5-Year Return on Invested Incremental Capital (5-Year ROIIC %) measures the change in earnings as a percentage of change in investment over 5-year.
Southern Co's 5-Year ROIIC % for the quarter that ended in Dec. 2025 was 5.31%. High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
The industry rank for Southern Co's 5-Year ROIIC % or its related term are showing as below:
SO's 5-Year ROIIC % is ranked better than 58.89% of 467
companies
in the Utilities - Regulated industry
Industry Median: 4
vs SO: 5.31
Southern Co (NYSE:SO) 5-Year ROIIC % Explanation
Return on Incremental Invested Capital (ROIIC) is an extension of Return on Investment Capital (ROIC). ROIC % tells investors how efficiently that profitability is earned per dollar of company capital. ROIIC narrows the focus even further and shows how profitable each additional unit of capital investment could be. ROIIC % is a more powerful metric than ROIC because it measures how much money the company can generate going forward on future capital investments.
High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
Be Aware
It's important to keep in mind that when tracking ROIIC, the metric is better suited to forecasting the trend of future returns rather than measuring current return on investment.
Southern Co 5-Year ROIIC % Related Terms
Southern Co 5-Year ROIIC % Historical Data
* Premium members only.
The historical data trend for Southern Co's 5-Year ROIIC % 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 5-Year ROIIC %, along with its competitors' market caps and 5-Year ROIIC % 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 5-Year ROIIC % vs Utilities - Regulated Industry
For the Utilities - Regulated industry and Utilities sector, Southern Co's 5-Year ROIIC % distribution charts can be found below:
* The bar in red indicates where Southern Co's 5-Year ROIIC % falls into.
Southern Co's 5-Year ROIIC % for the quarter that ended in Dec. 2025 is calculated as:
5-Year ROIIC %
=
5-Year Incremental Net Operating Profit After Taxes (NOPAT)**
/
5-Year Incremental Invested Capital**
=
( 6078.604 (Dec. 2025) - 4278.232 (Dec. 2020) )
/
( 156170 (Dec. 2025) - 122249 (Dec. 2020) )
=
1800.372
/
33921
=
5.31%***
* 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.
** Annual data of NOPAT and Invested Capital was used to calculate 5-Year ROIIC %.
*** Please be aware that the ROIIC (Return on Invested Capital) calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.
Southern Co (SO) has a 5-Year ROIIC % of 5.31 as of Dec. 2025. 5-Year ROIIC % measures the change in earnings as a percentage of change in investment over 5-year. View historical data on Southern Co and its competitors. According to the industry distribution chart, Southern Co ranks #192 out of 467 companies in the Utilities - Regulated industry, placing it in the top 41.1%.
Is Southern Co's 5-Year ROIIC % too high?
Southern Co's current 5-Year ROIIC % is 5.31. The Utilities - Regulated industry median 5-Year ROIIC % is 4.00. Southern Co's value of 5.31 is 32.8% above this industry median. Based on the distribution chart, Southern Co ranks #192 out of 467 companies in the Utilities - Regulated industry, which is above the industry midpoint. Overall, Southern Co has a GF Score™ of 76/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Southern Co's 5-Year ROIIC % compare to DUK and AEP?
According to the Utilities - Regulated industry distribution chart, Southern Co ranks #192 out of 467 companies for 5-Year ROIIC %. This puts Southern Co in the upper half of its industry. The industry median 5-Year ROIIC % is 4.00. Southern Co's value of 5.31 is 32.8% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good 5-Year ROIIC % for an Utilities - Regulated company?
The median 5-Year ROIIC % among Utilities - Regulated companies is 4.00, based on 467 companies in the industry. Companies in the top quartile (top 25%) have a 5-Year ROIIC % significantly above this median, while those in the bottom quartile fall well below. However, 5-Year ROIIC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Southern Co's current 5-Year ROIIC % of 5.31 is 32.8% 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 5-Year ROIIC % mean?
A high 5-Year ROIIC % can signal that a stock is expensive relative to its fundamentals. 5-Year ROIIC % measures the change in earnings as a percentage of change in investment over 5-year. View historical data on Southern Co and its competitors. For the Utilities - Regulated industry, the median 5-Year ROIIC % is 4.00 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Southern Co's current 5-Year ROIIC % is 5.31. 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 $94.19, compared to a current price of $97.98 — trading 4% above its estimated fair value. The current 5-Year ROIIC % is 5.31 and 32.8% above the Utilities - Regulated industry median of 4.00. Southern Co's overall GF Score™ is 76/100 with 12 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is 5-Year ROIIC % calculated?
5-Year ROIIC % is calculated from a company's financial statements. For Southern Co (SO), the current 5-Year ROIIC % is 5.31 as of Dec. 2025. 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 $97.98 is trading 4% above its estimated GF Value™ of $94.19.
GuruFocus considers Southern Co to be Fairly Valued.
Key valuation signals for SO:
5-Year ROIIC %: 5.31
GF Value™: $94.19 vs. price of $97.98 (4% above fair value)
Industry Position: 32.8% above the Utilities - Regulated median (#192 of 467)
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.
76GF Score
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5-Year ROIIC % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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