The firm has a PB of 2.11 , result of growing asset on the balance sheet. Company continue to see low 0.50% ROA with operations being asset intensive, as per the most recent numbers its crucial to note that low ROA does is independent of board efficiency .
Price-earnings of 91.08, indicate market sentiments are positive and with present bullish sentiments The Southern Company stock prices are more of reflection on than true value causing prices to be overvalued .
And when compared to its Utilities sector PE of 15.4x The Southern Company seem like overpriced . The Southern Company continues to remain 8.22% above from its 52 W . Current bullish surge suggests business could enjoy further stock value growth.
Upturn potential can be refined to support stock values, The Southern Company with consensus estimate 2.59% has the necessary drive to build on present PE 91.08. Compared with broader market index The Southern Company beta is 0.15.
The Southern Company management have been able to achieve 2.30% on the equity entrusted . Company does have strong support at $49.92, which is a long range signal of index direction.
Thought prices are yet to confirm any pattern , occurrence of possible bullish trend can predict resumption of the uptrend and from the The Southern Company graph RSI is moving over the horizontal 41.48 resistance level and is viewed as a neutral indicator .
Expectations for earnings growth for current fiscal have dipped into negative territory by -1.30%, however YOY earnings growth should be in positive . Companies P /E value considering expected earnings calculated at 16.66x.
Current markets forecast lower earnings for the company , so it is fair to say that the company price comparative to this fiscal earnings is 16.66x, stock price might not appreciate in future.
Index reported $911.62mn in upwards price movements, while $1310.52mn pulled the index down ending up at $-398.90mn in total money sector flow. With respect to block trades, money flow ended $-355.80mn with tick up at $187.42mn and tick down at $543.23mn led an up /down ratio of 0.35xCurrently the Utilities index is trading at 2968.90 with -31.85 change.
Company’s outstanding shares currently at $50941.26 M . Relative trade-off between the price of a asset and the earnings prospects stands at 35.19 times, even with lofty relative value , there is no fundamentals for believing that firm is over bought . The Southern Company when stacked against its competitors that works out to a higher Utilities sector PEG value of 2.5.
Firm’s ability to pay off its current liabilities does not look promising as current ratio comes in below 1 at 0.7. The Southern Company idle assets have been reported to be under utilized resulting in drop in its contributing to net growth if firms QR continues below at 0.5 for a prolonged period of time , it may be a concern ..