Southern CoFRA:SOT +1.67%78 Gross Margin % is 46.47% as of Mar. 2026, which is 4% above its 10-year median of 44.58. GuruFocus rates FRA:SOT with a GF Score™ of 78/100 and a GF Value™ of €82.86 (Fairly Valued). The stock has 12 warning signs investors should review. Among 491 Utilities - Regulated companies, Southern Co ranks better than 78.41% on this metric.
Gross Margin % is calculated as gross profit divided by its revenue. Southern Co's Gross Profit for the
three
months ended in Mar. 2026 was €3,375 Mil. Southern Co's Revenue for the
three
months ended in Mar. 2026 was €7,263 Mil. Therefore, Southern Co's Gross Margin % for the quarter that ended in Mar. 2026 was 46.47%.
The historical rank and industry rank for Southern Co's Gross Margin % or its related term are showing as below:
FRA:SOT'
s Gross Margin % Range Over the Past 10 Years
Min: 36.3 Med: 44.58 Max: 50
Current: 48.01
During the past 13 years, the highestGross Margin % of Southern Co was 50.00%. The lowest was 36.30%. And the median was 44.58%.
FRA:SOT's Gross Margin % is ranked better than 78.41% of 491
companies
in the Utilities - Regulated industry
Industry Median: 30.95
vs FRA:SOT: 48.01
Southern Co had a gross margin of 46.47% for the quarter that ended in Mar. 2026 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Southern Co was 1.70% per year.
Southern Co (FRA:SOT) Gross Margin % Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Southern Co had a gross margin of 46.47% for the quarter that ended in Mar. 2026 => Durable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Southern Co Gross Margin % Related Terms
Southern Co Gross Margin % Historical Data
* Premium members only.
The historical data trend for Southern Co's Gross Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Utilities - Regulated Electric subindustry, Southern Co's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Southern Co Gross Margin % vs Utilities - Regulated Industry
For the Utilities - Regulated industry and Utilities sector, Southern Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Southern Co's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Southern Co (FRA:SOT) has a Gross Margin % of 46.47% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Southern Co and its competitors. This is near median its historical median of 44.58. Over the past decade, Southern Co's Gross Margin % has ranged from 36.30 to 50.00. According to the industry distribution chart, Southern Co ranks #106 out of 491 companies in the Utilities - Regulated industry, placing it in the top 21.6%.
Is Southern Co's Gross Margin % too high?
Southern Co's current Gross Margin % of 46.47% is near median its 10-year median of 44.58. Over the past 10 years, this metric has ranged from a low of 36.30 to a high of 50.00. The Utilities - Regulated industry median Gross Margin % is 30.95. Southern Co's value of 46.47% is 50.1% above this industry median. Based on the distribution chart, Southern Co ranks #106 out of 491 companies in the Utilities - Regulated industry, which is in the top quartile — a strong position relative to peers. Overall, Southern Co has a GF Score™ of 78/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Southern Co's Gross Margin % compare to DUK and AEP?
According to the Utilities - Regulated industry distribution chart, Southern Co ranks #106 out of 491 companies for Gross Margin %. This places Southern Co in the top 22% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 30.95. Southern Co's value of 46.47% is 50.1% above this benchmark. Historically, Southern Co's own Gross Margin % has ranged from 36.30 to 50.00 over the past decade. While the company's 10-year median is 44.58 vs. the industry median of 30.95, Southern Co has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for an Utilities - Regulated company?
The median Gross Margin % among Utilities - Regulated companies is 30.95, based on 491 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Southern Co's current Gross Margin % of 46.47% is 50.1% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Southern Co and its competitors. For the Utilities - Regulated industry, the median Gross Margin % is 30.95 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Southern Co's current Gross Margin % is 46.47%, which is near median its own 10-year median of 44.58. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Southern Co stock overvalued right now?
Based on GuruFocus' analysis, Southern Co (FRA:SOT) is currently considered Fairly Valued. The stock's GF Value™ is €82.86, compared to a current price of €85.16 — trading 2.8% above its estimated fair value. The current Gross Margin % is 46.47%, which is near median its 10-year median of 44.58 and 50.1% above the Utilities - Regulated industry median of 30.95. Southern Co's overall GF Score™ is 78/100 with 12 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Southern Co (FRA:SOT), the current Gross Margin % is 46.47% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Southern Co (FRA:SOT) Overvalued in 2026?
Based on GuruFocus' analysis, Southern Co stock appears to be overvalued.
The current stock price of €85.16 is trading 2.8% above its estimated GF Value™ of €82.86.
GuruFocus considers Southern Co to be Fairly Valued.
Key valuation signals for FRA:SOT:
Gross Margin %: 46.47% (near median its 10-year median of 44.58)
GF Value™: €82.86 vs. price of €85.16 (2.8% above fair value)
Industry Position: 50.1% above the Utilities - Regulated median (#106 of 491)
No single metric tells the full story. See the FRA:SOT stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Southern is one of the largest utilities in the US. The company serves 9 million customers with vertically integrated electric utilities in three states and natural gas distribution utilities in four states. It owns 46 gigawatts of rate-regulated generating capacity, primarily for serving customers in Georgia, Alabama, and Mississippi. Subsidiary Southern Power owns 13 gigawatts of natural gas generation and renewable energy across the US and sells the electricity primarily under long-term contracts.
78GF Score
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