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Is this Large Market Cap Stock target price reasonable for Southern Company (NYSE:SO)?

The company in question is, Southern Company (NYSE:SO) currently with a stock price of 54.38 (0.88% today). The market cap for Southern Company is 50568.98, and is in the sector Utilities, and Electric Utilities industry. The target price for Southern Company is 50.4. Currently Southern Company is trading with a P/E of 21.03, and a forward P/E of 18.14. Average volume for Southern Company is 5545.51 and so far today it is 1878583.

Performance in the last year for Southern Company has been 30.51%. For EPS growth, Southern Company has seen a growth of 18.90%, and is looking to grow in the next year to 4.57%. More long term stats show that EPS growth has been 1.90% over the last five years and could be 3.27% for the next five years. Southern Company has seen sales growth quarter over quarter at -5.20%, with EPS growth quarter over quarter at -5.60%. The 20-day simple moving average is 6.15%, with the 200-day simple moving average coming to 13.63%.

Since the IPO date for Southern Company on the 12/31/1981, Southern Company has seen performance year to date to be 17.79%. With Southern Company trading at 54.38, the dividend yield is 4.16%, and the EPS is 2.56.

So could Southern Company, be undervalued? Well as said before P/E is 21.03. The PEG is 6.43, P/S is 2.93 and the P/B is at 2.37. The P/cash is 67.07, with P/free cash flow at *TBA.

Southern Company ability to deal with debt shows that the current ratio is 0.7, and the quick ratio is 0.5. This is with long term debt/equity at 1.25, and total debt/equity at 1.43.

In terms of margins, Southern Company has a gross margin of 70.40%, an operating margin of 24.70% and a profit margin of 13.60%.Payout ratio for Southern Company is 84.30%. Return on assets come to 3.10% with return on investment coming to 6.30%.

Insider ownership for Southern Company, is at 0.03% and institutional ownership comes to 49.70%. Outstanding shares are at 938.2. While shares float is 938.18. The float short is currently 2.20%, and short ratio is 3.72.

Disclaimer: Remember there is a risk to your investment, this is not a recommendation, nor personal advice, never invest more than you are able too loose.

About the author

Mark Hines

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