ATMOS ENERGY CORP (ATO) Stock Fundamental Analysis
USA - NYSE:ATO - US0495601058 - Common Stock
175.18 USD
-0.04 (-0.02%)
Taking everything into account, ATO scores 4 out of 10 in our fundamental rating. 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
In the past year ATO was profitable.
ATO had a positive operating cash flow in the past year.
ATO had positive earnings in 4 of the past 5 years.
In multiple years ATO reported negative operating cash flow during the last 5 years.
1.2 Ratios
With a Return On Assets value of 4.18%, ATO perfoms like the industry average, outperforming 57.14% of the companies in the same industry.
With a Return On Equity value of 8.65%, ATO perfoms like the industry average, outperforming 57.14% of the companies in the same industry.
With a Return On Invested Capital value of 4.96%, ATO perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital 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 better Profit Margin (25.03%) than 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.
In the last couple of years the Operating Margin of ATO has grown nicely.
ATO's Gross Margin of 77.50% is fine compared to the rest of the industry. ATO outperforms 78.57% of its industry peers.
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), 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
ATO has an Altman-Z score of 1.79. 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 1.79. This is amongst the best in 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.
ATO has a better Debt to Equity ratio (0.67) than 92.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.67 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.79 |
ROIC/WACC0.64
WACC7.7%
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 has a better Current ratio (1.37) than 92.86% 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 92.86% 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 grown by an nice 9.50% over the past year.
The Earnings Per Share has been growing by 9.58% 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)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%-251.84%
3.2 Future
ATO is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.79% yearly.
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
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
ATO is valuated rather expensively with a Price/Earnings ratio of 23.39.
Based on the Price/Earnings ratio, ATO is valued a bit more expensive than the industry average as 71.43% of the companies are valued more cheaply.
When comparing the Price/Earnings ratio of ATO to the average of the S&P500 Index (25.51), we can say ATO is valued inline with the index average.
The Price/Forward Earnings ratio is 21.88, which indicates a rather expensive current valuation of ATO.
78.57% of the companies in the same industry are cheaper than ATO, based on the Price/Forward Earnings ratio.
ATO is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 34.98, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.39 | ||
| Fwd PE | 21.88 |
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 | 16.2 |
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)3.39
PEG (5Y)2.44
EPS Next 2Y7.28%
EPS Next 3Y7.28%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.25%, ATO has a reasonable but not impressive dividend return.
With a Dividend Yield of 2.25, ATO pays less dividend than the industry average, which is at 3.78. 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 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.25% |
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 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 (11/19/2025, 2:06:36 PM)
175.18
-0.04 (-0.02%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryGas Utilities
Earnings (Last)
Earnings (Next)
Inst Owners102.53%
Inst Owner Change4.78%
Ins Owners0.34%
Ins Owner Change5.49%
Market Cap28.12B
Revenue(TTM)N/A
Net Income(TTM)1.16B
Analysts68.42
Price Target174.17 (-0.58%)
Short Float %3.41%
Short Ratio6.34
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)0.66%
EPS NQ rev (3m)10.85%
EPS NY rev (1m)0.35%
EPS NY rev (3m)2.05%
Revenue NQ rev (1m)24.21%
Revenue NQ rev (3m)-3.55%
Revenue NY rev (1m)0.04%
Revenue NY rev (3m)0.93%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.39 | ||
| Fwd PE | 21.88 | ||
| P/S | 6.08 | ||
| P/FCF | N/A | ||
| P/OCF | 13.84 | ||
| P/B | 2.1 | ||
| P/tB | 2.24 | ||
| EV/EBITDA | 16.2 |
EPS(TTM)7.49
EY4.28%
EPS(NY)8.01
Fwd EY4.57%
FCF(TTM)-8.56
FCFYN/A
OCF(TTM)12.66
OCFY7.23%
SpS28.8
BVpS83.39
TBVpS78.35
PEG (NY)3.39
PEG (5Y)2.44
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 | 1.79 |
F-Score4
WACC7.7%
ROIC/WACC0.64
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 23.39 and the Price/Book (PB) ratio is 2.1.
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%.