ATMOS ENERGY CORP (ATO) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ATO - US0495601058 - Common Stock
173.34 USD
-1.22 (-0.7%)
173.34 USD
0 (0%)
ATO gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 14 industry peers in the Gas Utilities industry. While ATO has a great profitability rating, there are quite some concerns on its financial health. ATO is quite expensive at the moment. It does show a decent growth rate.
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.
In the past 5 years ATO has always been profitable.
Of the past 5 years ATO 4 years had a positive operating cash flow.
1.2 Ratios
The Return On Assets of ATO (4.24%) is better than 71.43% of its industry peers.
Looking at the Return On Equity, with a value of 8.84%, ATO is in line with its industry, outperforming 57.14% of the companies in the same industry.
ATO's Return On Invested Capital of 4.80% is on the low side compared to the rest of the industry. ATO is outperformed by 64.29% of its industry peers.
The Average Return On Invested Capital over the past 3 years for ATO is below the industry average of 8.85%.
The 3 year average ROIC (4.53%) for ATO is below the current ROIC(4.80%), indicating increased profibility in the last year.
| 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
With an excellent Profit Margin value of 25.48%, ATO belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
ATO's Profit Margin has improved in the last couple of years.
ATO's Operating Margin of 33.17% 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 77.33%, 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 remained more or less at the same level.
| 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
ATO has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, ATO has more shares outstanding
Compared to 5 years ago, ATO has more shares outstanding
The debt/assets ratio for ATO is higher compared to a year ago.
2.2 Solvency
ATO has an Altman-Z score of 1.72. This is a bad value and indicates that ATO is not financially healthy and even has some risk of bankruptcy.
ATO has a better Altman-Z score (1.72) than 92.86% of its industry peers.
ATO has a Debt/Equity ratio of 0.66. This is a neutral value indicating ATO is somewhat dependend on debt financing.
ATO has a Debt to Equity ratio of 0.66. This is amongst the best in the industry. ATO outperforms 92.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.66 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.72 |
ROIC/WACC0.64
WACC7.46%
2.3 Liquidity
ATO has a Current Ratio of 0.77. 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 Current ratio of 0.77. This is amongst the best in the industry. ATO outperforms 85.71% of its industry peers.
A Quick Ratio of 0.65 indicates that ATO may have some problems paying its short term obligations.
ATO has a Quick ratio of 0.65. This is in the better half of the industry: ATO outperforms 78.57% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.77 | ||
| Quick Ratio | 0.65 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 9.50% 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 9.58% on average per year.
ATO shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -11.66%.
ATO shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 10.76% yearly.
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
Based on estimates for the next years, ATO will show a small growth in Earnings Per Share. The EPS will grow by 6.79% on average per year.
ATO is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 10.46% yearly.
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.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 23.14 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.
ATO is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 25.98, which is the current average of the S&P500 Index.
ATO is valuated rather expensively with a Price/Forward Earnings ratio of 21.65.
Based on the Price/Forward Earnings ratio, ATO is valued a bit more expensive than 78.57% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 35.79. ATO is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.14 | ||
| Fwd PE | 21.65 |
4.2 Price Multiples
92.86% of the companies in the same industry are cheaper than ATO, based on the Enterprise Value to EBITDA ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 16.04 |
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)3.35
PEG (5Y)2.42
EPS Next 2Y7.28%
EPS Next 3Y7.28%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.29%, ATO has a reasonable but not impressive dividend return.
With a Dividend Yield of 2.29, ATO pays less dividend than the industry average, which is at 3.77. 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 2.41, ATO has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.29% |
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.
The dividend of ATO is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP46.22%
EPS Next 2Y7.28%
EPS Next 3Y7.28%
173.34
-1.22 (-0.7%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryGas Utilities
Earnings (Last)
Earnings (Next)
Inst Owners102.53%
Inst Owner Change4.98%
Ins Owners0.34%
Ins Owner Change2.21%
Market Cap27.82B
Revenue(TTM)4.70B
Net Income(TTM)1.20B
Analysts68.42
Price Target176.79 (1.99%)
Short Float %3.41%
Short Ratio6.34
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.29% |
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)5.43%
PT rev (3m)6.23%
EPS NQ rev (1m)0.74%
EPS NQ rev (3m)1.61%
EPS NY rev (1m)-0.01%
EPS NY rev (3m)0.46%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-6.95%
Revenue NY rev (1m)1.06%
Revenue NY rev (3m)1.11%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.14 | ||
| Fwd PE | 21.65 | ||
| P/S | 5.92 | ||
| P/FCF | N/A | ||
| P/OCF | 13.58 | ||
| P/B | 2.05 | ||
| P/tB | 2.18 | ||
| EV/EBITDA | 16.04 |
EPS(TTM)7.49
EY4.32%
EPS(NY)8.01
Fwd EY4.62%
FCF(TTM)-9.42
FCFYN/A
OCF(TTM)12.77
OCFY7.37%
SpS29.3
BVpS84.47
TBVpS79.44
PEG (NY)3.35
PEG (5Y)2.42
Graham Number119.31
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 | 1.72 |
F-Score4
WACC7.46%
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 Y6.9%
EPS Next 2Y7.28%
EPS Next 3Y7.28%
EPS Next 5Y6.79%
Revenue 1Y (TTM)-11.66%
Revenue growth 3Y3.83%
Revenue growth 5Y10.76%
Sales Q2Q%12.09%
Revenue Next Year14.12%
Revenue Next 2Y10.42%
Revenue Next 3Y10.97%
Revenue Next 5Y10.46%
EBIT growth 1Y-11.09%
EBIT growth 3Y19.2%
EBIT growth 5Y13.61%
EBIT Next Year65.6%
EBIT Next 3Y30.12%
EBIT Next 5Y23.22%
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 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 7 / 10.
Can you provide the PE and PB ratios for ATO stock?
The Price/Earnings (PE) ratio for ATMOS ENERGY CORP (ATO) is 23.14 and the Price/Book (PB) ratio is 2.05.
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%.