Southern CoWBO:SOUT +1.49%60 Operating Margin % is 24.03% as of Mar. 2026, which is 5% above its 10-year median of 22.81. 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 499 Utilities - Regulated companies, Southern Co ranks better than 75.55% on this metric.
Operating Margin % is calculated as Operating Income divided by its Revenue. Southern Co's Operating Income for the
three
months ended in Mar. 2026 was €1,746 Mil. Southern Co's Revenue for the
three
months ended in Mar. 2026 was €7,263 Mil. Therefore, Southern Co's Operating Margin % for the quarter that ended in Mar. 2026 was 24.03%.
Good Sign:
Southern Co operating margin is expanding. Margin expansion is usually a good sign.
The historical rank and industry rank for Southern Co's Operating Margin % or its related term are showing as below:
WBO:SOUT'
s Operating Margin % Range Over the Past 10 Years
Min: 9.96 Med: 22.81 Max: 26.45
Current: 24.17
WBO:SOUT's Operating Margin % is ranked better than 75.55% of 499
companies
in the Utilities - Regulated industry
Industry Median: 14.97
vs WBO:SOUT: 24.17
Southern Co's 5-Year Average Operating Margin % Growth Rate was 5.70% per year.
Southern Co's Operating Income for the
three
months ended in Mar. 2026 was €1,746 Mil.
Its Operating Income for the trailing twelve months (TTM) ended in Mar. 2026 was €6,268 Mil.
Southern Co (WBO:SOUT) Operating Margin % Explanation
Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.
Be Aware
Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).
If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.
For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokias Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).
Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.
Southern Co Operating Margin % Related Terms
Southern Co Operating Margin % Historical Data
* Premium members only.
The historical data trend for Southern Co's Operating 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.
WBO:SOUT vs DUK, AEP, D: Operating Margin % Comparison
For the Utilities - Regulated Electric subindustry, Southern Co's Operating Margin %, along with its competitors' market caps and Operating 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 Operating Margin % vs Utilities - Regulated Industry
For the Utilities - Regulated industry and Utilities sector, Southern Co's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Southern Co's Operating Margin % falls into.
Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.
Southern Co's Operating Margin % for the fiscal year that ended in Dec. 2025 is calculated as
* 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 Operating Margin % of 24.03% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Southern Co and its competitors. This is near median its historical median of 22.81. Over the past decade, Southern Co's Operating Margin % has ranged from 9.96 to 26.45. According to the industry distribution chart, Southern Co ranks #122 out of 499 companies in the Utilities - Regulated industry, placing it in the top 24.4%.
Is Southern Co's Operating Margin % too high?
Southern Co's current Operating Margin % of 24.03% is near median its 10-year median of 22.81. Over the past 10 years, this metric has ranged from a low of 9.96 to a high of 26.45. The Utilities - Regulated industry median Operating Margin % is 14.97. Southern Co's value of 24.03% is 60.5% above this industry median. Based on the distribution chart, Southern Co ranks #122 out of 499 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 60/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Southern Co's Operating Margin % compare to DUK and AEP?
According to the Utilities - Regulated industry distribution chart, Southern Co ranks #122 out of 499 companies for Operating Margin %. This places Southern Co in the top 24% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 14.97. Southern Co's value of 24.03% is 60.5% above this benchmark. Historically, Southern Co's own Operating Margin % has ranged from 9.96 to 26.45 over the past decade. While the company's 10-year median is 22.81 vs. the industry median of 14.97, 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 Operating Margin % for an Utilities - Regulated company?
The median Operating Margin % among Utilities - Regulated companies is 14.97, based on 499 companies in the industry. Companies in the top quartile (top 25%) have a Operating Margin % significantly above this median, while those in the bottom quartile fall well below. However, Operating Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Southern Co's current Operating Margin % of 24.03% is 60.5% 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 Operating Margin % mean?
A high Operating Margin % can signal that a stock is expensive relative to its fundamentals. Operating margin is the ratio of total operating income to net sales. View historical data on Southern Co and its competitors. For the Utilities - Regulated industry, the median Operating Margin % is 14.97 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Southern Co's current Operating Margin % is 24.03%, which is near median its own 10-year median of 22.81. 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 Operating Margin % is 24.03%, which is near median its 10-year median of 22.81 and 60.5% above the Utilities - Regulated industry median of 14.97. 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 Operating Margin % calculated?
Operating Margin % is calculated from a company's financial statements. For Southern Co (WBO:SOUT), the current Operating Margin % is 24.03% 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:
Operating Margin %: 24.03% (near median its 10-year median of 22.81)
GF Value™: €82.47 vs. price of €83.16 (0.8% above fair value)
Industry Position: 60.5% above the Utilities - Regulated median (#122 of 499)
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
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