ATMOS ENERGY CORP (ATO) Stock Fundamental Analysis
NYSE:ATO - New York Stock Exchange, Inc. - US0495601058 - Common Stock - Currency: USD
We assign a fundamental rating of 5 out of 10 to ATO. ATO was compared to 14 industry peers in the Gas Utilities industry. ATO has an excellent profitability rating, 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
ATO had positive earnings in the past year.
ATO had a positive operating cash flow in the past year.
ATO had positive earnings in each of the past 5 years.
Of the past 5 years ATO 4 years had a positive operating cash flow.
1.2 Ratios
The Return On Assets of ATO (5.37%) is better than 92.86% of its industry peers.
With a decent Return On Equity value of 11.13%, ATO is doing good in the industry, outperforming 71.43% of the companies in the same industry.
The Return On Invested Capital of ATO (6.33%) is better than 71.43% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for ATO is below the industry average of 7.81%.
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
ATO has a better Profit Margin (25.42%) than 100.00% of its industry peers.
In the last couple of years the Profit Margin of ATO has grown nicely.
ATO has a better Operating Margin (32.96%) than 85.71% of its industry peers.
ATO's Operating Margin has improved in the last couple of years.
ATO has a Gross Margin of 76.10%. This is in the better half of the industry: ATO outperforms 78.57% of its industry peers.
ATO's Gross Margin has improved in the last couple of years.
| 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
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.
The debt/assets ratio for ATO is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.69, we must say that ATO is in the distress zone and has some risk of bankruptcy.
ATO has a Altman-Z score of 1.69. 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.
The Debt to Equity ratio of ATO (0.65) is better than 92.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.65 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.69 |
ROIC/WACC0.81
WACC7.79%
2.3 Liquidity
A Current Ratio of 0.94 indicates that ATO may have some problems paying its short term obligations.
ATO's Current ratio of 0.94 is amongst the best of the industry. ATO outperforms 92.86% of its industry peers.
A Quick Ratio of 0.80 indicates that ATO may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.80, ATO belongs to the top of the industry, outperforming 85.71% of the companies in the same industry.
| 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 10.95% 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 9.37% on average per year.
The Revenue has decreased by -2.58% in the past year.
The Revenue has been growing slightly by 7.50% on average over the past years.
EPS 1Y (TTM)10.95%
EPS 3Y9.85%
EPS 5Y9.37%
EPS Q2Q%7.21%
Revenue 1Y (TTM)-2.58%
Revenue growth 3Y6.92%
Revenue growth 5Y7.5%
Sales Q2Q%1.51%
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.
The Revenue is expected to grow by 7.41% on average over the next years.
EPS Next Y5.91%
EPS Next 2Y6.91%
EPS Next 3Y7.28%
EPS Next 5Y7.38%
Revenue Next Year4.33%
Revenue Next 2Y7.54%
Revenue Next 3Y7.56%
Revenue Next 5Y7.41%
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 stable.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 20.75 indicates a rather expensive valuation of ATO.
Compared to the rest of the industry, the Price/Earnings ratio of ATO indicates a slightly more expensive valuation: ATO is more expensive than 64.29% of the companies listed in the same industry.
ATO's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 28.58.
The Price/Forward Earnings ratio is 18.56, which indicates a rather expensive current valuation of ATO.
Based on the Price/Forward Earnings ratio, ATO is valued a bit more expensive than 64.29% of the companies in the same industry.
ATO's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 95.03.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.75 | ||
| Fwd PE | 18.56 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ATO indicates a slightly more expensive valuation: ATO is more expensive than 71.43% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 12.25 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates ATO does not grow enough to justify the current Price/Earnings ratio.
ATO has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)3.51
PEG (5Y)2.21
EPS Next 2Y6.91%
EPS Next 3Y7.28%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.43%, ATO has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.89, 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!
ATO's Dividend Yield is comparable with the S&P500 average which is at 2.28.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.43% |
5.2 History
The dividend of ATO is nicely growing with an annual growth rate of 8.76%!
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)8.76%
Div Incr Years34
Div Non Decr Years34
5.3 Sustainability
36.42% of the earnings are spent on dividend by ATO. This is a low number and 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 2Y6.91%
EPS Next 3Y7.28%
ATMOS ENERGY CORP
NYSE:ATO (2/5/2025, 5:11:35 PM)
After market: 145.06 0 (0%)145.06
+2.66 (+1.87%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryGas Utilities
Earnings (Last)
Earnings (Next)
Inst Owners93.97%
Inst Owner Change-0.12%
Ins Owners0.29%
Ins Owner Change0.52%
Market Cap22.54B
Analysts76.67
Price Target152.88 (5.39%)
Short Float %3.25%
Short Ratio5.94
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.43% |
Yearly Dividend3.25
Dividend Growth(5Y)8.76%
DP36.42%
Div Incr Years34
Div Non Decr Years34
Ex-DateN/A
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)0.92%
PT rev (3m)2.96%
EPS NQ rev (1m)-0.64%
EPS NQ rev (3m)-1.68%
EPS NY rev (1m)0.18%
EPS NY rev (3m)0.62%
Revenue NQ rev (1m)-4.43%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-0.72%
Revenue NY rev (3m)-2.41%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.75 | ||
| Fwd PE | 18.56 | ||
| P/S | 4.23 | ||
| P/FCF | N/A | ||
| P/OCF | 13 | ||
| P/B | 1.85 | ||
| P/tB | 1.99 | ||
| EV/EBITDA | 12.25 |
EPS(TTM)6.99
EY4.82%
EPS(NY)7.82
Fwd EY5.39%
FCF(TTM)-7.74
FCFYN/A
OCF(TTM)11.16
OCFY7.69%
SpS34.26
BVpS78.23
TBVpS73
PEG (NY)3.51
PEG (5Y)2.21
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 | 1.69 |
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)10.95%
EPS 3Y9.85%
EPS 5Y9.37%
EPS Q2Q%7.21%
EPS Next Y5.91%
EPS Next 2Y6.91%
EPS Next 3Y7.28%
EPS Next 5Y7.38%
Revenue 1Y (TTM)-2.58%
Revenue growth 3Y6.92%
Revenue growth 5Y7.5%
Sales Q2Q%1.51%
Revenue Next Year4.33%
Revenue Next 2Y7.54%
Revenue Next 3Y7.56%
Revenue Next 5Y7.41%
EBIT growth 1Y64.4%
EBIT growth 3Y14.41%
EBIT growth 5Y12.68%
EBIT Next Year66.86%
EBIT Next 3Y29.23%
EBIT Next 5Y23.63%
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%