Southern CoWBO:SOUT +1.49%60 ROE % is 14.93% as of Mar. 2026, which is 28% above its 10-year median of 11.63. 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 503 Utilities - Regulated companies, Southern Co ranks better than 71.97% on this metric.
ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Southern Co's annualized net income for the quarter that ended in Mar. 2026 was €4,692 Mil. Southern Co's average Total Stockholders Equity over the quarter that ended in Mar. 2026 was €31,434 Mil. Therefore, Southern Co's annualized ROE % for the quarter that ended in Mar. 2026 was 14.93%.
The historical rank and industry rank for Southern Co's ROE % or its related term are showing as below:
WBO:SOUT'
s ROE % Range Over the Past 10 Years
Min: 3.52 Med: 11.63 Max: 18
Current: 12.4
During the past 13 years, Southern Co's highest ROE % was 18.00%. The lowest was 3.52%. And the median was 11.63%.
WBO:SOUT's ROE % is ranked better than 71.97% of 503
companies
in the Utilities - Regulated industry
Industry Median: 8.62
vs WBO:SOUT: 12.40
Southern Co (WBO:SOUT) ROE % Explanation
ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.
The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:
Note:
The net income data used here is four times the quarterly (Mar. 2026) net income data. The Revenue data used here is four times the quarterly (Mar. 2026) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.
* 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.
Be Aware
Net Income is used.
Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their ROE %s can be extremely high.
Southern Co ROE % Related Terms
Southern Co ROE % Historical Data
* Premium members only.
The historical data trend for Southern Co's ROE % 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 ROE %, along with its competitors' market caps and ROE % 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 ROE % vs Utilities - Regulated Industry
For the Utilities - Regulated industry and Utilities sector, Southern Co's ROE % distribution charts can be found below:
* The bar in red indicates where Southern Co's ROE % 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 ROE %, the net income of the last fiscal year and the average total shareholder equity 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.
ROE % is displayed in the 30-year financial page.
Southern Co (WBO:SOUT) has a ROE % of 14.93% as of Mar. 2026. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Southern Co and its competitors. This is 28% above median its historical median of 11.63. Over the past decade, Southern Co's ROE % has ranged from 3.52 to 18.00. According to the industry distribution chart, Southern Co ranks #141 out of 503 companies in the Utilities - Regulated industry, placing it in the top 28%.
Is Southern Co's ROE % too high?
Southern Co's current ROE % of 14.93% is 28% above median its 10-year median of 11.63. Over the past 10 years, this metric has ranged from a low of 3.52 to a high of 18.00. The Utilities - Regulated industry median ROE % is 8.62. Southern Co's value of 14.93% is 73.2% above this industry median. Based on the distribution chart, Southern Co ranks #141 out of 503 companies in the Utilities - Regulated industry, which is above the industry midpoint. 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 ROE % compare to DUK and AEP?
According to the Utilities - Regulated industry distribution chart, Southern Co ranks #141 out of 503 companies for ROE %. This puts Southern Co in the upper half of its industry. The industry median ROE % is 8.62. Southern Co's value of 14.93% is 73.2% above this benchmark. Historically, Southern Co's own ROE % has ranged from 3.52 to 18.00 over the past decade. While the company's 10-year median is 11.63 vs. the industry median of 8.62, 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 ROE % for an Utilities - Regulated company?
The median ROE % among Utilities - Regulated companies is 8.62, based on 503 companies in the industry. Companies in the top quartile (top 25%) have a ROE % significantly above this median, while those in the bottom quartile fall well below. However, ROE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Southern Co's current ROE % of 14.93% is 73.2% 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 ROE % mean?
A high ROE % can signal that a stock is expensive relative to its fundamentals. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Southern Co and its competitors. For the Utilities - Regulated industry, the median ROE % is 8.62 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Southern Co's current ROE % is 14.93%, which is 28% above median its own 10-year median of 11.63. 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 ROE % is 14.93%, which is 28% above median its 10-year median of 11.63 and 73.2% above the Utilities - Regulated industry median of 8.62. 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 ROE % calculated?
ROE % is calculated from a company's financial statements. For Southern Co (WBO:SOUT), the current ROE % is 14.93% 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:
ROE %: 14.93% (28% above median its 10-year median of 11.63)
GF Value™: €82.47 vs. price of €83.16 (0.8% above fair value)
Industry Position: 73.2% above the Utilities - Regulated median (#141 of 503)
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.
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