Aureus
FRed Flag

Southern Company (The)(SO)

F

Financial data as of Dec 31, 2024Declining · Utilities

FCF Margin3.1%Free Cash Flow / Revenue
Cash Conversion222.4%Operating CF / Net Income
Free Cash Flow$833.0M
Revenue$26.7B
Net Cash-$65.2BNet debt position
Debt / FCF79.6xElevated debt burden
Current Ratio0.67Tight short-term liquidity
YoY FCF Growth-57.2%2 of 5 quarters positive

How This Grade Was Calculated

Base grade from FCF margin, adjusted by financial health factors

BaseD
→
-2Extreme debt-to-FCF ratio (79.6x)
→
-1Current ratio below 1.0 (0.67)
→
-1Negative FCF in 3 of last 4 quarters
→
-1Significant YoY FCF decline (-57.2%)
→
-1Only 2 positive quarters recently
→
-0.5Highly volatile FCF (consistency: 8.73)
→
FinalF

Analysis Summary

Strengths

  • Excellent cash conversion (222%)

Concerns

  • Low FCF margin (3.1%)
  • Heavy debt position ($65.2B)
  • High debt-to-FCF ratio (79.6x)
  • Current ratio below 1.0 — tight short-term liquidity
  • Only 2 positive FCF quarters recently
  • Significant YoY FCF decline (-57.2%)
  • Highly volatile quarterly FCF
  • Significant FCF decline (-57.2% YoY)
Heavy CapEx — Operating cash flow is strong (37% margin) but most is reinvested

Financial Breakdown

Key financials compared side by side

Margin Composition

FCF Margin3.1%
Net Margin16.5%
Operating CF Margin36.6%
CapEx Ratio33.5%

Balance Sheet Health

Debt, liquidity, and leverage snapshot

Net Cash-$65.2BNet debt position
Debt / FCF79.6xElevated debt burden
Current Ratio0.67Tight liquidity
Debt / Equity2.00Moderate leverage

Quarterly FCF Trend

-57.2% YoYDeclining (-57.2%)

Free cash flow per quarter

Sector Comparison — Utilities

FCF Margin ranked against sector peers

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Detailed Metrics

Company NameSouthern Company (The)
SectorUtilities
Free Cash Flow$833.0M
Revenue$26.7B
Net Income$4.4B
Operating Cash Flow$9.8B
Capital Expenditure$9.0B
FCF Margin3.1%
Cash Conversion Rate222.4%
Net Margin16.5%
Total Debt$66.3B
Total Cash$1.1B
Net Cash-$65.2B
Current Ratio0.67
Debt / Equity2.00
Debt / FCF79.6x
YoY FCF Growth-57.2%
Positive Quarters2 of 5
Trend DirectionDeclining
Report DateDec 31, 2024
GradeF
Data SourceYahoo Finance

Related Research

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Sector Report5 min read

Utilities: An Entire Sector Failing Cash Flow

Every single utility we analyzed earned an F. The median FCF margin is negative. This isn't a sector, it's a capital incinerator.

Feb 13, 2026
WECSODUKEIX+6