Risk factor
Considerable default risk
Profitability factor
Excellent dividends
About
Based in Atlanta, Georgia, Southern Company functions as a holding enterprise, employing 29,192 full-time staff. The corporation maintains complete ownership of its primary electric utility businesses, the parent companies of Southern Power Company and Southern Company Gas, as well as numerous other direct and indirect subsidiaries. Its activities are organized into distinct divisions. The Gas distribution operations segment manages local natural gas utilities, encompassing the construction, oversight, and upkeep of intrastate natural gas pipelines and distribution networks across seven states. Its Gas marketing services division supplies natural gas commodities and related provisions to markets where consumers can choose their providers. The Wholesale gas services division concentrates on natural gas storage and leveraging pipeline arbitrage. Lastly, Gas midstream operations largely consist of investments in gas pipelines, complemented by storage facilities and fuel services.
Company Valuation
Based on key historical and expected multiples, the stock is overvalued relative to its peers. Specifically, the stock is fairly valued on P/E, neutral on EV/EBITDA, over