ATMOS ENERGY CORP (ATO) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ATO - US0495601058 - Common Stock
171.29 USD
+0.34 (+0.2%)
170.29 USD
-1 (-0.58%)
We assign a fundamental rating of 5 out of 10 to ATO. ATO was compared to 14 industry peers in the Gas Utilities industry. While ATO belongs to the best of the industry regarding profitability, 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.
ATO had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 4.24%, ATO is in line with its industry, outperforming 57.14% of the companies in the same industry.
ATO has a Return On Equity (8.84%) which is in line with its industry peers.
ATO has a Return On Invested Capital of 4.80%. This is in the lower half of the industry: ATO underperforms 64.29% of its industry peers.
ATO had an Average Return On Invested Capital over the past 3 years of 4.53%. This is in line with the industry average of 6.25%.
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
Looking at the Profit Margin, with a value of 25.48%, 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.
The Operating Margin of ATO (33.17%) is better than 85.71% of its industry peers.
In the last couple of years the Operating Margin of ATO has grown nicely.
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.
ATO's Gross Margin has been stable in the last couple of years.
| 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), ATO is destroying value.
Compared to 1 year ago, ATO has more shares outstanding
Compared to 5 years ago, ATO has more shares outstanding
Compared to 1 year ago, ATO has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.71, we must say that ATO is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of ATO (1.71) is better than 100.00% of its industry peers.
A Debt/Equity ratio of 0.66 indicates that ATO is somewhat dependend on debt financing.
With an excellent Debt to Equity ratio value of 0.66, ATO belongs to the best of the industry, outperforming 92.86% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.66 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.71 |
ROIC/WACC0.64
WACC7.53%
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.
Looking at the Current ratio, with a value of 0.77, ATO is in the better half of the industry, outperforming 78.57% of the companies in the same industry.
ATO has a Quick 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.
With a decent Quick ratio value of 0.65, ATO is doing good in the industry, outperforming 71.43% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.77 | ||
| Quick Ratio | 0.65 |
3. Growth
3.1 Past
ATO shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 9.50%, which is quite good.
ATO shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 9.58% yearly.
Looking at the last year, ATO shows a very negative growth in Revenue. The Revenue has decreased by -11.66% in the last year.
Measured over the past years, ATO shows a quite strong growth in Revenue. The Revenue has been growing by 10.76% on average per year.
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 quite strong growth in Earnings Per Share. The EPS will grow by 8.21% on average per year.
The Revenue is expected to grow by 9.15% on average over the next years. This is quite good.
EPS Next Y10.23%
EPS Next 2Y8.85%
EPS Next 3Y8.47%
EPS Next 5Y8.21%
Revenue Next Year11.69%
Revenue Next 2Y11.06%
Revenue Next 3Y9.59%
Revenue Next 5Y9.15%
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 stable.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
ATO is valuated rather expensively with a Price/Earnings ratio of 22.87.
ATO's Price/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/Earnings ratio of 26.49, ATO is valued at the same level.
The Price/Forward Earnings ratio is 20.75, 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.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.69, ATO is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.87 | ||
| Fwd PE | 20.75 |
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 | 15.9 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
ATO has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)2.23
PEG (5Y)2.39
EPS Next 2Y8.85%
EPS Next 3Y8.47%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.34%, ATO has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.83, ATO's dividend is way lower than its industry peers. On top of this 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 2.31, ATO has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.34% |
5.2 History
The dividend of ATO is nicely growing with an annual growth rate of 8.68%!
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 2Y8.85%
EPS Next 3Y8.47%
171.29
+0.34 (+0.2%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryGas Utilities
Earnings (Last)
Earnings (Next)
Inst Owners102.21%
Inst Owner Change5%
Ins Owners0.31%
Ins Owner Change2.19%
Market Cap27.70B
Revenue(TTM)4.70B
Net Income(TTM)1.20B
Analysts69.47
Price Target177.68 (3.73%)
Short Float %3.19%
Short Ratio5.41
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.34% |
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)2.01%
PT rev (3m)6.76%
EPS NQ rev (1m)3.95%
EPS NQ rev (3m)5.46%
EPS NY rev (1m)3.12%
EPS NY rev (3m)3.59%
Revenue NQ rev (1m)-3.98%
Revenue NQ rev (3m)-10.66%
Revenue NY rev (1m)-2.13%
Revenue NY rev (3m)-1.04%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.87 | ||
| Fwd PE | 20.75 | ||
| P/S | 5.89 | ||
| P/FCF | N/A | ||
| P/OCF | 13.51 | ||
| P/B | 2.04 | ||
| P/tB | 2.17 | ||
| EV/EBITDA | 15.9 |
EPS(TTM)7.49
EY4.37%
EPS(NY)8.26
Fwd EY4.82%
FCF(TTM)-9.35
FCFYN/A
OCF(TTM)12.68
OCFY7.4%
SpS29.09
BVpS83.86
TBVpS78.87
PEG (NY)2.23
PEG (5Y)2.39
Graham Number118.88
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 | 1.71 |
F-Score4
WACC7.53%
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 Y10.23%
EPS Next 2Y8.85%
EPS Next 3Y8.47%
EPS Next 5Y8.21%
Revenue 1Y (TTM)-11.66%
Revenue growth 3Y3.83%
Revenue growth 5Y10.76%
Sales Q2Q%12.09%
Revenue Next Year11.69%
Revenue Next 2Y11.06%
Revenue Next 3Y9.59%
Revenue Next 5Y9.15%
EBIT growth 1Y-11.09%
EBIT growth 3Y19.2%
EBIT growth 5Y13.61%
EBIT Next Year63.24%
EBIT Next 3Y28.76%
EBIT Next 5Y22.54%
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 5 / 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 22.87 and the Price/Book (PB) ratio is 2.04.
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%.