ATMOS ENERGY CORP (ATO) Stock Fundamental Analysis
USA - NYSE:ATO - US0495601058 - Common Stock
175.92 USD
-2.05 (-1.15%)
We assign a fundamental rating of 4 out of 10 to ATO. ATO was compared to 14 industry peers in the Gas Utilities industry. ATO has only an average score on both its financial health and profitability. ATO has a expensive valuation and it also scores bad on growth.
1. Profitability
1.1 Basic Checks
ATO had positive earnings in the past year.
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 Return On Assets (4.18%) which is comparable to the rest of the industry.
ATO has a Return On Equity (8.65%) which is comparable to the rest of the industry.
ATO has a Return On Invested Capital (4.96%) which is in line with its industry peers.
The Average Return On Invested Capital over the past 3 years for ATO is below the industry average of 8.93%.
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.
ATO's Profit Margin has improved in the last couple of years.
ATO's Operating Margin of 33.00% is amongst the best of 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 77.50%, 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.
There is no outstanding debt for ATO. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
2.2 Solvency
Based on the Altman-Z score of 1.81, we must say that ATO is in the distress zone and has some risk of bankruptcy.
ATO's Altman-Z score of 1.81 is amongst the best of the industry. ATO outperforms 92.86% of its industry peers.
A Debt/Equity ratio of 0.67 indicates that ATO is somewhat dependend on debt financing.
The Debt to Equity ratio of ATO (0.67) is better than 92.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.67 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.81 |
ROIC/WACC0.65
WACC7.67%
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.
Looking at the Current ratio, with a value of 1.37, ATO belongs to the top of the industry, outperforming 92.86% of the companies in the same industry.
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 92.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.37 | ||
| Quick Ratio | 1.25 |
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.
Measured over the past years, ATO shows a quite strong growth in Earnings Per Share. The EPS has been growing by 9.58% on average per year.
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.
Based on estimates for the next years, ATO will show a quite strong growth in Revenue. The Revenue will grow by 10.46% on average per year.
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
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
ATO is valuated rather expensively with a Price/Earnings ratio of 23.49.
Compared to the rest of the industry, the Price/Earnings ratio of ATO indicates a slightly more expensive valuation: ATO is more expensive than 78.57% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 25.91. ATO is around the same levels.
A Price/Forward Earnings ratio of 21.97 indicates a rather expensive valuation of ATO.
ATO's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. ATO is more expensive than 78.57% of the companies in the same industry.
ATO's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 34.57.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.49 | ||
| Fwd PE | 21.97 |
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 | 16.4 |
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)3.4
PEG (5Y)2.45
EPS Next 2Y7.28%
EPS Next 3Y7.28%
5. Dividend
5.1 Amount
ATO has a Yearly Dividend Yield of 2.25%. Purely for dividend investing, there may be better candidates out there.
With a Dividend Yield of 2.25, ATO pays less dividend than the industry average, which is at 3.82. 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 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.25% |
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 2Y7.28%
EPS Next 3Y7.28%
NYSE:ATO (11/14/2025, 2:34:47 PM)
175.92
-2.05 (-1.15%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryGas Utilities
Earnings (Last)
Earnings (Next)
Inst Owners102.53%
Inst Owner Change-0.74%
Ins Owners0.34%
Ins Owner Change1.25%
Market Cap28.24B
Revenue(TTM)N/A
Net Income(TTM)1.16B
Analysts68.42
Price Target174.17 (-0.99%)
Short Float %3.33%
Short Ratio6.66
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.25% |
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)3.87%
PT rev (3m)3.71%
EPS NQ rev (1m)1.36%
EPS NQ rev (3m)12.44%
EPS NY rev (1m)0.35%
EPS NY rev (3m)2.05%
Revenue NQ rev (1m)24.21%
Revenue NQ rev (3m)-3.27%
Revenue NY rev (1m)0.04%
Revenue NY rev (3m)0.93%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.49 | ||
| Fwd PE | 21.97 | ||
| P/S | 6.11 | ||
| P/FCF | N/A | ||
| P/OCF | 13.9 | ||
| P/B | 2.11 | ||
| P/tB | 2.25 | ||
| EV/EBITDA | 16.4 |
EPS(TTM)7.49
EY4.26%
EPS(NY)8.01
Fwd EY4.55%
FCF(TTM)-8.56
FCFYN/A
OCF(TTM)12.66
OCFY7.2%
SpS28.8
BVpS83.39
TBVpS78.35
PEG (NY)3.4
PEG (5Y)2.45
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 | 1.81 |
F-Score4
WACC7.67%
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 6 / 10.
Can you provide the PE and PB ratios for ATO stock?
The Price/Earnings (PE) ratio for ATMOS ENERGY CORP (ATO) is 23.49 and the Price/Book (PB) ratio is 2.11.
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%.