The share price of The Southern Company [NYSE: SO] inclined by $55.15, presently trading at $55.15. The company’s shares saw 29.76% gains compared to the lowest price in the period of the last 52 weeks, set at $42.50 recorded on 13/06/2019. The last few days have been N/A to the share price as SO fall by -0.42% during the last week, even though the stock is still down by -1.43% compared to -0.23 of all time high it touched on 06/07/19. However, the stock had a strong performance during the past 3 months, roughly gaining 2.83%, while additionally gaining 26.96% during the last 12 months. The Southern Company is said to have a 12-month price target set at $52.38. That means that the stock has a strong potential to acquire -2.77% decrease from the current trading price.

The Southern Company [NYSE:SO]: Analyst Rating and Earnings

Stock market traders frequently keep their eyes on what Wall Street experts as it relates to a potential investment. For The Southern Company [SO], the most recent analyst consensus recommendation available since its latest financial results for the quarter ending in December. On average, stock market experts give SO an Hold rating. Its stock price has been found in the range of 42.50 to 55.95. This is compared to its latest closing price of $55.15.

Wall Street analysts provide their ratings on a scale of 1 to 5, and the current average score for The Southern Company [SO] is sitting at 3.20. This is compared to 1 month ago, when its average rating was 3.21.

For the quarter ending in Mar-19 The Southern Company [SO] generated $5.41 billion in sales. That’s 5.46% lower than the average estimate of $5.72 billion as provided by Wall Street analysts. The three indicators above suggest that overall, this stock is demonstrating a mixed bag of positive appeal and some drawbacks, making it a somewhat risky investment that also has the potential to generate high ROI in the long run.

Keep your eyes peeled for the soon-to-be-published financial results of this company, which are expected to be made public on Wed 14 Aug (In 61 Days).

Fundamental Analysis of The Southern Company [SO]

Now let’s turn to look at profitability: with a current Operating Margin for The Southern Company [SO] sitting at +22.54 and its Gross Margin at +28.11, this company’s Net Margin is now 15.00%. These measurements indicate that The Southern Company [SO] is generating considerably more profit, after expenses are accounted for, compared to its market peers.

This company’s Return on Total Capital is 6.97, and its Return on Invested Capital has reached 5.20%. Its Return on Equity is 9.06, and its Return on Assets is 1.97. These metrics suggest that this The Southern Company does a poor job of managing its assets, and likely won’t be able to provide successful business outcomes for its investors in the near term.

Turning to investigate this organization’s capital structure, The Southern Company [SO] has generated a Total Debt to Total Equity ratio of 187.29. Similarly, its Total Debt to Total Capital is 65.19, while its Total Debt to Total Assets stands at 40.07. Looking toward the future, this publicly-traded company’s Long-Term Debt to Equity is 164.77, and its Long-Term Debt to Total Capital is 56.69. This company is not leveraging its assets to take on debt, which stunts its growth and limits the ROI for investors.

What about valuation? This company’s Enterprise Value to EBITDA is 11.53 and its Total Debt to EBITDA Value is 5.28. The Enterprise Value to Sales for this firm is now 4.53, and its Total Debt to Enterprise Value stands at 0.49. The Southern Company [SO] has a Price to Book Ratio of 1.84, a Price to Cash Flow Ratio of 6.48 and P/E Ratio of 17.07. These metrics all suggest that The Southern Company is more likely to generate a positive ROI.

Shifting the focus to workforce efficiency, The Southern Company [SO] earns $808,955 for each employee under its payroll. Similarly, this company’s Receivables Turnover is 5.83 and its Total Asset Turnover is 0.21. This publicly-traded organization’s liquidity data is also interesting: its Quick Ratio is 0.50 and its Current Ratio is 0.67. This company is not investing its short-term assets in an optimally efficient way, making it a riskier investment.

The Southern Company [SO] has 1.05B shares outstanding, amounting to a total market cap of $58.08B. Its stock price has been found in the range of 42.50 to 55.95. At its current price, it has moved down by -1.43% from its 52-week high, and it has moved up 29.76% from its 52-week low.

This stock’s Beta value is currently 0.20, which indicates that it is 1.28% more volatile that the wider market. This stock’s Relative Strength Index (RSI) is at 61.80. This RSI score is good, suggesting this stock is neither overbought or oversold.

Conclusion: Is The Southern Company [SO] a Reliable Buy?

The Southern Company [SO] stock is presenting a less attractive investment opportunity when compared to similarly-sized corporations in the same industry. The price performance of these shares has not shown much promise, and the financial results that this company has recently delivered present a highly risky investment.