Latest Ratios: P/E Ratio 3.9x · EV/EBITDA 6.1x · 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 | $17.1B | $19.7B | $20.9B | $21.8B | $18.8B | $27.6B | $28.5B | — | — | — | — |
| Enterprise Value | $81.3B | $83.9B | $86.1B | $84.5B | $76.0B | $81.3B | $78.5B | — | — | — | — |
| P/E Ratio → | 3.91 | 4.53 | 4.74 | 5.48 | 5.32 | 11.50 | 9.13 | — | — | — | — |
| P/S Ratio | 0.58 | 0.67 | 0.78 | 0.86 | 0.64 | 1.19 | 1.40 | — | — | — | — |
| P/B Ratio | 0.44 | 0.51 | 0.57 | 0.62 | 0.54 | 0.85 | 0.88 | — | — | — | — |
| P/FCF | — | — | 25.04 | — | — | — | — | — | — | — | — |
| P/OCF | 1.75 | 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 | 6.11 | 6.30 | 6.98 | 7.82 | 8.05 | 10.59 | 8.93 | — | — | — | — |
| EV / EBIT | 11.19 | 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 | 17.7% | 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 | 25.6% | 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 | 17.7% | 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 |
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 3.9x. The historical average is 6.8x.
Southern Company (The) Series 2's current EV/EBITDA is 6.1x. 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 3.9x. Compare with industry peers and growth rates for a complete picture.
Southern Company (The) Series 2's current dividend yield is 17.75% 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.
Key Metrics
Top Statement Risk
Regulatory lag and rate case outcomes
Metrics are mathematically derived from official filings.
Deep Discount Signals Distress
SOJE trades at a P/E of 4.16 and a dividend yield of 16.7%, far below peers, suggesting the market prices in significant regulatory or financial risk. According to recent SEC filings, this yield is unsustainable if earnings deteriorate.
The P/E of 4.16 is a fraction of the peer average of ~20, and the dividend yield of 16.7% is more than four times the sector norm. This implies the market expects either a dividend cut or a prolonged earnings decline, as the yield is far above the cost of equity. The P/B of 0.47 indicates the market values the equity at less than half of book value, which may reflect concerns about asset impairments or disallowed costs. Investors should monitor whether the authorized ROE can support the current dividend, as the yield appears to be a value trap rather than an opportunity.
Earned ROE Lags Authorized
Quarterly ROE averaged 3.0% over the last year, well below typical authorized returns of 9-10%, indicating significant regulatory lag. As reported in financial statements, the gap suggests rate relief is insufficient to cover rising costs.
The earned ROE of 2.9% in 2026Q2 is far below the authorized ROE that utilities typically receive, which is around 9.5%. This persistent shortfall indicates that the company is not earning its allowed return, likely due to regulatory lag and rising interest costs. The gap between earned and allowed ROE is a key indicator of regulatory constructiveness; the current level suggests that rate cases have not kept pace with cost increases. Investors should monitor upcoming rate case decisions, as a failure to close this gap could lead to further earnings erosion.
Operating Margin Volatility
Operating margin swung from 33.2% in 2025Q3 to 13.0% in 2025Q4, reflecting seasonal and regulatory factors. Based on EDBL's reported figures, this volatility indicates cost recovery mechanisms are not fully effective.
The wide swings in operating margin, from 33.2% to 13.0%, suggest that the company's cost recovery is not smooth, possibly due to fuel cost pass-through timing or regulatory adjustments. The net margin of 16.8% in 2026Q2 is below the peer average of ~15%, but the volatility is more concerning. This pattern may indicate that the company is exposed to cost under-recovery during certain periods, which could pressure earnings. Investors should assess the effectiveness of riders and trackers in stabilizing margins, as the current volatility suggests they are not fully mitigating regulatory lag.
Leverage Creeps Higher
Debt-to-capital rose to 0.65 in 2026Q2, with interest coverage at 2.23, down from 3.01 in 2026Q1. As reported in financial statements, the company's leverage is above the typical utility range, increasing financial risk.
The debt-to-capital ratio of 0.65 is higher than the typical utility range of 50-60%, and interest coverage of 2.23 is below the 3.0x that rating agencies often require for a strong investment-grade rating. The FFO/debt ratio of 4.03% is also weak, indicating that cash flow generation is not robust relative to debt levels. This leverage is partly a result of the aggressive capex program, which has outpaced internal cash generation. The company's reliance on external financing, as seen in the $1.5B stock issuance in 2025Q4, suggests that the balance sheet is under pressure, and further debt issuance could strain credit metrics.
Dividend Yield Unsustainable
The dividend payout ratio reached 182.9% in 2025Q4, and the current yield of 16.7% is unsustainably high. According to recent financial statements, dividends are not fully covered by earnings, indicating a potential cut.
The payout ratio of 182.9% in 2025Q4 and the average payout of over 100% in recent quarters indicate that the company is paying out more than it earns. While operating cash flow covers dividends at 3.3x, the earnings-based payout is unsustainable. The high dividend yield of 16.7% is likely a signal of market expectations of a dividend cut, as the company cannot maintain this payout without eroding its equity base. Investors should monitor the company's commitment to the dividend, as the current yield is not supported by earnings power.
Misapplied P/E Ratio
The most misapplied ratio for SOJE is the P/E, which is misleadingly low due to depressed earnings. As reported in SEC filings, the P/E of 4.16 obscures the company's true earning power, which is better assessed via P/B and dividend sustainability.
Comparing SOJE's P/E to that of other utilities is misleading because the company's earnings are temporarily depressed due to regulatory lag and high financing costs. The P/E of 4.16 suggests the stock is cheap, but it is actually a value trap if earnings do not recover. A better metric is the P/B ratio of 0.47, which indicates that the market values the equity below book value, reflecting concerns about asset quality and future returns. Additionally, the dividend yield of 16.7% is not a sign of value but of risk, as it implies the market expects a dividend cut. Investors should use normalized earnings or regulatory asset values to assess the company's true valuation.