Latest Ratios: P/E Ratio 4.4x · EV/EBITDA 7.0x · ROE 11.5%. (2012–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $19.5B | $22.4B | $22.8B | $24.7B | $21.2B | $29.0B | $30.1B | — | — | — | — |
| Enterprise Value | $93.2B | $96.2B | $88.0B | $87.4B | $78.4B | $80.7B | $80.1B | — | — | — | — |
| P/E Ratio → | 4.44 | 5.16 | 5.19 | 6.21 | 6.02 | 12.10 | 9.72 | — | — | — | — |
| P/S Ratio | 0.66 | 0.76 | 0.85 | 0.98 | 0.73 | 1.25 | 1.48 | — | — | — | — |
| P/B Ratio | 0.50 | 0.58 | 0.62 | 0.70 | 0.61 | 0.89 | 0.93 | — | — | — | — |
| P/FCF | — | — | 113.49 | — | — | — | — | — | — | — | — |
| P/OCF | 1.99 | 2.29 | 2.33 | 3.27 | 3.37 | 4.69 | 4.50 | — | — | — | — |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 3.25 | 3.29 | 3.46 | 2.68 | 3.49 | 3.93 | — | — | — | — |
| EV / EBITDA | 7.00 | 7.22 | 7.14 | 8.09 | 8.32 | 10.52 | 9.11 | — | — | — | — |
| EV / EBIT | 12.80 | 11.58 | 11.46 | 13.62 | 13.02 | 18.91 | 15.30 | — | — | — | — |
| EV / FCF | — | — | 437.90 | — | — | — | — | — | — | — | — |
Margins and return-on-capital ratios measuring operating efficiency
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% | 30.1% | 28.1% | 31.3% | 31.3% |
| Operating Margin | 24.7% | 24.7% | 26.4% | 23.1% | 18.3% | 16.0% | 24.0% | 24.3% | 22.5% | 25.9% | 25.6% |
| Net Profit Margin | 14.7% | 14.7% | 16.5% | 15.7% | 12.0% | 10.4% | 15.3% | 22.4% | 9.5% | 3.8% | 12.6% |
| 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 | 5.1% | 5.1% | 5.3% | 4.6% | 4.6% | 3.3% | 4.5% | 5.0% | 5.3% | 6.1% | 6.3% |
| ROCE | 5.4% | 5.4% | 5.5% | 4.8% | 4.6% | 3.3% | 4.5% | 4.9% | 5.3% | 6.2% | 6.1% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 1.94 | 1.94 | 1.81 | 1.80 | 1.71 | 1.65 | 1.57 | 1.52 | 1.60 | 1.96 | 1.76 |
| Debt / EBITDA | 5.66 | 5.66 | 5.37 | 5.87 | 6.27 | 6.98 | 5.81 | 5.74 | 5.28 | 5.38 | 5.92 |
| Net Debt / Equity | — | 1.90 | 1.78 | 1.78 | 1.66 | 1.59 | 1.54 | 1.46 | 1.55 | 1.88 | 1.69 |
| Net Debt / EBITDA | 5.54 | 5.54 | 5.29 | 5.80 | 6.07 | 6.75 | 5.69 | 5.51 | 5.12 | 5.16 | 5.67 |
| Debt / FCF | — | — | 324.41 | — | — | — | — | — | — | — | — |
| Interest Coverage | 2.51 | 2.51 | 2.83 | 2.50 | 3.57 | 2.43 | — | 3.08 | — | — | — |
Short-term solvency ratios and asset-utilisation metrics
| 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 | 6.20 | 7.09 | 6.04 | 4.91 |
| Days Sales Outstanding | — | — | — | — | — | — | — | — | — | — | — |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
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 | 15.6% | 13.4% | 12.9% | 12.3% | 13.7% | 9.6% | 8.9% | — | — | — | — |
| Payout Ratio | 69.5% | 69.5% | 67.1% | 76.3% | 82.5% | 116.0% | 86.1% | 54.1% | 108.2% | 261.4% | 84.4% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 22.5% | 19.4% | 19.3% | 16.1% | 16.6% | 8.3% | 10.3% | — | — | — | — |
| FCF Yield | — | — | 0.9% | — | — | — | — | — | — | — | — |
| Buyback Yield | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | — | — | — | — |
| Total Shareholder Yield | 15.6% | 13.4% | 12.9% | 12.3% | 13.7% | 9.6% | 8.9% | — | — | — | — |
| Shares Outstanding | — | $1.1B | $1.1B | $1.1B | $1.1B | $1.1B | $1.1B | $1.1B | $1.0B | $1.0B | $958M |
Includes 30+ ratios · 14 years · Updated daily
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Quick answers to the most common questions about buying SOJD stock.
Southern Company (The) Series 2's current P/E ratio is 4.4x. The historical average is 7.4x.
Southern Company (The) Series 2's current EV/EBITDA is 7.0x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 8.4x.
Southern Company (The) Series 2's return on equity (ROE) is 11.5%. The historical average is 10.1%.
Based on historical data, Southern Company (The) Series 2 is trading at a P/E of 4.4x. Compare with industry peers and growth rates for a complete picture.
Southern Company (The) Series 2's current dividend yield is 15.61% with a payout ratio of 69.5%.
Southern Company (The) Series 2 has 29.8% gross margin and 24.7% operating margin. Operating margin above 20% indicates strong pricing power and cost efficiency.
Southern Company (The) Series 2's Debt/EBITDA ratio is 5.7x, indicating high leverage. A ratio above 4x may signal elevated financial risk.
Key Metrics
Top Statement Risk
Regulatory lag and rate case outcomes
Metrics are mathematically derived from official filings.
Deep Discount Signals Market Skepticism
SOJD trades at a P/E of 4.73 and a dividend yield of 14.6%, according to current valuation metrics, far below utility peers and suggesting the market prices in significant regulatory or financial risk.
The P/E of 4.73 is a fraction of the peer average of roughly 19, and the 14.6% dividend yield is more than triple the sector norm, implying the market expects either a dividend cut or a prolonged earnings shortfall. This valuation gap may reflect the preferred share structure or concerns about the parent's leverage, but it also suggests that if the company maintains its dividend, the yield could be unsustainable. Investors should monitor whether the high yield is a signal of distress or an opportunity for outsized returns.
Earned ROE Lags Authorized Levels
Quarterly ROE has averaged 3.0% over the last year, as per reported figures, well below typical authorized returns of 9-10%, indicating regulatory lag or operational inefficiencies that compress earnings.
The earned ROE of 2.9% in 2026Q2 is far below the authorized ROE that utilities typically receive, suggesting that the company is not fully recovering its allowed return. This gap may be due to regulatory lag, where rate cases do not keep pace with rising costs, or to a high equity base that dilutes returns. The low ROE also explains the depressed P/E, as investors discount the earnings power. If the company cannot close this gap, it may struggle to attract capital for its CAPEX program.
Margins Volatile but Recovering
Operating margin swung from 13.1% in 2025Q4 to 25.5% in 2026Q2, as reported in financial statements, indicating that cost recovery mechanisms are working but with significant quarterly volatility.
The wide range in operating margins, from a low of 13.1% to a high of 33.2%, suggests that fuel and purchased power costs are not always perfectly pass-through, or that seasonal factors affect revenue recognition. The recovery to 25.5% in 2026Q2 is encouraging, but the volatility implies that regulatory riders may not fully insulate earnings from cost swings. This variability complicates forecasting and may contribute to the market's discount on the stock.
Leverage Creeps Higher
Debt-to-capital has risen to 0.63 in 2026Q2 from 0.63 a year earlier, according to balance sheet data, while interest coverage fell to 2.23, indicating increased financial risk.
The debt-to-capital ratio of 0.63 is high for a utility, and interest coverage of 2.23 is thin, suggesting that the company is relying heavily on debt to fund its CAPEX. The FFO-to-debt ratio of 4.03% is also weak, which could pressure credit ratings. If interest rates rise or cash flows deteriorate, the company may face refinancing challenges. This leverage is a key reason why the market demands a high dividend yield.
Dividend Coverage Thin but Manageable
Dividend payout ratio spiked to 182.9% in 2025Q4, as per reported figures, but averaged 68.4% in 2026Q2, indicating that dividends are not consistently covered by earnings.
The payout ratio of 68.4% in 2026Q2 is within a normal range, but the 182.9% in 2025Q4 shows that in some quarters, earnings do not cover the dividend, forcing the company to dip into cash reserves. This inconsistency suggests that the dividend is not fully supported by recurring earnings, and the high yield of 14.6% may be unsustainable if earnings do not improve. Investors should monitor whether the company can maintain its dividend while funding its CAPEX program.
P/E Misleads for Preferred Shares
The P/E of 4.73 is commonly misapplied to SOJD, as per market data, because it is a preferred security, not common equity, and the ratio obscures the fixed-income nature of the investment.
For a preferred share like SOJD, the P/E is not a meaningful valuation metric because preferred dividends are fixed and do not participate in earnings growth. Instead, investors should focus on the dividend yield relative to comparable preferreds and the coverage of the preferred dividend by earnings. The high yield of 14.6% may be attractive, but it also signals risk. A better metric is the preferred dividend coverage ratio, which is not provided here, but the payout ratio suggests it is thin. Investors should compare SOJD to other preferred issues rather than common utility stocks.