Southern CoWBO:SOUT +1.49%60 Interest Coverage is 2.59 as of Mar. 2026, which is 4% above its 10-year median of 2.48. GuruFocus rates WBO:SOUT with a GF Score™ of 60/100 and a GF Value™ of €82.47 (Fairly Valued). The stock has 12 warning signs investors should review. Among 449 Utilities - Regulated companies, Southern Co ranks worse than 76.39% on this metric.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's
Operating Income
by its Interest Expense. Southern Co's
Operating Income
for the
three
months ended in Mar. 2026 was €1,746 Mil. Southern Co's Interest Expense for the
three
months ended in Mar. 2026 was €-673 Mil.
Southern Co's interest coverage for the quarter that ended in Mar. 2026 was 2.59.
The higher the ratio, the stronger the company's financial strength is.
Warning Sign:
Ben Graham prefers companies' interest coverage to be at least 5. Southern Co interest coverage is 2.21, which is low.
The historical rank and industry rank for Southern Co's Interest Coverage or its related term are showing as below:
WBO:SOUT'
s Interest Coverage Range Over the Past 10 Years
Min: 1.35 Med: 2.48 Max: 3.41
Current: 2.21
WBO:SOUT's Interest Coverage is ranked worse than 76.39% of 449
companies
in the Utilities - Regulated industry
Industry Median: 3.78
vs WBO:SOUT: 2.21
Southern Co (WBO:SOUT) Interest Coverage Explanation
Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.
Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .
Southern Co Interest Coverage Related Terms
Southern Co Interest Coverage Historical Data
* Premium members only.
The historical data trend for Southern Co's Interest Coverage 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.
Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.
WBO:SOUT vs DUK, AEP, D: Interest Coverage Comparison
For the Utilities - Regulated Electric subindustry, Southern Co's Interest Coverage, along with its competitors' market caps and Interest Coverage 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 Interest Coverage vs Utilities - Regulated Industry
For the Utilities - Regulated industry and Utilities sector, Southern Co's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Southern Co's Interest Coverage falls into.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
* 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.
Southern Co (WBO:SOUT) has a Interest Coverage of 2.59 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Southern Co and its competitors. This is near median its historical median of 2.48. Over the past decade, Southern Co's Interest Coverage has ranged from 1.35 to 3.41. According to the industry distribution chart, Southern Co ranks #343 out of 449 companies in the Utilities - Regulated industry, placing it in the top 76.4%.
Is Southern Co's Interest Coverage too high?
Southern Co's current Interest Coverage of 2.59 is near median its 10-year median of 2.48. Over the past 10 years, this metric has ranged from a low of 1.35 to a high of 3.41. The Utilities - Regulated industry median Interest Coverage is 3.78. Southern Co's value of 2.59 is 31.5% below this industry median. Based on the distribution chart, Southern Co ranks #343 out of 449 companies in the Utilities - Regulated industry, which is in the bottom quartile relative to peers. Overall, Southern Co has a GF Score™ of 60/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Southern Co's Interest Coverage compare to DUK and AEP?
According to the Utilities - Regulated industry distribution chart, Southern Co ranks #343 out of 449 companies for Interest Coverage. This places Southern Co in the lower half of its industry. The industry median Interest Coverage is 3.78. Southern Co's value of 2.59 is 31.5% below this benchmark. Historically, Southern Co's own Interest Coverage has ranged from 1.35 to 3.41 over the past decade. While the company's 10-year median is 2.48 vs. the industry median of 3.78, Southern Co has consistently been below 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 Interest Coverage for an Utilities - Regulated company?
The median Interest Coverage among Utilities - Regulated companies is 3.78, based on 449 companies in the industry. Companies in the top quartile (top 25%) have a Interest Coverage significantly above this median, while those in the bottom quartile fall well below. However, Interest Coverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Southern Co's current Interest Coverage of 2.59 is 31.5% below 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 Interest Coverage mean?
A high Interest Coverage can signal that a stock is expensive relative to its fundamentals. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Southern Co and its competitors. For the Utilities - Regulated industry, the median Interest Coverage is 3.78 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Southern Co's current Interest Coverage is 2.59, which is near median its own 10-year median of 2.48. 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 (WBO:SOUT) is currently considered Fairly Valued. The stock's GF Value™ is €82.47, compared to a current price of €83.16 — trading 0.8% above its estimated fair value. The current Interest Coverage is 2.59, which is near median its 10-year median of 2.48 and 31.5% below the Utilities - Regulated industry median of 3.78. Southern Co's overall GF Score™ is 60/100 with 12 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Interest Coverage calculated?
Interest Coverage is calculated from a company's financial statements. For Southern Co (WBO:SOUT), the current Interest Coverage is 2.59 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 (WBO:SOUT) Overvalued in 2026?
Based on GuruFocus' analysis, Southern Co stock appears to be overvalued.
The current stock price of €83.16 is trading 0.8% above its estimated GF Value™ of €82.47.
GuruFocus considers Southern Co to be Fairly Valued.
Key valuation signals for WBO:SOUT:
Interest Coverage: 2.59 (near median its 10-year median of 2.48)
GF Value™: €82.47 vs. price of €83.16 (0.8% above fair value)
Industry Position: 31.5% below the Utilities - Regulated median (#343 of 449)
No single metric tells the full story. See the WBO:SOUT 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.
60GF Score
Get the complete analysis for WBO:SOUT
Interest Coverage is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
WBO:SOUT has been successfully added to your 
