ATMOS ENERGY CORP (ATO)
US0495601058 - Common Stock
ATO gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 14 industry peers in the Gas Utilities industry. ATO has only an average score on both its financial health and profitability. ATO is valied quite expensively at the moment, while it does show a decent growth rate.
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.
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
ATO's Return On Assets of 3.93% is fine compared to the rest of the industry. ATO outperforms 78.57% of its industry peers.
Looking at the Return On Equity, with a value of 8.14%, ATO is in the better half of the industry, outperforming 64.29% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 4.47%, ATO is in line with its industry, outperforming 42.86% of the companies in the same industry.
ATO had an Average Return On Invested Capital over the past 3 years of 4.64%. This is in line with the industry average of 5.54%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.93% | ||
| ROE | 8.14% | ||
| ROIC | 4.47% |
ROA(3y)3.6%
ROA(5y)3.71%
ROE(3y)8.26%
ROE(5y)8.5%
ROIC(3y)4.64%
ROIC(5y)4.86%
1.3 Margins
ATO's Profit Margin of 20.71% is amongst the best of the industry. ATO outperforms 85.71% of its industry peers.
ATO's Profit Margin has been stable in the last couple of years.
ATO has a Operating Margin of 24.96%. This is amongst the best in the industry. ATO outperforms 85.71% of its industry peers.
ATO's Operating Margin has been stable in the last couple of years.
Looking at the Gross Margin, with a value of 66.03%, ATO is in the better half of the industry, outperforming 78.57% 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 Rank | Sector Rank | ||
|---|---|---|---|
| OM | 24.96% | ||
| PM (TTM) | 20.71% | ||
| GM | 66.03% |
OM growth 3Y-5.11%
OM growth 5Y1.46%
PM growth 3Y-0.94%
PM growth 5Y1.38%
GM growth 3Y-4.85%
GM growth 5Y1.1%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so ATO is destroying value.
ATO has more shares outstanding than it did 1 year ago.
The number of shares outstanding for ATO has been increased compared to 5 years ago.
Compared to 1 year ago, ATO has an improved debt to assets ratio.
2.2 Solvency
ATO has an Altman-Z score of 1.41. 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 (1.41) is better than 85.71% of its industry peers.
ATO has a debt to FCF ratio of 10.54. This is a negative value and a sign of low solvency as ATO would need 10.54 years to pay back of all of its debts.
ATO has a Debt to FCF ratio of 10.54. This is amongst the best in the industry. ATO outperforms 85.71% of its industry peers.
ATO has a Debt/Equity ratio of 0.63. This is a neutral value indicating ATO is somewhat dependend on debt financing.
ATO's Debt to Equity ratio of 0.63 is amongst the best of the industry. ATO outperforms 92.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.63 | ||
| Debt/FCF | 10.54 | ||
| Altman-Z | 1.41 |
ROIC/WACC0.63
WACC7.15%
2.3 Liquidity
ATO has a Current Ratio of 0.65. This is a bad value and indicates that ATO is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 0.65, ATO is in line with its industry, outperforming 42.86% of the companies in the same industry.
ATO has a Quick Ratio of 0.65. This is a bad value and indicates that ATO is not financially healthy enough and could expect problems in meeting its short term obligations.
ATO's Quick ratio of 0.47 is in line compared to the rest of the industry. ATO outperforms 50.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.65 | ||
| Quick Ratio | 0.47 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 8.30% over the past year.
ATO shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 8.80% yearly.
The Revenue has been growing slightly by 1.75% in the past year.
The Revenue has been growing slightly by 6.53% on average over the past years.
EPS 1Y (TTM)8.3%
EPS 3Y8.95%
EPS 5Y8.8%
EPS growth Q2Q56.86%
Revenue 1Y (TTM)1.75%
Revenue growth 3Y14.86%
Revenue growth 5Y6.53%
Revenue growth Q2Q-18.68%
3.2 Future
ATO is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.88% yearly.
Based on estimates for the next years, ATO will show a small growth in Revenue. The Revenue will grow by 5.73% on average per year.
EPS Next Y6.54%
EPS Next 2Y6.68%
EPS Next 3Y6.83%
EPS Next 5Y6.88%
Revenue Next Year10.12%
Revenue Next 2Y7.68%
Revenue Next 3Y5.44%
Revenue Next 5Y5.73%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 18.35, which indicates a rather expensive current valuation of ATO.
Based on the Price/Earnings ratio, ATO is valued a bit more expensive than 71.43% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 24.46. ATO is valued slightly cheaper when compared to this.
Based on the Price/Forward Earnings ratio of 17.23, the valuation of ATO can be described as rather expensive.
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 similar valuation than the S&P500 average which is at 19.59.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.35 | ||
| Fwd PE | 17.23 |
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 78.57% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of ATO indicates a somewhat cheap valuation: ATO is cheaper than 64.29% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 25.55 | ||
| EV/EBITDA | 13.96 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of ATO may justify a higher PE ratio.
PEG (NY)2.81
PEG (5Y)2.08
EPS Next 2Y6.68%
EPS Next 3Y6.83%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.85%, ATO has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 4.84, 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!
Compared to an average S&P500 Dividend Yield of 2.63, ATO has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.85% |
5.2 History
On average, the dividend of ATO grows each year by 8.50%, 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)8.5%
Div Incr Years19
Div Non Decr Years19
5.3 Sustainability
48.60% of the earnings are spent on dividend by ATO. 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.
DP48.6%
EPS Next 2Y6.68%
EPS Next 3Y6.83%
ATMOS ENERGY CORP
NYSE:ATO (11/28/2023, 7:04:00 PM)
After market: 112.5 0 (0%)112.5
-0.14 (-0.12%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryGas Utilities
Earnings (Last)11-08 2023-11-08/amc
Earnings (Next)02-05 2024-02-05/amc
Inst Owners91.06%
Inst Owner Change-1.5%
Ins Owners0.94%
Ins Owner Change0.48%
Market Cap16.70B
Analysts72.86
Price Target125.46 (11.52%)
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.85% |
Dividend Growth(5Y)8.5%
DP48.6%
Div Incr Years19
Div Non Decr Years19
Ex-Date11-24 2023-11-24 (0.81)
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)1.8%
Min EPS beat(2)-6.38%
Max EPS beat(2)9.99%
EPS beat(4)1
Avg EPS beat(4)0.37%
Min EPS beat(4)-6.38%
Max EPS beat(4)9.99%
Revenue beat(2)0
Avg Revenue beat(2)-35.51%
Min Revenue beat(2)-39.34%
Max Revenue beat(2)-31.68%
Revenue beat(4)1
Avg Revenue beat(4)-14.51%
Min Revenue beat(4)-39.34%
Max Revenue beat(4)29.04%
PT rev (1m)-3.66%
PT rev (3m)-6.11%
EPS NQ rev (1m)-1.06%
EPS NQ rev (3m)-2.69%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.1%
Revenue NQ rev (1m)-1.2%
Revenue NQ rev (3m)-0.84%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.52%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.35 | ||
| Fwd PE | 17.23 | ||
| P/S | 3.91 | ||
| P/FCF | 25.55 | ||
| P/OCF | 4.83 | ||
| P/B | 1.54 | ||
| P/tB | 1.66 | ||
| EV/EBITDA | 13.96 |
EPS(TTM)6.13
EY5.45%
EPS(NY)6.53
Fwd EY5.81%
FCF(TTM)4.4
FCFY3.91%
OCF(TTM)23.3
OCFY20.71%
SpS28.8
BVpS73.22
TBVpS67.67
PEG (NY)2.81
PEG (5Y)2.08
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.93% | ||
| ROE | 8.14% | ||
| ROCE | 5.04% | ||
| ROIC | 4.47% | ||
| ROICexc | 4.48% | ||
| ROICexgc | 4.66% | ||
| OM | 24.96% | ||
| PM (TTM) | 20.71% | ||
| GM | 66.03% | ||
| FCFM | 15.29% |
ROA(3y)3.6%
ROA(5y)3.71%
ROE(3y)8.26%
ROE(5y)8.5%
ROIC(3y)4.64%
ROIC(5y)4.86%
ROICexc(3y)4.66%
ROICexc(5y)4.87%
ROICexgc(3y)4.86%
ROICexgc(5y)5.11%
ROCE(3y)5.21%
ROCE(5y)5.48%
ROICexcg growth 3Y-4.52%
ROICexcg growth 5Y-6.82%
ROICexc growth 3Y-4.13%
ROICexc growth 5Y-6.21%
OM growth 3Y-5.11%
OM growth 5Y1.46%
PM growth 3Y-0.94%
PM growth 5Y1.38%
GM growth 3Y-4.85%
GM growth 5Y1.1%
F-Score6
Asset Turnover0.19
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.63 | ||
| Debt/FCF | 10.54 | ||
| Debt/EBITDA | 4.12 | ||
| Cap/Depr | 464.34% | ||
| Cap/Sales | 65.63% | ||
| Interest Coverage | 4.28 | ||
| Cash Conversion | 206.98% | ||
| Profit Quality | 73.84% | ||
| Current Ratio | 0.65 | ||
| Quick Ratio | 0.47 | ||
| Altman-Z | 1.41 |
F-Score6
WACC7.15%
ROIC/WACC0.63
Cap/Depr(3y)444.22%
Cap/Depr(5y)443.12%
Cap/Sales(3y)60.54%
Cap/Sales(5y)61.72%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
Growth
EPS 1Y (TTM)8.3%
EPS 3Y8.95%
EPS 5Y8.8%
EPS growth Q2Q56.86%
EPS Next Y6.54%
EPS Next 2Y6.68%
EPS Next 3Y6.83%
EPS Next 5Y6.88%
Revenue 1Y (TTM)1.75%
Revenue growth 3Y14.86%
Revenue growth 5Y6.53%
Revenue growth Q2Q-18.68%
Revenue Next Year10.12%
Revenue Next 2Y7.68%
Revenue Next 3Y5.44%
Revenue Next 5Y5.73%
EBIT growth 1Y15.87%
EBIT growth 3Y9%
EBIT growth 5Y8.09%
EBIT Next Year74.17%
EBIT Next 3Y30.48%
EBIT Next 5Y25.37%
FCF growth 1Y144.57%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y253.9%
OCF growth 3Y49.38%
OCF growth 5Y25.2%