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ATMOS ENERGY CORP (ATO) Stock Fundamental Analysis

NYSE:ATO - New York Stock Exchange, Inc. - US0495601058 - Common Stock - Currency: USD

152.79  +0.51 (+0.33%)

After market: 152.79 0 (0%)

Fundamental Rating

5

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 scores excellent on profitability, but there are some minor concerns on its financial health. ATO has a expensive valuation and it also scores bad on growth.


Dividend Valuation Growth Profitability Health

8

1. Profitability

1.1 Basic Checks

ATO had positive earnings in the past year.
In the past year ATO had a positive cash flow from operations.
In the past 5 years ATO has always been profitable.
Of the past 5 years ATO 4 years had a positive operating cash flow.
ATO Yearly Net Income VS EBIT VS OCF VS FCFATO Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 2B -2B

1.2 Ratios

Looking at the Return On Assets, with a value of 4.21%, ATO belongs to the top of the industry, outperforming 85.71% of the companies in the same industry.
ATO's Return On Equity of 8.65% is in line compared to the rest of the industry. ATO outperforms 57.14% of its industry peers.
ATO has a Return On Invested Capital (5.01%) which is comparable to the rest of the industry.
The Average Return On Invested Capital over the past 3 years for ATO is in line with the industry average of 6.29%.
The last Return On Invested Capital (5.01%) for ATO is above the 3 year average (4.48%), which is a sign of increasing profitability.
Industry RankSector 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%
ATO Yearly ROA, ROE, ROICATO Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2 4 6 8 10

1.3 Margins

The Profit Margin of ATO (25.33%) is better than 100.00% of its industry peers.
In the last couple of years the Profit Margin of ATO has grown nicely.
With an excellent Operating Margin value of 33.30%, ATO belongs to the best of the industry, outperforming 85.71% of the companies in the same industry.
ATO's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 78.07%, ATO is in the better half of 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 RankSector 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%
ATO Yearly Profit, Operating, Gross MarginsATO Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 20 40 60

4

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 more shares outstanding than it did 1 year ago.
The number of shares outstanding for ATO has been increased compared to 5 years ago.
ATO has a worse debt/assets ratio than last year.
ATO Yearly Shares OutstandingATO Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 50M 100M 150M
ATO Yearly Total Debt VS Total AssetsATO Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 5B 10B 15B 20B 25B

2.2 Solvency

Based on the Altman-Z score of 1.67, we must say that ATO is in the distress zone and has some risk of bankruptcy.
ATO has a Altman-Z score of 1.67. This is amongst the best in the industry. ATO outperforms 100.00% of its industry peers.
A Debt/Equity ratio of 0.65 indicates that ATO is somewhat dependend on debt financing.
ATO's Debt to Equity ratio of 0.65 is amongst the best of the industry. ATO outperforms 92.86% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.65
Debt/FCF N/A
Altman-Z 1.67
ROIC/WACC0.65
WACC7.74%
ATO Yearly LT Debt VS Equity VS FCFATO Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 5B 10B

2.3 Liquidity

A Current Ratio of 1.33 indicates that ATO should not have too much problems paying its short term obligations.
The Current ratio of ATO (1.33) 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 better Quick ratio (1.25) than 100.00% of its industry peers.
Industry RankSector Rank
Current Ratio 1.33
Quick Ratio 1.25
ATO Yearly Current Assets VS Current LiabilitesATO Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 1B 2B 3B

3

3. Growth

3.1 Past

The Earnings Per Share has been growing slightly by 7.50% 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 9.37% 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.
Measured over the past years, ATO shows a small growth in Revenue. The Revenue has been growing by 7.50% on average per year.
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

ATO is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.38% yearly.
Based on estimates for the next years, ATO will show a small growth in Revenue. The Revenue will grow by 7.41% on average per year.
EPS Next Y6.82%
EPS Next 2Y7.25%
EPS Next 3Y7.35%
EPS Next 5Y7.38%
Revenue Next Year1.64%
Revenue Next 2Y7.13%
Revenue Next 3Y7.26%
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.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
ATO Yearly Revenue VS EstimatesATO Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2B 4B 6B
ATO Yearly EPS VS EstimatesATO Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2 4 6 8

2

4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 21.31, ATO is valued on the expensive side.
Based on the Price/Earnings ratio, ATO is valued a bit more expensive than 78.57% of the companies in the same industry.
When comparing the Price/Earnings ratio of ATO to the average of the S&P500 Index (27.29), we can say ATO is valued slightly cheaper.
With a Price/Forward Earnings ratio of 19.42, ATO is valued on the expensive side.
Based on the Price/Forward Earnings ratio, ATO is valued expensively inside the industry as 85.71% of the companies are valued cheaper.
The average S&P500 Price/Forward Earnings ratio is at 21.74. ATO is around the same levels.
Industry RankSector Rank
PE 21.31
Fwd PE 19.42
ATO Price Earnings VS Forward Price EarningsATO Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

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 RankSector Rank
P/FCF N/A
EV/EBITDA 14.67
ATO Per share dataATO EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 20 40 60 80

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)3.12
PEG (5Y)2.27
EPS Next 2Y7.25%
EPS Next 3Y7.35%

5

5. Dividend

5.1 Amount

ATO has a Yearly Dividend Yield of 2.29%.
With a Dividend Yield of 2.29, ATO pays less dividend than the industry average, which is at 3.98. 85.71% of the companies listed in the same industry pay a better dividend than ATO!
ATO's Dividend Yield is comparable with the S&P500 average which is at 2.37.
Industry RankSector Rank
Dividend Yield 2.29%

5.2 History

On average, the dividend of ATO grows each year by 8.76%, which is quite nice.
ATO has been paying a dividend for at least 10 years, so it has 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
ATO Yearly Dividends per shareATO Yearly Dividends per shareYearly Dividends per share 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1 2 3

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 2Y7.25%
EPS Next 3Y7.35%
ATO Yearly Income VS Free CF VS DividendATO Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 1B -1B -2B -3B
ATO Dividend Payout.ATO Dividend Payout, showing the Payout Ratio.ATO Dividend Payout.PayoutRetained Earnings

ATMOS ENERGY CORP

NYSE:ATO (7/7/2025, 8:04:00 PM)

After market: 152.79 0 (0%)

152.79

+0.51 (+0.33%)

Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryGas Utilities
Earnings (Last)05-07 2025-05-07/amc
Earnings (Next)08-05 2025-08-05/amc
Inst Owners107.28%
Inst Owner Change0%
Ins Owners0.35%
Ins Owner Change4.9%
Market Cap24.27B
Analysts73.68
Price Target165.79 (8.51%)
Short Float %3.56%
Short Ratio5.1
Dividend
Industry RankSector Rank
Dividend Yield 2.29%
Yearly Dividend3.25
Dividend Growth(5Y)8.76%
DP46.22%
Div Incr Years34
Div Non Decr Years34
Ex-Date05-27 2025-05-27 (0.87)
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)2.65%
PT rev (3m)6.03%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-2.14%
EPS NY rev (1m)0.35%
EPS NY rev (3m)0.72%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.37%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.61%
Valuation
Industry RankSector Rank
PE 21.31
Fwd PE 19.42
P/S 5.41
P/FCF N/A
P/OCF 12.47
P/B 1.85
P/tB 1.97
EV/EBITDA 14.67
EPS(TTM)7.17
EY4.69%
EPS(NY)7.87
Fwd EY5.15%
FCF(TTM)-8.22
FCFYN/A
OCF(TTM)12.26
OCFY8.02%
SpS28.24
BVpS82.71
TBVpS77.61
PEG (NY)3.12
PEG (5Y)2.27
Profitability
Industry RankSector 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 RankSector 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 1.67
F-Score4
WACC7.74%
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)7.5%
EPS 3Y9.85%
EPS 5Y9.37%
EPS Q2Q%6.32%
EPS Next Y6.82%
EPS Next 2Y7.25%
EPS Next 3Y7.35%
EPS Next 5Y7.38%
Revenue 1Y (TTM)-13.97%
Revenue growth 3Y6.92%
Revenue growth 5Y7.5%
Sales Q2Q%18.41%
Revenue Next Year1.64%
Revenue Next 2Y7.13%
Revenue Next 3Y7.26%
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%