The Southern Company (SOJE)
For informational purposes only. Not financial advice. Analysis by Sedat ANAK, Founder & Editor-in-Chief | AI-powered analysis. Data sourced from SEC filings and institutional-grade financial providers. Editorially reviewed. Not financial advice.
The Southern Company (SOJE) trades at $17.04 with AI Score 54/100 (Grade B). The Southern Company, established in 1945, is a holding company that generates and sells electricity and distributes natural gas. Market cap: $110.52B, Sector: Utilities.
Price live · AI analysis from May 4, 2026Analyst Coverage for SOJE: SOJE does not currently have published analyst price targets in our coverage universe. This is common for smaller-cap names with limited Wall Street coverage. In the absence of analyst consensus, our AI model evaluates SOJE against Utilities peers across nine fundamental dimensions and assigns a mixed fundamental profile based on the underlying data.
SOJE: the 1 perspectives are evenly split.
How is this calculated? →The Southern Company (SOJE) Utility Operations & Dividend Profile
The Southern Company is a holding entity focused on electricity generation and natural gas distribution across the Southeastern United States. With a diverse portfolio including traditional utilities and renewable energy projects, the company serves millions of customers while navigating evolving energy markets and regulatory landscapes.
What Is the Investment Thesis for SOJE?
The Southern Company presents a stable investment opportunity within the utilities sector, underpinned by its regulated electric and gas operations. With a current P/E ratio of 23.8 and a dividend yield of 3.09%, the company offers a blend of value and income. Key growth catalysts include investments in renewable energy projects and infrastructure upgrades. However, potential risks involve regulatory changes and commodity price volatility. The company's beta of 0.43 suggests lower volatility compared to the broader market, making it a noteworthy option for risk-averse investors seeking long-term stability.
Based on FMP financials and quantitative analysis
SOJE Key Highlights
- Market capitalization of $110.52B, reflecting its significant presence in the utilities sector.
- Profit margin of 14.5%, indicating efficient operations and profitability.
- Gross margin of 43.1%, showcasing strong cost management in electricity generation and natural gas distribution.
- Dividend yield of 3.09%, providing a steady income stream for investors.
- Beta of 0.43, suggesting lower volatility compared to the overall market.
Who Are SOJE's Competitors?
SOJE is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.
| Company | Price | Change | Market Cap | AI Score |
|---|---|---|---|---|
| DUK Duke Energy Corporation | $125.97 | -2.80% | 99B | 58 |
| EIX Edison International | $74.55 | -1.47% | $28.68B | 73 |
| CMS CMS Energy Corporation | $76.51 | -1.57% | $23.64B | 55 |
| NI NiSource Inc. | $47.23 | -1.24% | $22.64B | 61 |
| KEP Korea Electric Power Corporation (KEP) | $12.77 | +2.16% | $16.40B | 51 |
| CNLPM The Connecticut Light and Power Company | $32.99 | +1.29% | $315.00M | 72 |
| CNTHP The Connecticut Light and Power Company | $52.70 | +0.55% | $318.06M | 69 |
| CNLHP The Connecticut Light and Power Company | $36.95 | +0.00% | $223.00M | 68 |
AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance
What Are SOJE's Key Strengths?
- Stable revenue stream from regulated utility operations.
- Diversified portfolio of electricity generation sources.
- Extensive natural gas distribution network.
- Strong presence in the Southeastern United States.
What Are SOJE's Weaknesses?
- Exposure to regulatory changes and compliance costs.
- Dependence on fossil fuels for electricity generation.
- Potential for environmental liabilities.
- Capital-intensive operations.
What Could Drive SOJE Stock Higher?
- Investments in renewable energy projects driving long-term growth.
- Infrastructure modernization projects enhancing operational efficiency.
- Regulatory approvals for new energy projects expected in Q3 2026.
- Expansion of natural gas distribution network increasing customer base.
What Are the Key Risks for SOJE?
- Changes in environmental regulations increasing compliance costs.
- Fluctuations in commodity prices impacting profitability.
- Economic downturns reducing energy demand.
- Cybersecurity threats targeting critical infrastructure.
- Weather-related events disrupting operations.
What Are the Growth Opportunities for SOJE?
- Expansion of Renewable Energy Portfolio: The Southern Company can capitalize on the increasing demand for renewable energy by expanding its Southern Power segment. Investments in solar, wind, and other renewable energy projects can drive growth and align with sustainability goals. The renewable energy market is projected to reach $1.1 trillion by 2027, offering substantial opportunities for growth and diversification.
- Infrastructure Modernization: Upgrading existing infrastructure, including transmission and distribution networks, presents a significant growth opportunity. Modernizing infrastructure enhances reliability, reduces energy losses, and supports the integration of renewable energy sources. Government incentives and regulatory support can further facilitate these investments, ensuring long-term operational efficiency.
- Geographic Expansion in Natural Gas Distribution: Expanding the Southern Company Gas segment into new geographic areas can drive revenue growth. Acquiring or developing natural gas distribution facilities in underserved markets can increase the customer base and market share. The natural gas distribution market is expected to grow as natural gas remains a key energy source for heating and industrial processes.
- Strategic Acquisitions: The Southern Company can pursue strategic acquisitions to expand its capabilities and market presence. Acquiring companies with complementary assets or technologies can enhance operational efficiency and drive synergies. Careful due diligence and integration are essential for maximizing the value of these acquisitions and ensuring long-term growth.
- Investment in Energy Storage Solutions: As renewable energy sources become more prevalent, energy storage solutions are crucial for ensuring grid stability. Investing in battery storage and other energy storage technologies can enhance the reliability of renewable energy and support the integration of intermittent sources. The energy storage market is projected to grow significantly, offering substantial opportunities for The Southern Company.
What Opportunities Does SOJE Have?
- Expansion of renewable energy portfolio.
- Infrastructure modernization and upgrades.
- Geographic expansion in natural gas distribution.
- Strategic acquisitions to enhance capabilities.
What Threats Does SOJE Face?
- Increasing competition from renewable energy providers.
- Fluctuations in commodity prices.
- Changes in environmental regulations.
- Economic downturns impacting energy demand.
What Are SOJE's Competitive Advantages?
- Regulated utility operations provide a stable and predictable revenue stream.
- Vertically integrated operations in the electric utility segment.
- Diversified portfolio of electricity generation sources, including renewable energy.
- Extensive natural gas distribution network in multiple states.
What Does SOJE Do?
Founded on November 9, 1945, The Southern Company has evolved into a major player in the energy sector. Initially focused on electric utilities in the Southeast, the company has expanded its operations to include natural gas distribution and renewable energy generation. Through its subsidiaries, The Southern Company provides electricity to customers in Alabama, Georgia, Florida, and Mississippi via its Traditional Electric Operating Companies segment. This segment involves vertically integrated utilities that own generation, transmission, and distribution facilities. The Southern Power segment focuses on constructing, acquiring, owning, and managing generation assets, including renewable energy projects, selling electricity in the wholesale market. The Southern Company Gas segment distributes natural gas through natural gas distribution facilities in Illinois, Georgia, Virginia, New Jersey, Florida, Tennessee, and Maryland. Headquartered in Atlanta, Georgia, The Southern Company continues to adapt to changing energy demands and regulations while maintaining a commitment to reliability and customer service.
What Products and Services Does SOJE Offer?
- Generates and sells electricity through traditional utilities.
- Constructs, acquires, owns, and manages renewable energy projects.
- Sells electricity in the wholesale market through Southern Power.
- Distributes natural gas through natural gas distribution facilities.
- Operates in Alabama, Georgia, Florida, and Mississippi for electric services.
- Operates in Illinois, Georgia, Virginia, New Jersey, Florida, Tennessee, and Maryland for natural gas distribution.
How Does SOJE Make Money?
- Generates revenue through the sale of electricity to residential, commercial, and industrial customers.
- Generates revenue through the sale of natural gas to residential, commercial, and industrial customers.
- Operates regulated utilities, ensuring a stable revenue stream.
- Invests in renewable energy projects and sells electricity in the wholesale market.
What Industry Does SOJE Operate In?
The Southern Company operates within the regulated electric and gas utilities industry, which is characterized by stable demand and significant capital investments. The industry is undergoing a transition towards cleaner energy sources, with increasing investments in renewable energy projects. Competitors like Duke Energy Corporation (DUK) and Edison International (EIX) are also adapting to these trends. The Southern Company's diversified portfolio, including traditional utilities and renewable energy assets, positions it to capitalize on the growing demand for reliable and sustainable energy solutions.
Who Are SOJE's Key Customers?
- Residential customers in the Southeast.
- Commercial customers, including businesses and institutions.
- Industrial customers, such as manufacturing plants.
- Wholesale electricity customers through Southern Power.
FY2026 estForward Outlook
Wall Street analysts project The Southern Company revenue of about $30.49B for fiscal 2026, with EPS near $4.56.
ROE 12%Key Financial Metrics
Return on equity for The Southern Company stands at 12.3%, a gauge of how efficiently it converts shareholder capital into profit. Return on assets is 2.8%, showing how much profit it generates from its asset base. SOJE trades at a trailing price-to-earnings ratio of 23.84, below the Utilities sector average of ~28x. Its free cash flow yield is -3.4%, a gauge of the cash the business throws off relative to its market value. A current ratio of 0.65 means current liabilities exceed short-term assets, a liquidity point worth watching. Its earnings yield is 4.0%, the inverse of the P/E and a quick read on earnings relative to price.
F-Score 5/9Financial Health
The Southern Company's Piotroski F-Score is 5/9, a 9-point checklist of profitability, leverage and efficiency — a middling fundamental profile.
SOJE Valuation & Market Position
With a $110.52B market cap, The Southern Company sits in the large-cap segment of the market. Relative to its peer group, SOJE's quantitative score of 54/100 is roughly in line with the peer average of 60/100.
SOJE Financials
Fundamental Snapshot
Based on FMP financials and quantitative analysis · FY 2025
Bull Case vs Bear Case
Bull Case
- Recent insider buying suggests confidence in the company's future, indicating that executives believe in the long-term growth potential.
- Community sentiment has shifted positively, with discussions highlighting the company's commitment to renewable energy initiatives, attracting environmentally conscious investors.
- Market perception is buoyed by Southern Company's solid dividend history, appealing to income-focused investors looking for stability in uncertain times.
- Recent regulatory approvals for infrastructure projects indicate a strong growth trajectory, enhancing the company's position in the energy sector.
Bear Case
- Concerns over rising operational costs have surfaced in community discussions, which could impact profitability moving forward.
- Recent negative sentiment on social platforms highlights worries about potential delays in project timelines affecting shareholder confidence.
- The energy sector's volatility, particularly related to fossil fuel dependency, raises questions about long-term sustainability in a shifting market landscape.
- Community fears regarding regulatory changes could lead to increased scrutiny and operational challenges for Southern Company, dampening investor enthusiasm.
AI-generated arguments based on insider flow, news sentiment and technicals — not financial advice · January 2026
SOJE Latest News
No recent news available for SOJE.
SOJE Analyst Consensus
Consensus Rating
Aggregated Buy/Hold/Sell recommendations from Benzinga, Yahoo Finance, and Finnhub for SOJE.
Price Targets
Wall Street price target analysis for SOJE.
SOJE MoonshotScore
What does this score mean?
The MoonshotScore rates SOJE's growth potential on a scale of 0-100 across multiple factors including innovation, market disruption, financial health, and momentum.
Leadership: Christopher C. Womack
CEO
Christopher C. Womack has served as the CEO of Southern Company since March 31, 2023. Prior to this role, he served as president and CEO of Georgia Power. Womack has a long history with Southern Company, having held various leadership positions within the organization. He holds a Bachelor of Science degree from Western Michigan University and a Master of Business Administration degree from American University. He has also completed executive education programs at Stanford University, Harvard Business School, and the University of Pennsylvania’s Wharton School.
Track Record: During his tenure as president and CEO of Georgia Power, Womack oversaw significant investments in renewable energy and infrastructure modernization. He played a key role in advancing the company's clean energy transition and improving customer service. His leadership has been characterized by a focus on innovation, sustainability, and community engagement. He is now managing 28100 employees.
The Southern Company Utilities Stock: Key Questions Answered
What does Southern Company (The) Series 2 do?
The Southern Company is a holding company that operates through three main segments: Traditional Electric Operating Companies, Southern Power, and Southern Company Gas. The company generates and sells electricity through its traditional utilities in Alabama, Georgia, Florida, and Mississippi. It also constructs, acquires, and manages renewable energy projects, selling electricity in the wholesale market. Additionally, it distributes natural gas in Illinois, Georgia, Virginia, New Jersey, Florida, Tennessee, and Maryland, providing a diversified energy portfolio.
What do analysts say about SOJE stock?
Analyst consensus on The Southern Company stock reflects a stable outlook, driven by its regulated utility operations and dividend yield. Key valuation metrics, such as the P/E ratio of 23.8, suggest a fair valuation relative to its earnings. Growth considerations include investments in renewable energy and infrastructure upgrades. However, potential risks involve regulatory changes and commodity price volatility. Analyst ratings generally reflect a hold or neutral recommendation, emphasizing the company's stability and income potential.
What are the main risks for SOJE?
The Southern Company faces several key risks, including regulatory changes that could increase compliance costs and impact profitability. Fluctuations in commodity prices, particularly natural gas, can affect the company's earnings. Economic downturns can reduce energy demand, impacting revenue. Cybersecurity threats pose a risk to critical infrastructure, potentially disrupting operations. Weather-related events, such as hurricanes and severe storms, can also disrupt operations and increase costs.
How does Southern Company (The) Series 2 compare to competitors in its industry?
The Southern Company competes with other major utility companies like Duke Energy Corporation (DUK) and Edison International (EIX). While DUK has similar regulated utility operations in the Southeast, EIX focuses on electric utilities in California. Southern Company distinguishes itself through its diversified portfolio, including traditional utilities, renewable energy projects, and natural gas distribution. This diversification provides a more balanced revenue stream and reduces reliance on any single energy source, offering a competitive advantage.
What are the key financial metrics investors watch for SOJE?
Investors closely monitor several key financial metrics for The Southern Company, including its revenue growth, profit margin, and dividend yield. The company's profit margin of 14.5% indicates efficient operations, while its gross margin of 43.1% reflects strong cost management. The dividend yield of 3.09% is a significant factor for income-seeking investors. Additionally, the company's beta of 0.43 is considered to assess its volatility relative to the broader market.
What are the key factors to evaluate for SOJE?
The Southern Company (SOJE) holds an AI score of 54/100 (moderate). P/E: 23.8x vs the S&P 500's ~20-25x. Not financial advice.
How frequently does SOJE data refresh on this page?
SOJE prices update in real time during U.S. market hours. Fundamentals refresh after quarterly filings; analyst ratings and AI insights update daily; news is aggregated continuously.
What has driven SOJE's recent stock price performance?
The Southern Company (SOJE) moves on earnings results, analyst revisions, sector rotation, and market sentiment. Notable catalyst: Stable revenue stream from regulated utility operations. See the News tab for the latest drivers. Past performance does not predict future results.
Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.
Official Resources
Data provided for informational purposes only.
- Financial data is based on the most recent available information.
- Analyst consensus is a general summary and may not reflect all individual opinions.
- Risk factors are based on current market conditions and may change over time.