Upside case
Bull case
—
The bull case requires both strong earnings delivery and the market pricing SOMN more generously than it does today.
Analysis OverviewNo CoverageUpdated —
The Southern Company (SOMN) 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 SOMN
Strong Buy
0
Buy
0
Hold
0
Sell
0
Strong Sell
0
Consensus Target
—
— vs today
Scenario Range
— – —
Model bear to bull value window
Coverage
—
Published analyst ratings
Valuation Context
10.7x
Forward P/E · Market cap $56.1B
SOMN price targets
Three scenarios for where SOMN stock could go
Current
~$49
Confidence
—
Updated
—
Market caseClosest to today
Base case
—
The base case reflects analyst consensus expectations — steady delivery without requiring a major catalyst or re-rating.
Stress case
Bear case
—
The bear case reflects a scenario where earnings shortfalls or multiple compression combine to materially reduce the stock from its current level.
Not financial advice. Model confidence reflects internal scenario assumptions, not a guarantee of returns. Past performance does not predict future results.
The Southern Company
SOMN · NYSE
Market Cap
$56.1B
Revenue TTM
$30.2B
Net Income TTM
$4.4B
Net Margin
14.5%
SOMN 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
50%Exceptional
2 quarters tracked
Revenue Beat Rate
100%Exceptional
vs consensus estimates
Avg EPS Surprise
+3.8%
above Street consensus
Beat / Miss Record
BeatMissLeft = EPS · Right = Revenue
Q1 2026
Q2 2026
Last 2 Quarters
EPS beats: 1 of 2Q1 2026
EPS
$0.55/$0.56
Revenue
$7.0B/$6.1B
Q2 2026
EPS
$1.32/$1.21
Revenue
$8.4B/$8.1B
| Quarter | EPS (Actual / Est) | EPS Surprise | Revenue (Actual / Est) | Rev Surprise |
|---|---|---|---|---|
| Q1 2026 | $0.55/$0.56 | -1.4% | $7.0B/$6.1B | +14.5% |
| Q2 2026 | $1.32/$1.21 | +9.1% | $8.4B/$8.1B | +4.0% |
Next Earnings
July 30, 2026
Expected EPS
$1.00
Expected Revenue
$7.3B
SOMN beat EPS estimates in 1 of 2 tracked quarters. Mixed delivery makes the upcoming report a key data point for re-rating.
SOMN Valuation Snapshot
Current multiples compared to the S&P 500, the company's sector, and its own five-year average.
Relative Value Signal
Relative Valuation
Benchmark comparison across market, sector, and history below.
Deep DiscountFair ValueVery Expensive
vs S&P 500 Trailing P/E
SOMN
12.7x
vs
S&P 500
24.4x
48% discount
vs Sector Trailing P/E
SOMN
12.7x
vs
Sector
—
Benchmark unavailable
vs SOMN 5Y Avg P/E
Today
12.7x
vs
5Y Average
—
Benchmark unavailable
Forward PE
10.7x
S&P 500
18.8x
-43%
Sector
—
—
5Y Avg
—
—
Trailing PE
12.7x
S&P 500
24.4x
-48%
Sector
—
—
5Y Avg
—
—
PEG Ratio
—
S&P 500
1.66x
—
Sector
—
—
5Y Avg
—
—
EV/EBITDA
9.7x
S&P 500
15.2x
-37%
Sector
—
—
5Y Avg
—
—
Price/FCF
—
S&P 500
20.7x
—
Sector
—
—
5Y Avg
—
—
Price/Sales
1.9x
S&P 500
3.1x
-39%
Sector
—
—
5Y Avg
—
—
Dividend Yield
5.46%
S&P 500
1.91%
+185%
Sector
—
—
5Y Avg
—
—
| Metric | SOMN | S&P 500 | Sector | 5Y Avg SOMN |
|---|---|---|---|---|
| Forward PE | 10.7x | 18.8x-43% | — | — |
| Trailing PE | 12.7x | 24.4x-48% | — | — |
| PEG Ratio | — | 1.66x | — | — |
| EV/EBITDA | 9.7x | 15.2x-37% | — | — |
| Price/FCF | — | 20.7x | — | — |
| Price/Sales | 1.9x | 3.1x-39% | — | — |
| Dividend Yield | 5.46% | 1.91% | — | — |
SOMN trades above S&P 500 benchmarks on 0 of 4 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.
Open valuation toolSOMN Financial Health
Verdict
Exceptional
SOMN earns 24.2% operating margin on regulated earnings, 5.5% 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
$30.2B
Revenue Growth
TTM vs prior year
—
Operating Margin
Operating income divided by revenue
24.2%
Net Margin
Net income divided by revenue
14.5%
EPS (TTM)
Diluted earnings per share, trailing twelve months
$3.80
Operating Margin
Operating income over revenue — primary regulated earnings signal
24.2%
Capital Quality
ROIC, leverage, and debt serviceability
ROIC
Return on invested capital — primary competitive quality signal
4.9%
ROA
Return on assets, trailing twelve months
2.8%
Cash & Equivalents
Liquid assets on the balance sheet
$1.6B
Net Debt
Total debt minus cash
$72.4B
Debt Serviceability
Net debt as a multiple of annual free cash flow
—
Regulated utilities typically operate at 3–5× net debt/FCF — this is structural, not a risk flag.
ROE
Return on equity, trailing twelve months
11.3%
Shareholder Returns
How capital is returned to owners
Total shareholder yield
5.5%
Dividend
5.5%
Buyback
0.0%
Share Repurchases
Trailing buyback outflow — dollar magnitude of capital returned
$0
Dividend / Share
Annualized trailing dividend per share
$2.67
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 pageSOMN Stock Risk Factors
Key factors that could pressure the stock price, compress the multiple, or weigh on future results.
Based on the latest company results, valuation, and market data
Medium
Valuation de-rating
SOMN trades at 12.7x trailing earnings versus 24.4x for the S&P 500 and — for its sector. If earnings delivery or sentiment slips, the stock could re-rate lower and move closer to the bear case target of —.
Lower
Capital return support
Part of the per-share support comes from capital returns, backed by -$3.5B in trailing free cash flow, a 0.0% buyback yield, and a 5.5% dividend yield. If cash generation softens, the EPS lift and downside cushion from repurchases can narrow.
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 SOMN Stock Could Outperform
Structural drivers behind the upside case and why the stock could outperform over the next 12 months.
Based on recent company results and analyst estimates
High-margin cash engine
The Southern Company already operates from a position of scale, with 48.0% gross margin, 24.2% operating margin, and -$3.5B in trailing free cash flow. That combination gives management room to keep funding product investment without relying on outside capital.
Multiple growth levers remain
The Southern Company still has room to compound if management converts its existing scale into steadier revenue growth and margin discipline. The bull case does not require perfection; it requires the core business to keep translating operating strength into higher per-share earnings.
Upside and capital returns align
Consensus still points to —, while the modeled bull target reaches —. If — in forward revenue and — in EPS are delivered, ongoing shareholder returns running at 5.5% can amplify the equity upside.
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.
SOMN 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
$48.90
52W Range Position
6%
52-Week Range
Current price plotted between the 52-week low and high.
52-Week Low
$48.69
+0.4% from the low
52-Week High
$52.15
-6.2% from the high
1 Month
-4.31%
3 Month
-3.36%
YTD
-3.4%
1 Year
-3.4%
3Y CAGR
-1.1%
5Y CAGR
-0.7%
10Y CAGR
-0.3%
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.
SOMN Dividend and Capital Return
SOMN returns 5.5% total yield, led by a 5.46% dividend.
Dividend WatchFCF Unknown
Total Shareholder Yield
5.5%
Dividend + buyback return per year
Buyback Yield
0.0%
Dividend Yield
5.46%
Payout Ratio
69.5%
How SOMN Splits Its Return
Div 5.46%
Dividend 5.46%Buybacks 0.0%
Dividend Profile
Yield, cadence, and growth quality
Dividend / Share
Trailing annualized cash dividend
$2.67
Growth Streak
Consecutive years of dividend increases
0Y
3Y Div CAGR
—
5Y Div CAGR
—
Ex-Dividend Date
—
Payment Cadence
Semi-Annual
2 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 |
|---|---|---|
| 2026 | $2.17 | — |
FAQ
5 questionsSOMN Investor Questions
Common questions answered from live analyst data and company financials.
01Is The Southern Company (SOMN) stock a buy or sell in 2026?
The Southern Company (SOMN) has limited published analyst coverage at this time. Use the scenario targets and valuation multiples on this page as a guide.
02Is The Southern Company (SOMN) stock overvalued in 2026?
SOMN trades at 10.7x times forward earnings. The stock currently trades at a discount to the broader market. Whether the stock is over or undervalued ultimately depends on whether consensus earnings estimates are achievable.
03What are the main risks for The Southern Company (SOMN) stock in 2026?
The primary risks for SOMN in 2026 are: (1) Valuation de-rating — SOMN trades at 12. (2) Capital return support — Part of the per-share support comes from capital returns, backed by -$3. Each factor has the potential to pressure earnings or compress the stock's valuation multiple.
04When does The Southern Company (SOMN) report its next earnings?
The Southern Company is expected to report its next earnings on approximately 2026-07-30. Consensus expects EPS of $1.00 and revenue of $7.3B. Over recent quarters, SOMN has beaten EPS estimates 50% of the time.
05How much free cash flow does The Southern Company generate?
The Southern Company (SOMN) had a free cash outflow of $3.5B in free cash flow over the trailing twelve months — a free cash flow margin of 11.5%. SOMN returns capital to shareholders through dividends (5.5% yield) and share repurchases ($0 TTM).