUTHERN COMPANY is strong in dividend, medium in profitability and weak in asset, growth. Based on this data, we classify SOUTHERN COMPANY as a ‘cow’, a type of company that has a track record of paying out consistent and sustainable dividends. This makes SOUTHERN COMPANY an attractive opportunity for investors looking for steady returns over the long-term. In addition, SOUTHERN COMPANY has an intermediate health score of 4/10 with regard to its cashflows and debt, which suggests that it is likely to sustain future operations in times of crisis. This makes SOUTHERN COMPANY a viable option for investors seeking a steady, stable return even in times of financial difficulty. 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 is an electricity utility in the southeastern United States with a focus on delivering electricity and natural gas to its customers. Analysts generally view Southern Company stock as a stable, long-term investment, but the stock has seen a weaker performance in recent years. For investors looking for dividend income and stability, the stock may be worth considering.
However, investors should consider the risks associated with the company’s operations, such as regulatory risks, pricing pressures, and environmental risk.
Additionally, there are also economic and political risks that may affect the stock’s performance. Overall, Southern Company remains a solid investment for those willing to take on some risk.
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