Southern CoSO +1.35%79 Return-on-Tangible-Asset is 3.59% as of Mar. 2026, which is 29% above its 10-year median of 2.79. GuruFocus rates SO with a GF Score™ of 79/100 and a GF Value™ of $94.21 (Fairly Valued). The stock has 12 warning signs investors should review. Among 510 Utilities - Regulated companies, Southern Co ranks worse than 55.29% on this metric.
Return-on-Tangible-Asset is calculated as Net Income divided by its average total tangible assets. Total tangible assets equals to Total Assets minus Intangible Assets. Southern Co's annualizedNet Income for the quarter that ended in Mar. 2026 was $5,424 Mil. Southern Co's average total tangible assets for the quarter that ended in Mar. 2026 was $150,918 Mil. Therefore, Southern Co's annualized Return-on-Tangible-Asset for the quarter that ended in Mar. 2026 was 3.59%.
The historical rank and industry rank for Southern Co's Return-on-Tangible-Asset or its related term are showing as below:
SO'
s Return-on-Tangible-Asset Range Over the Past 10 Years
Min: 0.85 Med: 2.79 Max: 4.25
Current: 2.97
During the past 13 years, Southern Co's highest Return-on-Tangible-Asset was 4.25%. The lowest was 0.85%. And the median was 2.79%.
SO's Return-on-Tangible-Asset is ranked worse than 55.29% of 510
companies
in the Utilities - Regulated industry
Industry Median: 3.305
vs SO: 2.97
Southern Co (NYSE:SO) Return-on-Tangible-Asset Explanation
Return-on-Tangible-Asset measures the rate of return on the average total tangible assets (total assets minus intangible assets). Tangible means physical in nature. Intangible Assets are assets that are not physical in nature, and typically "derive their value from legal or intellectual rights." Return-on-Tangible-Asset measures a firm's efficiency at generating profits from its tangible assets. It shows how well a company uses what it has to generate earnings. Return-on-Tangible-Assets can vary drastically across industries. Therefore, Return-on-Tangible-Asset should not be used to compare companies in different industries.
Be Aware
Like ROE and ROA, Return-on-Tangible-Asset is calculated with only 12 months data. Fluctuations in the companys earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. Return-on-Tangible-Asset can be affected by events such as stock buyback or issuance, and by a companys tax rate and its interest payment. Return-on-Tangible-Asset may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).
Many analysts argue the higher return the better. Buffett states that really high Return-on-Tangible-Asset may indicate vulnerability in the durability of the competitive advantage.
Southern Co Return-on-Tangible-Asset Related Terms
Southern Co Return-on-Tangible-Asset Historical Data
* Premium members only.
The historical data trend for Southern Co's Return-on-Tangible-Asset 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.
SO vs DUK, AEP, D: Return-on-Tangible-Asset Comparison
For the Utilities - Regulated Electric subindustry, Southern Co's Return-on-Tangible-Asset, along with its competitors' market caps and Return-on-Tangible-Asset 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 Return-on-Tangible-Asset vs Utilities - Regulated Industry
For the Utilities - Regulated industry and Utilities sector, Southern Co's Return-on-Tangible-Asset distribution charts can be found below:
* The bar in red indicates where Southern Co's Return-on-Tangible-Asset 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.
In the calculation of annual Return-on-Tangible-Asset, the net income of the last fiscal year and the average total tangible assets over the fiscal year are used. In calculating the quarterly data,
the Net Income data used here is four times the quarterly (Mar. 2026) net income data.
What does a Return-on-Tangible-Asset of 3.59% mean?
Southern Co (SO) has a Return-on-Tangible-Asset of 3.59% as of Mar. 2026. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on Southern Co and its competitors. This is 29% above median its historical median of 2.79. Over the past decade, Southern Co's Return-on-Tangible-Asset has ranged from 0.85 to 4.25. According to the industry distribution chart, Southern Co ranks #282 out of 510 companies in the Utilities - Regulated industry, placing it in the top 55.3%.
Is Southern Co's Return-on-Tangible-Asset too high?
Southern Co's current Return-on-Tangible-Asset of 3.59% is 29% above median its 10-year median of 2.79. Over the past 10 years, this metric has ranged from a low of 0.85 to a high of 4.25. The Utilities - Regulated industry median Return-on-Tangible-Asset is 3.31. Southern Co's value of 3.59% is 8.6% above this industry median. Based on the distribution chart, Southern Co ranks #282 out of 510 companies in the Utilities - Regulated industry, which is below the industry midpoint. Overall, Southern Co has a GF Score™ of 79/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Southern Co's Return-on-Tangible-Asset compare to DUK and AEP?
According to the Utilities - Regulated industry distribution chart, Southern Co ranks #282 out of 510 companies for Return-on-Tangible-Asset. This places Southern Co in the lower half of its industry. The industry median Return-on-Tangible-Asset is 3.31. Southern Co's value of 3.59% is 8.6% above this benchmark. Historically, Southern Co's own Return-on-Tangible-Asset has ranged from 0.85 to 4.25 over the past decade. While the company's 10-year median is 2.79 vs. the industry median of 3.31, 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 Return-on-Tangible-Asset for an Utilities - Regulated company?
The median Return-on-Tangible-Asset among Utilities - Regulated companies is 3.31, based on 510 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Asset significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Asset should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Southern Co's current Return-on-Tangible-Asset of 3.59% is 8.6% 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 Return-on-Tangible-Asset mean?
A high Return-on-Tangible-Asset can signal that a stock is expensive relative to its fundamentals. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on Southern Co and its competitors. For the Utilities - Regulated industry, the median Return-on-Tangible-Asset is 3.31 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Southern Co's current Return-on-Tangible-Asset is 3.59%, which is 29% above median its own 10-year median of 2.79. 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 (SO) is currently considered Fairly Valued. The stock's GF Value™ is $94.21, compared to a current price of $97.29 — trading 3.3% above its estimated fair value. The current Return-on-Tangible-Asset is 3.59%, which is 29% above median its 10-year median of 2.79 and 8.6% above the Utilities - Regulated industry median of 3.31. Southern Co's overall GF Score™ is 79/100 with 12 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Asset calculated?
Return-on-Tangible-Asset is calculated from a company's financial statements. For Southern Co (SO), the current Return-on-Tangible-Asset is 3.59% 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 (SO) Overvalued in 2026?
Based on GuruFocus' analysis, Southern Co stock appears to be overvalued.
The current stock price of $97.29 is trading 3.3% above its estimated GF Value™ of $94.21.
GuruFocus considers Southern Co to be Fairly Valued.
Key valuation signals for SO:
Return-on-Tangible-Asset: 3.59% (29% above median its 10-year median of 2.79)
GF Value™: $94.21 vs. price of $97.29 (3.3% above fair value)
Industry Position: 8.6% above the Utilities - Regulated median (#282 of 510)
No single metric tells the full story. See the SO 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.
79GF Score
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