ATMOS ENERGY CORP (ATO) Stock Fundamental Analysis
USA - NYSE:ATO - US0495601058 - Common Stock
177.84 USD
+1.43 (+0.81%)
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 quite expensive at the moment. 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.
Of the past 5 years ATO 4 years had a positive operating cash flow.
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.
Looking at the Return On Equity, with a value of 8.65%, ATO is in the better half of the industry, outperforming 71.43% of the companies in the same industry.
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.
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 6.32%.
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 Profit Margin of 25.03%. This is amongst the best in the industry. ATO outperforms 100.00% of its industry peers.
In the last couple of years the Profit Margin of ATO has grown nicely.
ATO has a better Operating Margin (33.00%) 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.
In the last couple of years the Gross Margin of ATO has grown nicely.
| 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so 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.
The debt/assets ratio for ATO is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.80, we must say that ATO is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.80, ATO belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
ATO has a Debt/Equity ratio of 0.67. This is a neutral value indicating ATO is somewhat dependend on debt financing.
With an excellent Debt to Equity ratio value of 0.67, ATO belongs to the best of the industry, outperforming 92.86% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.67 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.8 |
ROIC/WACC0.65
WACC7.62%
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.
A Quick Ratio of 1.25 indicates that ATO should not have too much problems paying 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
ATO shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 6.46%.
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
The Earnings Per Share is expected to grow by 7.69% on average over the next years.
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 Y8.73%
EPS Next 2Y7.95%
EPS Next 3Y7.86%
EPS Next 5Y7.69%
Revenue Next Year2.76%
Revenue Next 2Y7.03%
Revenue Next 3Y7.54%
Revenue Next 5Y8.91%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same 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.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 24.53, which indicates a rather expensive current valuation of ATO.
85.71% of the companies in the same industry are cheaper than ATO, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 27.42, ATO is valued at the same level.
The Price/Forward Earnings ratio is 22.31, which indicates a rather expensive current valuation of ATO.
Based on the Price/Forward Earnings ratio, ATO is valued more expensive than 85.71% of the companies in the same industry.
ATO is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 22.94, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.53 | ||
| Fwd PE | 22.31 |
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 | 16.28 |
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.
ATO has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)2.81
PEG (5Y)2.62
EPS Next 2Y7.95%
EPS Next 3Y7.86%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.97%, ATO has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.84, 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 2.36, ATO has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.97% |
5.2 History
On average, the dividend of ATO grows each year by 8.76%, which is quite nice.
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
ATO pays out 46.53% of its income as dividend. This is a bit on the high side, but may be sustainable.
The dividend of ATO is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP46.53%
EPS Next 2Y7.95%
EPS Next 3Y7.86%
NYSE:ATO (10/20/2025, 3:34:32 PM)
177.84
+1.43 (+0.81%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryGas Utilities
Earnings (Last)
Earnings (Next)
Inst Owners102.53%
Inst Owner Change0.19%
Ins Owners0.34%
Ins Owner Change-0.55%
Market Cap28.55B
Analysts71.11
Price Target167.69 (-5.71%)
Short Float %3.43%
Short Ratio6.26
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.97% |
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)0.75%
PT rev (3m)2.02%
EPS NQ rev (1m)2.12%
EPS NQ rev (3m)9.63%
EPS NY rev (1m)0.1%
EPS NY rev (3m)1.7%
Revenue NQ rev (1m)-15.53%
Revenue NQ rev (3m)-27.68%
Revenue NY rev (1m)-0.67%
Revenue NY rev (3m)1.06%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.53 | ||
| Fwd PE | 22.31 | ||
| P/S | 6.17 | ||
| P/FCF | N/A | ||
| P/OCF | 14.05 | ||
| P/B | 2.13 | ||
| P/tB | 2.27 | ||
| EV/EBITDA | 16.28 |
EPS(TTM)7.25
EY4.08%
EPS(NY)7.97
Fwd EY4.48%
FCF(TTM)-8.56
FCFYN/A
OCF(TTM)12.66
OCFY7.12%
SpS28.8
BVpS83.39
TBVpS78.35
PEG (NY)2.81
PEG (5Y)2.62
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 | 1.8 |
F-Score4
WACC7.62%
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)6.46%
EPS 3Y9.85%
EPS 5Y9.37%
EPS Q2Q%7.41%
EPS Next Y8.73%
EPS Next 2Y7.95%
EPS Next 3Y7.86%
EPS Next 5Y7.69%
Revenue 1Y (TTM)-11.99%
Revenue growth 3Y6.92%
Revenue growth 5Y7.5%
Sales Q2Q%19.56%
Revenue Next Year2.76%
Revenue Next 2Y7.03%
Revenue Next 3Y7.54%
Revenue Next 5Y8.91%
EBIT growth 1Y-11.49%
EBIT growth 3Y14.41%
EBIT growth 5Y12.68%
EBIT Next Year66.14%
EBIT Next 3Y28.15%
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%