The Southern Company (SO) Financial Ratios
30 years of historical data (1996–2025) · Utilities · Regulated Electric
EV/EBITDA
↓
12.71
-7% vs avg
5yr avg: 13.68
30Y Low4.7·High16.8
P/FCF
N/A
—
5yr avg: 109.00
30Y Low7.9·High177.8
P/B Ratio
↑
2.66
+14% vs avg
5yr avg: 2.32
30Y Low0.9·High2.5
ROE
↑
11.5%
↓+8% vs avg
5yr avg: 10.6%
30Y Low3%·High15%
Debt/EBITDA
↓
4.95
↓-17% vs avg
5yr avg: 5.94
30Y Low2.4·High8.8
Percentile shows where the current value sits in 30-year historical distribution. Sparklines show 5-year trend.
SO Valuation Multiples
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
The Southern Company trades at 23.7x earnings, roughly in line with its 5-year average of 22.9x, sitting at the 93rd percentile of its historical range. Compared to the Utilities sector median P/E of 19.0x, the stock trades at a premium of 25%.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $104.9B | $96.7B | $90.8B | $77.0B | $77.2B | $72.8B | $65.0B | $67.1B | $45.4B | $48.5B | $48.7B |
| Enterprise Value | $169.1B | $160.9B | $156.0B | $139.7B | $134.4B | $126.4B | $115.0B | $113.8B | $90.9B | $97.1B | $94.2B |
| P/E Ratio → | 23.75 | 22.24 | 20.63 | 19.37 | 21.90 | 30.35 | 20.82 | 14.16 | 20.43 | 57.25 | 19.91 |
| P/S Ratio | 3.55 | 3.27 | 3.40 | 3.05 | 2.64 | 3.15 | 3.19 | 3.13 | 1.93 | 2.10 | 2.45 |
| P/B Ratio | 2.66 | 2.49 | 2.48 | 2.19 | 2.24 | 2.23 | 2.00 | 2.09 | 1.55 | 1.87 | 1.82 |
| P/FCF | — | — | 109.00 | — | — | — | — | — | — | — | — |
| P/OCF | 10.71 | 9.87 | 9.28 | 10.19 | 12.25 | 11.80 | 9.71 | 11.60 | 6.54 | 7.58 | 9.95 |
P/E links to full P/E history page with 30-year chart
SO EV Ratios
Enterprise-value multiples — capital-structure-neutral measures of total business value
The Southern Company's enterprise value stands at 12.7x EBITDA, 7% below its 5-year average of 13.7x. The Utilities sector median is 11.9x, placing the stock at a 7% premium on an enterprise-value basis.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 5.44 | 5.84 | 5.53 | 4.59 | 5.47 | 5.64 | 5.31 | 3.87 | 4.22 | 4.73 |
| EV / EBITDA | 12.71 | 12.10 | 12.65 | 12.92 | 14.25 | 16.48 | 13.08 | 10.28 | 11.74 | 16.77 | 12.71 |
| EV / EBIT | 23.26 | 19.37 | 19.57 | 20.58 | 21.52 | 28.65 | 21.62 | 13.75 | 19.79 | 35.16 | 19.64 |
| EV / FCF | — | — | 187.28 | — | — | — | — | — | — | — | — |
SO Profitability
Margins and return-on-capital ratios measuring operating efficiency
The Southern Company earns an operating margin of 24.6%, above the Utilities sector average of 18.5%. Operating margins have expanded from 23.1% to 24.6% over the past 3 years, signaling improving operational efficiency. ROE of 11.5% is modest. ROIC of 5.3% represents adequate returns on invested capital.
Margins
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 29.8% | 29.8% | 49.9% | 46.4% | 36.3% | 44.3% | 48.6% | 44.8% | 40.9% | 43.1% | 42.9% |
| Operating Margin | 24.6% | 24.6% | 26.4% | 23.1% | 18.3% | 16.0% | 24.0% | 36.1% | 17.8% | 10.1% | 22.5% |
| Net Profit Margin | 14.7% | 14.7% | 16.5% | 15.7% | 12.1% | 10.4% | 15.4% | 22.2% | 9.5% | 3.8% | 12.5% |
Return on Capital
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 11.5% | 11.5% | 12.2% | 11.4% | 10.5% | 7.4% | 9.7% | 15.5% | 8.1% | 3.3% | 10.2% |
| ROA | 2.9% | 2.9% | 3.1% | 2.9% | 2.7% | 1.9% | 2.6% | 4.0% | 2.0% | 0.8% | 2.7% |
| ROIC | 5.3% | 5.3% | 5.3% | 4.6% | 4.5% | 3.3% | 4.5% | 7.6% | 4.2% | 2.4% | 5.5% |
| ROCE | 5.4% | 5.4% | 5.5% | 4.8% | 4.6% | 3.3% | 4.5% | 7.4% | 4.2% | 2.4% | 5.4% |
SO Leverage & Debt
Solvency and debt-coverage ratios — lower is generally safer
The Southern Company carries a Debt/EBITDA ratio of 4.9x, which is highly leveraged (roughly in line with the sector average of 5.2x). Net debt stands at $64.2B ($65.8B total debt minus $1.6B cash). Interest coverage of just 2.5x is concerning — the company has limited headroom to absorb earnings volatility before struggling with debt service.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 1.69 | 1.69 | 1.81 | 1.80 | 1.71 | 1.70 | 1.57 | 1.52 | 1.60 | 1.96 | 1.78 |
| Debt / EBITDA | 4.95 | 4.95 | 5.37 | 5.87 | 6.27 | 7.23 | 5.81 | 4.40 | 6.05 | 8.77 | 6.41 |
| Net Debt / Equity | — | 1.65 | 1.78 | 1.78 | 1.66 | 1.65 | 1.54 | 1.46 | 1.55 | 1.88 | 1.70 |
| Net Debt / EBITDA | 4.83 | 4.83 | 5.29 | 5.80 | 6.07 | 7.00 | 5.69 | 4.22 | 5.87 | 8.40 | 6.14 |
| Debt / FCF | — | — | 78.28 | — | — | — | — | — | — | — | — |
| Interest Coverage | 2.51 | 2.51 | 2.91 | 2.78 | 3.09 | 2.40 | 2.92 | 4.77 | 2.49 | 1.63 | 3.64 |
SO Liquidity & Efficiency
Short-term solvency ratios and asset-utilisation metrics
The current ratio of 0.65x is below 1.0, meaning current liabilities exceed current assets — though the company's $1.6B cash position helps mitigate short-term liquidity concerns. The current ratio has declined from 0.77x to 0.65x over the past 3 years.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 0.65 | 0.65 | 0.67 | 0.77 | 0.66 | 0.82 | 0.71 | 0.78 | 0.67 | 0.74 | 0.75 |
| Quick Ratio | 0.45 | 0.45 | 0.46 | 0.53 | 0.49 | 0.61 | 0.51 | 0.59 | 0.50 | 0.55 | 0.54 |
| Cash Ratio | 0.10 | 0.10 | 0.07 | 0.06 | 0.12 | 0.16 | 0.09 | 0.16 | 0.10 | 0.16 | 0.15 |
| Asset Turnover | — | 0.19 | 0.18 | 0.18 | 0.22 | 0.18 | 0.17 | 0.18 | 0.20 | 0.21 | 0.18 |
| Inventory Turnover | 6.22 | 6.22 | 3.97 | 4.04 | 6.97 | 5.46 | 4.21 | 4.95 | 5.80 | 4.99 | 4.09 |
| Days Sales Outstanding | — | — | — | — | — | — | — | — | — | — | — |
SO Shareholder Yields
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
The Southern Company returns 2.9% to shareholders annually primarily through dividends. A payout ratio of 69.5% is moderate and appears sustainable, balancing shareholder returns with reinvestment capacity. The earnings yield of 4.2% (inverse of P/E) provides a useful comparison to bond yields when assessing the stock's relative attractiveness to fixed income.
Dividends
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 2.9% | 3.1% | 3.3% | 3.9% | 3.8% | 3.8% | 4.1% | 3.8% | 5.3% | 4.7% | 4.3% |
| Payout Ratio | 69.5% | 69.5% | 67.1% | 76.3% | 82.2% | 115.3% | 85.7% | 54.1% | 108.2% | 261.4% | 84.4% |
Total Shareholder Return Metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 4.2% | 4.5% | 4.8% | 5.2% | 4.6% | 3.3% | 4.8% | 7.1% | 4.9% | 1.7% | 5.0% |
| FCF Yield | — | — | 0.9% | — | — | — | — | — | — | — | — |
| Buyback Yield | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.1% | 1.4% | 0.0% |
| Total Shareholder Yield | 2.9% | 3.1% | 3.3% | 3.9% | 3.8% | 3.8% | 4.1% | 3.8% | 5.4% | 6.1% | 4.3% |
| Shares Outstanding | — | $1.1B | $1.1B | $1.1B | $1.1B | $1.1B | $1.1B | $1.1B | $1.0B | $1.0B | $990M |
Peer Comparison
Compare SO with 10 similar companies in its peer group
| Company | Market Cap | P/E | EV/EBITDA | P/FCF | Gross Margin | Op Margin | ROE | ROIC | Debt/EBITDA |
|---|---|---|---|---|---|---|---|---|---|
 SOYou | $105B | 23.7 | 12.7 | — | 29.8% | 24.6% | 11.5% | 5.3% | 4.9 |
 DUK | $97B | 19.6 | 12.6 | — | 31.6% | 26.6% | 9.5% | 4.6% | 6.1 |
 D | $60B | 19.8 | 16.0 | — | 49.0% | 26.7% | 9.4% | 4.3% | 7.2 |
 AEP | $69B | 19.2 | 13.6 | — | 31.8% | 24.3% | 12.1% | 5.1% | 5.7 |
 EXC | $47B | 16.7 | 11.0 | — | 27.9% | 21.2% | 9.9% | 5.1% | 5.8 |
 XEL | $48B | 22.6 | 14.2 | — | 24.3% | 19.6% | 9.4% | 4.0% | 6.0 |
 PPL | $27B | 22.1 | 12.7 | — | 39.1% | 23.6% | 8.2% | 5.0% | 5.5 |
 ETR | $51B | 28.4 | 14.6 | — | 29.9% | 23.6% | 10.9% | 5.0% | 5.5 |
 NEE | $181B | 26.4 | 17.8 | — | 62.8% | 30.1% | 10.7% | 4.1% | 6.2 |
 ES | $26B | 15.3 | 10.4 | — | 30.1% | 22.1% | 10.7% | 4.9% | 5.6 |
 WEC | $37B | 23.2 | 15.3 | — | 50.5% | 24.2% | 11.6% | 5.1% | 5.8 |
| Utilities Median | — | 19.0 | 11.9 | 18.6 | 38.4% | 18.5% | 9.3% | 4.9% | 5.2 |
Peer selection based on competitive and market overlap. Compare multiple stocks →
Download Financial Ratios Data
Includes 30+ ratios · 30 years · Updated daily
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SO — Frequently Asked Questions
Quick answers to the most common questions about buying SO stock.
What is The Southern Company's P/E ratio?
The Southern Company's current P/E ratio is 23.7x. The historical average is 18.4x. This places it at the 93th percentile of its historical range.
What is The Southern Company's EV/EBITDA?
The Southern Company's current EV/EBITDA is 12.7x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 10.0x.
What is The Southern Company's ROE?
The Southern Company's return on equity (ROE) is 11.5%. The historical average is 11.5%.
Is SO stock overvalued?
Based on historical data, The Southern Company is trading at a P/E of 23.7x. This is at the 93th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
What is The Southern Company's dividend yield?
The Southern Company's current dividend yield is 2.92% with a payout ratio of 69.5%.
What are The Southern Company's profit margins?
The Southern Company has 29.8% gross margin and 24.6% operating margin. Operating margin above 20% indicates strong pricing power and cost efficiency.
How much debt does The Southern Company have?
The Southern Company's Debt/EBITDA ratio is 4.9x, indicating high leverage. A ratio above 4x may signal elevated financial risk.