The Southern Company (SOMN)
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 (SOMN) trades at $50.20 with AI Score 45/100 (Grade C). The Southern Company is a leading utility company focused on electricity generation, transmission, and distribution, as well as natural gas distribution. Market cap: $109.43B, Sector: Utilities.
Price live · AI analysis from May 10, 2026Analyst Coverage for SOMN: SOMN 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 SOMN against Utilities peers across nine fundamental dimensions and assigns an underweight signal based on the underlying data.
SOMN: the 1 perspectives are evenly split.
How is this calculated? →The Southern Company (SOMN) Utility Operations & Dividend Profile
The Southern Company, a major player in the regulated electric and natural gas utility sector, focuses on electricity generation, transmission, and distribution, alongside natural gas distribution in multiple states. With a significant infrastructure and a growing emphasis on renewable energy, the company serves a broad customer base across the Southeast.
What Is the Investment Thesis for SOMN?
The Southern Company presents a stable investment opportunity within the utilities sector, characterized by its regulated business model and consistent dividend yield of 2.53%. With a market capitalization of $109.43B and a P/E ratio of 13.4, the company demonstrates financial stability. Growth catalysts include the expansion of renewable energy projects and the increasing demand for electricity in its service territories. Potential risks involve regulatory changes and the capital-intensive nature of infrastructure development. The company's beta of 0.41 suggests lower volatility compared to the broader market, making it a noteworthy option for risk-averse investors.
Based on FMP financials and quantitative analysis
SOMN Key Highlights
- Market Cap of $109.43B reflects its significant presence in the Utilities sector.
- P/E Ratio of 13.4 indicates a potentially undervalued stock compared to industry peers.
- Profit Margin of 14.5% showcases effective cost management and operational efficiency.
- Gross Margin of 48.0% highlights the profitability of its core operations in electricity and natural gas distribution.
- Dividend Yield of 2.53% provides a steady income stream for investors, enhancing its appeal as a long-term investment.
Who Are SOMN's Competitors?
SOMN is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.
| Company | Price | Change | Market Cap | AI Score |
|---|---|---|---|---|
| TXNM TXNM Energy, Inc. | $56.85 | -0.15% | $6.29B | 42 |
| 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 |
| CNPWP The Connecticut Light and Power Company | $32.75 | +0.00% | $197.65M | 66 |
| DUKB Duke Energy Corporation 5.625% | $23.42 | +0.52% | $18.21B | 50 |
| SOJD Southern Company (The) Series 2 | $19.35 | +0.36% | $21.66B | 50 |
| NGG National Grid plc transmits and distributes electricity and gas, operating through various segments in the UK and the US. The company | $82.59 | -0.31% | $82.19B | 50 |
AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance
What Are SOMN's Key Strengths?
- Large-scale infrastructure network.
- Diversified energy portfolio.
- Regulated utility status.
- Strong financial performance.
What Are SOMN's Weaknesses?
- Exposure to regulatory changes.
- Capital-intensive infrastructure investments.
- Dependence on fossil fuels.
- Vulnerability to extreme weather events.
What Could Drive SOMN Stock Higher?
- Expansion of renewable energy projects, driving revenue growth and improving environmental profile.
- Regulatory approvals for infrastructure modernization projects, enhancing operational efficiency.
- Increasing demand for electricity in the Southeast, supporting revenue growth.
- Completion of Vogtle nuclear expansion, adding significant generation capacity.
What Are the Key Risks for SOMN?
- Financial-distress signal — its Altman Z-Score of 0.75 sits in the distress zone (elevated bankruptcy risk).
- Regulatory changes impacting profitability and investment decisions.
- Capital-intensive infrastructure investments requiring significant funding.
- Cybersecurity threats targeting critical infrastructure.
- Fluctuations in fuel prices affecting power generation costs.
What Are the Growth Opportunities for SOMN?
- Expansion of Renewable Energy Portfolio: The Southern Company is actively investing in renewable energy projects, including solar, wind, and biomass. This expansion aligns with the growing demand for clean energy and government incentives promoting renewable energy development. The market for renewable energy is projected to reach $1.1 trillion by 2027, offering significant growth potential for the company. This strategic shift not only enhances its environmental profile but also diversifies its energy sources, reducing reliance on fossil fuels.
- Infrastructure Modernization: The Southern Company is undertaking significant investments in modernizing its infrastructure, including upgrading transmission lines and distribution networks. These upgrades improve reliability, reduce energy losses, and enhance the overall efficiency of its operations. The investment in smart grid technologies enables better monitoring and control of the grid, facilitating the integration of renewable energy sources and improving customer service. The ongoing infrastructure projects represent a long-term growth driver for the company.
- Distributed Energy Resources (DER) and Microgrids: The Southern Company is expanding its offerings in distributed energy resources (DER) and microgrids for commercial, industrial, and governmental customers. These solutions provide customers with greater control over their energy supply, enhance resilience, and reduce their carbon footprint. The market for DER and microgrids is expected to grow rapidly, driven by increasing demand for reliable and sustainable energy solutions. This expansion allows the company to tap into new revenue streams and strengthen its relationships with key customers.
- Natural Gas Distribution Expansion: The Southern Company distributes natural gas in multiple states, including Georgia, Illinois, Virginia and Tennessee. Expanding its natural gas distribution network and customer base in these regions presents a significant growth opportunity. Natural gas remains a critical energy source for heating, industrial processes, and power generation. The company's extensive pipeline infrastructure and storage facilities provide a competitive advantage in serving these markets. The growth in natural gas demand, driven by economic development and population growth, supports the expansion of its natural gas business.
- Digital Wireless Communications and Fiber Optics Services: The Southern Company provides digital wireless communications and fiber optics services, leveraging its infrastructure to offer connectivity solutions to various customers. This diversification into telecommunications enhances its revenue streams and strengthens its position as a comprehensive utility provider. The demand for high-speed internet and reliable communication services is growing rapidly, driven by increasing digitalization and remote work trends. The company's investment in fiber optics infrastructure positions it to capitalize on this growing market.
What Opportunities Does SOMN Have?
- Expansion of renewable energy projects.
- Modernization of infrastructure.
- Growth in distributed energy resources.
- Increased demand for electricity in the Southeast.
What Threats Does SOMN Face?
- Rising interest rates.
- Environmental regulations.
- Cybersecurity threats.
- Fluctuations in fuel prices.
What Are SOMN's Competitive Advantages?
- Regulated utility status provides a protected market and predictable revenue streams.
- Extensive infrastructure network of power generation, transmission lines, and gas pipelines.
- Diversified energy portfolio reduces reliance on any single fuel source.
- Strong brand reputation and customer loyalty in its service territories.
What Does SOMN Do?
Incorporated in 1946 and headquartered in Atlanta, Georgia, The Southern Company has evolved into one of the largest utility companies in the United States. The company's core business involves the generation, transmission, and distribution of electricity through its subsidiaries. It develops, constructs, acquires, owns, and manages a diverse portfolio of power generation assets, including a growing number of renewable energy projects. In addition to its electric operations, The Southern Company distributes natural gas in Illinois, Georgia, Virginia, and Tennessee. The company maintains an extensive network of approximately 78,500 miles of natural gas pipelines and operates 14 storage facilities. Beyond traditional utility services, The Southern Company offers distributed energy and resilience solutions, digital wireless communications, and fiber optics services. It also deploys microgrids for commercial, industrial, governmental, and utility customers, demonstrating its commitment to innovation and customer-centric solutions.
What Products and Services Does SOMN Offer?
- Generates electricity through various sources, including coal, nuclear, natural gas, and renewables.
- Transmits and distributes electricity to residential, commercial, and industrial customers.
- Distributes natural gas in Illinois, Georgia, Virginia, and Tennessee.
- Develops, constructs, and manages power generation assets.
- Offers distributed energy and resilience solutions.
- Provides digital wireless communications and fiber optics services.
How Does SOMN Make Money?
- Generates revenue through the sale of electricity to retail and wholesale customers.
- Earns revenue from the distribution of natural gas.
- Provides energy solutions and services to commercial and industrial customers.
- Develops and operates renewable energy projects, selling electricity to the grid.
What Industry Does SOMN Operate In?
The Southern Company operates in the regulated electric and natural gas utility industry, which is characterized by stable demand and regulated pricing. The industry is undergoing a transition towards renewable energy sources, driven by environmental concerns and government policies. The Southern Company competes with other major utility companies, such as TXNM Energy, Inc., in providing essential services to residential, commercial, and industrial customers. The industry is expected to see moderate growth, driven by population increases and economic development in the Southeast.
Who Are SOMN's Key Customers?
- Residential customers in the Southeast United States.
- Commercial and industrial businesses requiring electricity and natural gas.
- Governmental entities and municipalities.
- Wholesale electricity customers.
FY2026 estForward Outlook
Wall Street analysts project The Southern Company revenue of about $30.79B for fiscal 2026, with EPS near $4.57. The estimate reflects 16 contributing analysts.
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. SOMN trades at a trailing price-to-earnings ratio of 13.38, 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. Its Altman Z-Score of 0.75 places it in the distress zone, a signal of elevated financial risk.
SOMN Valuation & Market Position
With a $109.43B market cap, The Southern Company sits in the large-cap segment of the market. Relative to its peer group, SOMN's quantitative score of 45/100 is below the peer average of 63/100.
SOMN Financials
Fundamental Snapshot
Based on FMP financials and quantitative analysis · FY 2025
Bull Case vs Bear Case
Bull Case
- Large-scale infrastructure network.
- Diversified energy portfolio.
- Regulated utility status.
- Strong financial performance.
Bear Case
- Exposure to regulatory changes.
- Capital-intensive infrastructure investments.
- Dependence on fossil fuels.
- Vulnerability to extreme weather events.
AI-generated arguments based on insider flow, news sentiment and technicals — not financial advice · July 2026
SOMN Latest News
No recent news available for SOMN.
SOMN Analyst Consensus
Consensus Rating
Aggregated Buy/Hold/Sell recommendations from Benzinga, Yahoo Finance, and Finnhub for SOMN.
Price Targets
Wall Street price target analysis for SOMN.
SOMN MoonshotScore
What does this score mean?
The MoonshotScore rates SOMN'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 serves as the CEO of The Southern Company, bringing extensive experience in the energy sector. Prior to his current role, he held various leadership positions within the company, including executive vice president and president of external affairs. Womack has a strong background in public policy and government relations, which is crucial for navigating the regulatory landscape of the utility industry. He holds a bachelor's degree from Western Michigan University and a master's degree from American University.
Track Record: Under Christopher C. Womack's leadership, The Southern Company has focused on expanding its renewable energy portfolio and modernizing its infrastructure. He has overseen significant investments in solar, wind, and nuclear energy projects, positioning the company for a sustainable future. Womack has also emphasized customer service and community engagement, enhancing the company's reputation and strengthening its relationships with stakeholders.
The Southern Company Utilities Stock: Key Questions Answered
What does The Southern Company do?
The Southern Company is a leading utility company that generates, transmits, and distributes electricity and natural gas. It operates primarily in the Southeastern United States, serving residential, commercial, and industrial customers. The company develops and manages power generation assets, including renewable energy projects, and distributes natural gas through an extensive pipeline network. Additionally, The Southern Company offers distributed energy and resilience solutions, digital wireless communications, and fiber optics services.
What do analysts say about SOMN stock?
Analyst consensus on The Southern Company (SOMN) reflects a generally stable outlook, driven by its regulated utility business model and consistent dividend payouts. Key valuation metrics, such as the P/E ratio of 13.4, suggest a potentially undervalued stock compared to industry peers. Growth considerations include the expansion of renewable energy projects and infrastructure modernization efforts. However, regulatory risks and capital expenditure requirements remain important factors for investors to consider. Analysts typically provide price targets reflecting these factors.
What are the main risks for SOMN?
The Southern Company faces several key risks, including regulatory changes that could impact its profitability and investment decisions. The capital-intensive nature of infrastructure investments requires significant funding and exposes the company to interest rate fluctuations. Cybersecurity threats pose a risk to its critical infrastructure, potentially disrupting operations and compromising customer data. Fluctuations in fuel prices can affect power generation costs, impacting its financial performance. These risks require careful management and mitigation strategies.
What are the key factors to evaluate for SOMN?
The Southern Company (SOMN) holds an AI score of 45/100 (low). P/E: 13.4x vs the S&P 500's ~20-25x. Not financial advice.
How frequently does SOMN data refresh on this page?
SOMN 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 SOMN's recent stock price performance?
The Southern Company (SOMN) moves on earnings results, analyst revisions, sector rotation, and market sentiment. Notable catalyst: Large-scale infrastructure network. See the News tab for the latest drivers. Past performance does not predict future results.
Should investors consider SOMN overvalued or undervalued right now?
The Southern Company (SOMN) trades at 13.4x earnings. Compare P/E, P/S, and EV/EBITDA against sector peers for a full view.
What research should beginners do before buying SOMN?
Before investing in The Southern Company (SOMN), research these four areas: (1) the company's revenue model and competitive position (see Company Overview), (2) financial health through revenue growth, margins, and cash flow (see MoonshotScore), (3) what Wall Street analysts recommend and their price targets (see Analyst tab), and (4) specific risk factors that could impact the stock (see Risk Factors section).
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.
- Data is based on publicly available information.
- Financial metrics are as of 2026-05-10.