The Southern CompanySO
NYSE•Utilities•Utilities - Regulated Electric
The Southern Company, through its subsidiaries, engages in the sale of electricity. The company offers electric service to retail customers and wholesale customers; and energy-related products and services to natural gas choice markets. It also develops, constructs, acquires, owns, operates, and manages power generation assets, as well as battery energy storage projects; sells electricity at market-based rates in the wholesale market; and deploys microgrids for commercial, industrial, governmental, and utility customers. In addition, the company is involved in the distribution of natural gas in Illinois, Georgia, Virginia, and Tennessee; distributes energy and resilience solutions; and invests in telecommunications. The Southern Company was incorporated in 1945 and is headquartered in Atlanta, Georgia.
Southern Company (The) (SO) reported trailing twelve months revenue of $30.18B as of March 2026, a 8.3% increase year-over-year. Quarterly revenue reached $8.40B, reflecting continued top-line momentum.
Southern Company (The) generated $4.43B in TTM net income, with quarterly EBITDA of $3.60B. The operating margin contracted from 25.9% to 24.0%, suggesting rising cost pressures or pricing headwinds.
The spread between operating margin (24.0%) and net margin (16.1%) indicates moderate non-operating costs. Net margin has narrowed from 16.3% a year ago, reflecting increased costs or interest expense.
SO trades at a P/E of 23.9x (in line with broad market averages) and a P/S of 3.5x. The price-to-book ratio of 2.6x reflects a moderate premium to book value.
The company reported negative free cash flow of $-1.72B, indicating cash consumption over the period. The balance sheet shows $157.03B in total assets with $67.15B in long-term debt against $39.91B in stockholders equity for a debt-to-equity ratio of 1.7. Data based on the most recent quarterly reports.
Competitive analysis based on 21 quarters of fundamental data
Operating margins are positive at ~25.1% on average, but show some variability — pricing power may be sensitive to market conditions.
ROE is positive at ~11.6% on average, adequate but below the threshold typically associated with wide moats.
Only 3 of the last 8 quarters had positive FCF — the business may require external capital to sustain operations.
TTM revenue has grown consistently (7 of 7 quarters up), with ~15.5% growth over the period. Strong demand durability.
Data-driven red flags and warnings across 21 quarters
Operating margins declined 9.0% — watch for continued compression, which may signal competitive or cost pressure.
Free cash flow has been negative in 5 of the last 8 quarters — earnings are not translating to cash.
D/E ratio is 1.7 — conservative capital structure with low financial risk.
Revenue is stable or growing over recent quarters — demand appears durable.
5 of the last 8 quarters had negative FCF — inconsistent cash generation raises sustainability concerns.
Shares outstanding rose 2.6% — mild dilution. Compare to earnings growth to assess net per-share impact.