ATMOS ENERGY CORP (ATO) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ATO - US0495601058 - Common Stock
170.28 USD
+1.56 (+0.92%)
170.28 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. While ATO belongs to the best of the industry regarding profitability, there are concerns on its financial health. ATO is valied quite expensively at the moment, while it does show a decent growth rate.
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
- With a Return On Assets value of 4.24%, ATO perfoms like the industry average, outperforming 57.14% of the companies in the same industry.
- With a Return On Equity value of 8.84%, ATO perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
- ATO's Return On Invested Capital of 4.80% is in line compared to the rest of the industry. ATO outperforms 42.86% 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 6.27%.
- 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
- With an excellent Profit Margin value of 25.48%, 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.
- Looking at the Operating Margin, with a value of 33.17%, ATO belongs to the top of the industry, outperforming 85.71% of the companies in the same industry.
- In the last couple of years the Operating Margin of ATO has grown nicely.
- ATO's Gross Margin of 77.33% is fine compared to the rest of the industry. ATO outperforms 78.57% of its industry peers.
- 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
- The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so 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
- ATO has an Altman-Z score of 1.70. This is a bad value and indicates that ATO is not financially healthy and even has some risk of bankruptcy.
- Looking at the Altman-Z score, with a value of 1.70, ATO belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
- A Debt/Equity ratio of 0.66 indicates that ATO is somewhat dependend on debt financing.
- ATO's Debt to Equity ratio of 0.66 is amongst the best of the industry. ATO outperforms 92.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.66 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.7 |
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.
- The Current ratio of ATO (0.77) is better than 78.57% of its industry peers.
- A Quick Ratio of 0.65 indicates that ATO may have some problems paying its short term obligations.
- ATO has a better Quick ratio (0.65) than 78.57% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.77 | ||
| Quick Ratio | 0.65 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an nice 9.50% 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 for ATO has decreased by -11.66% in the past year. This is quite bad
- 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 Y10.86%
EPS Next 2Y8.96%
EPS Next 3Y8.67%
EPS Next 5Y8.21%
Revenue Next Year11.36%
Revenue Next 2Y10.85%
Revenue Next 3Y9.91%
Revenue Next 5Y9.15%
3.3 Evolution
- The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
- 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 22.73, the valuation of ATO can be described as rather expensive.
- Based on the Price/Earnings ratio, ATO is valued a bit more expensive than 71.43% of the companies in the same industry.
- ATO's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.54.
- The Price/Forward Earnings ratio is 20.51, which indicates a rather expensive current valuation of ATO.
- Based on the Price/Forward Earnings ratio, ATO is valued a bit more expensive than the industry average as 78.57% of the companies are valued more cheaply.
- Compared to an average S&P500 Price/Forward Earnings ratio of 24.31, ATO is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.73 | ||
| Fwd PE | 20.51 |
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 | 15.83 |
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 decent profitability rating of ATO may justify a higher PE ratio.
PEG (NY)2.09
PEG (5Y)2.37
EPS Next 2Y8.96%
EPS Next 3Y8.67%
5. Dividend
5.1 Amount
- ATO has a Yearly Dividend Yield of 2.39%.
- With a Dividend Yield of 2.39, ATO pays less dividend than the industry average, which is at 3.88. 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 1.92, ATO pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.39% |
5.2 History
- On average, the dividend of ATO grows each year by 8.68%, which is quite nice.
- ATO has been paying a dividend for at least 10 years, so it has a reliable track record.
- ATO has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)8.68%
Div Incr Years34
Div Non Decr Years34
5.3 Sustainability
- ATO pays out 46.22% 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.
DP46.22%
EPS Next 2Y8.96%
EPS Next 3Y8.67%
170.28
+1.56 (+0.92%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryGas Utilities
Earnings (Last)11-14 2025-11-14/amc
Earnings (Next)02-03 2026-02-03
Inst Owners102.27%
Inst Owner Change-0.03%
Ins Owners0.32%
Ins Owner Change2.16%
Market Cap27.53B
Revenue(TTM)4.70B
Net Income(TTM)1.20B
Analysts68.42
Price Target178.14 (4.62%)
Short Float %3.33%
Short Ratio5.02
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.39% |
Yearly Dividend3.5
Dividend Growth(5Y)8.68%
DP46.22%
Div Incr Years34
Div Non Decr Years34
Ex-DateN/A
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)0.26%
PT rev (3m)6.23%
EPS NQ rev (1m)-1.22%
EPS NQ rev (3m)3.76%
EPS NY rev (1m)0.57%
EPS NY rev (3m)4.17%
Revenue NQ rev (1m)-1.93%
Revenue NQ rev (3m)3.84%
Revenue NY rev (1m)-0.3%
Revenue NY rev (3m)-0.08%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.73 | ||
| Fwd PE | 20.51 | ||
| P/S | 5.85 | ||
| P/FCF | N/A | ||
| P/OCF | 13.43 | ||
| P/B | 2.03 | ||
| P/tB | 2.16 | ||
| EV/EBITDA | 15.83 |
EPS(TTM)7.49
EY4.4%
EPS(NY)8.3
Fwd EY4.88%
FCF(TTM)-9.35
FCFYN/A
OCF(TTM)12.68
OCFY7.44%
SpS29.09
BVpS83.86
TBVpS78.87
PEG (NY)2.09
PEG (5Y)2.37
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 | 1.7 |
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 Y10.86%
EPS Next 2Y8.96%
EPS Next 3Y8.67%
EPS Next 5Y8.21%
Revenue 1Y (TTM)-11.66%
Revenue growth 3Y3.83%
Revenue growth 5Y10.76%
Sales Q2Q%12.09%
Revenue Next Year11.36%
Revenue Next 2Y10.85%
Revenue Next 3Y9.91%
Revenue Next 5Y9.15%
EBIT growth 1Y-11.09%
EBIT growth 3Y19.2%
EBIT growth 5Y13.61%
EBIT Next Year64.49%
EBIT Next 3Y29.28%
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 for ATO stock?
ChartMill assigns a valuation rating of 1 / 10 to ATMOS ENERGY CORP (ATO). This can be considered as Overvalued.
What is the profitability of ATO stock?
ATMOS ENERGY CORP (ATO) has a profitability rating of 7 / 10.
What is the expected EPS growth for ATMOS ENERGY CORP (ATO) stock?
The Earnings per Share (EPS) of ATMOS ENERGY CORP (ATO) is expected to grow by 10.86% in the next year.
Can you provide the dividend sustainability for ATO stock?
The dividend rating of ATMOS ENERGY CORP (ATO) is 5 / 10 and the dividend payout ratio is 46.22%.