Southern Company (The) Series 2017B 5.25% Junior Subordinated Notes due December 1 2077 (SOJC)

FairStock Score: 33/100 — RISKY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

As a value investor, I start with the business, not the ticker. Southern Company is a regulated utility, which can be a durable franchise because electricity demand is essential and regulators allow recovery of costs. The filed figures show revenue rising from $24.8B in FY2023 to $26.8B in FY2024 to $28.9B in FY2025, but net income has been uneven: $4.0B, $4.4B, and $4.3B, with diluted EPS of $3.62, $3.99, and $3.92. In fiscal Q1 2026, revenue was $8.0B and net income $1.4B, EPS $1.20. That is slow, steady growth, consistent with FairStock's Lynch category of SLOW GROWER, citing 6.9% annual profit growth and 6.5% revenue growth over five years. For the note, the coupon is 5.25% and maturity is December 1, 2077. At $18.63 on 2026-10-13, within a 52-week range of $18.11-$23.12, it trades near the low end. FairStock gives a score of 33/100 and a P/E of 22.00, though P/E is not the right lens for a junior subordinated note. The key question is not earnings multiple but credit safety, interest-rate risk, and subordination. The company's earnings power seems adequate, but I see no D/E, ROE, or ROCE in the data to judge leverage or coverage. A long-dated junior note demands a margin of safety. I would want more clarity on the balance sheet before calling it a bargain, even at the lower end of its range.

In plain English: Southern Company provides electricity, and these notes are a long-term loan to it paying 5.25% interest until December 2077. The business has grown sales but profits have been uneven, and the note price is near the bottom of where it has traded over the past year. Based on the limited figures, the price looks less expensive than its recent high, but the long maturity and lower priority than some other debts make it riskier than ordinary debt.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · fiscal Q1 2025 10-Q (period ended 2025-03-31) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer