The Southern Company (SO)
The Southern Company is a leading energy provider in the U.S., delivering electricity and natural gas to millions of customers. With a focus on infrastructure and diverse energy sources, it aims to provide reliable and sustainable energy solutions.
Company Overview
The Southern Company is a premier utility, delivering reliable energy solutions through diverse infrastructure and a commitment to innovation, offering investors stable dividends and long-term growth potential in a vital sector with a $99.19B market cap and 3.26% dividend yield.
Investment Thesis
The Southern Company presents a compelling investment opportunity due to its stable, regulated business model and commitment to infrastructure development. With a market capitalization of $99.19 billion and a dividend yield of 3.26%, SO offers a blend of stability and income. The company's diverse energy portfolio, including renewable energy projects, positions it favorably in a transitioning energy landscape. Key value drivers include continued investment in infrastructure, expansion of its natural gas distribution network, and growth in renewable energy generation. The company's P/E ratio of 22.26 reflects investor confidence in its earnings potential. Upcoming investments in modernizing its grid and expanding its renewable energy capacity will serve as catalysts for future growth.
Key Highlights
- Market Cap of $99.19B demonstrating significant investor confidence and market valuation.
- Profit Margin of 15.4% indicating strong operational efficiency and profitability.
- Gross Margin of 49.1% reflecting effective cost management in energy production and distribution.
- Dividend Yield of 3.26% offering a steady income stream for investors.
- Beta of 0.45 indicating lower volatility compared to the overall market, making it a relatively stable investment.
Competitors
Strengths
- Diverse energy portfolio including renewable and traditional sources.
- Extensive infrastructure network for electricity and natural gas distribution.
- Large customer base across multiple states.
- Stable revenue streams due to regulated utility status.
Weaknesses
- Exposure to regulatory changes and environmental compliance costs.
- Dependence on fossil fuels for a significant portion of electricity generation.
- High capital expenditure requirements for infrastructure maintenance and upgrades.
- Potential for operational disruptions due to weather events and equipment failures.
Catalysts
- Ongoing: Investments in renewable energy projects, driving long-term growth and sustainability.
- Upcoming: Completion of infrastructure modernization projects, improving grid reliability and efficiency.
- Ongoing: Expansion of natural gas distribution network, increasing customer base and revenue.
- Upcoming: Regulatory approvals for new energy projects and rate adjustments.
Risks
- Potential: Regulatory changes impacting profitability and investment returns.
- Potential: Fluctuations in fuel costs and commodity prices.
- Ongoing: Environmental compliance costs and potential liabilities.
- Potential: Cybersecurity threats to critical infrastructure.
- Ongoing: Weather-related disruptions to energy generation and distribution.
Growth Opportunities
- Expansion of Renewable Energy Portfolio: The Southern Company has a significant opportunity to expand its renewable energy portfolio, including solar and wind facilities. With increasing demand for clean energy, driven by government incentives and corporate sustainability goals, the market for renewable energy is projected to grow substantially. Investing in new renewable energy projects will not only enhance the company's environmental profile but also generate long-term revenue streams. The company already operates 45 solar and 15 wind facilities.
- Infrastructure Modernization and Smart Grid Technologies: Upgrading existing infrastructure and implementing smart grid technologies presents a significant growth opportunity. Modernizing the grid improves reliability, reduces energy losses, and enables better integration of renewable energy sources. The market for smart grid technologies is expected to grow as utilities invest in improving grid efficiency and resilience. The Southern Company can capitalize on this trend by investing in advanced metering infrastructure, grid automation, and cybersecurity solutions.
- Natural Gas Distribution Expansion: The Southern Company can expand its natural gas distribution network to serve new residential, commercial, and industrial customers. Natural gas remains a vital energy source, particularly for heating and industrial processes. Expanding the distribution network increases the company's customer base and revenue. The company operates 76,289 miles of natural gas pipelines and 14 storage facilities, providing a solid foundation for further expansion.
- Strategic Acquisitions and Partnerships: Pursuing strategic acquisitions and partnerships can drive growth by expanding the company's geographic reach and service offerings. Acquiring smaller utilities or partnering with technology companies can provide access to new markets, innovative technologies, and specialized expertise. Strategic alliances can also help the company accelerate its transition to cleaner energy sources and enhance its competitive position.
- Electric Vehicle (EV) Infrastructure Development: With the increasing adoption of electric vehicles, The Southern Company has an opportunity to invest in EV charging infrastructure. Developing and operating EV charging stations can generate new revenue streams and support the transition to electric transportation. The company can partner with municipalities, businesses, and other stakeholders to deploy charging infrastructure in strategic locations. This investment aligns with the growing demand for EV charging solutions and supports the company's commitment to sustainability.
Opportunities
- Expansion of renewable energy generation capacity.
- Investment in smart grid technologies and grid modernization.
- Growth in electric vehicle charging infrastructure.
- Strategic acquisitions and partnerships to expand geographic reach and service offerings.
Threats
- Increasing competition from alternative energy providers.
- Rising fuel costs and commodity price volatility.
- Cybersecurity threats to critical infrastructure.
- Changing consumer preferences and demand for cleaner energy sources.
Competitive Advantages
- Regulated Utility Status: Operates in a regulated industry, providing a degree of protection from competition and ensuring a stable revenue stream.
- Extensive Infrastructure: Owns and operates a vast network of power generation facilities, transmission lines, and natural gas pipelines, creating a high barrier to entry for potential competitors.
- Geographic Footprint: Serves a large customer base across multiple states, providing geographic diversification and reducing reliance on any single market.
- Diverse Energy Portfolio: A diverse portfolio of energy sources, including fossil fuels, nuclear, hydro, solar, and wind, enhances resilience and reduces exposure to fuel price volatility.
About
Incorporated in 1945 and headquartered in Atlanta, Georgia, The Southern Company has evolved into one of the largest energy providers in the United States. The company's operations are divided into Gas Distribution Operations, Gas Pipeline Investments, Wholesale Gas Services, and Gas Marketing Services. It generates, transmits, and distributes electricity, and distributes natural gas across multiple states including Illinois, Georgia, Virginia, and Tennessee. The Southern Company serves approximately 8.7 million electric and gas utility customers. Its diverse portfolio includes 30 hydroelectric generating stations, 24 fossil fuel generating stations, three nuclear generating stations, 13 combined cycle/cogeneration stations, 45 solar facilities, 15 wind facilities, one fuel cell facility, and four battery storage facilities. The company also constructs, operates, and maintains 76,289 miles of natural gas pipelines and 14 storage facilities with a total capacity of 157 Bcf. Beyond traditional energy, The Southern Company offers digital wireless communications and fiber optics services, demonstrating a commitment to innovation and meeting evolving customer needs.
What They Do
- Generates electricity through diverse sources including fossil fuels, nuclear, hydro, solar, and wind.
- Transmits and distributes electricity to residential, commercial, and industrial customers.
- Distributes natural gas in Illinois, Georgia, Virginia, and Tennessee.
- Develops, constructs, acquires, owns, and manages power generation assets.
- Provides gas marketing services and wholesale gas services.
- Operates and maintains natural gas pipelines and storage facilities.
- Offers digital wireless communications and fiber optics services.
Business Model
- Generates revenue through the sale of electricity to residential, commercial, and industrial customers.
- Earns revenue from the distribution of natural gas.
- Generates revenue from gas marketing services and wholesale gas services.
- Revenue from digital wireless communications and fiber optics services.
Industry Context
The Southern Company operates within the regulated electric and gas utility industry, a sector characterized by stable demand and significant infrastructure requirements. The industry is undergoing a transition towards cleaner energy sources, driven by environmental regulations and consumer preferences. The Southern Company competes with other major utilities such as American Electric Power (AEP) and Duke Energy (DUK). The industry is experiencing growth in renewable energy generation and smart grid technologies. The shift towards sustainable energy solutions and the need for grid modernization are key trends shaping the competitive landscape.
Key Customers
- Residential customers requiring electricity and natural gas for home use.
- Commercial businesses needing energy for operations.
- Industrial facilities relying on electricity and natural gas for manufacturing processes.
- Wholesale customers purchasing electricity for redistribution.
Financials
Recent Quarterly Results
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2024 | $7.27B | $1.53B | $1.39 |
| Q4 2024 | $6.34B | $534M | $0.48 |
| Q1 2025 | $7.78B | $1.33B | $1.21 |
| Q2 2025 | $6.97B | $880M | $0.79 |
Source: Company filings
Chart & Info
Price Chart
The Southern Company (SO) stock price: $94.95 (+0.00, +0.00%)
Why Bull
- •Recent insider buying suggests confidence in the company's future performance, which often reflects a positive outlook.
- •Community sentiment has shifted positively, with discussions highlighting the company's commitment to renewable energy initiatives.
- •Market perception is bolstered by favorable regulatory developments that support utility companies transitioning to cleaner energy.
- •Analysts are noting the potential for stable dividends, which attracts long-term investors looking for reliable income.
Why Bear
- •Concerns over rising operational costs related to infrastructure upgrades are prevalent among investors, leading to skepticism.
- •Recent community discussions reflect worries about potential regulatory hurdles that could impact profitability.
- •The market is cautious about the company's ability to meet its long-term sustainability goals amid increasing competition.
- •Some investors express doubts about the pace of the transition to renewable energy, fearing it may not align with short-term financial performance.
Latest News
-
This Yeti Analyst Turns Bullish; Here Are Top 5 Upgrades For Friday
benzinga · Feb 20, 2026
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Walmart downgraded, Etsy upgraded: Wall Street's top analyst calls
The Fly · Feb 20, 2026
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Here Are Friday’s Top Wall Street Analyst Research Calls: Amgen, ETSY, Eldorado Gold, GE Aerospace, Merck, Southern Company, Walmart, Yeti, and More
24/7 Wall St. · Feb 20, 2026
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Southern To Rally More Than 9%? Here Are 10 Top Analyst Forecasts For Friday
benzinga · Feb 20, 2026
Technical Analysis
Rationale
AI-generated technical analysis for SO including trend direction, momentum, and pattern recognition.
What to Watch
Key support and resistance levels, volume signals, and upcoming events.
Risk Management
Position sizing, stop-loss levels, and risk-reward assessment.
Community
Discussion
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Sentiment
Community sentiment and discussion activity for SO.
Make a Prediction
Set your price target for The Southern Company (SO), choose a timeframe, and track your prediction accuracy.
Current price: $94.95
Analyst Consensus
Consensus Rating
Aggregated Buy/Hold/Sell recommendations from Benzinga, Yahoo Finance, and Finnhub for SO.
Price Targets
Wall Street price target analysis for SO.
Insider Flow (30d)
MoonshotScore
Score Factors
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Revenue Growth 4/100
Revenue grew only 10.6% YoY, suggesting the company is in a slower growth phase.
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Gross Margin 8/100
Gross margin at 48.5% indicates good unit economics and healthy profitability per sale.
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Operating Leverage 4/100
Limited operating leverage due to slower revenue growth, keeping profit scaling constrained.
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Cash Runway 5/100
Cash position data is currently unavailable for this company.
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R&D Intensity 5/100
R&D spending data is currently unavailable for this company.
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Insider Activity 6/100
No significant insider buying or selling recently, which is neutral for the stock outlook.
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Short Interest 5/100
Float and volume data unavailable for liquidity analysis.
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Price Momentum 0/100
No bullish technical signals detected. The stock lacks upward price momentum currently.
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News Sentiment 5/100
No sentiment data available
What does this score mean?
The MoonshotScore rates SO's growth potential on a scale of 0-100 across multiple factors including innovation, market disruption, financial health, and momentum.
Competitors & Peers
Latest News
This Yeti Analyst Turns Bullish; Here Are Top 5 Upgrades For Friday
Walmart downgraded, Etsy upgraded: Wall Street's top analyst calls
Here Are Friday’s Top Wall Street Analyst Research Calls: Amgen, ETSY, Eldorado Gold, GE Aerospace, Merck, Southern Company, Walmart, Yeti, and More
Southern To Rally More Than 9%? Here Are 10 Top Analyst Forecasts For Friday
Frequently Asked Questions
What does The Southern Company do?
The Southern Company is a major energy provider that generates, transmits, and distributes electricity and natural gas. It serves approximately 8.7 million electric and gas utility customers across multiple states. The company operates a diverse portfolio of power generation facilities, including fossil fuel, nuclear, hydro, solar, and wind. It also distributes natural gas through an extensive network of pipelines and storage facilities. Additionally, The Southern Company offers digital wireless communications and fiber optics services, demonstrating a commitment to innovation and meeting evolving customer needs.
Is SO stock a good buy?
SO stock may be a good buy for investors seeking stable income and long-term growth potential. The company's regulated utility status provides a degree of protection from competition and ensures a stable revenue stream. With a dividend yield of 3.26%, SO offers a steady income stream. The company's investments in renewable energy and infrastructure modernization position it favorably for future growth. However, investors should consider potential regulatory changes, fuel cost volatility, and cybersecurity risks before investing. The P/E ratio of 22.26 suggests the stock is reasonably valued.
What are the main risks for SO?
The Southern Company faces several key risks, including regulatory changes that could impact profitability, fluctuations in fuel costs and commodity prices, environmental compliance costs, and cybersecurity threats to critical infrastructure. The company's reliance on fossil fuels exposes it to price volatility and environmental regulations. Weather-related disruptions can also impact energy generation and distribution. Additionally, increasing competition from alternative energy providers and changing consumer preferences pose challenges to the company's long-term growth.
Is SO a good stock to buy?
Whether SO is a good investment depends on your financial goals, risk tolerance, and investment horizon. Key factors to evaluate include the company's revenue growth trajectory, profit margins, debt-to-equity ratio, competitive moat, and valuation multiples (P/E, P/S, EV/EBITDA) relative to industry peers. Our AI-generated Investment Thesis and SWOT analysis on this page provide a data-driven starting point. Always do your own research and consider consulting a financial advisor before making investment decisions.
What is the SO MoonshotScore?
The MoonshotScore for SO is an AI-powered rating from 0 to 100 that evaluates a stock across four dimensions: growth potential (revenue and earnings trajectory), financial health (balance sheet strength, cash flow), market momentum (price trends, volume patterns, institutional flows), and risk factors (volatility, debt levels, sector headwinds). Scores above 70 indicate strong potential, 50-70 moderate, and below 50 suggests caution. The score is recalculated daily using the latest financial data and market signals.
How often is SO data updated?
SO stock prices are updated in real-time during U.S. market hours (9:30 AM - 4:00 PM ET, Monday through Friday). After-hours and pre-market prices are also tracked. Company fundamentals (earnings, revenue, balance sheet) are refreshed when new quarterly or annual reports are filed. Analyst ratings, price targets, and AI-generated insights are updated daily. Breaking news related to SO is aggregated continuously from premium financial news sources throughout the day.
What are the growth catalysts for SO?
Growth catalysts for The Southern Company (SO) can include several categories: product catalysts (new launches, FDA approvals, patent grants), financial catalysts (earnings beats, margin expansion, share buybacks), strategic catalysts (acquisitions, partnerships, market expansion into new regions), and macro catalysts (favorable regulation, industry tailwinds, secular growth trends). Our AI analyzes The Southern Company's specific catalysts using earnings transcripts, SEC filings, and news sentiment to identify the most impactful near-term and long-term drivers.
Who are SO's main competitors?
The Southern Company (SO) competes with companies in its industry that target similar customers, markets, or product categories. Competitor analysis involves comparing key metrics: market share, revenue growth rates, profit margins, R&D spending, and valuation multiples. Understanding competitive positioning helps investors assess whether SO has a sustainable competitive advantage (moat) through brand strength, network effects, cost leadership, or switching costs. Our Competitors section provides a side-by-side comparison with relevant peers.
What do analysts say about SO?
Wall Street analyst coverage for SO includes consensus ratings (buy, hold, or sell), 12-month price targets, and earnings estimates. Analyst opinions are aggregated from major investment banks and research firms. Key metrics to watch include the consensus price target (average, high, and low estimates), the number of analysts covering the stock, any recent rating changes (upgrades or downgrades), and how actual earnings compare to analyst estimates (beat or miss history). Our platform aggregates these from multiple data providers for a comprehensive view.
What is SO's market cap?
Market capitalization (market cap) for SO is calculated by multiplying the current share price by the total number of outstanding shares. It represents the market's total valuation of the company. Stocks are typically categorized as mega-cap ($200B+), large-cap ($10B-$200B), mid-cap ($2B-$10B), small-cap ($300M-$2B), or micro-cap (under $300M). Market cap influences index inclusion, institutional ownership eligibility, and risk profile. Our Key Statistics section shows SO's current market cap alongside enterprise value and other valuation metrics.
How has SO stock performed recently?
SO's recent stock performance can be evaluated across multiple timeframes: daily price changes, week-over-week momentum, monthly trends, and year-to-date returns. Important performance indicators include the stock's 52-week high and low, moving averages (50-day and 200-day SMA), relative strength index (RSI), and volume trends. Comparing SO's performance against its sector index and the S&P 500 provides context on whether it is outperforming or underperforming the broader market.
What are the risks of investing in SO?
Key risk categories for SO include: market risk (overall market downturns affecting stock prices), company-specific risk (management changes, product failures, competitive threats), financial risk (high debt levels, cash burn, dilution from stock issuance), regulatory risk (government policy changes, lawsuits, compliance issues), and macroeconomic risk (interest rate changes, inflation, currency fluctuations). Beta measures SO's volatility relative to the market - a beta above 1.0 means higher volatility than the S&P 500. Our AI-generated risk assessment identifies the most relevant risk factors for this specific stock.
Are insiders buying or selling SO?
Insider trading activity for SO tracks purchases and sales by company executives, directors, and major shareholders (10%+ owners) as reported in SEC Form 4 filings. Insider buying is generally considered a bullish signal because insiders have the deepest knowledge of company operations, while selling may have various motivations (diversification, tax planning, pre-planned 10b5-1 trading plans). Key metrics include the buy-to-sell ratio, total dollar value of insider transactions, and whether multiple insiders are trading in the same direction. Our Insider Flow tab shows recent transactions with dates and dollar amounts.
Is SO a good stock for beginners?
The Southern Company (SO) can be suitable for beginner investors depending on several factors. Look at the MoonshotScore on this page for an overall AI-powered assessment of growth potential and risk. Beginners should also check the company's market cap (larger companies tend to be less volatile), gross margin (higher margins mean stronger business fundamentals), and cash position (healthy cash reduces bankruptcy risk). Always start with a small position size and never invest money you cannot afford to lose.
How risky is SO for first-time investors?
Every stock carries risk, including The Southern Company (SO). First-time investors should review the Risk Factors section on this page for company-specific risks. Key risk indicators include price volatility (check the chart for daily swings), insider selling activity (see Insider Flow tab), and cash runway (see MoonshotScore breakdown). A diversified portfolio with an index fund like the S&P 500 as a core holding is generally recommended before adding individual stocks like SO.
Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.
Data provided for informational purposes only.
- Financial data is based on the most recent available information.
- Future performance is subject to market conditions and company-specific factors.