Latest Ratios: P/E Ratio 11.7x · EV/EBITDA 8.7x · ROE 11.5%. (2016–2025 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 | $52.2B | $55.8B | — | — | — | — | — | — | — | — | — |
| Enterprise Value | $116.4B | $120.0B | — | — | — | — | — | — | — | — | — |
| P/E Ratio → | 11.67 | 12.85 | — | — | — | — | — | — | — | — | — |
| P/S Ratio | 1.77 | 1.89 | — | — | — | — | — | — | — | — | — |
| P/B Ratio | 1.31 | 1.44 | — | — | — | — | — | — | — | — | — |
| P/FCF | — | — | — | — | — | — | — | — | — | — | — |
| P/OCF | 5.32 | 5.70 | — | — | — | — | — | — | — | — | — |
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 | — | 4.06 | — | — | — | — | — | — | — | — | — |
| EV / EBITDA | 8.75 | 9.02 | — | — | — | — | — | — | — | — | — |
| EV / EBIT | 16.00 | 14.45 | — | — | — | — | — | — | — | — | — |
| EV / FCF | — | — | — | — | — | — | — | — | — | — | — |
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% | 9.3% |
| ROA | 2.9% | 2.9% | 3.1% | 2.9% | 2.7% | 1.9% | 2.6% | 4.0% | 2.0% | 0.8% | 2.3% |
| ROIC | 5.3% | 5.3% | 5.3% | 4.6% | 4.5% | 3.3% | 4.5% | 7.6% | 4.2% | 2.4% | 4.7% |
| ROCE | 5.4% | 5.4% | 5.5% | 4.8% | 4.6% | 3.3% | 4.5% | 7.4% | 4.2% | 2.4% | 4.6% |
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 | 5.9% | — | — | — | — | — | — | — | — | — | — |
| 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 | 8.6% | 7.8% | — | — | — | — | — | — | — | — | — |
| FCF Yield | — | — | — | — | — | — | — | — | — | — | — |
| Buyback Yield | 0.0% | — | — | — | — | — | — | — | — | — | — |
| Total Shareholder Yield | 5.9% | — | — | — | — | — | — | — | — | — | — |
| Shares Outstanding | — | $1.1B | $1.1B | $1.1B | $1.1B | $1.1B | $1.1B | $1.1B | $1.0B | $1.0B | $990M |
Includes 30+ ratios · 10 years · Updated daily
Live VCP patterns, Cup & Handle overlays, support/resistance, and AI trade plans.
High-probability breakout stocks crossing their pivot across 5 pattern engines.
DCF models, multiple analysis, and analyst estimates.
10-year return with dividends reinvested.
Compare growth, multiples, and margins vs sector.
Quick answers to the most common questions about buying SOMN stock.
The Southern Company's current P/E ratio is 11.7x. The historical average is 12.8x.
The Southern Company's current EV/EBITDA is 8.7x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 9.0x.
The Southern Company's return on equity (ROE) is 11.5%. The historical average is 9.9%.
Based on historical data, The Southern Company is trading at a P/E of 11.7x. Compare with industry peers and growth rates for a complete picture.
The Southern Company's current dividend yield is 5.94% with a payout ratio of 69.5%.
The Southern Company has 29.8% gross margin and 24.6% operating margin. Operating margin above 20% indicates strong pricing power and cost efficiency.
The Southern Company'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 weather volatility
Valuation Anchored to Allowed Returns
Trading at 12.38x trailing earnings and a 5.6% dividend yield, per market data, the valuation appears aligned with a regulated utility's authorized ROE and bond-proxy characteristics.
The P/E of 12.38x is modest relative to the broader market, reflecting the utility's bond-proxy status where valuation is tied to interest rates rather than growth. The 5.6% dividend yield, notably above the 10-year Treasury, suggests the market is pricing in a risk premium for regulatory and weather-related uncertainties. The forward P/E of 10.61x implies expected earnings growth, but given the historical volatility in quarterly ROE, investors should monitor whether this growth materializes from rate base expansion.
Earned ROE Lags Authorized Levels
Quarterly ROE averaged 3.0% over the last four quarters, per financial statements, well below typical authorized returns of 9-10%, indicating significant regulatory lag or weather impacts.
The earned ROE, as reported, fluctuates sharply from 1.1% in 2025Q4 to 4.5% in 2025Q3, suggesting that the company is not consistently earning its allowed return. This gap may reflect timing differences in cost recovery and weather normalization, but the persistent shortfall across quarters warrants close monitoring. If the earned ROE does not converge toward the authorized level, it could signal structural issues in rate case outcomes or cost recovery mechanisms.
Operating Margins Swing with Seasonality
Operating margin ranged from 13.0% in 2025Q4 to 33.2% in 2025Q3, per company filings, indicating that cost recovery is subject to significant quarterly volatility.
The wide swings in operating margin, from 13.0% to 33.2%, suggest that fuel cost pass-through and seasonal demand patterns heavily influence profitability. While the average margin over the last four quarters is approximately 24.5%, the volatility implies that the company's cost recovery mechanisms may not be smoothing earnings effectively. Investors should assess whether regulatory riders or decoupling mechanisms are adequately mitigating this volatility, as it affects the predictability of earnings.
Leverage Elevated but Stable
Debt-to-capital ratio has remained around 0.65 over the last ten quarters, per financial statements, indicating a stable but high leverage profile typical of regulated utilities.
The debt-to-capital ratio of approximately 0.65 is consistent with the utility sector's reliance on debt financing for capital-intensive projects. However, interest coverage has dipped to 1.20x in 2025Q4, per reported figures, which is concerning and may indicate pressure from rising interest costs or lower earnings. The FFO-to-debt ratio of 4.03% in 2026Q2 is also low, suggesting that cash flow generation relative to debt is modest. While leverage is stable, the low coverage ratios in certain quarters highlight the need for consistent regulatory recovery to maintain credit quality.
Dividend Coverage Comfortable Despite Payout Spikes
Dividend payout spiked to 182.9% in 2025Q4, per financial statements, but the average payout over the last four quarters is 88.2%, indicating that dividends are generally covered by earnings.
The dividend payout ratio, as reported, shows extreme volatility, with a spike to 182.9% in 2025Q4 when earnings were depressed. However, the average payout of 88.2% over the last four quarters suggests that dividends are typically well-covered by earnings, though the high payout leaves little room for internal funding of the CAPEX program. Given the negative free cash flow and reliance on external financing, the dividend appears sustainable but may limit financial flexibility if earnings do not improve.
P/E Misapplied to Utilities
Comparing SOMN's P/E to industrial companies is misleading, as per standard analysis, because utility earnings are regulated and P/E is anchored to allowed ROE and interest rates, not growth.
The most commonly misapplied ratio for utilities is the P/E ratio, which is often compared to the broader market or growth-oriented sectors. For regulated utilities, P/E is primarily a function of the authorized ROE and the risk-free rate, not growth expectations. A more appropriate metric is the implied ROE relative to the authorized ROE, or the dividend yield relative to Treasury yields. Using P/E alone can obscure the impact of regulatory lag and cost recovery timing, which are better captured by analyzing earned ROE and operating margin stability.