ATMOS ENERGY CORP (ATO) Fundamental Analysis & Valuation

NYSE:ATO • US0495601058

Current stock price

185.932 USD
+0.31 (+0.17%)
Last:

This ATO fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

7

1. ATO Profitability Analysis

1.1 Basic Checks

  • In the past year ATO was profitable.
  • ATO had a positive operating cash flow in the past year.
  • In the past 5 years ATO has always been profitable.
  • Of the past 5 years ATO 4 years had a positive operating cash flow.
ATO Yearly Net Income VS EBIT VS OCF VS FCFATO Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 2B -2B

1.2 Ratios

  • With a decent Return On Assets value of 4.19%, ATO is doing good in the industry, outperforming 66.67% of the companies in the same industry.
  • ATO has a Return On Equity (8.75%) which is in line with its industry peers.
  • ATO has a Return On Invested Capital (4.71%) 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 6.19%.
  • The last Return On Invested Capital (4.71%) for ATO is above the 3 year average (4.53%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA 4.19%
ROE 8.75%
ROIC 4.71%
ROA(3y)4.1%
ROA(5y)3.84%
ROE(3y)8.52%
ROE(5y)8.44%
ROIC(3y)4.53%
ROIC(5y)4.46%
ATO Yearly ROA, ROE, ROICATO Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2 4 6 8 10

1.3 Margins

  • ATO's Profit Margin of 25.66% is amongst the best of the industry. ATO outperforms 93.33% 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 33.17%, ATO belongs to the best of the industry, outperforming 86.67% of the companies in the same industry.
  • In the last couple of years the Operating Margin of ATO has grown nicely.
  • Looking at the Gross Margin, with a value of 76.83%, ATO is in the better half of the industry, outperforming 80.00% 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 RankSector Rank
OM 33.17%
PM (TTM) 25.66%
GM 76.83%
OM growth 3Y14.81%
OM growth 5Y2.57%
PM growth 3Y11.42%
PM growth 5Y3.65%
GM growth 3Y8.86%
GM growth 5Y0.18%
ATO Yearly Profit, Operating, Gross MarginsATO Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20 40 60

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4

2. ATO Health Analysis

2.1 Basic Checks

  • With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), ATO is destroying value.
  • The number of shares outstanding for ATO has been increased compared to 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.
ATO Yearly Shares OutstandingATO Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 50M 100M 150M
ATO Yearly Total Debt VS Total AssetsATO Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5B 10B 15B 20B 25B

2.2 Solvency

  • ATO has an Altman-Z score of 1.78. 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 (1.78) is better than 93.33% of its industry peers.
  • ATO has a Debt/Equity ratio of 0.67. This is a neutral value indicating ATO is somewhat dependend on debt financing.
  • ATO's Debt to Equity ratio of 0.67 is amongst the best of the industry. ATO outperforms 93.33% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.67
Debt/FCF N/A
Altman-Z 1.78
ROIC/WACC0.61
WACC7.76%
ATO Yearly LT Debt VS Equity VS FCFATO Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 5B 10B

2.3 Liquidity

  • ATO has a Current Ratio of 1.13. This is a normal value and indicates that ATO is financially healthy and should not expect problems in meeting its short term obligations.
  • With an excellent Current ratio value of 1.13, ATO belongs to the best of the industry, outperforming 93.33% of the companies in the same industry.
  • ATO has a Quick Ratio of 1.02. This is a normal value and indicates that ATO is financially healthy and should not expect problems in meeting its short term obligations.
  • Looking at the Quick ratio, with a value of 1.02, ATO belongs to the top of the industry, outperforming 93.33% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 1.13
Quick Ratio 1.02
ATO Yearly Current Assets VS Current LiabilitesATO Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1B 2B 3B

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6

3. ATO Growth Analysis

3.1 Past

  • The Earnings Per Share has grown by an nice 10.16% over the past year.
  • The Earnings Per Share has been growing by 9.58% on average over the past years. This is quite good.
  • The Revenue has decreased by -8.83% in the past year.
  • 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)10.16%
EPS 3Y9.79%
EPS 5Y9.58%
EPS Q2Q%9.42%
Revenue 1Y (TTM)-8.83%
Revenue growth 3Y3.83%
Revenue growth 5Y10.76%
Sales Q2Q%14.17%

3.2 Future

  • The Earnings Per Share is expected to grow by 8.42% on average over the next years. This is quite good.
  • The Revenue is expected to grow by 9.62% on average over the next years. This is quite good.
EPS Next Y11.17%
EPS Next 2Y9.07%
EPS Next 3Y8.77%
EPS Next 5Y8.42%
Revenue Next Year13.64%
Revenue Next 2Y11.85%
Revenue Next 3Y10.81%
Revenue Next 5Y9.62%

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.
ATO Yearly Revenue VS EstimatesATO Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2B 4B 6B
ATO Yearly EPS VS EstimatesATO Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2 4 6 8 10

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1

4. ATO Valuation Analysis

4.1 Price/Earnings Ratio

  • Based on the Price/Earnings ratio of 24.15, the valuation of ATO can be described as rather expensive.
  • Based on the Price/Earnings ratio, ATO is valued expensively inside the industry as 80.00% of the companies are valued cheaper.
  • ATO's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.15.
  • A Price/Forward Earnings ratio of 20.87 indicates a rather expensive valuation of ATO.
  • 66.67% of the companies in the same industry are cheaper than ATO, based on the Price/Forward Earnings ratio.
  • ATO is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 22.12, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 24.15
Fwd PE 20.87
ATO Price Earnings VS Forward Price EarningsATO Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

  • Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ATO indicates a rather expensive valuation: ATO more expensive than 93.33% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 16.91
ATO Per share dataATO EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 20 40 60 80

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)2.16
PEG (5Y)2.52
EPS Next 2Y9.07%
EPS Next 3Y8.77%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

5

5. ATO Dividend Analysis

5.1 Amount

  • ATO has a Yearly Dividend Yield of 2.13%.
  • With a Dividend Yield of 2.13, ATO pays less dividend than the industry average, which is at 3.64. 93.33% 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 1.82.
Industry RankSector Rank
Dividend Yield 2.13%

5.2 History

  • The dividend of ATO is nicely growing with an annual growth rate of 8.68%!
  • 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)8.68%
Div Incr Years34
Div Non Decr Years34
ATO Yearly Dividends per shareATO Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 1 2 3

5.3 Sustainability

  • 46.32% 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.
DP46.32%
EPS Next 2Y9.07%
EPS Next 3Y8.77%
ATO Yearly Income VS Free CF VS DividendATO Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 1B -1B -2B -3B
ATO Dividend Payout.ATO Dividend Payout, showing the Payout Ratio.ATO Dividend Payout.PayoutRetained Earnings

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ATO Fundamentals: All Metrics, Ratios and Statistics

ATMOS ENERGY CORP

NYSE:ATO (4/28/2026, 10:29:54 AM)

185.932

+0.31 (+0.17%)

Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryGas Utilities
Earnings (Last)02-03
Earnings (Next)05-06
Inst Owners99.75%
Inst Owner Change0.02%
Ins Owners0.31%
Ins Owner Change4.3%
Market Cap30.76B
Revenue(TTM)4.87B
Net Income(TTM)1.25B
Analysts68.42
Price Target185.48 (-0.24%)
Short Float %2.33%
Short Ratio3.75
Dividend
Industry RankSector Rank
Dividend Yield 2.13%
Yearly Dividend3.5
Dividend Growth(5Y)8.68%
DP46.32%
Div Incr Years34
Div Non Decr Years34
Ex-Date02-23
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)2.66%
Min EPS beat(2)-0.38%
Max EPS beat(2)5.71%
EPS beat(4)3
Avg EPS beat(4)2.49%
Min EPS beat(4)-0.38%
Max EPS beat(4)5.71%
EPS beat(8)7
Avg EPS beat(8)2.85%
EPS beat(12)9
Avg EPS beat(12)2.22%
EPS beat(16)11
Avg EPS beat(16)3.08%
Revenue beat(2)1
Avg Revenue beat(2)-1.3%
Min Revenue beat(2)-3.83%
Max Revenue beat(2)1.23%
Revenue beat(4)3
Avg Revenue beat(4)1.11%
Min Revenue beat(4)-3.83%
Max Revenue beat(4)6.12%
Revenue beat(8)3
Avg Revenue beat(8)-8.37%
Revenue beat(12)3
Avg Revenue beat(12)-15.53%
Revenue beat(16)7
Avg Revenue beat(16)-5.85%
PT rev (1m)1.77%
PT rev (3m)4.12%
EPS NQ rev (1m)1.25%
EPS NQ rev (3m)1.03%
EPS NY rev (1m)-0.03%
EPS NY rev (3m)0.68%
Revenue NQ rev (1m)1.04%
Revenue NQ rev (3m)1.08%
Revenue NY rev (1m)-0.37%
Revenue NY rev (3m)-0.06%
Valuation
Industry RankSector Rank
PE 24.15
Fwd PE 20.87
P/S 6.32
P/FCF N/A
P/OCF 14.82
P/B 2.15
P/tB 2.28
EV/EBITDA 16.91
EPS(TTM)7.7
EY4.14%
EPS(NY)8.91
Fwd EY4.79%
FCF(TTM)-9.84
FCFYN/A
OCF(TTM)12.55
OCFY6.75%
SpS29.43
BVpS86.33
TBVpS81.47
PEG (NY)2.16
PEG (5Y)2.52
Graham Number122.299 (-34.22%)
Profitability
Industry RankSector Rank
ROA 4.19%
ROE 8.75%
ROCE 5.7%
ROIC 4.71%
ROICexc 4.78%
ROICexgc 4.92%
OM 33.17%
PM (TTM) 25.66%
GM 76.83%
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-Score3
Asset Turnover0.16
Health
Industry RankSector Rank
Debt/Equity 0.67
Debt/FCF N/A
Debt/EBITDA 4.07
Cap/Depr 494.56%
Cap/Sales 76.06%
Interest Coverage 250
Cash Conversion 87.79%
Profit Quality N/A
Current Ratio 1.13
Quick Ratio 1.02
Altman-Z 1.78
F-Score3
WACC7.76%
ROIC/WACC0.61
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)10.16%
EPS 3Y9.79%
EPS 5Y9.58%
EPS Q2Q%9.42%
EPS Next Y11.17%
EPS Next 2Y9.07%
EPS Next 3Y8.77%
EPS Next 5Y8.42%
Revenue 1Y (TTM)-8.83%
Revenue growth 3Y3.83%
Revenue growth 5Y10.76%
Sales Q2Q%14.17%
Revenue Next Year13.64%
Revenue Next 2Y11.85%
Revenue Next 3Y10.81%
Revenue Next 5Y9.62%
EBIT growth 1Y-11%
EBIT growth 3Y19.2%
EBIT growth 5Y13.61%
EBIT Next Year64.55%
EBIT Next 3Y28.23%
EBIT Next 5Y22.49%
FCF growth 1Y-321.17%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-40.97%
OCF growth 3Y27.99%
OCF growth 5Y14.57%

ATMOS ENERGY CORP / ATO Fundamental Analysis FAQ

What is the fundamental rating for ATO stock?

ChartMill assigns a fundamental rating of 5 / 10 to ATO.


What is the valuation status for ATO stock?

ChartMill assigns a valuation rating of 1 / 10 to ATMOS ENERGY CORP (ATO). This can be considered as Overvalued.


Can you provide the profitability details for ATMOS ENERGY CORP?

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 24.15 and the Price/Book (PB) ratio is 2.15.


Can you provide the financial health for ATO stock?

The financial health rating of ATMOS ENERGY CORP (ATO) is 4 / 10.