Southern Company (The) Series 2020A 4.95% Junior Subordinated Notes due January 30 2080 (SOJD)

Key Financials

AI Analysis

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

As a Buffett/Graham investor, I look for safety and value. Southern Company's filed figures show fiscal 2025 revenue of $28.9B, net income of $4.3B, and diluted EPS of $3.92, down slightly from fiscal 2024's $3.99. The five-year growth is modest—profit at 6.9% and revenue at 6.5% annually—making it a slow grower. The utility has a stable, regulated business, which provides a moat. However, the security in question is a junior subordinated note due 2080 with a 4.95% coupon. At $17.57, it trades near its 52-week low of $17.13, far below its high of $21.36. This discount likely reflects interest rate risk and the deeply subordinated nature of the note, which ranks below senior debt. The company's earnings are consistent but not growing fast. The note's long maturity makes it highly sensitive to interest rates. While the current yield on par might be attractive, the yield to maturity is uncertain given the discount. Graham would demand a margin of safety, especially for a complex, long-dated instrument. The underlying utility is financially healthy, but the note itself carries substantial risk. I would want to see the note's credit rating and terms, but based solely on the data, the price reflects significant skepticism. The slow growth of the company offers little cushion.

In plain English: Southern Company is a utility that provides electricity. Its financial results show steady revenue and profit, but growth is slow. The note price is $17.57, near the lower end of its 52-week range of $17.13 to $21.36, which may reflect concerns about its long maturity and subordinated status.

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Data as of 2026-10-16 close · note generated 2026-10-20 · 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