ATMOS ENERGY CORP (ATO) Stock Fundamental Analysis
USA - NYSE:ATO - US0495601058 - Common Stock
163.21 USD
-2.6 (-1.57%)
163.21 USD
0 (0%)
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. ATO has an excellent profitability rating, but there are some minor concerns on its financial health. ATO is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year ATO was profitable.
ATO had a positive operating cash flow in the past year.
In the past 5 years ATO has always been profitable.
ATO had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
With a decent Return On Assets value of 4.18%, ATO is doing good in the industry, outperforming 71.43% of the companies in the same industry.
With a decent Return On Equity value of 8.65%, ATO is doing good in the industry, outperforming 71.43% of the companies in the same industry.
ATO has a Return On Invested Capital of 4.96%. This is comparable to the rest of the industry: ATO outperforms 50.00% of its industry peers.
The Average Return On Invested Capital over the past 3 years for ATO is in line with the industry average of 6.32%.
The 3 year average ROIC (4.48%) for ATO is below the current ROIC(4.96%), indicating increased profibility in the last year.
| 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
ATO has a better Profit Margin (25.03%) than 100.00% of its industry peers.
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.
ATO's Operating Margin has improved in the last couple of years.
ATO has a better Gross Margin (77.50%) 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% | ||
| 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
ATO has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, ATO has more shares outstanding
Compared to 5 years ago, ATO has more shares outstanding
ATO has a worse debt/assets ratio than last year.
2.2 Solvency
ATO has an Altman-Z score of 1.71. This is a bad value and indicates that ATO is not financially healthy and even has some risk of bankruptcy.
ATO has a Altman-Z score of 1.71. This is amongst the best in the industry. ATO outperforms 92.86% of its industry peers.
ATO has a Debt/Equity ratio of 0.67. This is a neutral value indicating ATO is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.67, ATO belongs to the top of the industry, outperforming 92.86% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.67 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.71 |
ROIC/WACC0.66
WACC7.57%
2.3 Liquidity
ATO has a Current Ratio of 1.37. This is a normal value and indicates that ATO is financially healthy and should not expect problems in meeting its short term obligations.
ATO's Current ratio of 1.37 is amongst the best of the industry. ATO outperforms 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.
The Quick ratio of ATO (1.25) is better than 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 been growing slightly by 6.46% over the past year.
The Earnings Per Share has been growing by 9.37% on average over the past years. This is quite good.
Looking at the last year, ATO shows a very negative growth in Revenue. The Revenue has decreased by -11.99% in the last year.
The Revenue has been growing slightly by 7.50% on average over the past years.
EPS 1Y (TTM)6.46%
EPS 3Y9.85%
EPS 5Y9.37%
EPS Q2Q%7.41%
Revenue 1Y (TTM)-11.99%
Revenue growth 3Y6.92%
Revenue growth 5Y7.5%
Sales Q2Q%19.56%
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 7.69% on average per year.
Based on estimates for the next years, ATO will show a quite strong growth in Revenue. The Revenue will grow by 8.91% on average per year.
EPS Next Y8.63%
EPS Next 2Y7.94%
EPS Next 3Y7.81%
EPS Next 5Y7.69%
Revenue Next Year3.45%
Revenue Next 2Y7.72%
Revenue Next 3Y8.19%
Revenue Next 5Y8.91%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
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
The Price/Earnings ratio is 22.51, which indicates a rather expensive current valuation of ATO.
Based on the Price/Earnings ratio, ATO is valued more expensive than 85.71% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.20. ATO is around the same levels.
The Price/Forward Earnings ratio is 20.48, which indicates a rather expensive current valuation of ATO.
ATO's Price/Forward Earnings ratio is rather expensive when compared to the industry. ATO is more expensive than 85.71% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of ATO to the average of the S&P500 Index (22.71), we can say ATO is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.51 | ||
| Fwd PE | 20.48 |
4.2 Price Multiples
92.86% of the companies in the same industry are cheaper than ATO, based on the Enterprise Value to EBITDA ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 15.34 |
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)2.61
PEG (5Y)2.4
EPS Next 2Y7.94%
EPS Next 3Y7.81%
5. Dividend
5.1 Amount
ATO has a Yearly Dividend Yield of 2.09%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.95, ATO's dividend is way lower than its industry peers. On top of this 92.86% of the companies listed in the same industry pay a better dividend than ATO!
Compared to an average S&P500 Dividend Yield of 2.38, ATO has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.09% |
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
ATO pays out 46.53% of its income as dividend. 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 2Y7.94%
EPS Next 3Y7.81%
163.21
-2.6 (-1.57%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryGas Utilities
Earnings (Last)
Earnings (Next)
Inst Owners107.6%
Inst Owner Change-3.77%
Ins Owners0.35%
Ins Owner Change-0.56%
Market Cap26.20B
Analysts71.11
Price Target166.43 (1.97%)
Short Float %3.48%
Short Ratio6.85
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.09% |
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)-0.9%
PT rev (3m)0.2%
EPS NQ rev (1m)7.84%
EPS NQ rev (3m)6.98%
EPS NY rev (1m)1.6%
EPS NY rev (3m)2.05%
Revenue NQ rev (1m)-8.07%
Revenue NQ rev (3m)-14.38%
Revenue NY rev (1m)1.57%
Revenue NY rev (3m)1.78%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.51 | ||
| Fwd PE | 20.48 | ||
| P/S | 5.67 | ||
| P/FCF | N/A | ||
| P/OCF | 12.89 | ||
| P/B | 1.96 | ||
| P/tB | 2.08 | ||
| EV/EBITDA | 15.34 |
EPS(TTM)7.25
EY4.44%
EPS(NY)7.97
Fwd EY4.88%
FCF(TTM)-8.56
FCFYN/A
OCF(TTM)12.66
OCFY7.76%
SpS28.8
BVpS83.39
TBVpS78.35
PEG (NY)2.61
PEG (5Y)2.4
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%
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 | 0.67 | ||
| 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 | 1.71 |
F-Score4
WACC7.57%
ROIC/WACC0.66
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)6.46%
EPS 3Y9.85%
EPS 5Y9.37%
EPS Q2Q%7.41%
EPS Next Y8.63%
EPS Next 2Y7.94%
EPS Next 3Y7.81%
EPS Next 5Y7.69%
Revenue 1Y (TTM)-11.99%
Revenue growth 3Y6.92%
Revenue growth 5Y7.5%
Sales Q2Q%19.56%
Revenue Next Year3.45%
Revenue Next 2Y7.72%
Revenue Next 3Y8.19%
Revenue Next 5Y8.91%
EBIT growth 1Y-11.49%
EBIT growth 3Y14.41%
EBIT growth 5Y12.68%
EBIT Next Year70.76%
EBIT Next 3Y30.07%
EBIT Next 5Y23.19%
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%