The Southern Company JR 2017B NT 77 (SOJC): fair value, margin of safety and Wheel Score

Is SOJC undervalued?

SOJC has a margin of safety of 47%: the stock closed at 18.45 on 16 Oct 2026 against a GLS average fair value of 34.77. 5 of the 8 valuation models that produced a number sit above the price. Our screens treat a discount this large as a strong starting point for a cash-secured put, not as a verdict - the fair value is a model output, and a wide gap can mean the models are missing something the market knows.

There is a wide gap between GLS Growth (6.21) and 10 Cap (88.29). When the models are this far apart the "fair value" is really a range, and the margin of safety above should be read with that range in mind.

The nightly engine files SOJC under Defensive: a low beta, a dividend and positive earnings.

Nine valuation models for SOJC

Each model turns the latest filed numbers into a value per share; the GLS fair value is the simple average of the ones that produce a positive number. The last two rows are shown for reference and never enter the average. The Quote page lets you switch any model off and add your own margin of safety.

Quality and financial health

The Southern Company JR 2017B NT 77 scores 6 of 9 on the Piotroski F-score: a middling result that passes the Sunday Scan's "6 or more" rule. Some of the nine tests on profitability, leverage and efficiency are failed, so the accounts are worth a look before selling a put on the name. A GLS Moat score of 4.3/10 is a weak reading: the ten-year history the score grades (revenue, EPS, book value, margins, cash flow, share count, ROIC) has not been steady, so the Moat part of the Wheel Score contributes little.

Returns on capital are thin or negative - ROIC 3.9%, ROE 12.1%, ROA 2.8% - with debt at 2.09 times equity and a free-cash-flow yield of 2.5%. Debt of 2.09 times equity is on the high side for the sector and is worth checking against the cash flow before treating the stock as a long-term hold.

The dividend yield is 3.36% at a payout ratio of 67%; for a wheel trader holding assigned shares the dividend adds to the covered-call premium, and the ex-dividend date is worth knowing before a call is sold. Revenue comes mainly from Retail electric revenues 69%, Natural gas distribution revenues 13%, Wholesale electric revenues 7% (quarter Q2 FY2026).

Institutional ownership scores 1/10, insider activity 5/10 and Congressional trading 5/10 on the GLS smart-money scales.

Wheel Score 39: No options

No options are listed on The Southern Company JR 2017B NT 77 in our nightly snapshot. The Wheel Score is therefore capped at 39 (it reads 39) and the stock is left out of every options screen; the fair value and health figures above are still useful for a plain stock position.

Volume runs at 39k shares a day on a market cap of $18.4B, with a beta of 0.43 - a low beta, so day-to-day moves are smaller than the market's; the Stability part of the Wheel Score gives that 12 of 20.

The Wheel Score ranks ~7,400 US stocks for selling cash-secured puts and covered calls; it is updated nightly and is not a recommendation. The walkthrough lesson shows how the score fits into a trade, start to finish.

Upcoming events

The Southern Company JR 2017B NT 77 reports earnings on 29 Oct 2026 (before the open) - inside the 14-day window the Sunday Scan avoids, because a put sold now would carry the report's gap risk.

Earnings, dividend, IPO, split and economic calendars for the whole market, filterable to your watchlists.

Similar stocks in Regulated Electric

The 12 companies below are the closest to The Southern Company JR 2017B NT 77 by market cap within the Regulated Electric industry, each with its own fact sheet; the Compare page puts up to eight of them side by side.

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