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Southern Company is a holding company that owns all of the outstanding common stock of three traditional electric operating companies, Southern Power Company, and Southern Company Gas. The traditional electric operating companies Alabama Power, Georgia Power, and Mississippi Power are each vertically integrated utilities providing electric service to retail customers in three Southeastern state…
$92.05
$0.47 (-0.51%)
Price from 5 days ago
24.65% operating margin is above average. ROIC at 6.13%. Note that capital returns lag the margin, the business may be capital-intensive despite high margins.
Revenue grew 10.6%, still solid. Free cash flow declined 452% despite revenue growth, conversion is weakening.
Free cash flow declined 452% versus the prior year, cash generation momentum has weakened. Negative free cash flow of -$2.94B. The business is consuming cash, not generating it.
23.5x earnings. Valuation is in a reasonable range. The main question is whether the business can re-accelerate or if current trajectory is already priced in.
Based on TTM earnings · Diluted shares
Profitability & Returns
Revenue (TTM)
$30.18B
▲ +10.6% YoY
Net Income (TTM)
$4.43B
▼ -1.4% YoY
Op. Margin
24.17%
▼ -1.8pp YoY
ROIC
5.83%
▼ -0.1pp YoY
Cash Flow & Balance Sheet
FCF (TTM)
-$3.47B
▼ -452.3% YoY
Op. Cash Flow (TTM)
$9.78B
▲ +0.1% YoY
Net Debt
$75.02B
Cash & Equiv.
$981M
5Y CAGR: +7.7%
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