---
title: Southern (SO) — intrinsic value and fair price
canonical: https://sweetvaluelab.com/stocks/so
ticker: SO
as_of: 2026-10-17
sector: Utilities
industry: Regulated Electric
---
# Southern (SO)

Southern (SO) closed at $91.18 on Oct 16, 2026, undervalued by 6% vs its model value of $96.99 (from its own five-year median P/E applied to its earnings).

## Key figures

| Figure | Value |
| --- | ---: |
| Last close | $91.18 (Oct 16, 2026) |
| Model value (from its own five-year median P/E applied to its earnings) | $96.99 |
| Price vs model | undervalued by 6% vs model |
| Range of that model | $91.58 – $105.01 |
| Market value | $104.9B |
| P/E (fiscal 2025) | 23.3 |
| Net margin (fiscal 2025) | 14.7% |
| Free cash flow (fiscal 2025) | -$2.9B |
| Dividend yield (trailing twelve months) | 3.29% |
| Beta | 0.30 |
| Cost of capital (WACC) | 6.05% |
| Business classification | Dividend Payer (Low/slowing growth (~8% recent), Moderate margins (15% net margin), Pays dividends, Highly cyclical earnings, High leverage (D/E 2.0x), Negative free cash flow) |

## Dividends

| Figure | Value |
| --- | ---: |
| Trailing dividend yield | 3.29% |
| Dividends per share, last 12 months | $3.00 |
| Coverage | — |
| Raised | 25 years in a row |
| Growth over 5 years | 2.9% a year |
| Latest payment | $0.76, ex-date Aug 17, 2026, paid Sep 8, 2026 |

| Year of payments | Dividends per share |
| --- | ---: |
| To Aug 13, 2021 | $2.60 |
| To Aug 12, 2022 | $2.68 |
| To Aug 18, 2023 | $2.76 |
| To Aug 19, 2024 | $2.84 |
| To Aug 18, 2025 | $2.92 |
| Trailing twelve months (to Aug 17, 2026) | $3.00 |

## Valuation models

Each model's value per share and the role the engine gave it for this business. The headline above is one model's value; every other model is listed with its own, and each has a page of its own under the valuation. Computed Oct 17, 2026.

| Model | Role | Value per share | Low | High |
| --- | --- | ---: | ---: | ---: |
| DCF · Perpetuity growth · 5y | cross check | $88.86 | $22.10 | $287.32 |
| DCF · Perpetuity growth · 10y | cross check | $98.53 | $29.69 | $312.30 |
| DCF · EBITDA exit · 5y | cross check | $138.89 | $68.90 | $221.87 |
| DCF · EBITDA exit · 10y | cross check | $146.95 | $70.11 | $251.38 |
| P/E · peers | cross check | $79.95 | $77.94 | $82.11 |
| P/E · own history | primary | $96.99 | $91.58 | $105.01 |
| PEG | sanity check | $57.10 | $57.10 | $57.10 |
| EV/EBITDA · peers | cross check | $83.92 | $77.15 | $92.45 |
| EV/Revenue · peers | cross check | $62.60 | $45.95 | $82.18 |
| Earnings power value | cross check | $0.00 | $0.00 | $0.00 |
| Dividend discount | cross check | $71.27 | $45.99 | $134.35 |

## Insider activity (SEC Form 4)

Past 90 days: 0 open-market buys ($0) and 6 open-market sales ($842,257.6); 10b5-1 plan sales included.

| Date | Insider | Relationship | Transaction | Shares | Value |
| --- | --- | --- | --- | ---: | ---: |
| Oct 1, 2026 | Akella Janaki | Director | Grant / award | 539.116 | $45,000 |
| Oct 1, 2026 | Cooper Shantella E. | Director | Grant / award | 539.116 | $45,000 |
| Oct 1, 2026 | Etheredge James O | Director | Grant / award | 539.116 | $45,000 |
| Oct 1, 2026 | JOHNS JOHN D | Director | Grant / award | 539.116 | $45,000 |
| Oct 1, 2026 | GRAIN DAVID J | Director | Grant / award | 973.404 | $81,250 |

## Recent SEC filings

| Filed | Form | What | Filing |
| --- | --- | --- | --- |
| Aug 6, 2026 | 8-K | 2.03 Creation of a Direct Financial Obligation; 3.02 Unregistered Sale of Equity; 9.01 Financial Statements and Exhibits | https://www.sec.gov/Archives/edgar/data/92122/000009212226000063/so-20260803.htm |
| Aug 4, 2026 | 8-K | 8.01 Other Events; 9.01 Financial Statements and Exhibits | https://www.sec.gov/Archives/edgar/data/92122/000009212226000060/so-20260803.htm |
| Aug 3, 2026 | 8-K | 8.01 Other Events; 9.01 Financial Statements and Exhibits | https://www.sec.gov/Archives/edgar/data/92122/000009212226000058/so-20260803.htm |
| Jul 30, 2026 | 8-K | 2.02 Results of Operations (Earnings) | https://www.sec.gov/Archives/edgar/data/92122/000009212226000056/so-20260730.htm |
| Jul 30, 2026 | 10-Q | Quarterly report | https://www.sec.gov/Archives/edgar/data/92122/000009212226000054/so-20260630.htm |

## Superinvestors holding it (latest 13F)

| Manager | Quarter | Shares | Value |
| --- | --- | ---: | ---: |
| Bridgewater | 2026-06-30 | 16,972 | $1.6M |

1 tracked managers in all.

## About

The Southern Company operates as an energy utility, primarily involved in the production, transmission, and distribution of electricity. Its operations are segmented into Gas Distribution Operations, Gas Pipeline Investments, Wholesale Gas Services, and Gas Marketing Services. The company also undertakes the development, construction, acquisition, ownership, and management of various power generation assets, including renewable energy ventures, and supplies electricity to the wholesale market. Complementing its power business, it distributes natural gas in Illinois, Georgia, Virginia, and Tennessee, while also offering gas marketing services, wholesale gas services, and managing gas pipeline investments. Its extensive portfolio of generating assets includes 30 hydroelectric, 24 fossil fuel, three nuclear, 13 combined cycle/cogeneration, 45 solar, 15 wind, one fuel cell, and four battery…

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Source: https://sweetvaluelab.com/stocks/so (SweetValueLab, free, no account). Prices and statements from Financial Modeling Prep; filings from SEC EDGAR. Research and educational data, not investment advice; nothing here is a recommendation to buy, sell or hold any security.