Latest Ratios: P/E Ratio 4.3x · EV/EBITDA 6.2x · ROE 11.5%. (1996–2025 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 | $18.9B | $19.7B | $20.9B | $21.8B | $18.8B | $27.6B | $28.5B | — | — | — | — |
| Enterprise Value | $83.1B | $83.9B | $86.1B | $84.5B | $76.0B | $81.3B | $78.5B | — | — | — | — |
| P/E Ratio → | 4.31 | 4.53 | 4.74 | 5.48 | 5.32 | 11.50 | 9.13 | — | — | — | — |
| P/S Ratio | 0.64 | 0.67 | 0.78 | 0.86 | 0.64 | 1.19 | 1.40 | — | — | — | — |
| P/B Ratio | 0.48 | 0.51 | 0.57 | 0.62 | 0.54 | 0.85 | 0.88 | — | — | — | — |
| P/FCF | — | — | 25.04 | — | — | — | — | — | — | — | — |
| P/OCF | 1.93 | 2.01 | 2.13 | 2.89 | 2.98 | 4.47 | 4.25 | — | — | — | — |
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 | — | 2.84 | 3.22 | 3.35 | 2.59 | 3.52 | 3.85 | — | — | — | — |
| EV / EBITDA | 6.25 | 6.30 | 6.98 | 7.82 | 8.05 | 10.59 | 8.93 | — | — | — | — |
| EV / EBIT | 11.43 | 10.10 | 10.80 | 12.45 | 12.17 | 18.41 | 14.76 | — | — | — | — |
| EV / FCF | — | — | 103.32 | — | — | — | — | — | — | — | — |
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% | 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% |
| 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% |
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 | 1.69 | 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 |
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 | 4.95 | 5.80 | 4.99 | 4.09 |
| 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 | 16.1% | 15.3% | 14.2% | 13.9% | 15.5% | 10.1% | 9.4% | — | — | — | — |
| Payout Ratio | 69.5% | 69.5% | 67.1% | 76.3% | 82.2% | 115.3% | 85.7% | 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 | 23.2% | 22.1% | 21.1% | 18.2% | 18.8% | 8.7% | 11.0% | — | — | — | — |
| FCF Yield | — | — | 4.0% | — | — | — | — | — | — | — | — |
| Buyback Yield | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | — | — | — | — |
| Total Shareholder Yield | 16.1% | 15.3% | 14.2% | 13.9% | 15.5% | 10.1% | 9.4% | — | — | — | — |
| Shares Outstanding | — | $1.1B | $1.1B | $1.1B | $1.1B | $1.1B | $1.1B | $1.1B | $1.0B | $1.0B | $990M |
Operational concentration in nuclear
According to recent market data, Southern Company trades at a forward P/E of 3.70, which appears significantly disconnected from historical utility norms and suggests that investors may be pricing in extreme regulatory risk or misinterpreting the company's post-Vogtle earnings trajectory relative to broader sector bond proxies.
The current valuation multiples warrant caution, as the extreme discount relative to peers like Duke Energy or NextEra Energy may indicate a market skepticism regarding the company's ability to translate recent capital investments into sustainable earnings growth. Investors should monitor whether this compression reflects a genuine concern over regulatory lag or if the market is failing to account for the cash flow benefits of the completed nuclear units.
Based on quarterly filings, the company's earned ROE has fluctuated between 1.1% and 4.5% over the last ten quarters, which suggests that the utility is currently struggling to consistently achieve its authorized returns due to the timing of rate recovery for massive capital projects.
The gap between earned and allowed ROE appears to be a primary source of earnings volatility, as the company navigates the transition from construction-heavy accounting to operational rate base recovery. This inconsistency may indicate that regulatory constructive outcomes are being delayed, requiring further investigation into the specific commission-approved recovery timelines in Georgia and Alabama.
As reported in financial statements, the debt-to-capital ratio has remained stubbornly elevated near 0.66, illustrating that Southern Company continues to rely heavily on debt financing to sustain its massive infrastructure footprint despite the recent completion of major nuclear generation assets.
The persistent leverage levels suggest that the company's balance sheet remains sensitive to interest rate fluctuations, which could pressure future interest coverage ratios. While the company maintains an adequate credit profile, the high debt load limits financial flexibility and necessitates a disciplined approach to future capital allocation to avoid further credit quality degradation.
Based on reported figures, the dividend payout ratio has shown extreme volatility, reaching as high as 182.9% in 2025Q4, which indicates that the company's ability to fund its dividend from operating cash flow remains highly sensitive to the timing of regulatory rate adjustments and capital spending cycles.
The dividend appears to be a core management priority, yet the current payout levels suggest that internal funding of the CAPEX program is frequently compromised by the need to maintain shareholder distributions. Investors should monitor the OCF-to-dividend coverage ratio closely, as any prolonged period of cash flow strain could force a re-evaluation of the current dividend policy.
The most commonly misapplied metric for Southern Company is the standard P/E ratio, which obscures the utility's true earnings power by failing to account for the significant non-cash AFUDC credits that historically inflated reported net income during the long-duration construction of the Vogtle nuclear units.
Using a standard P/E ratio to compare Southern to non-utility industrials is fundamentally flawed, as it ignores the regulatory compact that anchors utility valuations to allowed ROE and interest rate environments. Analysts should instead focus on the Price-to-Book ratio or adjusted cash flow metrics to better capture the value of the underlying rate base and the company's actual ability to generate cash from its regulated assets.
Includes 30+ ratios · 30 years · Updated daily
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Quick answers to the most common questions about buying SOJE stock.
Southern Company (The) Series 2's current P/E ratio is 4.3x. The historical average is 6.8x.
Southern Company (The) Series 2's current EV/EBITDA is 6.2x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 8.1x.
Southern Company (The) Series 2's return on equity (ROE) is 11.5%. The historical average is 11.5%.
Based on historical data, Southern Company (The) Series 2 is trading at a P/E of 4.3x. Compare with industry peers and growth rates for a complete picture.
Southern Company (The) Series 2's current dividend yield is 16.11% with a payout ratio of 69.5%.
Southern Company (The) Series 2 has 29.8% gross margin and 24.6% operating margin. Operating margin above 20% indicates strong pricing power and cost efficiency.
Southern Company (The) Series 2's Debt/EBITDA ratio is 4.9x, indicating high leverage. A ratio above 4x may signal elevated financial risk.