Southern Co/TheSO

Utilities
Neutral

ASignal's systematic analysis rates SO as Neutral. Southern Co/The has a market cap of $108.65B, a P/E of 24.65, a 14.5% net margin, and 8.0% year-over-year revenue growth.

Reflects the latest available analysis · analyzed Jul 9, 2026

The case on SO

Bull vs bear, surfaced by ASignal's framework agents from public market data. The precise verdict: ASignal Rank, confidence, and price targets - is in the app.

Bull case
  • Positive MACD histogram indicating strengthening upward momentum
  • Price trading above 20-day and 50-day moving averages (SMA20, SMA50)
  • Operating margin of 25.82% indicates strong cost control
  • Gross margin of 48.00% reflects pricing power in regulated environment
  • Forward P/E of 19.60x below current P/E of 24.65x, suggesting valuation improvement
VS
Bear case
  • Free cash flow negative at $-3.95B, raising sustainability concerns
  • High debt-to-equity ratio of 1.90x, above recommended threshold of 1.0
  • Current ratio of 0.65x and quick ratio of 0.32x indicate liquidity pressure
  • Earnings growth declining YoY (-0.80%) despite revenue growth
  • Dividend yield of 315.00% is unsustainable and likely erroneous or indicative of price collapse

Key facts

Sector
Utilities
Market cap
$108.65B
P/E ratio
24.65
Gross margin
48.0%
Net margin
14.5%
Rev growth YoY
8.0%
Price (Jul 9, 2026)
$96.38

Peers

Clustered with SO by analysis-profile similarity.

Subscriber-only

See the full verdict on SO

ASignal Rank (1-4), confidence score, Buffett / Ackman / Dalio grades, price targets, and the full reasoning behind the call.

How ASignal analyzes SO

Most investors never get a second opinion, let alone several. ASignal runs SO past a panel of specialized investor-framework agents, each calibrated on a distinct school of investing: Warren Buffett's value discipline, Bill Ackman's activist lens, and Ray Dalio's macro view. They don't just score in isolation, they argue: a dedicated Challenger agent pushes back on every conclusion until the panel settles on a reasoned consensus, weighing fundamentals, macro conditions, market sentiment, and price action together. The kind of cross-examined read that takes a research desk hours, ASignal delivers in under two minutes, refreshed every cycle.

The signal direction and the bull and bear case above are free. The precise read, ASignal Rank, framework grades, price targets, and full reasoning, stays with subscribers.

Southern Co/The (SO) Stock Analysis - ASignal rates it Neutral