ATMOS ENERGY CORP (ATO) Stock Fundamental Analysis
USA - NYSE:ATO - US0495601058 - Common Stock
177.205 USD
-0.53 (-0.3%)
Overall ATO gets a fundamental rating of 5 out of 10. We evaluated ATO against 14 industry peers in the Gas Utilities industry. While ATO has a great profitability rating, there are some minor concerns on its financial health. ATO is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year ATO was profitable.
In the past year ATO had a positive cash flow from operations.
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 4.18%, ATO is in the better half of the industry, outperforming 71.43% of the companies in the same industry.
The Return On Equity of ATO (8.65%) is better than 71.43% of its industry peers.
With a Return On Invested Capital value of 4.96%, ATO perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
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
ATO has a better Profit Margin (25.03%) than 100.00% of its industry peers.
In the last couple of years the Profit Margin of ATO has grown nicely.
ATO's Operating Margin of 33.00% is amongst the best of the industry. ATO outperforms 85.71% of its industry peers.
ATO's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 77.50%, 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% | ||
| 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so 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
ATO has an Altman-Z score of 1.81. This is a bad value and indicates that ATO is not financially healthy and even has some risk of bankruptcy.
ATO's Altman-Z score of 1.81 is amongst the best of the industry. ATO outperforms 100.00% of its industry peers.
A Debt/Equity ratio of 0.67 indicates that 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 | 1.81 |
ROIC/WACC0.65
WACC7.62%
2.3 Liquidity
A Current Ratio of 1.37 indicates that ATO should not have too much problems paying its short term obligations.
The Current ratio of ATO (1.37) is better than 100.00% of its industry peers.
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.
Looking at the last year, ATO shows a very negative growth in Revenue. The Revenue has decreased by -11.99% in the last year.
ATO shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.50% yearly.
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
The Earnings Per Share is expected to grow by 7.69% on average over the next years.
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 Y8.73%
EPS Next 2Y7.95%
EPS Next 3Y7.86%
EPS Next 5Y7.69%
Revenue Next Year2.76%
Revenue Next 2Y7.03%
Revenue Next 3Y7.54%
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
With a Price/Earnings ratio of 24.44, ATO is valued on the expensive side.
ATO's Price/Earnings ratio is rather expensive when compared to the industry. ATO is more expensive than 85.71% of the companies in the same industry.
ATO is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.69, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 22.23 indicates a rather expensive valuation of ATO.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ATO indicates a rather expensive valuation: ATO more expensive than 85.71% of the companies listed in the same industry.
ATO is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 23.18, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.44 | ||
| Fwd PE | 22.23 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ATO is valued more expensive than 92.86% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 16.38 |
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.
The excellent profitability rating of ATO may justify a higher PE ratio.
PEG (NY)2.8
PEG (5Y)2.61
EPS Next 2Y7.95%
EPS Next 3Y7.86%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.97%, ATO has a reasonable but not impressive dividend return.
With a Dividend Yield of 1.97, ATO pays less dividend than the industry average, which is at 3.84. 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 2.34, ATO has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.97% |
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 their dividend for at least 10 years, which is a reliable track record.
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.
ATO's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP46.53%
EPS Next 2Y7.95%
EPS Next 3Y7.86%
NYSE:ATO (10/21/2025, 3:58:03 PM)
177.205
-0.53 (-0.3%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryGas Utilities
Earnings (Last)
Earnings (Next)
Inst Owners102.53%
Inst Owner Change0.19%
Ins Owners0.34%
Ins Owner Change-0.55%
Market Cap28.44B
Analysts71.11
Price Target167.69 (-5.37%)
Short Float %3.43%
Short Ratio6.26
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.97% |
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)0.75%
PT rev (3m)2.02%
EPS NQ rev (1m)2.12%
EPS NQ rev (3m)9.63%
EPS NY rev (1m)0.1%
EPS NY rev (3m)1.7%
Revenue NQ rev (1m)-15.53%
Revenue NQ rev (3m)-27.68%
Revenue NY rev (1m)-0.67%
Revenue NY rev (3m)1.06%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.44 | ||
| Fwd PE | 22.23 | ||
| P/S | 6.15 | ||
| P/FCF | N/A | ||
| P/OCF | 14 | ||
| P/B | 2.13 | ||
| P/tB | 2.26 | ||
| EV/EBITDA | 16.38 |
EPS(TTM)7.25
EY4.09%
EPS(NY)7.97
Fwd EY4.5%
FCF(TTM)-8.56
FCFYN/A
OCF(TTM)12.66
OCFY7.14%
SpS28.8
BVpS83.39
TBVpS78.35
PEG (NY)2.8
PEG (5Y)2.61
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 | 1.81 |
F-Score4
WACC7.62%
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)6.46%
EPS 3Y9.85%
EPS 5Y9.37%
EPS Q2Q%7.41%
EPS Next Y8.73%
EPS Next 2Y7.95%
EPS Next 3Y7.86%
EPS Next 5Y7.69%
Revenue 1Y (TTM)-11.99%
Revenue growth 3Y6.92%
Revenue growth 5Y7.5%
Sales Q2Q%19.56%
Revenue Next Year2.76%
Revenue Next 2Y7.03%
Revenue Next 3Y7.54%
Revenue Next 5Y8.91%
EBIT growth 1Y-11.49%
EBIT growth 3Y14.41%
EBIT growth 5Y12.68%
EBIT Next Year66.14%
EBIT Next 3Y28.15%
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%