Southern Energy Corp Stock Buy Hold or Sell Recommendation

SOU Stock  CAD 0.09  0.02  18.18%   
Assuming the 90 days horizon and your slightly conservative level of risk, our recommendation regarding Southern Energy Corp is 'Strong Sell'. A buy or sell recommendation is an automated directive regarding whether to purchase or sell Southern Energy Corp given historical horizon and risk tolerance. When we issue a 'buy' or 'sell' recommendation for Southern Energy Corp, the advice is generated through an automated system that utilizes algorithms and statistical models.
  
Check out Southern Energy Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool.
Note, we conduct extensive research on individual companies such as Southern and provide practical buy, sell, or hold advice based on investors' constraints. Southern Energy Corp. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in board of governors.

Execute Southern Energy Buy or Sell Advice

The Southern recommendation should be used to complement the buy-or-sell advice compiled from the current analysts' consensus on Southern Energy Corp. Macroaxis does not own or have any residual interests in Southern Energy Corp or other equities on which the buy-or-sell advice is provided. Please provide your input below to execute Southern Energy's advice using the current market data and latest reported fundamentals.

Time Horizon

Risk Tolerance

Execute Advice
Sell Southern EnergyBuy Southern Energy
Strong Sell

Market Performance

ModestDetails

Volatility

Out of controlDetails

Hype Condition

Under hypedDetails

Current Valuation

OvervaluedDetails

Odds Of Distress

Below AverageDetails

Economic Sensitivity

Barely shadows the marketDetails

Analyst Consensus

Not AvailableDetails

Reporting Quality (M-Score)

InapplicableDetails
For the selected time horizon Southern Energy Corp has a Mean Deviation of 5.55, Semi Deviation of 5.85, Standard Deviation of 8.29, Variance of 68.71, Downside Variance of 106.14 and Semi Variance of 34.17
We provide advice to complement the current expert consensus on Southern Energy. Our dynamic recommendation engine harnesses a multidimensional algorithm to analyze the firm's potential to grow using all technical and fundamental data available at the time. To make sure Southern Energy Corp is not overpriced, please validate all Southern Energy fundamentals, including its cash and equivalents and the relationship between the book value per share and working capital .

Southern Energy Trading Alerts and Improvement Suggestions

Southern Energy Corp had very high historical volatility over the last 90 days
Southern Energy Corp has some characteristics of a very speculative penny stock
Southern Energy Corp has high likelihood to experience some financial distress in the next 2 years
Southern Energy Corp has high financial leverage indicating that it may have difficulties to generate enough cash to satisfy its financial obligations
Southern Energy Corp has accumulated 3.2 M in total debt with debt to equity ratio (D/E) of 146.5, indicating the company may have difficulties to generate enough cash to satisfy its financial obligations. Southern Energy Corp has a current ratio of 0.19, indicating that it has a negative working capital and may not be able to pay financial obligations in time and when they become due. Debt can assist Southern Energy until it has trouble settling it off, either with new capital or with free cash flow. So, Southern Energy's shareholders could walk away with nothing if the company can't fulfill its legal obligations to repay debt. However, a more frequent occurrence is when companies like Southern Energy Corp sell additional shares at bargain prices, diluting existing shareholders. Debt, in this case, can be an excellent and much better tool for Southern to invest in growth at high rates of return. When we think about Southern Energy's use of debt, we should always consider it together with cash and equity.
The entity reported the revenue of 19.31 M. Net Loss for the year was (46.82 M) with profit before overhead, payroll, taxes, and interest of 6.01 M.
Latest headline from news.google.com: Southern Co issues 1.8B in junior notes - Investing.com India

Southern Energy Returns Distribution Density

The distribution of Southern Energy's historical returns is an attempt to chart the uncertainty of Southern Energy's future price movements. The chart of the probability distribution of Southern Energy daily returns describes the distribution of returns around its average expected value. We use Southern Energy Corp price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of Southern Energy returns is essential to provide solid investment advice for Southern Energy.
Mean Return
0.47
Value At Risk
-11.11
Potential Upside
18.18
Standard Deviation
8.29
   Return Density   
       Distribution  
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of Southern Energy historical returns presented in an easy-to-digest graphical form helps investors and money managers understand the risk-reward trade-off of different investement strategies.

Southern Energy Cash Flow Accounts

202020212022202320242025 (projected)
Change In Cash575.6K8.7M18.7M(25.3M)(22.8M)(21.6M)
Free Cash Flow2.5M345K(11.3M)(38.1M)(34.3M)(32.6M)
Other Non Cash Items11.4M1.8M6.5M2.7M3.1M2.3M
Capital Expenditures185.1K2.6M29.9M41.8M48.1M50.5M
Net Income(8.9M)10.1M9.3M(46.8M)(42.1M)(40.0M)
End Period Cash Flow908.1K9.6M28.4M3.1M3.6M5.2M
Depreciation9.7M5.1M(8.9M)6.4M7.4M7.8M
Change To Netincome1.1M2.4M(4.1M)786K707.4K742.8K
Investments76K(831K)(29.1M)(43.3M)(39.0M)(37.1M)

Southern Energy Greeks

Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Southern Energy or Oil, Gas & Consumable Fuels sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Southern Energy's price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Southern stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
α
Alpha over Dow Jones
0.47
β
Beta against Dow Jones0.10
σ
Overall volatility
8.25
Ir
Information ratio 0.06

Southern Energy Volatility Alert

Southern Energy Corp is showing large volatility of returns over the selected time horizon. Southern Energy Corp is a penny stock. Although Southern Energy may be in fact a good investment, many penny stocks are subject to artificial price hype. Make sure you completely understand the upside potential and downside risk of investing in Southern Energy Corp. We encourage investors to look for signals such as message board hypes, claims of breakthroughs, email spams, sudden volume upswings, and other similar hype indicators. We also encourage traders to check biographies and work history of company officers before investing in instruments with high volatility. You can indeed make money on Southern instrument if you perfectly time your entry and exit. However, remember that penny stocks that have been the subject of artificial hype usually unable to maintain their increased share price for more than just a few days. The price of a promoted high volatility instrument will almost always revert back. The only way to increase shareholder value is through legitimate performance backed up by solid fundamentals.

Southern Energy Fundamentals Vs Peers

Comparing Southern Energy's fundamentals to the average values of its peers is one of the most widely used and accepted methods of equity analyses. It helps to analyze Southern Energy's direct or indirect competition across all of the common fundamentals between Southern Energy and the related equities. This way, we can detect undervalued stocks with similar characteristics as Southern Energy or determine the stocks which would be an excellent addition to an existing portfolio. Peer analysis of Southern Energy's fundamental indicators could also be used in its relative valuation, which is a method of valuing Southern Energy by comparing valuation metrics with those of similar companies.
    
 Better Than Average     
    
 Worse Than Average Compare Southern Energy to competition
FundamentalsSouthern EnergyPeer Average
Return On Equity-1.19-0.31
Return On Asset-0.35-0.14
Operating Margin(0.61) %(5.51) %
Current Valuation43.33 M16.62 B
Shares Outstanding169.39 M571.82 M
Shares Owned By Insiders4.37 %10.09 %
Shares Owned By Institutions6.54 %39.21 %
Number Of Shares Shorted21.72 K4.71 M
Price To Book0.67 X9.51 X
Price To Sales1.27 X11.42 X
Revenue19.31 M9.43 B
Gross Profit6.01 M27.38 B
EBITDA1.42 M3.9 B
Net Income(46.82 M)570.98 M
Cash And Equivalents1.54 M2.7 B
Cash Per Share0.01 X5.01 X
Total Debt3.2 M5.32 B
Debt To Equity146.50 %48.70 %
Current Ratio0.19 X2.16 X
Book Value Per Share0.11 X1.93 K
Cash Flow From Operations3.7 M971.22 M
Short Ratio0.12 X4.00 X
Earnings Per Share(0.48) X3.12 X
Target Price0.2
Number Of Employees1918.84 K
Beta0.95-0.15
Market Capitalization17.79 M19.03 B
Total Asset67.31 M29.47 B
Retained Earnings(61.41 M)9.33 B
Working Capital(12.52 M)1.48 B
Net Asset67.31 M

Southern Energy Market Momentum

Traders often use several daily momentume indicators to supplement a more traditional technical analysis when analyzing securities such as Southern . With many different options, investors must choose the best indicators for them and familiarize themselves with how they work. We suggest combining traditional momentum indicators with more near-term forms of technical analysis such as Accumulation Distribution or Daily Balance Of Power. With their quantitative nature, daily value technical indicators can also be incorporated into your automated trading systems.

About Southern Energy Buy or Sell Advice

When is the right time to buy or sell Southern Energy Corp? Buying financial instruments such as Southern Stock isn't very hard. However, what challenging for most investors is doing it at the right time to beat the market. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities. Macroaxis provides hands-on modules to deliver winning trades and diversify your portfolios on a daily basis. Most of our advising modules are very easy to use and apply.
Please read more on our stock advisor page.

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Small Blend Funds Theme
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Additional Tools for Southern Stock Analysis

When running Southern Energy's price analysis, check to measure Southern Energy's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Southern Energy is operating at the current time. Most of Southern Energy's value examination focuses on studying past and present price action to predict the probability of Southern Energy's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Southern Energy's price. Additionally, you may evaluate how the addition of Southern Energy to your portfolios can decrease your overall portfolio volatility.