Southern Return On Asset vs. Price To Earning

SO Stock  USD 83.28  1.11  1.32%   
Considering Southern's profitability and operating efficiency indicators, Southern Company is yielding more profit at this time then in previous quarter. It has a moderate probability of reporting better profitability numbers in January. Profitability indicators assess Southern's ability to earn profits and add value for shareholders. At this time, Southern's Price To Sales Ratio is very stable compared to the past year. As of the 11th of December 2024, EV To Sales is likely to grow to 5.79, while Days Sales Outstanding is likely to drop 39.55. At this time, Southern's Non Operating Income Net Other is very stable compared to the past year. As of the 11th of December 2024, Net Income Per Share is likely to grow to 3.82, while Accumulated Other Comprehensive Income is likely to drop (185.8 M).
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.530.4636
Fairly Up
Pretty Stable
Net Profit Margin0.0960.1574
Way Down
Very volatile
Operating Profit Margin0.250.2307
Significantly Up
Pretty Stable
Pretax Profit Margin0.130.1721
Way Down
Slightly volatile
Return On Assets0.0360.0285
Significantly Up
Pretty Stable
Return On Equity0.130.1264
Fairly Up
Very volatile
For Southern profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Southern to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Southern Company utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Southern's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Southern Company over time as well as its relative position and ranking within its peers.
  

Southern's Revenue Breakdown by Earning Segment

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Is Electric Utilities space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Southern. If investors know Southern will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Southern listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
0.078
Dividend Share
2.84
Earnings Share
4.29
Revenue Per Share
24.135
Quarterly Revenue Growth
0.042
The market value of Southern is measured differently than its book value, which is the value of Southern that is recorded on the company's balance sheet. Investors also form their own opinion of Southern's value that differs from its market value or its book value, called intrinsic value, which is Southern's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Southern's market value can be influenced by many factors that don't directly affect Southern's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Southern's value and its price as these two are different measures arrived at by different means. Investors typically determine if Southern is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Southern's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

Southern Price To Earning vs. Return On Asset Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Southern's current stock value. Our valuation model uses many indicators to compare Southern value to that of its competitors to determine the firm's financial worth.
Southern Company is currently regarded as top stock in return on asset category among its peers. It is rated fifth in price to earning category among its peers reporting about  593.97  of Price To Earning per Return On Asset. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Southern's earnings, one of the primary drivers of an investment's value.

Southern Price To Earning vs. Return On Asset

Return on Asset or ROA shows how effective is the management of the company in generating income from utilizing all of the assets at their disposal. It is a useful ratio to evaluate the performance of different departments of a company as well as to understand management performance over time.

Southern

Return On Asset

 = 

Net Income

Total Assets

 = 
0.0348
Return on Asset measures overall efficiency of a company in generating profits from its total assets. It is expressed as the percentage of profits earned per dollar of Asset. A low ROA typically means that a company is asset-intensive and therefore will needs more money to continue generating revenue in the future.
Price to Earnings ratio is typically used for current valuation of a company and is one of the most popular ratios that investors monitor daily. Holding a low PE stock is less risky because when a company's profitability falls, it is likely that earnings will also go down as well. In other words, if you start from a lower position, your downside risk is limited. There are also some investors who believe that low Price to Earnings ratio reflects the low pricing because a given company is in trouble. On the other hand, a higher PE ratio means that investors are paying more for each unit of profit.

Southern

P/E

 = 

Market Value Per Share

Earnings Per Share

 = 
20.67 X
Generally speaking, the Price to Earnings ratio gives investors an idea of what the market is willing to pay for the company's current earnings.

Southern Price To Earning Comparison

Southern is currently under evaluation in price to earning category among its peers.

Southern Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Southern, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Southern will eventually generate negative long term returns. The profitability progress is the general direction of Southern's change in net profit over the period of time. It can combine multiple indicators of Southern, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Last ReportedProjected for Next Year
Accumulated Other Comprehensive Income-177 M-185.8 M
Operating Income5.8 B3.6 B
Net IncomeB2.1 B
Income Tax Expense496 M456.7 M
Income Before Tax4.3 B2.9 B
Total Other Income Expense Net-1.5 B-1.4 B
Net Income Applicable To Common Shares4.1 B2.2 B
Net Income From Continuing Ops2.9 B2.8 B
Non Operating Income Net OtherB1.1 B
Interest Income2.2 B1.7 B
Net Interest Income-2.4 B-2.5 B
Change To Netincome-308.7 M-324.1 M
Net Income Per Share 3.64  3.82 
Income Quality 1.90  1.88 
Net Income Per E B T 0.92  0.58 

Southern Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Southern. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Southern position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Southern's important profitability drivers and their relationship over time.

Use Southern in pair-trading

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Southern position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Southern will appreciate offsetting losses from the drop in the long position's value.

Southern Pair Trading

Southern Company Pair Trading Analysis

The ability to find closely correlated positions to Southern could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Southern when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Southern - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Southern Company to buy it.
The correlation of Southern is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Southern moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Southern moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Southern can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your Southern position

In addition to having Southern in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

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Run Emerging Markets Funds Thematic Idea Now

Emerging Markets Funds
Emerging Markets Funds Theme
Fund or Etfs that invest in markets of developing countries. The Emerging Markets Funds theme has 41 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Emerging Markets Funds Theme or any other thematic opportunities.
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To fully project Southern's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Southern at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Southern's income statement, its balance sheet, and the statement of cash flows.
Potential Southern investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Southern investors may work on each financial statement separately, they are all related. The changes in Southern's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Southern's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.