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Fundamental analysis: Alabama Power Company (ALP-PQ)

Awarener score: 7.3

Conclusion

The higher the Awarener score, the more bang you get for the buck. It measures how much genuine funds the company generates for the stock price paid (Average), the business stability (Bottom) and growth (Superb), and the company's inclination to return cash to the stockholders (Superb).

Note: All scores range from 1 (worst) to 10 (best). Conclusions are updated daily with closing stock prices and new reported quarterly financial statements.

Revenue score: 5.5

  • Business has been growing at an extremely fast pace. It's been top tier when measured against peer companies.
  • Alabama Power Company business varies wildly, ups and downs could be very frequent. It's very risky. It looks bottom tier against rivals.

Margins score: 9.0

  • ALP-PQ profit margins -on goods and services sold- are usually very good. They stand somewhat better than rival companies.
  • Business profit on sales tends to be huge. It's top tier when measured against competitors.
  • Profits on sales made -available to repay debt and purchase properties- are usually excellent. They remain excellent in relation to peers.
  • Earnings -before income taxes and interests on loans taken- tend to be excellent in relation to total revenues. They're still better than most similar companies.
  • Profits -before income taxes- are usually excellent considering total sales, and remain top tier when measured against rivals.
  • Total net profit tends to be excellent when confronted to sales. Company stands top tier when measured against comparable firms.

Growth score: 9.6

  • Alabama Power Company profit -on goods and services sold- has been growing at an extremely fast pace. It's been impressive in relation to competitors.
  • In recent years, earnings -on operations- have been growing at an excellent step, which has been top-notch against comparable firms.
  • Profits -available to repay debt and purchase properties- have been growing at an excellent pace, which compares top tier when measured against peer enterprises.
  • Earnings -before income taxes and interests on loans taken- have been growing at an extremely fast tempo. It turns to be impressive in relation to similar stocks.
  • In past years, profits -before income taxes- grew at an extremely fast speed. It was better than most rivals.
  • In the previous years, growth trend on total net profit has been excellent, and top tier when measured against peer companies.
  • Earnings per share have grown at an extremely fast rhythm in past years. It's been impressive in relation to industry peers.

Miscellaneous score: 4.0

  • ALP-PQ had to pay substantial income taxes in relation to profits made in the past years. It's been worse than most peers.
  • The company does not report R&D expenses. It's meaningless to measure in relation to competitors.
  • We have insufficient data to estimate how effective is research and development effort. It stands unknown against rival companies.

Profitability score: 8.8

  • Alabama Power Company usually gets excellent returns on the resources it controls. It proves top tier when measured against peer firms.
  • The company normally gets excellent proceeds -on the resources directly invested in the business-. They remain excellent in relation to similar companies.
  • There's usually excellent profitability -in relation to owned resources-. It ranks great when measured against competitors.
  • In the past, got very good returns -on the tangible resources it controls-. This metric is usually related to the industry in which operates and combines profitability versus reinvestment needs. It's top tier when measured against comparable enterprises.

Usage of Funds score: 6.5

  • ALP-PQ usually uses a very large portion of genuine funds generated to buy or replace property, plant, or equipment. The need for reinvestments is heavy. It stands top tier when measured against rival firms.
  • The company is usually investing in new property, plant, and equipment, to improve its operating capabilities, which is weak when measured against industry peers.
  • In the past twelve months it paid outstanding dividends, considering the current stock price. It came top-notch against competitors.
  • Has significantly increased dividend payments in the past years. Business prospects probably have improved. The company has behaved excellent in relation to similar firms.
  • The company pays more dividends than genuine funds is usually able to generate, therefore borrowing more funds. Future payments may be at risk, especially if a downturn in business occurs. Sustainability looks somewhat worse than comparable companies.
  • The company usually neither enlarges nor reduces the pool of investors, resulting in approximately the same mouths feeding on the pie of profits. It remains excellent in relation to peer enterprises.
  • We are not sure on the effectiveness of the company when repurchasing shares, as there were not enough numbers to crunch. It stands unidentified against rivals.
  • We do not have sufficient data to comment on buybacks and their sustainability. It still looks dubious against competitors.

Balance Sheet score: 4.8

  • Alabama Power Company intangible assets (like brands and goodwill) represent a modest portion of resources controlled, according to accounting books. There could be some difficulties in liquidating them if the company ever gets in financial distress. It happens to be below average when measured against peer companies.
  • The company has somewhat lower short-term resources than short-term obligations. Unless it's part of the business model, there might some liquidity concerns. It turns to be close to average when compared to similar firms.
  • A significant part of resources controlled were provided for with financial debt. Creditors have almost as many claims on the company as shareholders. It remains worse than most rival firms.
  • Controlled resources take time to be turned into cash and equivalents, which is somewhat risky. It looks weak when measured against rivals.
  • For every dollar of short-term obligations, the company has few cents of cash and short-term receivables. It's a disappointment compared to peer firms.
  • For every dollar of short-term obligations, the company has very few cents of cash and equivalents, which is somewhat better than similar enterprises.
  • Usually, sales are mostly on cash. It still ranks top tier when measured against peers.
  • Normally has approximately three months of sales worth in inventory. It comes up as a disappointment compared to competitors.
  • On average, it takes higher than three months from the purchase to charging customers. It happens to be bottom tier against peers.
  • On average pays suppliers approximately four months or higher after the purchase. It ranks top tier when measured against industry peers.
  • The company charges its customers long before it must pay its suppliers, so the more it sales, the more free funds it gets. It's impressive in relation to similar companies.
  • Net interest expenses consume a significant portion of usual business earnings, but are mostly bearable. It stands well ranked against rival firms.
  • Business earnings have usually been extremely low when measured against loans taken. Even severely cutting back reinvesting in the business, it could take more than twenty years to repay the obligations. Additional stockholders' funding may be a quicker way, but at the cost of increasing the mouths to feed on the eventual pie of profits. It ranks substantially worse when measured against comparable enterprises.
  • Fixed assets turnover remains undisclosed. It looks we cannot relate it to similar firms.
  • Resource exploitation is very low when yearly sales are considered, business volume must be greatly increased. This metric is normally tied to the industry where the firm belongs. It's still bottom tier against peer companies.

Valuation score: 7.8

  • Alabama Power Company looks somewhat expensive in relation to profits and financial position. It happens to be encouraging in relation to competitors.
  • Price-to-Tangible-Book-Value is a fairly complex metric. Run again in analytical mode if you're interested in a technical explanation. It remains impressive in relation to peers.
  • In the past twelve months, the company generated some good free funds in relation to the stock price, which stands top-notch against similar companies.
  • In the past years the company barely generated enough genuine funds to cover up for its business needs. Business prospects should improve to be in a better position to reward investors. It's still great when measured against industry firms.
  • In the past twelve months, the company has significantly rewarded investors, considering both dividends and share on the pie of earnings. It came up impressive in relation to peer ventures.
  • The company is drowned in loans. It almost belongs more to the creditors than the stockholders. The situation may be dire. It looks bottom tier against similar enterprises.
  • Considering the past twelve months, traditional Price-to-Earnings relation looks extremely cheap. Possible reasons are that the market might be betting current earnings will be very hard to sustain through time, or that the company has very high fund needs, a weak financial position, or that earnings aren't representative. If that isn't the case, the stock price could be extremely attractive. It ranks top tier when measured against peer companies.
  • Comparing the current stock price with the past twelve-months revenues gives a very low relationship. One common cause includes profitability being very poor. It looks impressive in relation to rival firms.
  • The stock price is significantly below the accounting book value. Unless profitability is extremely low, the stock may be selling at a large discount. Pay attention to the other key indicators for hints. The company remains top-notch against peer firms.
  • In the past twelve months, the operating business earned good money when compared to the current stock price and financial position. It happens to be similar to industry peers.
  • In an alternate metric of bang for the buck, the company has usually shown a very good earnings power ability when measured against the current stock price and financial position. It's still in good shape compared to peer companies.

Total score: 7.0


ALP-PQ logos

Company at a glance: Alabama Power Company (ALP-PQ)

Sector, industry: Utilities, Utilities—Regulated Electric

Market Cap: 0.76 billions

Revenues TTM: 17.15 billions

Alabama Power Company, an integrated utility, generates, purchases, transmits, distributes, and sells electricity to residential, commercial, industrial, and other customers. The company generates electricity through coal, nuclear, gas, and hydro plants. It sells electricity at retail in approximately 400 cities and towns, including Anniston, Birmingham, Gadsden, Mobile, Montgomery, and Tuscaloosa, as well as in rural areas; and at wholesale to 11 municipally-owned electric distribution systems. The company also sells electric appliances and products; and markets and sells outdoor lighting services. It serves retail customers in the State of Alabama, as well as wholesale customers in the Southeast. The company was founded in 1906 and is based in Birmingham, Alabama. Alabama Power Company operates as a subsidiary of The Southern Company.

Awarener score: 7.3

Conclusion

The higher the Awarener score, the more bang you get for the buck. It measures how much genuine funds the company generates for the stock price paid (Average), the business stability (Bottom) and growth (Superb), and the company's inclination to return cash to the stockholders (Superb).