ATMOS ENERGY CORP (ATO) Stock Fundamental Analysis
NYSE:ATO - New York Stock Exchange, Inc. - US0495601058 - Common Stock - Currency: USD
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 valued expensive and it does not seem to be growing.
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.
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
With an excellent Return On Assets value of 4.21%, ATO belongs to the best of the industry, outperforming 85.71% of the companies in the same industry.
With a Return On Equity value of 8.65%, ATO perfoms like the industry average, outperforming 57.14% of the companies in the same industry.
ATO has a Return On Invested Capital (5.01%) which is comparable to the rest of the 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 6.29%.
The last Return On Invested Capital (5.01%) for ATO is above the 3 year average (4.48%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.21% | ||
| ROE | 8.65% | ||
| ROIC | 5.01% |
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
Looking at the Profit Margin, with a value of 25.33%, ATO belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
In the last couple of years the Profit Margin of ATO has grown nicely.
With an excellent Operating Margin value of 33.30%, ATO belongs to the best 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.
The Gross Margin of ATO (78.07%) is better 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 | 33.3% | ||
| PM (TTM) | 25.33% | ||
| GM | 78.07% |
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.
ATO has more shares outstanding than it did 5 years ago.
ATO has a worse debt/assets ratio than last year.
2.2 Solvency
ATO has an Altman-Z score of 1.68. 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 1.68 is amongst the best of 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.
ATO has a Debt to Equity ratio of 0.65. This is amongst the best in the industry. ATO outperforms 92.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.65 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.68 |
ROIC/WACC0.64
WACC7.81%
2.3 Liquidity
A Current Ratio of 1.33 indicates that ATO should not have too much problems paying its short term obligations.
ATO's Current ratio of 1.33 is amongst the best of the industry. ATO outperforms 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.
ATO's Quick ratio of 1.25 is amongst the best of the industry. ATO outperforms 100.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.33 | ||
| Quick Ratio | 1.25 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 7.50% 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.
ATO shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -13.97%.
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)7.5%
EPS 3Y9.85%
EPS 5Y9.37%
EPS Q2Q%6.32%
Revenue 1Y (TTM)-13.97%
Revenue growth 3Y6.92%
Revenue growth 5Y7.5%
Sales Q2Q%18.41%
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 Y6.92%
EPS Next 2Y7.27%
EPS Next 3Y7.37%
EPS Next 5Y7.38%
Revenue Next Year1.68%
Revenue Next 2Y7.15%
Revenue Next 3Y7.28%
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.
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 21.50, which indicates a rather expensive current 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 71.43% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.30, ATO is valued a bit cheaper.
Based on the Price/Forward Earnings ratio of 19.59, the valuation of ATO can be described as rather expensive.
Based on the Price/Forward Earnings ratio, ATO is valued expensively inside the industry as 85.71% of the companies are valued cheaper.
ATO is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 21.76, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.5 | ||
| Fwd PE | 19.59 |
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 | 14.77 |
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)3.11
PEG (5Y)2.29
EPS Next 2Y7.27%
EPS Next 3Y7.37%
5. Dividend
5.1 Amount
ATO has a Yearly Dividend Yield of 2.25%. Purely for dividend investing, there may be better candidates out there.
With a Dividend Yield of 2.25, ATO pays less dividend than the industry average, which is at 3.95. 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 2.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.25% |
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
46.22% of the earnings are spent on dividend by ATO. 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.
DP46.22%
EPS Next 2Y7.27%
EPS Next 3Y7.37%
154.19
-0.18 (-0.12%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryGas Utilities
Earnings (Last)
Earnings (Next)
Inst Owners107.28%
Inst Owner Change0%
Ins Owners0.35%
Ins Owner Change4.9%
Market Cap24.49B
Analysts73.68
Price Target165.79 (7.52%)
Short Float %3.56%
Short Ratio5.1
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.25% |
Yearly Dividend3.25
Dividend Growth(5Y)8.76%
DP46.22%
Div Incr Years34
Div Non Decr Years34
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)2.52%
Min EPS beat(2)0.64%
Max EPS beat(2)4.39%
EPS beat(4)4
Avg EPS beat(4)2.25%
Min EPS beat(4)0.64%
Max EPS beat(4)4.39%
EPS beat(8)7
Avg EPS beat(8)2.67%
EPS beat(12)9
Avg EPS beat(12)3.66%
EPS beat(16)11
Avg EPS beat(16)3.59%
Revenue beat(2)1
Avg Revenue beat(2)-3.8%
Min Revenue beat(2)-13.72%
Max Revenue beat(2)6.12%
Revenue beat(4)1
Avg Revenue beat(4)-14.31%
Min Revenue beat(4)-29.12%
Max Revenue beat(4)6.12%
Revenue beat(8)1
Avg Revenue beat(8)-21.08%
Revenue beat(12)4
Avg Revenue beat(12)-9.09%
Revenue beat(16)7
Avg Revenue beat(16)-5.52%
PT rev (1m)-0.18%
PT rev (3m)6.03%
EPS NQ rev (1m)0.36%
EPS NQ rev (3m)-1.42%
EPS NY rev (1m)0.44%
EPS NY rev (3m)0.81%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.21%
Revenue NY rev (1m)0.04%
Revenue NY rev (3m)-0.59%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.5 | ||
| Fwd PE | 19.59 | ||
| P/S | 5.46 | ||
| P/FCF | N/A | ||
| P/OCF | 12.58 | ||
| P/B | 1.86 | ||
| P/tB | 1.99 | ||
| EV/EBITDA | 14.77 |
EPS(TTM)7.17
EY4.65%
EPS(NY)7.87
Fwd EY5.1%
FCF(TTM)-8.22
FCFYN/A
OCF(TTM)12.26
OCFY7.95%
SpS28.24
BVpS82.71
TBVpS77.61
PEG (NY)3.11
PEG (5Y)2.29
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.21% | ||
| ROE | 8.65% | ||
| ROCE | 5.79% | ||
| ROIC | 5.01% | ||
| ROICexc | 5.12% | ||
| ROICexgc | 5.29% | ||
| OM | 33.3% | ||
| PM (TTM) | 25.33% | ||
| GM | 78.07% | ||
| 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 | 0.65 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 3.86 | ||
| Cap/Depr | 462.29% | ||
| Cap/Sales | 72.5% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 88.6% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.33 | ||
| Quick Ratio | 1.25 | ||
| Altman-Z | 1.68 |
F-Score4
WACC7.81%
ROIC/WACC0.64
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)7.5%
EPS 3Y9.85%
EPS 5Y9.37%
EPS Q2Q%6.32%
EPS Next Y6.92%
EPS Next 2Y7.27%
EPS Next 3Y7.37%
EPS Next 5Y7.38%
Revenue 1Y (TTM)-13.97%
Revenue growth 3Y6.92%
Revenue growth 5Y7.5%
Sales Q2Q%18.41%
Revenue Next Year1.68%
Revenue Next 2Y7.15%
Revenue Next 3Y7.28%
Revenue Next 5Y7.41%
EBIT growth 1Y-10.7%
EBIT growth 3Y14.41%
EBIT growth 5Y12.68%
EBIT Next Year69.82%
EBIT Next 3Y29.9%
EBIT Next 5Y23.67%
FCF growth 1Y-333.1%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-39.72%
OCF growth 3YN/A
OCF growth 5Y12.34%