The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Southern has an asset utilization ratio of 59.81 percent. This suggests that the company is making $0.6 for each dollar of assets. An increasing asset utilization means that Southern Company is more efficient with each dollar of assets it utilizes for everyday operations.
What is the right price you would pay to acquire a share of Southern? For most investors, it would be the price that gives them a wide margin of safety to have minimal downside risk. In other words, most investors are always looking for undervalued stocks. Even if the
future performance is not entirely as expected, the loss of holding it is minimized, and the downside risk is negated. Please read more on our
stock advisor page.
What is happening with Southern Company this year
Annual and quarterly reports issued by Southern Company are formal
financial statements that are published yearly and quarterly and sent to Southern stockholders. The reports show and break down the current year's ongoing operations and discuss plans for the upcoming year. Annual reports have been a requirement from the
Securities and Exchange Commission (SEC) for businesses owned by the public since 1934.
Companies such as Southern often view their annual report as an effective marketing tool to disseminate their perspective on company
future earnings or innovations. With this in mind, many companies devote large sums of money to making their reports attractive and informative. In such instances, the annual report becomes a forum through which a company can communicate to the general public any number of topics that may or may not be directly related to the actual data published in the reports.
Southern Gross Profit
Southern Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Southern previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show Southern Gross Profit growth over the last 10 years. Please check Southern's
gross profit and other
fundamental indicators for more details.
A Deeper look at Southern
Earning per share calculations of the firm is based on official Zacks consensus of 4 analysts regarding Southern's future annual earnings. Given the historical accuracy of 89.47%, the future earnings per share of the company is estimated to be 3.1983 with the lowest and highest values of 3.16 and 3.22, respectively. Please note that this consensus of annual earnings estimates for Southern is an estimate of EPS before non-recurring items and including employee stock options expenses.
Is Southern a risky opportunity?
Let's check the volatility. Southern is looking slightly risky at this time. Whether you invest your money or manage your clients' funds, remember that it is easy to forget that behind Southern (NYSE:SO) stock is an actual business venture. So, do not let stock picking become an abstract concept by ignoring the elementary risk calculations. picking up a share of a Southern stock makes you a part-owner of that company.
Southern Company Current Consensus
Here is the latest trade recommendation based on an ongoing consensus estimate among financial analysis covering Southern. The Southern consensus assessment is calculated by taking the average estimates from all of the analysts covering Southern
Strong Buy7 | Hold3 | Strong Sell4 |
| Strong Buy | 7 | 50.0 |
| Buy | 0 | 0.0 |
| Hold | 3 | 21.43 |
| Sell | 0 | 0.0 |
| Strong Sell | 4 | 28.57 |
Southern is expecting lower volatility in March
The variance is down to 1.64 as of today. Southern Company exhibits very low volatility with skewness of -0.46 and kurtosis of 0.64. However, we advise investors to further study Southern Company technical indicators to make sure all market info is available and is reliable.
The Current Takeaway on Southern Investment
Whereas some companies under the utilities—regulated electric industry are still a bit expensive, Southern may offer a potential longer-term growth to institutional investors. With a less-than optimistic outlook for your 30 days horizon, it may be a good time to sell some or all of your Southern holdings as it seems the potential growth was already fully factored into the current price. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to Southern.
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Ellen Johnson is a Member of Macroaxis Editorial Board. Ellen covers public companies in North America, focusing primarily on valuation and volatility. Six years of experience in predictive investment analytics and risk management.
View Profile This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Ellen Johnson do not own shares of Southern Company. Please refer to our
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