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Southern Co (SOJF) Stock Fundamental Analysis & AI Rating 2026

SOJF NYSE Electric Services DE CIK: 0000092122
Recently Updated • Analysis: Apr 16, 2026 • SEC Data: 2025-12-31
HOLD
45% Conf
Pending
Analysis scheduled

📊 SOJF Key Takeaways

Revenue: $29.6B
Net Margin: 14.7%
Free Cash Flow: $-2.9B
Current Ratio: 0.65x
Debt/Equity: 1.82x
EPS: $3.92
AI Rating: HOLD with 45% confidence
Southern Co (SOJF) receives a HOLD rating with 45% confidence from our AI fundamental analysis based on SEC 10-K filings. With revenue of $29.6B, net profit margin of 14.7%, and return on equity (ROE) of 12.1%, Southern Co demonstrates mixed fundamentals in the Utilities sector. Below is our complete SOJF stock analysis for 2026.

Is Southern Co (SOJF) a Good Investment?

Claude

Southern Company exhibits strong operational profitability with 24.7% operating margins and 4.1% net income growth, but faces significant financial stress with negative free cash flow of -$2.9B and elevated leverage of 1.82x Debt/Equity. The company's $12.7B capex exceeds $9.8B operating cash generation, requiring continued reliance on debt markets that raises sustainability concerns.

Why Buy Southern Co Stock? SOJF Key Strengths

Claude
  • + Strong operating margin of 24.7% demonstrates operational efficiency in regulated utility model
  • + Net income growth accelerating faster than revenue (4.1% vs 2.1% YoY) shows operational leverage
  • + Substantial operating cash flow of $9.8B provides baseline for obligations and dividends

SOJF Stock Risks: Southern Co Investment Risks

Claude
  • ! Negative free cash flow of -$2.9B unsustainable without continuous external financing
  • ! Very high leverage with Debt/Equity ratio of 1.82x and $65.6B long-term debt limits financial flexibility
  • ! Weak liquidity with current ratio of 0.65x and declining EPS despite net income growth indicates shareholder dilution

Key Metrics to Watch

Claude
  • * Free cash flow trajectory and capex funding sustainability
  • * Debt refinancing ability and cost of capital in credit markets
  • * Regulatory rate approval outcomes and cost recovery mechanisms

Southern Co (SOJF) Financial Metrics & Key Ratios

Revenue
$29.6B
Net Income
$4.3B
EPS (Diluted)
$3.92
Free Cash Flow
$-2.9B
Total Assets
$155.7B
Cash Position
$1.6B

💡 AI Analyst Insight

The current ratio below 1.0x warrants monitoring of short-term liquidity.

SOJF Profit Margin, ROE & Profitability Analysis

Gross Margin N/A
Operating Margin 24.7%
Net Margin 14.7%
ROE 12.1%
ROA 2.8%
FCF Margin -9.9%

SOJF vs Utilities Sector: How Southern Co Compares

How Southern Co compares to Utilities sector averages

Net Margin
SOJF 14.7%
vs
Sector Avg 12.0%
SOJF Sector
ROE
SOJF 12.1%
vs
Sector Avg 10.0%
SOJF Sector
Current Ratio
SOJF 0.6x
vs
Sector Avg 0.8x
SOJF Sector
Debt/Equity
SOJF 1.8x
vs
Sector Avg 1.4x
SOJF Sector

Sector benchmarks are approximate industry averages. Actual sector performance may vary.

Is Southern Co Stock Overvalued? SOJF Valuation Analysis 2026

Based on fundamental analysis, Southern Co has mixed fundamental signals relative to the Utilities sector in 2026.

Return on Equity
12.1%
Sector avg: 10%
Net Profit Margin
14.7%
Sector avg: 12%
Revenue Growth
N/A
Year-over-year
Debt/Equity
1.82x
Sector avg: 1.4x

Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.

Southern Co Balance Sheet: SOJF Debt, Cash & Liquidity

Current Ratio
0.65x
Quick Ratio
0.65x
Debt/Equity
1.82x
Debt/Assets
75.0%
Interest Coverage
N/A
Long-term Debt
$65.6B

SOJF Revenue & Earnings Growth: 5-Year Financial Trend

SOJF 5-year financial data: Year 2021: Revenue $23.5B, Net Income N/A, EPS $4.50. Year 2022: Revenue $25.9B, Net Income N/A, EPS $2.93. Year 2023: Revenue $25.9B, Net Income N/A, EPS $2.24. Year 2024: Revenue $26.8B, Net Income N/A, EPS $3.26. Year 2025: Revenue $28.9B, Net Income $4.0B, EPS $3.62.
Revenue
Net Income
EPS (right axis)

5-Year Trend Summary: Southern Co's revenue has grown significantly by 23% over the 5-year period, indicating strong business expansion. The most recent EPS of $3.62 reflects profitable operations.

SOJF Revenue Growth, EPS Growth & YoY Performance

Revenue Growth
N/A
Year-over-year
Net Income Growth
N/A
Year-over-year
EPS Growth
N/A
Earnings per share
FCF Margin
-9.9%
Free cash flow / Revenue

SOJF Quarterly Earnings & Performance

Quarterly financial performance data for Southern Co including revenue, net income, and earnings per share.
Quarter Revenue Net Income EPS
Q3 2025 $7.5B $1.5B $1.39
Q2 2025 $6.3B $880.0M $0.79
Q1 2025 $6.7B N/A $1.03
Q3 2024 $7.1B N/A $1.29
Q2 2024 $5.5B N/A $0.76
Q1 2024 $6.2B N/A $0.79
Q3 2023 $7.1B N/A $1.29
Q2 2023 $5.5B N/A $0.76

Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.

Southern Co Dividends, Buybacks & Capital Allocation

Operating Cash Flow
$9.8B
Cash generated from operations
Capital Expenditures
$12.7B
Investment in assets
Dividends Paid
$3.0B
Returned to shareholders

SOJF SEC Filings: Latest 10-K & 10-Q Analysis

Access official SEC EDGAR filings for Southern Co (CIK: 0000092122)

📋 Recent SEC Filings

Date Form Document Action
Apr 3, 2026 DEF 14A so-20260402.htm View →
Apr 2, 2026 4 xslF345X06/ownership.xml View →
Apr 2, 2026 4 xslF345X06/ownership.xml View →
Apr 2, 2026 4 xslF345X06/ownership.xml View →
Apr 2, 2026 4 xslF345X06/ownership.xml View →

Frequently Asked Questions about SOJF

What is the AI rating for SOJF?

Southern Co (SOJF) has an AI rating of HOLD with 45% confidence, based on fundamental analysis of SEC EDGAR filings.

What are SOJF's key strengths?

Claude: Strong operating margin of 24.7% demonstrates operational efficiency in regulated utility model. Net income growth accelerating faster than revenue (4.1% vs 2.1% YoY) shows operational leverage.

What are the risks of investing in SOJF?

Claude: Negative free cash flow of -$2.9B unsustainable without continuous external financing. Very high leverage with Debt/Equity ratio of 1.82x and $65.6B long-term debt limits financial flexibility.

What is SOJF's revenue and growth?

Southern Co reported revenue of $29.6B.

Does SOJF pay dividends?

Southern Co pays dividends, with $3,015.0M distributed to shareholders in the trailing twelve months.

Where can I find SOJF SEC filings?

Official SEC filings for Southern Co (CIK: 0000092122) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.

What is SOJF's EPS?

Southern Co has a diluted EPS of $3.92.

How is the AI analysis conducted?

Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.

Is SOJF a good stock to buy right now?

Based on our AI fundamental analysis in April 2026, Southern Co has a HOLD rating with 45% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.

Is SOJF stock overvalued or undervalued?

Valuation metrics for SOJF: ROE of 12.1% (sector avg: 10%), net margin of 14.7% (sector avg: 12%). Higher ROE suggests strong returns relative to peers.

Should I buy SOJF stock in 2026?

Our dual AI analysis gives Southern Co a combined HOLD rating for 2026. Revenue is data pending, with profitability above sector average. Always conduct your own research.

What is SOJF's free cash flow?

Southern Co's operating cash flow is $9.8B, with capital expenditures of $12.7B. FCF margin is -9.9%.

How does SOJF compare to other Utilities stocks?

Vs Utilities sector averages: Net margin 14.7% (avg: 12%), ROE 12.1% (avg: 10%), current ratio 0.65 (avg: 0.8).

Is Southern Co carrying too much debt?

SOJF has a debt-to-equity ratio of 1.82x, which is above the Utilities sector average of 1.4x. Combined with a current ratio below 1, this warrants careful monitoring of the balance sheet.

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Disclaimer: This analysis is generated by Claude AI (Anthropic) and ChatGPT (OpenAI) based on publicly available SEC EDGAR filings. It does not include stock price data and should not be considered financial advice. All fundamental data is sourced from SEC public domain filings. Always conduct your own research and consult with a qualified financial advisor before making investment decisions.
Data Source: SEC EDGAR | Analysis Date: Apr 16, 2026 | Data as of: 2025-12-31 | Powered by Claude AI