ATMOS ENERGY CORP (ATO) Stock Fundamental Analysis
USA - NYSE:ATO - US0495601058 - Common Stock
163.45 USD
+0.24 (+0.15%)
163.45 USD
0 (0%)
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 some minor 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.
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 4.18%, ATO is in the better half of the industry, outperforming 71.43% of the companies in the same industry.
With a decent Return On Equity value of 8.65%, ATO is doing good in the industry, outperforming 71.43% of the companies in the same industry.
ATO has a Return On Invested Capital (4.96%) which is in line with its industry peers.
ATO had an Average Return On Invested Capital over the past 3 years of 4.48%. This is in line with the industry average of 6.32%.
The last Return On Invested Capital (4.96%) for ATO is above the 3 year average (4.48%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.18% | ||
| ROE | 8.65% | ||
| ROIC | 4.96% |
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
With an excellent Profit Margin value of 25.03%, 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 has a better Operating Margin (33.00%) than 85.71% of its industry peers.
In the last couple of years the Operating Margin of ATO has grown nicely.
ATO has a better Gross Margin (77.50%) than 78.57% of its industry peers.
In the last couple of years the Gross Margin of ATO has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 33% | ||
| PM (TTM) | 25.03% | ||
| GM | 77.5% |
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.
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.
ATO's Altman-Z score of 1.71 is amongst the best of the industry. ATO outperforms 92.86% 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 has a better Debt to Equity ratio (0.67) than 92.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.67 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.71 |
ROIC/WACC0.66
WACC7.57%
2.3 Liquidity
A Current Ratio of 1.37 indicates that ATO should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.37, ATO belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
A Quick Ratio of 1.25 indicates that ATO should not have too much problems paying its short term obligations.
With an excellent Quick ratio value of 1.25, ATO belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.37 | ||
| Quick Ratio | 1.25 |
3. Growth
3.1 Past
ATO shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 6.46%.
ATO shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 9.37% yearly.
ATO shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -11.99%.
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)6.46%
EPS 3Y9.85%
EPS 5Y9.37%
EPS Q2Q%7.41%
Revenue 1Y (TTM)-11.99%
Revenue growth 3Y6.92%
Revenue growth 5Y7.5%
Sales Q2Q%19.56%
3.2 Future
ATO is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.69% yearly.
ATO is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.91% yearly.
EPS Next Y8.63%
EPS Next 2Y7.94%
EPS Next 3Y7.81%
EPS Next 5Y7.69%
Revenue Next Year3.45%
Revenue Next 2Y7.72%
Revenue Next 3Y8.19%
Revenue Next 5Y8.91%
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
Based on the Price/Earnings ratio of 22.54, the valuation of ATO can be described as rather expensive.
Based on the Price/Earnings ratio, ATO is valued expensively inside the industry as 85.71% of the companies are valued cheaper.
Compared to an average S&P500 Price/Earnings ratio of 27.20, ATO is valued at the same level.
Based on the Price/Forward Earnings ratio of 20.51, the valuation of ATO can be described as rather expensive.
Based on the Price/Forward Earnings ratio, ATO is valued more expensive than 85.71% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.70, ATO is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.54 | ||
| Fwd PE | 20.51 |
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 | 15.34 |
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)2.61
PEG (5Y)2.4
EPS Next 2Y7.94%
EPS Next 3Y7.81%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.09%, ATO has a reasonable but not impressive dividend return.
With a Dividend Yield of 2.09, ATO pays less dividend than the industry average, which is at 3.95. 92.86% of the companies listed in the same industry pay a better dividend than ATO!
Compared to an average S&P500 Dividend Yield of 2.38, ATO has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.09% |
5.2 History
On average, the dividend of ATO grows each year by 8.76%, 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)8.76%
Div Incr Years34
Div Non Decr Years34
5.3 Sustainability
ATO pays out 46.53% of its income as dividend. 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.
DP46.53%
EPS Next 2Y7.94%
EPS Next 3Y7.81%
163.45
+0.24 (+0.15%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryGas Utilities
Earnings (Last)
Earnings (Next)
Inst Owners107.6%
Inst Owner Change-3.77%
Ins Owners0.35%
Ins Owner Change-0.56%
Market Cap26.24B
Analysts71.11
Price Target166.43 (1.82%)
Short Float %3.48%
Short Ratio6.85
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.09% |
Yearly Dividend3.25
Dividend Growth(5Y)8.76%
DP46.53%
Div Incr Years34
Div Non Decr Years34
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)2.32%
Min EPS beat(2)0.25%
Max EPS beat(2)4.39%
EPS beat(4)4
Avg EPS beat(4)1.87%
Min EPS beat(4)0.25%
Max EPS beat(4)4.39%
EPS beat(8)8
Avg EPS beat(8)3.5%
EPS beat(12)9
Avg EPS beat(12)3.04%
EPS beat(16)11
Avg EPS beat(16)3.15%
Revenue beat(2)2
Avg Revenue beat(2)3.52%
Min Revenue beat(2)0.91%
Max Revenue beat(2)6.12%
Revenue beat(4)2
Avg Revenue beat(4)-8.95%
Min Revenue beat(4)-29.12%
Max Revenue beat(4)6.12%
Revenue beat(8)2
Avg Revenue beat(8)-17.01%
Revenue beat(12)4
Avg Revenue beat(12)-10.58%
Revenue beat(16)7
Avg Revenue beat(16)-5.65%
PT rev (1m)-0.9%
PT rev (3m)0.2%
EPS NQ rev (1m)7.84%
EPS NQ rev (3m)6.98%
EPS NY rev (1m)1.6%
EPS NY rev (3m)2.05%
Revenue NQ rev (1m)-8.07%
Revenue NQ rev (3m)-14.38%
Revenue NY rev (1m)1.57%
Revenue NY rev (3m)1.78%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.54 | ||
| Fwd PE | 20.51 | ||
| P/S | 5.68 | ||
| P/FCF | N/A | ||
| P/OCF | 12.91 | ||
| P/B | 1.96 | ||
| P/tB | 2.09 | ||
| EV/EBITDA | 15.34 |
EPS(TTM)7.25
EY4.44%
EPS(NY)7.97
Fwd EY4.88%
FCF(TTM)-8.56
FCFYN/A
OCF(TTM)12.66
OCFY7.74%
SpS28.8
BVpS83.39
TBVpS78.35
PEG (NY)2.61
PEG (5Y)2.4
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.18% | ||
| ROE | 8.65% | ||
| ROCE | 5.74% | ||
| ROIC | 4.96% | ||
| ROICexc | 5.1% | ||
| ROICexgc | 5.26% | ||
| OM | 33% | ||
| PM (TTM) | 25.03% | ||
| GM | 77.5% | ||
| 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 | 0.67 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 3.99 | ||
| Cap/Depr | 471.38% | ||
| Cap/Sales | 73.67% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 90.39% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.37 | ||
| Quick Ratio | 1.25 | ||
| Altman-Z | 1.71 |
F-Score4
WACC7.57%
ROIC/WACC0.66
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)6.46%
EPS 3Y9.85%
EPS 5Y9.37%
EPS Q2Q%7.41%
EPS Next Y8.63%
EPS Next 2Y7.94%
EPS Next 3Y7.81%
EPS Next 5Y7.69%
Revenue 1Y (TTM)-11.99%
Revenue growth 3Y6.92%
Revenue growth 5Y7.5%
Sales Q2Q%19.56%
Revenue Next Year3.45%
Revenue Next 2Y7.72%
Revenue Next 3Y8.19%
Revenue Next 5Y8.91%
EBIT growth 1Y-11.49%
EBIT growth 3Y14.41%
EBIT growth 5Y12.68%
EBIT Next Year70.76%
EBIT Next 3Y30.07%
EBIT Next 5Y23.19%
FCF growth 1Y-393.6%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-37.86%
OCF growth 3YN/A
OCF growth 5Y12.34%