ATMOS ENERGY CORP (ATO) Stock Fundamental Analysis
NYSE:ATO - New York Stock Exchange, Inc. - US0495601058 - Common Stock - Currency: USD
Taking everything into account, ATO scores 5 out of 10 in our fundamental rating. ATO was compared to 14 industry peers in the Gas Utilities industry. While ATO has a great profitability rating, there are some minor concerns on its financial health. ATO is valued expensive and it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year ATO was profitable.
In the past year ATO had a positive cash flow from operations.
Each year in the past 5 years ATO has been profitable.
Of the past 5 years ATO 4 years had a positive operating cash flow.
1.2 Ratios
ATO has a Return On Assets of 4.21%. This is amongst the best in the industry. ATO outperforms 85.71% of its industry peers.
Looking at the Return On Equity, with a value of 8.65%, ATO is in line with its industry, outperforming 57.14% of the companies in the same industry.
With a Return On Invested Capital value of 5.01%, ATO perfoms like the industry average, outperforming 42.86% of the companies in the same industry.
ATO had an Average Return On Invested Capital over the past 3 years of 4.48%. This is in line with the industry average of 6.29%.
The 3 year average ROIC (4.48%) for ATO is below the current ROIC(5.01%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.21% | ||
| ROE | 8.65% | ||
| ROIC | 5.01% |
ROA(3y)3.85%
ROA(5y)3.77%
ROE(3y)8.31%
ROE(5y)8.44%
ROIC(3y)4.48%
ROIC(5y)4.64%
1.3 Margins
The Profit Margin of ATO (25.33%) is better than 100.00% of its industry peers.
ATO's Profit Margin has improved in the last couple of years.
ATO's Operating Margin of 33.30% is amongst the best of the industry. ATO outperforms 85.71% of its industry peers.
In the last couple of years the Operating Margin of ATO has grown nicely.
ATO has a better Gross Margin (78.07%) than 78.57% of its industry peers.
ATO's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 33.3% | ||
| PM (TTM) | 25.33% | ||
| GM | 78.07% |
OM growth 3Y7%
OM growth 5Y4.82%
PM growth 3Y8.64%
PM growth 5Y7.28%
GM growth 3Y3.64%
GM growth 5Y1.96%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), ATO is destroying value.
The number of shares outstanding for ATO has been increased compared to 1 year ago.
Compared to 5 years ago, ATO has more shares outstanding
Compared to 1 year ago, ATO has a worse debt to assets ratio.
2.2 Solvency
ATO has an Altman-Z score of 1.68. This is a bad value and indicates that ATO is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of ATO (1.68) is better than 100.00% of its industry peers.
A Debt/Equity ratio of 0.65 indicates that ATO is somewhat dependend on debt financing.
With an excellent Debt to Equity ratio value of 0.65, ATO belongs to the best of the industry, outperforming 92.86% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.65 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.68 |
ROIC/WACC0.64
WACC7.85%
2.3 Liquidity
A Current Ratio of 1.33 indicates that ATO should not have too much problems paying its short term obligations.
With an excellent Current ratio value of 1.33, ATO belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
A Quick Ratio of 1.25 indicates that ATO should not have too much problems paying its short term obligations.
ATO has a Quick ratio of 1.25. This is amongst the best in the industry. ATO outperforms 100.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.33 | ||
| Quick Ratio | 1.25 |
3. Growth
3.1 Past
ATO shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 7.50%.
ATO shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 9.37% yearly.
Looking at the last year, ATO shows a very negative growth in Revenue. The Revenue has decreased by -13.97% in the last year.
The Revenue has been growing slightly by 7.50% on average over the past years.
EPS 1Y (TTM)7.5%
EPS 3Y9.85%
EPS 5Y9.37%
EPS Q2Q%6.32%
Revenue 1Y (TTM)-13.97%
Revenue growth 3Y6.92%
Revenue growth 5Y7.5%
Sales Q2Q%18.41%
3.2 Future
Based on estimates for the next years, ATO will show a small growth in Earnings Per Share. The EPS will grow by 7.38% on average per year.
ATO is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.41% yearly.
EPS Next Y6.92%
EPS Next 2Y7.27%
EPS Next 3Y7.37%
EPS Next 5Y7.38%
Revenue Next Year1.68%
Revenue Next 2Y7.15%
Revenue Next 3Y7.28%
Revenue Next 5Y7.41%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 21.85 indicates a rather expensive valuation of ATO.
Based on the Price/Earnings ratio, ATO is valued a bit more expensive than the industry average as 71.43% of the companies are valued more cheaply.
ATO's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.50.
A Price/Forward Earnings ratio of 19.90 indicates a rather expensive valuation of ATO.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ATO indicates a rather expensive valuation: ATO more expensive than 85.71% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 36.44. ATO is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.85 | ||
| Fwd PE | 19.9 |
4.2 Price Multiples
ATO's Enterprise Value to EBITDA ratio is rather expensive when compared to the industry. ATO is more expensive than 92.86% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 14.85 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The excellent profitability rating of ATO may justify a higher PE ratio.
PEG (NY)3.16
PEG (5Y)2.33
EPS Next 2Y7.27%
EPS Next 3Y7.37%
5. Dividend
5.1 Amount
ATO has a Yearly Dividend Yield of 2.25%.
With a Dividend Yield of 2.25, ATO pays less dividend than the industry average, which is at 3.95. 85.71% of the companies listed in the same industry pay a better dividend than ATO!
Compared to an average S&P500 Dividend Yield of 2.35, ATO has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.25% |
5.2 History
The dividend of ATO is nicely growing with an annual growth rate of 8.76%!
ATO has paid a dividend for at least 10 years, which is a reliable track record.
ATO has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)8.76%
Div Incr Years34
Div Non Decr Years34
5.3 Sustainability
46.22% of the earnings are spent on dividend by ATO. This is a bit on the high side, but may be sustainable.
ATO's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP46.22%
EPS Next 2Y7.27%
EPS Next 3Y7.37%
156.66
+1.39 (+0.9%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryGas Utilities
Earnings (Last)
Earnings (Next)
Inst Owners107.28%
Inst Owner Change0%
Ins Owners0.35%
Ins Owner Change4.9%
Market Cap24.88B
Analysts73.68
Price Target165.79 (5.83%)
Short Float %3.66%
Short Ratio5.93
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.25% |
Yearly Dividend3.25
Dividend Growth(5Y)8.76%
DP46.22%
Div Incr Years34
Div Non Decr Years34
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)2.52%
Min EPS beat(2)0.64%
Max EPS beat(2)4.39%
EPS beat(4)4
Avg EPS beat(4)2.25%
Min EPS beat(4)0.64%
Max EPS beat(4)4.39%
EPS beat(8)7
Avg EPS beat(8)2.67%
EPS beat(12)9
Avg EPS beat(12)3.66%
EPS beat(16)11
Avg EPS beat(16)3.59%
Revenue beat(2)1
Avg Revenue beat(2)-3.8%
Min Revenue beat(2)-13.72%
Max Revenue beat(2)6.12%
Revenue beat(4)1
Avg Revenue beat(4)-14.31%
Min Revenue beat(4)-29.12%
Max Revenue beat(4)6.12%
Revenue beat(8)1
Avg Revenue beat(8)-21.08%
Revenue beat(12)4
Avg Revenue beat(12)-9.09%
Revenue beat(16)7
Avg Revenue beat(16)-5.52%
PT rev (1m)-0.18%
PT rev (3m)6.03%
EPS NQ rev (1m)0.36%
EPS NQ rev (3m)-1.42%
EPS NY rev (1m)0.44%
EPS NY rev (3m)0.81%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.21%
Revenue NY rev (1m)0.04%
Revenue NY rev (3m)-0.59%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.85 | ||
| Fwd PE | 19.9 | ||
| P/S | 5.55 | ||
| P/FCF | N/A | ||
| P/OCF | 12.78 | ||
| P/B | 1.89 | ||
| P/tB | 2.02 | ||
| EV/EBITDA | 14.85 |
EPS(TTM)7.17
EY4.58%
EPS(NY)7.87
Fwd EY5.02%
FCF(TTM)-8.22
FCFYN/A
OCF(TTM)12.26
OCFY7.82%
SpS28.24
BVpS82.71
TBVpS77.61
PEG (NY)3.16
PEG (5Y)2.33
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.21% | ||
| ROE | 8.65% | ||
| ROCE | 5.79% | ||
| ROIC | 5.01% | ||
| ROICexc | 5.12% | ||
| ROICexgc | 5.29% | ||
| OM | 33.3% | ||
| PM (TTM) | 25.33% | ||
| GM | 78.07% | ||
| FCFM | N/A |
ROA(3y)3.85%
ROA(5y)3.77%
ROE(3y)8.31%
ROE(5y)8.44%
ROIC(3y)4.48%
ROIC(5y)4.64%
ROICexc(3y)4.51%
ROICexc(5y)4.66%
ROICexgc(3y)4.68%
ROICexgc(5y)4.87%
ROCE(3y)5.22%
ROCE(5y)5.38%
ROICexcg growth 3Y-0.04%
ROICexcg growth 5Y-1.17%
ROICexc growth 3Y0.36%
ROICexc growth 5Y-0.68%
OM growth 3Y7%
OM growth 5Y4.82%
PM growth 3Y8.64%
PM growth 5Y7.28%
GM growth 3Y3.64%
GM growth 5Y1.96%
F-Score4
Asset Turnover0.17
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.65 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 3.86 | ||
| Cap/Depr | 462.29% | ||
| Cap/Sales | 72.5% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 88.6% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.33 | ||
| Quick Ratio | 1.25 | ||
| Altman-Z | 1.68 |
F-Score4
WACC7.85%
ROIC/WACC0.64
Cap/Depr(3y)453.01%
Cap/Depr(5y)444.29%
Cap/Sales(3y)64.77%
Cap/Sales(5y)64.15%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)7.5%
EPS 3Y9.85%
EPS 5Y9.37%
EPS Q2Q%6.32%
EPS Next Y6.92%
EPS Next 2Y7.27%
EPS Next 3Y7.37%
EPS Next 5Y7.38%
Revenue 1Y (TTM)-13.97%
Revenue growth 3Y6.92%
Revenue growth 5Y7.5%
Sales Q2Q%18.41%
Revenue Next Year1.68%
Revenue Next 2Y7.15%
Revenue Next 3Y7.28%
Revenue Next 5Y7.41%
EBIT growth 1Y-10.7%
EBIT growth 3Y14.41%
EBIT growth 5Y12.68%
EBIT Next Year69.82%
EBIT Next 3Y29.9%
EBIT Next 5Y23.67%
FCF growth 1Y-333.1%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-39.72%
OCF growth 3YN/A
OCF growth 5Y12.34%