With the U.N. Climate Change Conference, otherwise known as COP28, starting this week, we are reasserting our view that the market underappreciates utilities' critical role in limiting global warming.
Southern has excellent regulatory relationships due in large part to low utility rates and solid reliability. Although operational performance is the foundation for these relationships, management maintains strong political ties as well.
Cost overruns at Vogtle and Kemper have added uncertainty to Southern's excellent regulatory relationships and frameworks in Georgia and Mississippi.
|
Metric
|
SO
|
AEP
|
D
|
|---|---|---|---|
Price/Earnings (Normalized) | 21.93 | 15.91 | 13.89 |
Price/Book Value | 2.49 | 1.67 | 1.49 |
Price/Sales | 2.99 | 2.16 | 2.47 |
Price/Cash Flow | 11.68 | 8.29 | 5.81 |
|
Metric
|
SO
|
AEP
|
D
|
|---|---|---|---|
Quick Ratio | 0.43 | 0.29 | 0.12 |
Current Ratio | 0.84 | 0.60 | 1.14 |
Interest Coverage | 2.40 | 2.26 | 3.23 |
|
Metric
|
SO
|
AEP
|
D
|
|---|---|---|---|
Return on Assets (Normalized) | 2.19% | 2.12% | 2.31% |
Return on Equity (Normalized) | 9.63% | 8.23% | 9.18% |
Return on Invested Capital (Normalized) | 5.32% | 5.60% | 4.86% |
|
Ticker
|
Name
|
Morningstar Rating for Stocks
|
Economic Moat
|
Market Cap
|
|---|---|---|---|---|
NEE
| NextEra Energy Inc | Pmgjrdz | $121.4 Bil | |
DUK
| Duke Energy Corp | Ltshg | $71.4 Bil | |
NGG
| National Grid PLC ADR | Skqb | $48.4 Bil | |
PCG
| PG&E Corp | Pcrc | $44.4 Bil | |
AEP
| American Electric Power Co Inc | Bwzhsnv | $42.3 Bil | |
D
| Dominion Energy Inc | Mdrdg | $39.1 Bil | |
EXC
| Exelon Corp | Cvrpbcy | $38.8 Bil | |
XEL
| Xcel Energy Inc | Pykqdl | $33.9 Bil | |
ED
| Consolidated Edison Inc | Xllx | $31.6 Bil |
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