The Southern Company cash flow to debt ratio of 13.23% indicates that the company cannot generate enough cash to cover its debt over time. This level indicates weak financial health.

The Southern Company's free cash flow has decreased 452.34% from $833.00M last year to $-2.94B, signaling decreasing performance

The Southern Company's debt to equity ratio is 1.95, which means that the company's assets are unhealthy financed, signaling financial risk.

The Southern Company's debt has decreased relative to shareholder equity from 2.00 last year to 1.95 today, signaling strengthened financials

The Southern Company has a net debt to EBITDA ratio of 5.05x, which exceeds the 3.00x threshold, indicating high leverage and potential financial risk

The Southern Company's interest coverage ratio of 2.22 indicates that earnings with margin can cover interest payments on company debt

The Southern Company's profit margin has decreased (6.29%) in the last year from 16.47% to 15.43%, signaling decreasing performance

The Southern Company's short-term liabilities of $16.89B exceed its short-term assets of $10.92B, signaling financial risk

The Southern Company's return on assets of 2.87% is lower than the 5.00% threshold, indicating inefficient asset utilization

The Southern Company's return on equity of 12.61%, is lower than 15.00%, indicating bad performance

The Southern Company's operating cash flow exceeds its net income, indicating high-quality earnings backed by actual cash generation

The Southern Company had positive net income in 5 out of 5 years, indicating stable and consistent earnings

The Southern Company has negative free cash flow, indicating the company is burning cash rather than generating it

The Southern Company has negative free cash flow, indicating cash burn

The Southern Company's yearly earnings has decreased 1.36% since last year from $4.40B to $4.34B, signaling decreasing performance

The Southern Company's yearly revenue has increased 10.59% since last year from $26.72B to $29.55B, signaling increasing performance

ROIC 4.14% (Source: FMP key-metrics). Below the 5% partial-credit threshold. Score: 0 of 2. The 5% and 10% cutoffs anchor to typical US weighted-average cost of capital. Below 5% indicates the company is not generating returns above its likely cost of capital under this definition of invested capital. Invested capital here includes equity, non-current liabilities (pension obligations, deferred taxes, lease obligations), and short-term debt. Cash is not subtracted. Companies with substantial float, lease portfolios, or cash holdings will score lower under this definition than under narrower operating-capital definitions. See methodology.

The Southern Company's 3-year revenue CAGR of 0.31% is positive, indicating growing revenue over the past 3 years

The Southern Company had revenue growth in 4 out of 5 years, indicating consistent revenue performance

The Southern Company had positive ROE in 5 out of 5 years, indicating consistent and reliable returns on equity

The Southern Company has insufficient data to evaluate this check.

The Southern Company has an earnings yield of 4.48%, which is above the 4.00% threshold, indicating the stock offers reasonable value relative to its earnings

The Southern Company is overvalued relative to its fair value price of 32.31 based on EBITDA multiple model

The Southern Company has an EV/EBITDA ratio of 12.38x, which is below the 20.00x threshold, indicating reasonable valuation relative to its operating earnings

The Southern Company is undervalued relative to its fair value price of 130.43 based on Earnings Fair Value model

The Southern Company has a PEG-ratio over 1 which is considered overvalued

The Southern Company has a price-to-book ratio of 2.45x, which is below the 5.00x threshold, indicating reasonable valuation relative to its book value

The Southern Company has a price-to-sales ratio of 3.44x, which is below the 8.00x threshold, indicating reasonable valuation relative to its revenue