ATMOS ENERGY CORP (ATO)
US0495601058 - Common Stock
Overall ATO gets a fundamental rating of 4 out of 10. We evaluated ATO against 13 industry peers in the Gas Utilities industry. While ATO belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. 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.
In the past year ATO had a positive cash flow from operations.
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
Looking at the Return On Assets, with a value of 5.38%, ATO belongs to the top of the industry, outperforming 92.31% of the companies in the same industry.
With a Return On Equity value of 10.98%, ATO perfoms like the industry average, outperforming 53.85% of the companies in the same industry.
ATO has a better Return On Invested Capital (6.47%) than 61.54% of its industry peers.
ATO had an Average Return On Invested Capital over the past 3 years of 4.64%. This is in line with the industry average of 6.27%.
The 3 year average ROIC (4.64%) for ATO is below the current ROIC(6.47%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.38% | ||
| ROE | 10.98% | ||
| ROIC | 6.47% |
ROA(3y)3.6%
ROA(5y)3.71%
ROE(3y)8.26%
ROE(5y)8.5%
ROIC(3y)4.64%
ROIC(5y)4.86%
1.3 Margins
The Profit Margin of ATO (25.47%) is better than 92.31% of its industry peers.
ATO's Profit Margin has been stable in the last couple of years.
ATO's Operating Margin of 32.81% is amongst the best of the industry. ATO outperforms 84.62% of its industry peers.
In the last couple of years the Operating Margin of ATO has remained more or less at the same level.
The Gross Margin of ATO (75.20%) is better than 84.62% of its industry peers.
In the last couple of years the Gross Margin of ATO has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 32.81% | ||
| PM (TTM) | 25.47% | ||
| GM | 75.2% |
OM growth 3Y-5.11%
OM growth 5Y1.46%
PM growth 3Y-0.94%
PM growth 5Y1.38%
GM growth 3Y-4.85%
GM growth 5Y1.1%
2. Health
2.1 Basic Checks
ATO has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it 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.
The Altman-Z score of ATO (1.79) is better than 100.00% of its industry peers.
ATO has a Debt/Equity ratio of 0.65. This is a neutral value indicating ATO is somewhat dependend on debt financing.
With an excellent Debt to Equity ratio value of 0.65, ATO belongs to the best of the industry, outperforming 92.31% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.65 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.79 |
ROIC/WACC0.85
WACC7.57%
2.3 Liquidity
ATO has a Current Ratio of 1.73. 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 Current ratio of 1.73. This is amongst the best in the industry. ATO outperforms 100.00% of its industry peers.
A Quick Ratio of 1.57 indicates that ATO should not have too much problems paying its short term obligations.
With an excellent Quick ratio value of 1.57, ATO belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.73 | ||
| Quick Ratio | 1.57 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 12.07% over the past year.
Measured over the past years, ATO shows a quite strong growth in Earnings Per Share. The EPS has been growing by 9.47% on average per year.
EPS 1Y (TTM)12.07%
EPS 3Y10.01%
EPS 5Y9.47%
EPS Q2Q%7.5%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%-270%
3.2 Future
ATO is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.48% yearly.
ATO is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.76% yearly.
EPS Next Y4.88%
EPS Next 2Y6.11%
EPS Next 3Y6.36%
EPS Next 5Y6.48%
Revenue Next Year9.4%
Revenue Next 2Y8.46%
Revenue Next 3Y7.9%
Revenue Next 5Y7.76%
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
Based on the Price/Earnings ratio of 21.87, the valuation of ATO can be described as rather expensive.
ATO's Price/Earnings ratio is a bit more expensive when compared to the industry. ATO is more expensive than 76.92% of the companies in the same industry.
ATO is valuated rather cheaply when we compare the Price/Earnings ratio to 28.96, which is the current average of the S&P500 Index.
ATO is valuated rather expensively with a Price/Forward Earnings ratio of 20.85.
69.23% of the companies in the same industry are cheaper than ATO, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of ATO to the average of the S&P500 Index (23.82), we can say ATO is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.87 | ||
| Fwd PE | 20.85 |
4.2 Price Multiples
ATO's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. ATO is more expensive than 76.92% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 12.63 |
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 decent profitability rating of ATO may justify a higher PE ratio.
PEG (NY)4.48
PEG (5Y)2.31
EPS Next 2Y6.11%
EPS Next 3Y6.36%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.41%, ATO has a reasonable but not impressive dividend return.
With a Dividend Yield of 2.41, ATO pays less dividend than the industry average, which is at 4.22. 84.62% 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 2.23.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.41% |
5.2 History
On average, the dividend of ATO grows each year by 8.50%, which is quite nice.
ATO has paid a dividend for at least 10 years, which is a reliable track record.
ATO has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)8.5%
Div Incr Years33
Div Non Decr Years33
5.3 Sustainability
35.72% of the earnings are spent on dividend by ATO. This is a low number and sustainable payout ratio.
ATO's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP35.72%
EPS Next 2Y6.11%
EPS Next 3Y6.36%
ATMOS ENERGY CORP
NYSE:ATO (11/21/2024, 8:13:26 PM)
After market: 150.26 0 (0%)150.26
+3.04 (+2.06%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryGas Utilities
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap23.32B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.41% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
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Min EPS beat(4)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
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Min Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.87 | ||
| Fwd PE | 20.85 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)4.48
PEG (5Y)2.31
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.38% | ||
| ROE | 10.98% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 32.81% | ||
| PM (TTM) | 25.47% | ||
| GM | 75.2% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.21
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.65 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.73 | ||
| Quick Ratio | 1.57 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)12.07%
EPS 3Y10.01%
EPS 5Y
EPS Q2Q%
EPS Next Y4.88%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y