The Southern Company (SO) — Free Cash Flow Yield
Utilities
The Southern Company, through its subsidiaries, engages in the sale of electricity. The company offers electric service to retail customers and wholesale customers; and energy-related products and services to natural gas choice markets. It also develops, constructs, acquires, owns, operates, and manages power generation assets, as well as battery energy storage projects; sells electricity at market-based rates in the wholesale market; and deploys microgrids for commercial, industrial, governmental, and utility customers. In addition, the company is involved in the distribution of natural gas in Illinois, Georgia, Virginia, and Tennessee; distributes energy and resilience solutions; and invests in telecommunications. The Southern Company was incorporated in 1945 and is headquartered in Atlanta, Georgia.
| Metric | Value |
|---|---|
| FCF Yield | -3.0% |
| Utilities Sector Avg FCF Yield | -4.7% |
| Annual Free Cash Flow | $-2.9B |
| Market Cap | $96.3B |
| P/E Ratio | 20.2x |
The Southern Company's FCF yield of -3.0% is above the Utilities sector average (-4.7%).
Frequently Asked Questions
What is The Southern Company's (SO) free cash flow yield?
The Southern Company's (SO) free cash flow yield is -3.0%. That is above the Utilities sector average (-4.7%).
Is SO's free cash flow yield good?
At -3.0%, SO's free cash flow yield is considered weak — yields above 10% are generally excellent, 7–10% good, 4–7% fair, and below 4% weak, though context varies by sector and growth stage.
How much free cash flow does The Southern Company generate?
The Southern Company generated $-2.9B in free cash flow, against a market cap of $96.3B.
How is free cash flow yield calculated?
Free cash flow yield = (Free Cash Flow ÷ Market Capitalization) × 100%. Free cash flow equals operating cash flow minus capital expenditures.
Data from public filings. Not investment advice. Calculate your own FCF yield →