Southern (SO) Earnings And $2.4b Notes Put Fair Value Back In Focus

Simply Wall St.

Aug 06

Southern (SO) has drawn fresh attention after announcing and then completing two Rule 144A convertible step up note offerings totaling about $2.4b, alongside reporting its second quarter 2026 earnings...

Source Link

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Most Discussed

{"basename":"","ssrTDKData":{"titleTemplate":"%s - Tiger Brokers","title":"Tiger Brokers | Global Stocks, Options & Futures Trading App","description":"Tiger Brokers, one-stop investment in US stocks, SGX stocks, HK stocks, A-shares & other global assets. One of the best stock trading platforms in Singapore.","keywords":"tiger brokers,tiger trade,tiger brokers singapore,broker online,stock trading in singapore,share trading singapore,brokerage firm singapore,trading app,stock broker singapore,stock trading platforms,trading account","social":{"ogDescription":"Tiger Brokers, one-stop investment in US stocks, SGX stocks, HK stocks, A-shares & other global assets. One of the best stock trading platforms in Singapore.","ogImage":"https://c1.itigergrowtha.com/portal5/static/media/og-logo.0a0bd8dc.png","ogUrl":"https://www.itiger.com/news/2657738595"},"companyName":"Tiger Brokers"},"pageData":{"isMobile":false,"isTiger":false,"isTTM":true,"region":"SGP","license":"TBSG","edition":"fundamental"},"isCrawlerRequest":true,"__swrFallback__":{"@#url:\"https://stock-news.skytigris.cn/v3/news\",params:#id:\"2657738595\",edition:\"fundamental\",auth_exemption:1,,,undefined,":{"share":"https://ttm.financial/m/news/2657738595?lang=en_US&edition=fundamental","thumbnail":"https://images.simplywall.st/asset/company-cover/120623-main-header/1756253790455","is_english":true,"pubTime":"2026-08-06 03:24","share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","id":"2657738595","market":"sg","top_or_hot":-1,"title":"Southern (SO) Earnings And $2.4b Notes Put Fair Value Back In Focus","media":"Simply Wall St.","content":"<div>\n<p>Southern (SO) has drawn fresh attention after announcing and then completing two Rule 144A convertible step up note offerings totaling about $2.4b, alongside reporting its second quarter 2026 earnings...</p>\n\n<a href=\"https://simplywall.st/stocks/us/utilities/nyse-so/southern/news/southern-so-earnings-and-24b-notes-put-fair-value-back-in-fo\">Source Link</a>\n\n</div>\n","source":"simplywall_highlight","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Southern (SO) Earnings And $2.4b Notes Put Fair Value Back In Focus</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nSouthern (SO) Earnings And $2.4b Notes Put Fair Value Back In Focus\n</h2>\n\n<h4 class=\"meta\">\n\n\n2026-08-06 03:24 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://simplywall.st/stocks/us/utilities/nyse-so/southern/news/southern-so-earnings-and-24b-notes-put-fair-value-back-in-fo><strong>Simply Wall St.</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Southern (SO) has drawn fresh attention after announcing and then completing two Rule 144A convertible step up note offerings totaling about $2.4b, alongside reporting its second quarter 2026 earnings...</p>\n\n<a href=\"https://simplywall.st/stocks/us/utilities/nyse-so/southern/news/southern-so-earnings-and-24b-notes-put-fair-value-back-in-fo\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"SO","symbol_name":"美国南方公司","start_time":0,"source_url":"https://simplywall.st/stocks/us/utilities/nyse-so/southern/news/southern-so-earnings-and-24b-notes-put-fair-value-back-in-fo","article_id":"2657738595","we_media_id":null,"thumbnails":["https://images.simplywall.st/asset/company-cover/120623-main-header/1756253790455"],"rights":{"source":"simplywall_highlight","url":"https://simplywall.st/stocks/us/utilities/nyse-so/southern/news/southern-so-earnings-and-24b-notes-put-fair-value-back-in-fo","rn_cache_url":null,"directOrigin":true},"url":"https://stock-news.laohu8.com/highlight/detail?id=2657738595","pubTimestamp":1785957876,"columns":[],"sourceInfo":{"source_id":"simplywall_highlight","name":"Simply Wall St."},"weMediaInfo":null,"summary":"Southern (SO) has drawn fresh attention after announcing and then completing two Rule 144A convertible step up note offerings totaling about $2.4b, alongside reporting its second quarter 2026 earnings results.\nSee our latest analysis for Southern.\nSouthern’s recent earnings update and the $2.4b in new convertible step up notes arrive as momentum cools slightly in the short term. The company has seen a 30 day share price return decline of 4.83%, yet the 5 year total shareholder return of...","collect":0,"end_time":0,"defaultTopTitle":"simplywall.st","property":["earning"],"viewcount":null,"language":"en","relate_stocks":{"SO":"美国南方公司"},"translate_title":"南方航空 (SO) 盈利和 $2.4b 票据让公允价值重新成为焦点","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"SO":1.5},"content_text":"Southern (SO) has drawn fresh attention after announcing and then completing two Rule 144A convertible step up note offerings totaling about $2.4b, alongside reporting its second quarter 2026 earnings results. See our latest analysis for Southern. Southern’s recent earnings update and the $2.4b in new convertible step up notes arrive as momentum cools slightly in the short term. The company has seen a 30 day share price return decline of 4.83%, yet the 5 year total shareholder return of 71.99% points to a much stronger long run record. This suggests investors are reassessing growth prospects and funding risk rather than abandoning the longer term story. If the latest move in Southern has you rethinking your watchlist, this is also a good moment to scan for power grid and electrification opportunities through our 36 power grid technology and infrastructure stocks Southern appears to be a solid utility with meaningful electricity and gas operations, and recent earnings support that view. After the share price pullback and the issuance of fresh convertible notes, the question is whether that dependable business is now fairly priced or stretched. AdvertisementMost Popular Narrative: 8% Undervalued Southern’s most followed narrative puts fair value at $101.34 compared with a last close of $93.25. That gap is driven by a specific growth and capex story rather than a short term swing.  The expansion of large-scale electrification projects, including hyperscaler data centers and industrial developments, across Alabama, Georgia, and Mississippi is materially increasing Southern's load outlook, resulting in regulatory approvals and filings for up to 10 GW of new generation and $13 billion of incremental capital investment, driving long-term earnings and rate base growth.  Read the complete narrative. Read the complete narrative. Want to see what kind of revenue growth, margin uplift, and earnings power this load story needs to support that fair value? The core assumptions may surprise you. That narrative leans on a steady uplift in sales, fatter profit margins, and a higher regulated asset base as new projects come online. It also assumes Southern can keep funding a much larger capital plan through a mix of debt, equity and these new convertibles without eroding returns to the point that the valuation case breaks. The result is a view that the current share price only partly reflects the earnings profile implied by those forecasts. Result: Fair Value of $101.34 (UNDERVALUED) Have a read of the narrative in full and understand what's behind the forecasts. However, Southern’s enlarged US$76b capital plan and increased equity funding needs could pressure earnings per share if project costs rise or regulatory support softens. Find out about the key risks to this Southern narrative. Another View On Southern Using Cash Flows There is a very different message from the SWS DCF model. On this view, Southern at $93.25 is trading well above an estimated future cash flow value of $7.06. That points to a stock that screens as heavily overvalued on cash flows. Which story do you think holds up better? For investors who want to see how this cash flow result is built line by line, it is worth looking more closely at the SWS DCF model assumptions and mechanics. Look into how the SWS DCF model arrives at its fair value. SO Discounted Cash Flow as at Aug 2026Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out Southern for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover 52 high quality undervalued stocks. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity. Next Steps If the split views on Southern’s value and funding risk have you on the fence, now is the time to review the numbers yourself and decide what matters most. You can weigh up the concerns and the potential upside by checking the 2 key rewards and 2 important warning signs. Looking For More Investment Ideas Beyond Southern? If Southern has you thinking harder about capital plans and valuation trade offs, do not stop there. Use fresh stock ideas to stress test your portfolio thinking.  Spot potential value opportunities early by scanning 52 high quality undervalued stocks that combine solid fundamentals with prices that may not fully reflect their financial profile. Strengthen your income stream by reviewing 7 dividend fortresses that aim to pair higher yields with resilient cash generation. Lower the overall risk of your list by checking 82 resilient stocks with low risk scores that score well on balance sheet strength and volatility.   This article by Simply Wall St is general in nature. We provide commentary based on historical data\n        and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your\n        financial situation. We aim to bring you long-term focused analysis driven by fundamental data.\n        Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.\n        Simply Wall St has no position in any stocks mentioned.New: Manage All Your Stock Portfolios in One PlaceWe've created the ultimate portfolio companion for stock investors, and it's free.• Connect an unlimited number of Portfolios and see your total in one currency• Be alerted to new Warning Signs or Risks via email or mobile• Track the Fair Value of your stocksTry a Demo Portfolio for FreeHave feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":false,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"isVideo":false,"video":null,"symbols":[],"gpt_button":0,"need_auth":false,"need_login_tip":false,"code":"91000000","status":"200"}}}