Upside case
Bull case
$32+58.5%
SOJD would need investors to value it at roughly 7x earnings — about 3x more generous than today's 4x forward P/E. That requires meaningful multiple expansion on top of continued earnings growth.
Analysis OverviewNo CoverageUpdated —
Southern Company (The) Series 2 (SOJD) Stock Analysis
Wall Street verdict, consensus price target, and analyst rating breakdown — everything needed to frame the risk/reward at today's price.
Analyst consensus
Mixed
Covering
—
analysts
0 bullish · 0 bearish · 0 covering SOJD
Strong Buy
0
Buy
0
Hold
0
Sell
0
Strong Sell
0
Consensus Target
—
— vs today
Scenario Range
$11 – $32
Model bear to bull value window
Coverage
—
Published analyst ratings
Valuation Context
4.4x
Forward P/E · Market cap $22.5B
SOJD price targets
Three scenarios for where SOJD stock could go
Current
~$20
Confidence
52 / 100
Updated
—
Where we are now
Current · $20
Bear
$11
Base
$24
Bull
$32
Market caseClosest to today
Base case
$24+18.2%
At 5x on FY1 earnings, the base case reflects a reasonable but not stretched valuation. It prices in continued growth without assuming an exceptional setup.
Stress case
Bear case
$11-43.5%
If investor confidence fades or macro conditions deteriorate, a 2x multiple contraction could push SOJD down roughly 44% from where it trades now.
Not financial advice. Model confidence reflects internal scenario assumptions, not a guarantee of returns. Past performance does not predict future results.
Southern Company (The) Series 2
SOJD · NYSEUtilitiesRegulated ElectricDecember year-end
Southern Company is a major regulated electric utility holding company that generates and distributes electricity across the southeastern United States. It makes money primarily through regulated utility operations — selling electricity to retail customers in its service territories — with additional revenue from wholesale power sales and natural gas distribution. Its key advantage is its regulated monopoly status in its core service areas, providing stable cash flows through rate-based returns on its substantial infrastructure investments.
Market Cap
$22.5B
Revenue TTM
$29.6B
Net Income TTM
$4.3B
Net Margin
14.7%
SOJD Revenue and Earnings Performance
Quarterly beat-or-miss track record against analyst estimates, plus forward revenue and EPS outlook for the next two fiscal years.
EPS Beat Rate
64%Exceptional
12 quarters tracked
Revenue Beat Rate
73%Exceptional
vs consensus estimates
Avg EPS Surprise
+4.8%
above Street consensus
Beat / Miss Record
BeatMissLeft = EPS · Right = Revenue
Q2 2025
Q3 2025
Q4 2025
Q1 2026
Last 4 Quarters
EPS beats: 2 of 4Q2 2025
EPS
$1.21/$1.20
Revenue
$7.8B/$7.2B
Q3 2025
EPS
$0.79/$0.88
Revenue
$7.0B/$6.4B
Q4 2025
EPS
$1.54/$1.51
Revenue
$7.8B/$7.6B
Q1 2026
EPS
$0.55/$0.56
Revenue
$7.0B/$6.1B
| Quarter | EPS (Actual / Est) | EPS Surprise | Revenue (Actual / Est) | Rev Surprise |
|---|---|---|---|---|
| Q2 2025 | $1.21/$1.20 | +0.8% | $7.8B/$7.2B | +8.7% |
| Q3 2025 | $0.79/$0.88 | -9.3% | $7.0B/$6.4B | +9.6% |
| Q4 2025 | $1.54/$1.51 | +2.0% | $7.8B/$7.6B | +2.7% |
| Q1 2026 | $0.55/$0.56 | -1.4% | $7.0B/$6.1B | +14.5% |
FY1–FY2 Estimates
Revenue Outlook
FY1
$31.4B
+6.4% YoY
FY2
$33.5B
+6.6% YoY
EPS Outlook
FY1
$4.27
+9.2% YoY
FY2
$4.63
+8.4% YoY
Trailing FCF (TTM)$9.8B
FCF Margin: 33.2%
Next Earnings
—
Expected EPS
—
Expected Revenue
—
SOJD beat EPS estimates in 2 of 4 tracked quarters. Mixed delivery makes the upcoming report a key data point for re-rating.
SOJD Revenue Breakdown by Segment
Product and geographic revenue mix from the latest annual disclosure, with year-over-year growth by segment.
Latest disclosure
FY 2025
Total disclosed revenue $10.1B
Product Mix
Latest annual revenue by segment or product family
Southern Company Gas
50.0%
+13.2% YoY
Tap, hover, or focus a slice to inspect segment detail.
Geographic Mix
Latest annual revenue by reported region
Segment breakdown not available for this company.
Southern Company Gas is the largest disclosed segment at 50.0% of FY 2025 revenue, up 13.2% YoY.
SOJD Valuation Snapshot
Current multiples compared to the S&P 500, the company's sector, and its own five-year average.
Relative Value Signal
Significantly Undervalued
Fair value est. $72 — implies +256.6% from today's price.
Upside to Fair Value
256.6%
potential upside
Deep DiscountFair ValueVery Expensive
vs S&P 500 Trailing P/E
SOJD
5.1x
vs
S&P 500
25.2x
80% discount
vs Utilities Trailing P/E
SOJD
5.1x
vs
Utilities
19.7x
74% discount
vs SOJD 5Y Avg P/E
Today
5.1x
vs
5Y Average
6.9x
26% discount
Forward PE
4.4x
S&P 500
19.1x
-77%
Utilities
17.2x
-74%
5Y Avg
—
—
Trailing PE
5.1x
S&P 500
25.2x
-80%
Utilities
19.7x
-74%
5Y Avg
6.9x
-26%
PEG Ratio
0.75x
S&P 500
1.75x
-57%
Utilities
1.73x
-56%
5Y Avg
—
—
EV/EBITDA
7.2x
S&P 500
15.3x
-53%
Utilities
11.5x
-37%
5Y Avg
8.3x
-12%
Price/FCF
—
S&P 500
21.3x
—
Utilities
15.4x
—
5Y Avg
113.5x
—
Price/Sales
0.8x
S&P 500
3.1x
-76%
Utilities
2.2x
-65%
5Y Avg
0.9x
-17%
Dividend Yield
13.54%
S&P 500
1.88%
+621%
Utilities
3.07%
+341%
5Y Avg
12.39%
+9%
| Metric | SOJD | S&P 500 | Utilities | 5Y Avg SOJD |
|---|---|---|---|---|
| Forward PE | 4.4x | 19.1x-77% | 17.2x-74% | — |
| Trailing PE | 5.1x | 25.2x-80% | 19.7x-74% | 6.9x-26% |
| PEG Ratio | 0.75x | 1.75x-57% | 1.73x-56% | — |
| EV/EBITDA | 7.2x | 15.3x-53% | 11.5x-37% | 8.3x-12% |
| Price/FCF | — | 21.3x | 15.4x | 113.5x |
| Price/Sales | 0.8x | 3.1x-76% | 2.2x-65% | 0.9x-17% |
| Dividend Yield | 13.54% | 1.88% | 3.07% | 12.39% |
SOJD trades above S&P 500 benchmarks on 0 of 5 measured multiples — appears modestly priced relative to the S&P 500 on most measures.
Forward P/E and PEG reflect analyst consensus estimates. Historical averages use trailing ratios where forward data is unavailable.S&P 500 and sector benchmarks both use trailing median P/E — similar readings indicate the broader index and sector are priced alike.
Open valuation toolSOJD Financial Health
Verdict
Exceptional
SOJD earns 24.7% operating margin on regulated earnings, 13.5% dividend yield. Utilities carry higher leverage than industrials as a structural feature of the business model.
Regulated Operations
Revenue, regulated margins, and earnings
Revenue (TTM)
Trailing-twelve-month sales base
$29.6B
Revenue Growth
TTM vs prior year
+10.6%
Operating Margin
Operating income divided by revenue
24.7%
Net Margin
Net income divided by revenue
14.7%
EPS (TTM)
Diluted earnings per share, trailing twelve months
$3.91
Operating Margin
Operating income over revenue — primary regulated earnings signal
24.7%
Capital Quality
ROIC, leverage, and debt serviceability
ROIC
Return on invested capital — primary competitive quality signal
5.1%
ROA
Return on assets, trailing twelve months
2.9%
Cash & Equivalents
Liquid assets on the balance sheet
$1.6B
Net Debt
Total debt minus cash
$73.7B
Debt Serviceability
Net debt as a multiple of annual free cash flow
7.5× FCF
Regulated utilities typically operate at 3–5× net debt/FCF — this is structural, not a risk flag.
ROE
Return on equity, trailing twelve months
11.4%
Shareholder Returns
How capital is returned to owners
Total shareholder yield
13.5%
Dividend
13.5%
Buyback
0.0%
Share Repurchases
Trailing buyback outflow — dollar magnitude of capital returned
$0
Dividend / Share
Annualized trailing dividend per share
$2.72
Payout Ratio
Share of earnings distributed as dividends
69.5%
Shares Outstanding
Current diluted share count
1.1B
All figures from the trailing twelve months. Utilities operate with structural leverage (3–5× net debt/FCF) due to regulated, predictable cash flows.
Open full ratios pageSOJD Stock Risk Factors
Key factors that could pressure the stock price, compress the multiple, or weigh on future results.
AI analysis · updated April 29, 2026
High Risk
Valuation Risk
SOJD's Price-to-Book (P/B) ratio stands at 6.2, significantly higher than most companies in its industry, indicating potential overvaluation. This high ratio suggests that investors may have inflated expectations for the company's asset returns.
High Risk
Financial Health Risk
The company's debt-to-equity ratio is alarmingly high at 190.59%, signaling substantial financial risk. Despite a trailing twelve months (TTM) return on investment (ROI) of 11.04% and a net profit margin of 14.69%, the elevated debt levels could jeopardize financial stability.
Medium
Market and Volatility Risk
SOJD has a low beta of 0.42, indicating it is largely uncorrelated with the S&P 500 Index. However, an RSI14 of 84 suggests the stock may be overbought, increasing the potential for higher daily price movements despite its generally low volatility.
Medium
Sentiment and Trading Signals
Near-term sentiment for SOJD is weak, which may lead to bearish positioning among investors. Although the stock shows buy signals from both short and long-term Moving Averages, the lack of strong consensus from insider sentiment could pose risks.
These are risk mechanisms, not predictions. The key question is which would force a cut to earnings estimates or a lower multiple than the market currently prices in.
Why SOJD Stock Could Outperform
Structural drivers behind the upside case and why the stock could outperform over the next 12 months.
AI analysis · updated April 29, 2026
Stable Income Stream
SOJD is a preferred stock, offering a fixed annual dividend of $1.24 per share, which translates to a yield of 6.08%. This predictable income stream is particularly attractive for investors during uncertain economic times.
Utility Sector Stability
Southern Company operates in the utility sector, focusing on electricity generation, transmission, and distribution in the southeastern United States. Utility companies are typically defensive investments, providing essential services that make them less vulnerable to economic downturns.
Lower Volatility
Preferred stocks like SOJD tend to exhibit lower volatility compared to common stocks. They provide more predictable returns and have a higher claim on assets and earnings than common shareholders in the event of liquidation.
Technical Indicators Favorable
Technical indicators show a positive outlook for SOJD, with buy signals from both short and long-term Moving Averages. The short-term average is above the long-term average, suggesting potential upward momentum, along with a buy signal from the 3-month Moving Average Convergence Divergence (MACD).
Financial Strength of Parent Company
Southern Company, the issuer of SOJD, has a robust market position and consistent financial performance. The company reported significant revenue and net income on a trailing twelve-month basis, reinforcing its financial stability.
A real bull case compounds — each driver matters most when it strengthens margins, supports capital returns, and keeps the company above the market's minimum growth bar simultaneously.
SOJD Stock Price Performance
52-week range context and price returns across multiple time horizons. Dividend contribution is shown separately in the Capital Return section.
Current Price
$20.08
52W Range Position
86%
52-Week Range
Current price plotted between the 52-week low and high.
52-Week Low
$5.91
+239.8% from the low
52-Week High
$22.40
-10.4% from the high
1 Month
+1.88%
3 Month
-1.23%
YTD
-2.0%
1 Year
+0.7%
3Y CAGR
-4.5%
5Y CAGR
-5.6%
10Y CAGR
-2.3%
Range context matters because valuation compression and earnings misses rarely hit from the same starting point. A stock already far below its high can still fall, but it is no longer carrying the same embedded optimism as one pressing a fresh peak.
SOJD vs Peers
Valuation, growth, and margin comparison against the closest publicly traded peers for this company.
Peer Set
Accurate peer set
Forward PE
4.4x
vs 18.7x median
-76% below peer median
Revenue Growth
+6.4%
vs +5.7% median
+13% above peer median
Net Margin
14.7%
vs 15.4% median
-5% below peer median
| Company | Mkt Cap | Fwd PE | Rev Grw | Margin | Rating | Upside |
|---|---|---|---|---|---|---|
SOJ SOJD Southern Company (The) Series 2 | $22.5B | 4.4x | +6.4% | 14.7% | — | — |
NEE NEE NextEra Energy, Inc. | $198.9B | 23.6x | +9.1% | 29.3% | Buy | +2.9% |
DUK DUK Duke Energy Corporation | $97.7B | 18.7x | +2.4% | 15.4% | Hold | +7.9% |
D D Dominion Energy, Inc. | $54.2B | 17.2x | +5.7% | 13.5% | Hold | +7.5% |
AEP AEP American Electric Power Company, Inc. | $72.0B | 20.9x | +6.3% | 16.5% | Buy | +2.8% |
EXC EXC Exelon Corporation | $46.1B | 15.8x | +3.7% | 11.2% | Hold | +9.2% |
This peer comparison reflects companies with similar business models, product lines, or market positioning, supplemented by industry grouping when direct matches are limited.
SOJD Dividend and Capital Return
SOJD returns 13.5% total yield, led by a 13.54% dividend.
Dividend WatchFCF Well Covered
Total Shareholder Yield
13.5%
Dividend + buyback return per year
Buyback Yield
0.0%
Dividend Yield
13.54%
Payout Ratio
69.5%
How SOJD Splits Its Return
Div 13.54%
Dividend 13.54%Buybacks 0.0%
Dividend Profile
Yield, cadence, and growth quality
Dividend / Share
Trailing annualized cash dividend
$2.72
Growth Streak
Consecutive years of dividend increases
1Y
3Y Div CAGR
0.0%
5Y Div CAGR
4.3%
Ex-Dividend Date
—
Payment Cadence
Quarterly
4 payments over the last 12 months
Buyback Engine
How much per-share support comes from repurchases
Repurchases (TTM)
Cash used for buybacks in the latest trailing period
$0
Estimated Shares Retired
0
Approx. Share Reduction
0.0%
Shares Outstanding
Current diluted share count from the screening snapshot
1.1B
| Year | Div / Share | YoY Grw | BB Yield | Total Yield |
|---|---|---|---|---|
| 2026 | $0.62 | — | — | — |
| 2025 | $1.24 | 0.0% | 0.0% | 13.4% |
| 2024 | $1.24 | 0.0% | 0.0% | 12.9% |
| 2023 | $1.24 | +0.0% | 0.0% | 12.3% |
| 2022 | $1.24 | -0.0% | 0.0% | 13.7% |
FAQ
6 questionsSOJD Investor Questions
Common questions answered from live analyst data and company financials.
01Is Southern Company (The) Series 2 (SOJD) stock a buy or sell in 2026?
Southern Company (The) Series 2 (SOJD) has limited published analyst coverage at this time. The model scenario range runs from $11 to $32 around a current price of $20. Use the scenario targets and valuation multiples on this page as a guide.
02Is Southern Company (The) Series 2 (SOJD) stock overvalued in 2026?
SOJD trades at 4.4x times forward earnings. The stock currently trades at a discount to the broader market. Based on current multiples versus the peer group, the relative model signals significantly undervalued. Whether the stock is over or undervalued ultimately depends on whether consensus earnings estimates are achievable.
03What are the main risks for Southern Company (The) Series 2 (SOJD) stock in 2026?
The primary risks for SOJD in 2026 are: (1) Valuation Risk — SOJD's Price-to-Book (P/B) ratio stands at 6. (2) Financial Health Risk — The company's debt-to-equity ratio is alarmingly high at 190. (3) Market and Volatility Risk — SOJD has a low beta of 0. Each factor has the potential to pressure earnings or compress the stock's valuation multiple.
04What is Southern Company (The) Series 2's revenue and earnings forecast?
Analyst consensus estimates SOJD will report consensus revenue of $31.4B (+6.4% year-over-year) and EPS of $4.27 (+9.2% year-over-year) for the upcoming fiscal year. The following year, analysts project $33.5B in revenue.
05When does Southern Company (The) Series 2 (SOJD) report its next earnings?
A confirmed upcoming earnings date for SOJD is not yet available. Check the Earnings section above for the most recent quarterly report dates and forward estimates.
06How much free cash flow does Southern Company (The) Series 2 generate?
Southern Company (The) Series 2 (SOJD) generated $9.8B in free cash flow over the trailing twelve months — a free cash flow margin of 33.2%. SOJD returns capital to shareholders through dividends (13.5% yield) and share repurchases ($0 TTM).