Is SOUTHERN CO (SO) Halal?

NYSE Utilities United States $107.0B
✗ NOT HALAL
Confidence: 90/100
SOUTHERN CO (SO) is Not Halal under AAOIFI Standard 21. The company's debt ratio of 67.9% exceeds the 30% threshold, indicating excessive interest-bearing debt relative to market capitalization. SOUTHERN CO operates in the Utilities sector.

Shariah Screening — 5 Standards

Based on financial data from December 2025

Standard Debt Ratio Cash Ratio Receivables Income Status
AAOIFI 67.9%
/ 30%
1.5%
/ 30%
3.7%
/ 30%
3.22%
/ 5%
✗ NOT HALAL
DJIM 67.9%
/ 33%
1.5%
/ 33%
3.7%
/ 33%
3.22%
/ 5%
✗ NOT HALAL
MSCI 47.6%
/ 33%
1.1%
/ 33%
2.6%
/ 33%
3.22%
/ 5%
✗ NOT HALAL
S&P 67.9%
/ 33%
1.5%
/ 33%
3.7%
/ 33%
3.22%
/ 5%
✗ NOT HALAL
FTSE 47.6%
/ 33%
1.1%
/ 33%
2.6%
/ 50%
3.22%
/ 5%
✗ NOT HALAL

Financial Highlights

P/E Ratio
24.4
Forward: 19.4
EPS
$3.92
Dividend Yield
310.0%
Payout: 75.0%
P/B Ratio
3.0
EV/EBITDA
13.1
EV: $182.2B
Revenue
$29.6B
Growth: 10.1%
Beta
0.4
Low volatility
Current Ratio
0.6

Profitability

Gross Margin 48.5%
Operating Margin 12.7%
Net Margin 14.7%
Return on Equity (ROE) 11.0%
Return on Assets (ROA) 3.3%

Cash Flow & Balance Sheet

Operating Cash Flow$9.8B
Free Cash Flow-$2.9B
Total Debt$74.1B
Debt-to-Equity190.6
Current Ratio0.6
Total Assets$155.7B

Price & Trading

Last Close$95.42
50-Day MA$93.29
200-Day MA$92.19
Avg Volume6.0M
Beta0.4
52-Week Range
$83.09
$100.84

About SOUTHERN CO (SO)

CEO
Mr. Christopher C. Womack
Employees
29,502
Sector
Utilities
Industry
Utilities - Regulated Electric
Country
United States
Exchange
NYSE
Market Cap
$107.0B
Currency
USD

The Southern Company, through its subsidiaries, engages in the sale of electricity. The company offers electric service to retail customers and wholesale customers; and energy-related products and services to natural gas choice markets. It also develops, constructs, acquires, owns, operates, and manages power generation assets, as well as battery energy storage projects; sells electricity at market-based rates in the wholesale market; and deploys microgrids for commercial, industrial, governmental, and utility customers. In addition, the company is involved in the distribution of natural gas in Illinois, Georgia, Virginia, and Tennessee; distributes energy and resilience solutions; and invests in telecommunications. The Southern Company was incorporated in 1945 and is headquartered in Atlanta, Georgia.

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Frequently Asked Questions

Is SOUTHERN CO (SO) halal to invest in?

Based on our screening using AAOIFI Standard 21 (the strictest methodology), SOUTHERN CO is Not Halal. The company fails one or more screening criteria. We screen against all 5 major standards: AAOIFI, DJIM, MSCI, S&P, and FTSE.

What is SOUTHERN CO's debt ratio?

SOUTHERN CO's debt ratio is 67.9% under the AAOIFI standard (which uses market capitalization as the denominator). The AAOIFI threshold is 30%. Under MSCI and FTSE (which use total assets as the denominator), the debt ratio is 47.6%.

What are SOUTHERN CO's key financial metrics?

SOUTHERN CO has a market capitalization of $107.0B, trailing P/E ratio of 24.4, and revenue of $29.6B. The company maintains a gross margin of 48.5% and a net margin of 14.7%. Return on equity stands at 11.0%.

How often is the screening data updated?

Our screening data is updated regularly using the latest available financial statements and market data. Stock prices and market caps are refreshed frequently, while financial statements are updated quarterly when companies report earnings.

Disclaimer: HalalStockGuide.com provides Shariah compliance screening for educational and informational purposes only. This is not a fatwa, financial advice, or a recommendation to buy or sell any security. Screening results are based on publicly available financial data and established methodologies. Always consult a qualified Islamic scholar and a licensed financial advisor before making investment decisions.