Fundamental analysis: Alabama Power Company (ALP-PQ)

Awarener score: 7.1

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 (Very good), the business stability (Bottom) and growth (Excellent), and the company's inclination to return cash to the stockholders (unknown).

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: 5.0

Business has been growing at an excellent 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: 8.8

ALP-PQ profit margins -on goods and services sold- are usually good. They stand slightly 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 impressive 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 top-notch against 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: 8.7

Alabama Power Company profit -on goods and services sold- has been growing at a very good pace. It's been impressive in relation to competitors.
In recent years, earnings -on operations- have been growing at a very good 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 excellent tempo. It turns to be impressive in relation to similar stocks.
In past years, profits -before income taxes- grew at an excellent speed. It was better than most rivals.
In the previous years, growth trend on total net profit has been excellent, and great when measured against peer companies.
Earnings per share have grown at an excellent rhythm in past years. It's been excellent in relation to industry peers.

Miscellaneous score: 3.0

ALP-PQ had to pay a lot of 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 more than average in relation to peer firms.
The company normally gets excellent proceeds -on the resources directly invested in the business-. They remain impressive in relation to similar companies.
There's usually excellent profitability -in relation to owned resources-. It ranks top tier 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 encouraging in relation to comparable enterprises.

Usage of Funds score: 4.8

ALP-PQ usually uses almost all genuine funds generated to buy or replace property, plant, or equipment. The need for reinvestments is huge. It stands encouraging in relation to rival firms.
The company is usually largely investing in new property, plant, and equipment, to expand its operating capabilities, which is similar to industry peers.
There was no available information regarding dividend yield. It came unknown against competitors.
Dividend payments have been more or less stable in recent years. The company has behaved a slight improvement compared to similar firms.
The company generates very few genuine funds. Dividend payments are usually on borrowed money, which isn't sustainable in the long run. Unless business prospects improve greatly, future payments could be at risk. Sustainability looks bottom tier against comparable companies.
The company barely enlarges the pool of investors, resulting in slightly more mouths feeding on the pie of profits. It remains in good shape compared 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: 5.6

Alabama Power Company has no intangible assets (like brands and goodwill) according to accounting books, which is safest. It happens to be top tier when measured against peer companies.
The company has more short-term resources than short-term obligations. Liquidity concerns shouldn't be an issue. It turns to be impressive in relation to similar firms.
Roughly a quarter of resources controlled were provided for with financial debt. Creditors have some claims on the company. It remains better than most rival firms.
Controlled resources take time to be turned into cash and equivalents, which is somewhat risky. It looks top tier when measured against rivals.
For every dollar of short-term obligations, the company has roughly another of cash and short-term receivables. It's impressive in relation to peer firms.
For every dollar of short-term obligations, the company has roughly half of cash and equivalents, which is top-notch against similar enterprises.
Usually, sales are on a month and a half credit. It still ranks weak when measured against peers.
Normally has approximately somewhat more than two months of sales worth in inventory. It comes up as in a weak position compared to competitors.
On average, it takes higher than four months from the purchase to charging customers. It happens to be worse than most peers.
On average pays suppliers approximately three months after the purchase. It ranks almost average when measured against industry peers.
The company pays its suppliers roughly one month before charging its customers, so there's sparse money invested in working capital. It's a disappointment compared to similar companies.
Net interest expenses consume a minor portion of usual business earnings, and are easily bearable. It stands well ranked against rival firms.
Business earnings have usually been good when measured against loans taken. Cutting back reinvesting in the business, it could take less than three years to repay the obligations with current profitability. It ranks top tier when measured against comparable enterprises.
Last twelve months revenues were non-significant in relation to fixed assets. The company must improve income to take advantage of used resources. It looks in a very weak position compared to similar firms.
Resource exploitation is low when yearly sales are considered, business volume must be significantly increased. This metric is normally tied to the industry where the firm belongs. It's still worse than most peer companies.

Valuation score: 8.9

Alabama Power Company looks very cheap in relation to profits and financial position. It happens to be top tier when measured against 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 free funds in relation to the stock price, which stands better than most 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 more than average in relation to industry firms.
A conclusion regarding usual company rewards to stockholders was impossible to reach with data available. It came up also not enough to relate to peer ventures.
We are unsure on the relationship between net financial position and market capitalization of the stock. It looks we will not be able to reach a conclusion regarding 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 huge money when compared to the current stock price and financial position. It happens to be top tier when measured against industry peers.
In an alternate metric of bang for the buck, the company has usually shown an extreme earnings power ability when measured against the current stock price and financial position. Further analysis is recommended, as the stock might currently be significantly undervalued. It's still impressive in relation to peer companies.

Total score: 6.7

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

Sector, industry: Utilities, Utilities—Regulated Electric

Market Cap: unavailable

Revenues TTM: 6.88 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.