ATMOS ENERGY CORP (ATO) Stock Fundamental Analysis
NYSE:ATO - New York Stock Exchange, Inc. - US0495601058 - Common Stock - Currency: USD
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 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.
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
Looking at the Return On Assets, with a value of 4.21%, ATO belongs to the top of the industry, outperforming 85.71% of the companies in the same industry.
ATO's Return On Equity of 8.65% is in line compared to the rest of the industry. ATO outperforms 57.14% of its industry peers.
ATO has a Return On Invested Capital (5.01%) which is comparable to the rest of the industry.
The Average Return On Invested Capital over the past 3 years for ATO is in line with the industry average of 6.29%.
The last Return On Invested Capital (5.01%) for ATO is above the 3 year average (4.48%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.21% | ||
| ROE | 8.65% | ||
| ROIC | 5.01% |
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
The Profit Margin of ATO (25.33%) is better than 100.00% of its industry peers.
In the last couple of years the Profit Margin of ATO has grown nicely.
With an excellent Operating Margin value of 33.30%, ATO belongs to the best of the industry, outperforming 85.71% of the companies in the same industry.
ATO's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 78.07%, ATO is in the better half of the industry, outperforming 78.57% of the companies in the same industry.
ATO's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 33.3% | ||
| PM (TTM) | 25.33% | ||
| GM | 78.07% |
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.
ATO has more shares outstanding than it did 1 year ago.
The number of shares outstanding for ATO has been increased compared to 5 years ago.
ATO has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.67, we must say that ATO is in the distress zone and has some risk of bankruptcy.
ATO has a Altman-Z score of 1.67. This is amongst the best in the industry. ATO outperforms 100.00% of its industry peers.
A Debt/Equity ratio of 0.65 indicates that ATO is somewhat dependend on debt financing.
ATO's Debt to Equity ratio of 0.65 is amongst the best of the industry. ATO outperforms 92.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.65 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.67 |
ROIC/WACC0.65
WACC7.74%
2.3 Liquidity
A Current Ratio of 1.33 indicates that ATO should not have too much problems paying its short term obligations.
The Current ratio of ATO (1.33) is better than 100.00% 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.
ATO has a better Quick ratio (1.25) than 100.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.33 | ||
| Quick Ratio | 1.25 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 7.50% 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.
Looking at the last year, ATO shows a very negative growth in Revenue. The Revenue has decreased by -13.97% in the last year.
Measured over the past years, ATO shows a small growth in Revenue. The Revenue has been growing by 7.50% on average per year.
EPS 1Y (TTM)7.5%
EPS 3Y9.85%
EPS 5Y9.37%
EPS Q2Q%6.32%
Revenue 1Y (TTM)-13.97%
Revenue growth 3Y6.92%
Revenue growth 5Y7.5%
Sales Q2Q%18.41%
3.2 Future
ATO is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.38% yearly.
Based on estimates for the next years, ATO will show a small growth in Revenue. The Revenue will grow by 7.41% on average per year.
EPS Next Y6.82%
EPS Next 2Y7.25%
EPS Next 3Y7.35%
EPS Next 5Y7.38%
Revenue Next Year1.64%
Revenue Next 2Y7.13%
Revenue Next 3Y7.26%
Revenue Next 5Y7.41%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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
With a Price/Earnings ratio of 21.31, ATO is valued on the expensive side.
Based on the Price/Earnings ratio, ATO is valued a bit more expensive than 78.57% of the companies in the same industry.
When comparing the Price/Earnings ratio of ATO to the average of the S&P500 Index (27.29), we can say ATO is valued slightly cheaper.
With a Price/Forward Earnings ratio of 19.42, ATO is valued on the expensive side.
Based on the Price/Forward Earnings ratio, ATO is valued expensively inside the industry as 85.71% of the companies are valued cheaper.
The average S&P500 Price/Forward Earnings ratio is at 21.74. ATO is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.31 | ||
| Fwd PE | 19.42 |
4.2 Price Multiples
ATO's Enterprise Value to EBITDA ratio is rather expensive when compared to the industry. ATO is more expensive than 92.86% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 14.67 |
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)3.12
PEG (5Y)2.27
EPS Next 2Y7.25%
EPS Next 3Y7.35%
5. Dividend
5.1 Amount
ATO has a Yearly Dividend Yield of 2.29%.
With a Dividend Yield of 2.29, ATO pays less dividend than the industry average, which is at 3.98. 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 2.37.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.29% |
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
46.22% of the earnings are spent on dividend by ATO. This is a bit on the high side, but may be sustainable.
ATO's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP46.22%
EPS Next 2Y7.25%
EPS Next 3Y7.35%
152.79
+0.51 (+0.33%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryGas Utilities
Earnings (Last)
Earnings (Next)
Inst Owners107.28%
Inst Owner Change0%
Ins Owners0.35%
Ins Owner Change4.9%
Market Cap24.27B
Analysts73.68
Price Target165.79 (8.51%)
Short Float %3.56%
Short Ratio5.1
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.29% |
Yearly Dividend3.25
Dividend Growth(5Y)8.76%
DP46.22%
Div Incr Years34
Div Non Decr Years34
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)2.52%
Min EPS beat(2)0.64%
Max EPS beat(2)4.39%
EPS beat(4)4
Avg EPS beat(4)2.25%
Min EPS beat(4)0.64%
Max EPS beat(4)4.39%
EPS beat(8)7
Avg EPS beat(8)2.67%
EPS beat(12)9
Avg EPS beat(12)3.66%
EPS beat(16)11
Avg EPS beat(16)3.59%
Revenue beat(2)1
Avg Revenue beat(2)-3.8%
Min Revenue beat(2)-13.72%
Max Revenue beat(2)6.12%
Revenue beat(4)1
Avg Revenue beat(4)-14.31%
Min Revenue beat(4)-29.12%
Max Revenue beat(4)6.12%
Revenue beat(8)1
Avg Revenue beat(8)-21.08%
Revenue beat(12)4
Avg Revenue beat(12)-9.09%
Revenue beat(16)7
Avg Revenue beat(16)-5.52%
PT rev (1m)2.65%
PT rev (3m)6.03%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-2.14%
EPS NY rev (1m)0.35%
EPS NY rev (3m)0.72%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.37%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.61%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.31 | ||
| Fwd PE | 19.42 | ||
| P/S | 5.41 | ||
| P/FCF | N/A | ||
| P/OCF | 12.47 | ||
| P/B | 1.85 | ||
| P/tB | 1.97 | ||
| EV/EBITDA | 14.67 |
EPS(TTM)7.17
EY4.69%
EPS(NY)7.87
Fwd EY5.15%
FCF(TTM)-8.22
FCFYN/A
OCF(TTM)12.26
OCFY8.02%
SpS28.24
BVpS82.71
TBVpS77.61
PEG (NY)3.12
PEG (5Y)2.27
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.21% | ||
| ROE | 8.65% | ||
| ROCE | 5.79% | ||
| ROIC | 5.01% | ||
| ROICexc | 5.12% | ||
| ROICexgc | 5.29% | ||
| OM | 33.3% | ||
| PM (TTM) | 25.33% | ||
| GM | 78.07% | ||
| 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-Score4
Asset Turnover0.17
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.65 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 3.86 | ||
| Cap/Depr | 462.29% | ||
| Cap/Sales | 72.5% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 88.6% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.33 | ||
| Quick Ratio | 1.25 | ||
| Altman-Z | 1.67 |
F-Score4
WACC7.74%
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)7.5%
EPS 3Y9.85%
EPS 5Y9.37%
EPS Q2Q%6.32%
EPS Next Y6.82%
EPS Next 2Y7.25%
EPS Next 3Y7.35%
EPS Next 5Y7.38%
Revenue 1Y (TTM)-13.97%
Revenue growth 3Y6.92%
Revenue growth 5Y7.5%
Sales Q2Q%18.41%
Revenue Next Year1.64%
Revenue Next 2Y7.13%
Revenue Next 3Y7.26%
Revenue Next 5Y7.41%
EBIT growth 1Y-10.7%
EBIT growth 3Y14.41%
EBIT growth 5Y12.68%
EBIT Next Year69.82%
EBIT Next 3Y29.9%
EBIT Next 5Y23.67%
FCF growth 1Y-333.1%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-39.72%
OCF growth 3YN/A
OCF growth 5Y12.34%