ATMOS ENERGY CORP (ATO)
US0495601058 - Common Stock
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 scores excellent on profitability, but there are 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.
ATO had a positive operating cash flow in the past year.
Each year in the past 5 years ATO has been profitable.
Of the past 5 years ATO 4 years had a positive operating cash flow.
1.2 Ratios
With an excellent Return On Assets value of 5.37%, ATO belongs to the best of the industry, outperforming 92.86% of the companies in the same industry.
ATO has a better Return On Equity (11.13%) than 64.29% of its industry peers.
ATO's Return On Invested Capital of 6.33% is fine compared to the rest of the industry. ATO outperforms 71.43% of its industry peers.
The Average Return On Invested Capital over the past 3 years for ATO is in line with the industry average of 6.27%.
The last Return On Invested Capital (6.33%) for ATO is above the 3 year average (4.48%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.37% | ||
| ROE | 11.13% | ||
| ROIC | 6.33% |
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
Looking at the Profit Margin, with a value of 25.42%, ATO belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
In the last couple of years the Profit Margin of ATO has grown nicely.
ATO's Operating Margin of 32.96% 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.
Looking at the Gross Margin, with a value of 76.10%, ATO is in the better half of 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 | 32.96% | ||
| PM (TTM) | 25.42% | ||
| GM | 76.1% |
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.
The number of shares outstanding for ATO has been increased compared to 1 year ago.
ATO has more shares outstanding than it did 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 1.67. This is a bad value and indicates that ATO is not financially healthy and even has some risk of bankruptcy.
ATO's Altman-Z score of 1.67 is amongst the best of the industry. ATO outperforms 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.
Looking at the Debt to Equity ratio, with a value of 0.65, ATO belongs to the top of the industry, outperforming 92.86% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.65 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.67 |
ROIC/WACC0.81
WACC7.79%
2.3 Liquidity
ATO has a Current Ratio of 0.94. This is a bad value and indicates that ATO is not financially healthy enough and could expect problems in meeting its short term obligations.
ATO has a better Current ratio (0.94) than 85.71% of its industry peers.
ATO has a Quick Ratio of 0.94. This is a bad value and indicates that ATO is not financially healthy enough and could expect problems in meeting its short term obligations.
ATO has a better Quick ratio (0.80) than 85.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.94 | ||
| Quick Ratio | 0.8 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 11.58% over the past year.
ATO shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 9.37% yearly.
ATO shows a strong growth in Revenue. In the last year, the Revenue has grown by 24.52%.
ATO shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.50% yearly.
EPS 1Y (TTM)11.58%
EPS 3Y9.85%
EPS 5Y9.37%
EPS Q2Q%3.75%
Revenue 1Y (TTM)24.52%
Revenue growth 3Y6.92%
Revenue growth 5Y7.5%
Sales Q2Q%11.96%
3.2 Future
The Earnings Per Share is expected to grow by 6.66% 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 9.19% on average per year.
EPS Next Y5.71%
EPS Next 2Y6.73%
EPS Next 3Y7%
EPS Next 5Y6.66%
Revenue Next Year7.41%
Revenue Next 2Y8.76%
Revenue Next 3Y7.99%
Revenue Next 5Y9.19%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 20.42 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 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 (27.73), we can say ATO is valued slightly cheaper.
ATO is valuated rather expensively with a Price/Forward Earnings ratio of 19.32.
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.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.83, ATO is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.42 | ||
| Fwd PE | 19.32 |
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 78.57% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 12.07 |
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 excellent profitability rating of ATO may justify a higher PE ratio.
PEG (NY)3.57
PEG (5Y)2.18
EPS Next 2Y6.73%
EPS Next 3Y7%
5. Dividend
5.1 Amount
ATO has a Yearly Dividend Yield of 2.52%. Purely for dividend investing, there may be better candidates out there.
With a Dividend Yield of 2.52, ATO pays less dividend than the industry average, which is at 4.25. 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 2.34, ATO has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.52% |
5.2 History
On average, the dividend of ATO grows each year by 8.76%, which is quite nice.
ATO has been paying a dividend for at least 10 years, so it has 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 36.42% of its income as dividend. This is a sustainable payout ratio.
The dividend of ATO is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP36.42%
EPS Next 2Y6.73%
EPS Next 3Y7%
ATMOS ENERGY CORP
NYSE:ATO (12/20/2024, 8:04:00 PM)
After market: 139.687 0 (0%)139.69
+1.72 (+1.25%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryGas Utilities
Earnings (Last)
Earnings (Next)
Inst Owners93.97%
Inst Owner Change5.44%
Ins Owners0.29%
Ins Owner Change0.52%
Market Cap21.71B
Analysts71.76
Price Target151.24 (8.27%)
Short Float %3.23%
Short Ratio6.29
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.52% |
Dividend Growth(5Y)8.76%
DP36.42%
Div Incr Years34
Div Non Decr Years34
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)1.99%
Min EPS beat(2)1.77%
Max EPS beat(2)2.21%
EPS beat(4)4
Avg EPS beat(4)3.18%
Min EPS beat(4)0.54%
Max EPS beat(4)8.2%
EPS beat(8)5
Avg EPS beat(8)1.77%
EPS beat(12)7
Avg EPS beat(12)3.19%
EPS beat(16)11
Avg EPS beat(16)4.44%
Revenue beat(2)0
Avg Revenue beat(2)-24.82%
Min Revenue beat(2)-29.12%
Max Revenue beat(2)-20.53%
Revenue beat(4)0
Avg Revenue beat(4)-22.51%
Min Revenue beat(4)-32.37%
Max Revenue beat(4)-8.03%
Revenue beat(8)1
Avg Revenue beat(8)-18.51%
Revenue beat(12)4
Avg Revenue beat(12)-7.17%
Revenue beat(16)7
Avg Revenue beat(16)-4.27%
PT rev (1m)1.85%
PT rev (3m)13.01%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-1.04%
EPS NY rev (1m)0.35%
EPS NY rev (3m)1.02%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-1.75%
Revenue NY rev (3m)-2.12%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.42 | ||
| Fwd PE | 19.32 | ||
| P/S | 4.08 | ||
| P/FCF | N/A | ||
| P/OCF | 12.52 | ||
| P/B | 1.79 | ||
| P/tB | 1.91 | ||
| EV/EBITDA | 12.07 |
EPS(TTM)6.84
EY4.9%
EPS(NY)7.23
Fwd EY5.18%
FCF(TTM)-7.74
FCFYN/A
OCF(TTM)11.16
OCFY7.99%
SpS34.26
BVpS78.23
TBVpS73
PEG (NY)3.57
PEG (5Y)2.18
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.37% | ||
| ROE | 11.13% | ||
| ROCE | 7.31% | ||
| ROIC | 6.33% | ||
| ROICexc | 6.41% | ||
| ROICexgc | 6.64% | ||
| OM | 32.96% | ||
| PM (TTM) | 25.42% | ||
| GM | 76.1% | ||
| 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-Score7
Asset Turnover0.21
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.65 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 3.24 | ||
| Cap/Depr | 438.4% | ||
| Cap/Sales | 55.17% | ||
| Interest Coverage | 5.68 | ||
| Cash Conversion | 71.51% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.94 | ||
| Quick Ratio | 0.8 | ||
| Altman-Z | 1.67 |
F-Score7
WACC7.79%
ROIC/WACC0.81
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)11.58%
EPS 3Y9.85%
EPS 5Y9.37%
EPS Q2Q%3.75%
EPS Next Y5.71%
EPS Next 2Y6.73%
EPS Next 3Y7%
EPS Next 5Y6.66%
Revenue 1Y (TTM)24.52%
Revenue growth 3Y6.92%
Revenue growth 5Y7.5%
Sales Q2Q%11.96%
Revenue Next Year7.41%
Revenue Next 2Y8.76%
Revenue Next 3Y7.99%
Revenue Next 5Y9.19%
EBIT growth 1Y64.4%
EBIT growth 3Y14.41%
EBIT growth 5Y12.68%
EBIT Next Year66.93%
EBIT Next 3Y27.39%
EBIT Next 5Y23.51%
FCF growth 1Y-284.09%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-49.89%
OCF growth 3YN/A
OCF growth 5Y12.34%