ATMOS ENERGY CORP (ATO) Stock Fundamental Analysis
USA - NYSE:ATO - US0495601058 - Common Stock
176.91 USD
+1.43 (+0.81%)
176.91 USD
0 (0%)
ATO gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 14 industry peers in the Gas Utilities industry. ATO has an excellent profitability rating, but there are some minor concerns on its financial health. ATO has a expensive valuation and it also scores bad on growth.
1. Profitability
1.1 Basic Checks
In the past year ATO was profitable.
ATO had a positive operating cash flow in the past year.
Of the past 5 years ATO 4 years were profitable.
In multiple years ATO reported negative operating cash flow during the last 5 years.
1.2 Ratios
ATO has a better Return On Assets (4.18%) than 71.43% of its industry peers.
ATO has a Return On Equity of 8.65%. This is in the better half of the industry: ATO outperforms 71.43% of its industry peers.
ATO's Return On Invested Capital of 4.96% is in line compared to the rest of the industry. ATO outperforms 50.00% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for ATO is in line with the industry average of 6.32%.
The last Return On Invested Capital (4.96%) for ATO is above the 3 year average (4.48%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.18% | ||
| ROE | 8.65% | ||
| ROIC | 4.96% |
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
With an excellent Profit Margin value of 25.03%, ATO belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
In the last couple of years the Profit Margin of ATO has grown nicely.
The Operating Margin of ATO (33.00%) is better than 85.71% of its industry peers.
In the last couple of years the Operating Margin of ATO has grown nicely.
With a decent Gross Margin value of 77.50%, ATO is doing good in the industry, outperforming 78.57% of the companies in the same industry.
ATO's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 33% | ||
| PM (TTM) | 25.03% | ||
| GM | 77.5% |
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.
ATO has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
ATO has an Altman-Z score of 1.79. This is a bad value and indicates that ATO is not financially healthy and even has some risk of bankruptcy.
ATO has a better Altman-Z score (1.79) than 100.00% of its industry peers.
A Debt/Equity ratio of 0.67 indicates that ATO is somewhat dependend on debt financing.
ATO has a better Debt to Equity ratio (0.67) than 92.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.67 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.79 |
ROIC/WACC0.65
WACC7.69%
2.3 Liquidity
A Current Ratio of 1.37 indicates that ATO should not have too much problems paying its short term obligations.
The Current ratio of ATO (1.37) is better than 100.00% of its industry peers.
ATO has a Quick Ratio of 1.25. This is a normal value and indicates that ATO is financially healthy and should not expect problems in meeting 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 | 1.37 | ||
| Quick Ratio | 1.25 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 9.50% over the past year.
ATO shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 9.58% yearly.
EPS 1Y (TTM)9.5%
EPS 3Y9.79%
EPS 5Y9.58%
EPS Q2Q%28.92%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%-251.84%
3.2 Future
The Earnings Per Share is expected to grow by 6.79% on average over the next years.
The Revenue is expected to grow by 10.46% on average over the next years. This is quite good.
EPS Next Y6.9%
EPS Next 2Y7.28%
EPS Next 3Y7.28%
EPS Next 5Y6.79%
Revenue Next Year14.12%
Revenue Next 2Y10.42%
Revenue Next 3Y10.97%
Revenue Next 5Y10.46%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 23.62 indicates a rather expensive valuation of ATO.
71.43% of the companies in the same industry are cheaper than ATO, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 25.83. ATO is around the same levels.
A Price/Forward Earnings ratio of 22.09 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.
When comparing the Price/Forward Earnings ratio of ATO to the average of the S&P500 Index (32.68), we can say ATO is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.62 | ||
| Fwd PE | 22.09 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ATO is valued expensively inside the industry as 92.86% of the companies are valued cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 16.22 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates ATO does not grow enough to justify the current Price/Earnings ratio.
The decent profitability rating of ATO may justify a higher PE ratio.
PEG (NY)3.42
PEG (5Y)2.46
EPS Next 2Y7.28%
EPS Next 3Y7.28%
5. Dividend
5.1 Amount
ATO has a Yearly Dividend Yield of 2.28%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.89, ATO's dividend is way lower than its industry peers. On top of this 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 2.39, ATO has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.28% |
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 its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)8.76%
Div Incr Years34
Div Non Decr Years34
5.3 Sustainability
46.53% 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.
DP46.53%
EPS Next 2Y7.28%
EPS Next 3Y7.28%
176.91
+1.43 (+0.81%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryGas Utilities
Earnings (Last)
Earnings (Next)
Inst Owners102.53%
Inst Owner Change-0.34%
Ins Owners0.34%
Ins Owner Change-1%
Market Cap28.40B
Revenue(TTM)N/A
Net Income(TTM)1.16B
Analysts68.42
Price Target174.17 (-1.55%)
Short Float %3.33%
Short Ratio6.66
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.28% |
Yearly Dividend3.25
Dividend Growth(5Y)8.76%
DP46.53%
Div Incr Years34
Div Non Decr Years34
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)2.32%
Min EPS beat(2)0.25%
Max EPS beat(2)4.39%
EPS beat(4)4
Avg EPS beat(4)1.87%
Min EPS beat(4)0.25%
Max EPS beat(4)4.39%
EPS beat(8)8
Avg EPS beat(8)3.5%
EPS beat(12)9
Avg EPS beat(12)3.04%
EPS beat(16)11
Avg EPS beat(16)3.15%
Revenue beat(2)2
Avg Revenue beat(2)3.52%
Min Revenue beat(2)0.91%
Max Revenue beat(2)6.12%
Revenue beat(4)2
Avg Revenue beat(4)-8.95%
Min Revenue beat(4)-29.12%
Max Revenue beat(4)6.12%
Revenue beat(8)2
Avg Revenue beat(8)-17.01%
Revenue beat(12)4
Avg Revenue beat(12)-10.58%
Revenue beat(16)7
Avg Revenue beat(16)-5.65%
PT rev (1m)4.65%
PT rev (3m)5.97%
EPS NQ rev (1m)1.51%
EPS NQ rev (3m)12.61%
EPS NY rev (1m)0.29%
EPS NY rev (3m)1.99%
Revenue NQ rev (1m)13.83%
Revenue NQ rev (3m)-11.35%
Revenue NY rev (1m)-0.08%
Revenue NY rev (3m)0.8%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.62 | ||
| Fwd PE | 22.09 | ||
| P/S | 6.14 | ||
| P/FCF | N/A | ||
| P/OCF | 13.98 | ||
| P/B | 2.12 | ||
| P/tB | 2.26 | ||
| EV/EBITDA | 16.22 |
EPS(TTM)7.49
EY4.23%
EPS(NY)8.01
Fwd EY4.53%
FCF(TTM)-8.56
FCFYN/A
OCF(TTM)12.66
OCFY7.16%
SpS28.8
BVpS83.39
TBVpS78.35
PEG (NY)3.42
PEG (5Y)2.46
Graham Number118.55
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.18% | ||
| ROE | 8.65% | ||
| ROCE | 5.74% | ||
| ROIC | 4.96% | ||
| ROICexc | 5.1% | ||
| ROICexgc | 5.26% | ||
| OM | 33% | ||
| PM (TTM) | 25.03% | ||
| GM | 77.5% | ||
| 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%
ROICexgc growth 3Y-0.04%
ROICexgc 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 | 0.67 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 3.99 | ||
| Cap/Depr | 471.38% | ||
| Cap/Sales | 73.67% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 90.39% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.37 | ||
| Quick Ratio | 1.25 | ||
| Altman-Z | 1.79 |
F-Score4
WACC7.69%
ROIC/WACC0.65
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)9.5%
EPS 3Y9.79%
EPS 5Y9.58%
EPS Q2Q%28.92%
EPS Next Y6.9%
EPS Next 2Y7.28%
EPS Next 3Y7.28%
EPS Next 5Y6.79%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%-251.84%
Revenue Next Year14.12%
Revenue Next 2Y10.42%
Revenue Next 3Y10.97%
Revenue Next 5Y10.46%
EBIT growth 1Y-11.49%
EBIT growth 3Y14.41%
EBIT growth 5Y12.68%
EBIT Next Year66.14%
EBIT Next 3Y28.15%
EBIT Next 5Y23.12%
FCF growth 1Y-393.6%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-37.86%
OCF growth 3YN/A
OCF growth 5Y12.34%
ATMOS ENERGY CORP / ATO FAQ
What is the fundamental rating for ATO stock?
ChartMill assigns a fundamental rating of 4 / 10 to ATO.
What is the valuation status of ATMOS ENERGY CORP (ATO) stock?
ChartMill assigns a valuation rating of 1 / 10 to ATMOS ENERGY CORP (ATO). This can be considered as Overvalued.
How profitable is ATMOS ENERGY CORP (ATO) stock?
ATMOS ENERGY CORP (ATO) has a profitability rating of 7 / 10.
Can you provide the PE and PB ratios for ATO stock?
The Price/Earnings (PE) ratio for ATMOS ENERGY CORP (ATO) is 23.62 and the Price/Book (PB) ratio is 2.12.
How sustainable is the dividend of ATMOS ENERGY CORP (ATO) stock?
The dividend rating of ATMOS ENERGY CORP (ATO) is 5 / 10 and the dividend payout ratio is 46.53%.