ATMOS ENERGY CORP (ATO) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ATO - US0495601058 - Common Stock
168.58 USD
-0.2 (-0.12%)
168.58 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. While ATO has a great profitability rating, there are quite some concerns on its financial health. While showing a medium growth rate, ATO is valued expensive at the moment.
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.
ATO had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
With a Return On Assets value of 4.24%, ATO perfoms like the industry average, outperforming 57.14% of the companies in the same industry.
ATO has a Return On Equity (8.84%) which is comparable to the rest of the industry.
The Return On Invested Capital of ATO (4.80%) is comparable to the rest of the industry.
ATO had an Average Return On Invested Capital over the past 3 years of 4.53%. This is in line with the industry average of 6.27%.
The last Return On Invested Capital (4.80%) for ATO is above the 3 year average (4.53%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.24% | ||
| ROE | 8.84% | ||
| ROIC | 4.8% |
ROA(3y)4.1%
ROA(5y)3.84%
ROE(3y)8.52%
ROE(5y)8.44%
ROIC(3y)4.53%
ROIC(5y)4.46%
1.3 Margins
ATO has a Profit Margin of 25.48%. This is amongst the best in the industry. ATO outperforms 100.00% of its industry peers.
ATO's Profit Margin has improved in the last couple of years.
ATO has a Operating Margin of 33.17%. This is amongst the best in the industry. ATO outperforms 85.71% of its industry peers.
ATO's Operating Margin has improved in the last couple of years.
With a decent Gross Margin value of 77.33%, ATO is doing good in the industry, outperforming 78.57% of the companies in the same industry.
ATO's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 33.17% | ||
| PM (TTM) | 25.48% | ||
| GM | 77.33% |
OM growth 3Y14.81%
OM growth 5Y2.57%
PM growth 3Y11.42%
PM growth 5Y3.65%
GM growth 3Y8.86%
GM growth 5Y0.18%
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.
The number of shares outstanding for ATO has been increased compared to 5 years ago.
Compared to 1 year ago, ATO has a worse debt to assets ratio.
2.2 Solvency
ATO has an Altman-Z score of 1.69. 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 (1.69) is better than 100.00% of its industry peers.
A Debt/Equity ratio of 0.66 indicates that ATO is somewhat dependend on debt financing.
ATO's Debt to Equity ratio of 0.66 is amongst the best of the industry. ATO outperforms 92.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.66 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.69 |
ROIC/WACC0.64
WACC7.5%
2.3 Liquidity
A Current Ratio of 0.77 indicates that ATO may have some problems paying its short term obligations.
The Current ratio of ATO (0.77) is better than 78.57% of its industry peers.
A Quick Ratio of 0.65 indicates that ATO may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.65, ATO is in the better half of the industry, outperforming 78.57% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.77 | ||
| Quick Ratio | 0.65 |
3. Growth
3.1 Past
ATO shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 9.50%, which is quite good.
ATO shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 9.58% yearly.
Looking at the last year, ATO shows a very negative growth in Revenue. The Revenue has decreased by -11.66% in the last year.
The Revenue has been growing by 10.76% on average over the past years. This is quite good.
EPS 1Y (TTM)9.5%
EPS 3Y9.79%
EPS 5Y9.58%
EPS Q2Q%28.92%
Revenue 1Y (TTM)-11.66%
Revenue growth 3Y3.83%
Revenue growth 5Y10.76%
Sales Q2Q%12.09%
3.2 Future
ATO is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.21% yearly.
Based on estimates for the next years, ATO will show a quite strong growth in Revenue. The Revenue will grow by 9.15% on average per year.
EPS Next Y10.86%
EPS Next 2Y8.96%
EPS Next 3Y8.67%
EPS Next 5Y8.21%
Revenue Next Year11.36%
Revenue Next 2Y10.85%
Revenue Next 3Y9.91%
Revenue Next 5Y9.15%
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.
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 22.51 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 78.57% of the companies are valued more cheaply.
ATO is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 26.77, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 20.30, the valuation of ATO can be described as rather expensive.
Based on the Price/Forward Earnings ratio, ATO is valued more expensive than 85.71% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.35, ATO is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.51 | ||
| Fwd PE | 20.3 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ATO is valued more expensive than 92.86% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 15.72 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
ATO has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)2.07
PEG (5Y)2.35
EPS Next 2Y8.96%
EPS Next 3Y8.67%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.38%, ATO has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.83, 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 2.00, ATO has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.38% |
5.2 History
On average, the dividend of ATO grows each year by 8.68%, 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)8.68%
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 2Y8.96%
EPS Next 3Y8.67%
168.58
-0.2 (-0.12%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryGas Utilities
Earnings (Last)
Earnings (Next)
Inst Owners102.21%
Inst Owner Change4.99%
Ins Owners0.31%
Ins Owner Change2.06%
Market Cap27.26B
Revenue(TTM)4.70B
Net Income(TTM)1.20B
Analysts69.47
Price Target178.14 (5.67%)
Short Float %3.33%
Short Ratio5.02
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.38% |
Yearly Dividend3.5
Dividend Growth(5Y)8.68%
DP46.22%
Div Incr Years34
Div Non Decr Years34
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)2.98%
Min EPS beat(2)0.25%
Max EPS beat(2)5.71%
EPS beat(4)4
Avg EPS beat(4)2.75%
Min EPS beat(4)0.25%
Max EPS beat(4)5.71%
EPS beat(8)8
Avg EPS beat(8)2.96%
EPS beat(12)9
Avg EPS beat(12)2.1%
EPS beat(16)11
Avg EPS beat(16)3.08%
Revenue beat(2)2
Avg Revenue beat(2)1.07%
Min Revenue beat(2)0.91%
Max Revenue beat(2)1.23%
Revenue beat(4)3
Avg Revenue beat(4)-1.36%
Min Revenue beat(4)-13.72%
Max Revenue beat(4)6.12%
Revenue beat(8)3
Avg Revenue beat(8)-11.94%
Revenue beat(12)4
Avg Revenue beat(12)-12.79%
Revenue beat(16)7
Avg Revenue beat(16)-5.72%
PT rev (1m)0.76%
PT rev (3m)7.04%
EPS NQ rev (1m)2.39%
EPS NQ rev (3m)4.17%
EPS NY rev (1m)3.7%
EPS NY rev (3m)4.17%
Revenue NQ rev (1m)-5.83%
Revenue NQ rev (3m)-12.38%
Revenue NY rev (1m)-2.42%
Revenue NY rev (3m)-1.34%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.51 | ||
| Fwd PE | 20.3 | ||
| P/S | 5.8 | ||
| P/FCF | N/A | ||
| P/OCF | 13.3 | ||
| P/B | 2.01 | ||
| P/tB | 2.14 | ||
| EV/EBITDA | 15.72 |
EPS(TTM)7.49
EY4.44%
EPS(NY)8.3
Fwd EY4.93%
FCF(TTM)-9.35
FCFYN/A
OCF(TTM)12.68
OCFY7.52%
SpS29.09
BVpS83.86
TBVpS78.87
PEG (NY)2.07
PEG (5Y)2.35
Graham Number118.88
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.24% | ||
| ROE | 8.84% | ||
| ROCE | 5.8% | ||
| ROIC | 4.8% | ||
| ROICexc | 4.84% | ||
| ROICexgc | 4.99% | ||
| OM | 33.17% | ||
| PM (TTM) | 25.48% | ||
| GM | 77.33% | ||
| FCFM | N/A |
ROA(3y)4.1%
ROA(5y)3.84%
ROE(3y)8.52%
ROE(5y)8.44%
ROIC(3y)4.53%
ROIC(5y)4.46%
ROICexc(3y)4.57%
ROICexc(5y)4.49%
ROICexgc(3y)4.73%
ROICexgc(5y)4.67%
ROCE(3y)5.5%
ROCE(5y)5.41%
ROICexgc growth 3Y5.6%
ROICexgc growth 5Y0.22%
ROICexc growth 3Y5.92%
ROICexc growth 5Y0.64%
OM growth 3Y14.81%
OM growth 5Y2.57%
PM growth 3Y11.42%
PM growth 5Y3.65%
GM growth 3Y8.86%
GM growth 5Y0.18%
F-Score4
Asset Turnover0.17
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.66 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 3.91 | ||
| Cap/Depr | 484.71% | ||
| Cap/Sales | 75.73% | ||
| Interest Coverage | 4.47 | ||
| Cash Conversion | 89.31% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.77 | ||
| Quick Ratio | 0.65 | ||
| Altman-Z | 1.69 |
F-Score4
WACC7.5%
ROIC/WACC0.64
Cap/Depr(3y)462.48%
Cap/Depr(5y)451.16%
Cap/Sales(3y)70.63%
Cap/Sales(5y)65.57%
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 Y10.86%
EPS Next 2Y8.96%
EPS Next 3Y8.67%
EPS Next 5Y8.21%
Revenue 1Y (TTM)-11.66%
Revenue growth 3Y3.83%
Revenue growth 5Y10.76%
Sales Q2Q%12.09%
Revenue Next Year11.36%
Revenue Next 2Y10.85%
Revenue Next 3Y9.91%
Revenue Next 5Y9.15%
EBIT growth 1Y-11.09%
EBIT growth 3Y19.2%
EBIT growth 5Y13.61%
EBIT Next Year64.49%
EBIT Next 3Y29.28%
EBIT Next 5Y22.54%
FCF growth 1Y-25.64%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y18.21%
OCF growth 3Y27.99%
OCF growth 5Y14.57%
ATMOS ENERGY CORP / ATO FAQ
What is the fundamental rating for ATO stock?
ChartMill assigns a fundamental rating of 5 / 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 22.51 and the Price/Book (PB) ratio is 2.01.
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 46.22%.