The Southern Company (SO)’s Pretax Margin and Net Margin Explained

A share price of The Southern Company [SO] is currently trading at $69.82, down -1.45%. An important factor to consider is whether the stock is rising or falling in short-term value. The SO shares have lost -1.73% over the last week, with a monthly amount drifted -3.82%, and not seem to be holding up well over a long-time horizon.

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From an analyst’s perspective:

The Southern Company experienced fluctuations in its stock price throughout the past year between $58.85 and $80.57. Currently, Wall Street analysts expect the stock to reach $73.23 within the next 12 months. The Southern Company [NYSE: SO] shares were valued at $69.82 at the most recent close of the market. An investor can expect a potential return of 4.88% based on the average SO price forecast.

Analyzing the SO fundamentals

During the last quarter, The Southern Company [NYSE:SO] saw sales of 6.48 billion, an decline of -2.50%. The company generates $1,057,401 in revenue per employee, while its income per employee is $127,617. Gross Margin for this corporation currently stands at +24.14% with Operating Margin at +19.33%, Pretax Margin comes in at +14.42%, and Net Margin reading is +12.07%. To continue investigating profitability, this company’s Return on Assets is posted at 2.69, Equity is 12.07, Total Capital is 6.23, and Invested Capital is 4.36. Taking a look at the Principal structure of this organization reveals enduring liabilities to the total capital at 66.04 and enduring liabilities to the whole assets at 43.84.

Before buying any particular stock, readers tend to pay close attention to the indicators that support and create resistance. The company’s stock is currently sitting at 69.26 points at the first support level, and at 68.71 for the second support level. However, for the 1st resistance point, the stock is sitting at 70.78, and for the 2nd resistance point, it is at 71.74.

The Southern Company [SO] reported earnings per share of $0.79 for its fiscal quarter that ended on 3/30/2023. Based on the Wall Street analysts’ estimates, the company was expected to report earnings of $0.71/share, meaning a difference of $0.08 and a surprise factor of 11.30%. By comparison, the stated earnings for the previous quarter ended on 12/30/2022 were $0.26 per share as compared to estimates of $0.24 per share, a difference of $0.02 representing a surprise of 8.30%.

Ratios To Look Out For

A current ratio of 0.70 is a noteworthy aspect of The Southern Company [NYSE:SO]. On the other hand, the Quick Ratio is 0.49, and the Cash Ratio is 0.12. Considering the valuation of this stock, the price to sales ratio is 2.64, the price to book ratio is 2.58 and the P/E (TTM) ratio is 22.59.

Transactions by insiders

The next item on our agenda is insider trading, which has seen 0 insider purchases totaling 0 shares and 3 insider sales totaling 56,601 shares over the past 3 months. Recent insider trading involved FANNING THOMAS A, CEO & Chairman, that happened on May 10 when 50000.0 shares were sold. EVP & Pres. External Affairs, Anderson Bryan D completed a deal on May 10 to sell 27426.0 shares. Meanwhile, CEO, Southern Nuclear Kuczynski Stephen E sold 5000.0 shares on May 10.