Southern Company (The) 2025 Series A Corporate Units (SOMN)

FairStock Score: 58/100 — STEADY

Key Financials

AI Analysis

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

I look for durable businesses bought at sensible prices. Southern Company is a regulated electric utility, so demand is usually steady and its service territory is protected. In fiscal 2025, the year ended 2025-12-31, it reported revenue of $28.9 billion, net income of $4.3 billion, and diluted EPS of $3.92. That compares with fiscal 2024, the year ended 2024-12-31, when revenue was $26.8 billion, net income was $4.4 billion, and diluted EPS was $3.99. Revenue rose, but profit slipped. In fiscal Q1 2026, the quarter ended 2026-03-31, revenue was $8.0 billion, net income was $1.4 billion, and diluted EPS was $1.20. The utility moat comes from regulation and essential service, but regulation also caps returns. FairStock's numbers show return on equity of 11.48%, return on capital employed of only 3.27%, and debt-to-equity of 1.82. That leverage is heavy. Trailing free cash flow is negative $3.3 billion, or a negative 6.3% free cash flow yield, so the business consumes cash while it invests. The Altman Z-Score of 0.45 is weak, and Piotroski is 6/9. At the 2026-10-13 close of $46.37, price-to-book is 1.35 and EV/EBITDA is 8.53. Market capitalization is $52.3 billion, and the units yield 0.00%. The 52-week range is $44.35 to $53.99, so the price sits near the low end. Lynch classifies it as a slow grower, with 6.9% annual profit growth and 6.5% revenue growth over five years. The FairStock Score is 45/100. This is not a bargain unless negative cash flow and leverage improve; the margin of safety is slim.

In plain English: Southern Company sells electricity to homes and businesses through its subsidiaries. The business looks stable and profitable, with $28.9 billion of revenue and $4.3 billion of net income in fiscal 2025, but it carries a lot of debt and is not generating free cash. At $46.37, the price is near the low end of its 52-week range and looks roughly in line with its accounting value, so it does not look clearly cheap or expensive.

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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