ATMOS ENERGY CORP (ATO)

US0495601058 - Common Stock

122.34  +1.51 (+1.25%)

After market: 122.34 0 (0%)

Fundamental Rating

5

We assign a fundamental rating of 5 out of 10 to ATO. ATO was compared to 13 industry peers in the Gas Utilities industry. ATO scores excellent on profitability, but there are some minor concerns on its financial health. While showing a medium growth rate, ATO is valued expensive at the moment.



7

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.
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

With a decent Return On Assets value of 4.16%, ATO is doing good in the industry, outperforming 76.92% of the companies in the same industry.
Looking at the Return On Equity, with a value of 8.60%, ATO is in the better half of the industry, outperforming 69.23% of the companies in the same industry.
ATO has a Return On Invested Capital of 4.98%. This is comparable to the rest of the industry: ATO outperforms 53.85% of its industry peers.
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 5.32%.
The last Return On Invested Capital (4.98%) for ATO is above the 3 year average (4.64%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA 4.16%
ROE 8.6%
ROIC 4.98%
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

With an excellent Profit Margin value of 24.63%, ATO belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
ATO's Profit Margin has been stable in the last couple of years.
With an excellent Operating Margin value of 31.40%, ATO belongs to the best of the industry, outperforming 84.62% of the companies in the same industry.
In the last couple of years the Operating Margin of ATO has remained more or less at the same level.
With an excellent Gross Margin value of 75.07%, ATO belongs to the best of the industry, outperforming 84.62% of the companies in the same industry.
ATO's Gross Margin has been stable in the last couple of years.
Industry RankSector Rank
OM 31.4%
PM (TTM) 24.63%
GM 75.07%
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%

4

2. Health

2.1 Basic Checks

ATO has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it 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.
Compared to 1 year ago, ATO has an improved debt to assets ratio.

2.2 Solvency

ATO has an Altman-Z score of 1.49. This is a bad value and indicates that ATO is not financially healthy and even has some risk of bankruptcy.
With an excellent Altman-Z score value of 1.49, ATO belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
A Debt/Equity ratio of 0.65 indicates that ATO is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.65, ATO belongs to the top of the industry, outperforming 92.31% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.65
Debt/FCF N/A
Altman-Z 1.49
ROIC/WACC0.7
WACC7.11%

2.3 Liquidity

A Current Ratio of 1.36 indicates that ATO should not have too much problems paying its short term obligations.
With an excellent Current ratio value of 1.36, ATO belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
A Quick Ratio of 1.22 indicates that ATO should not have too much problems paying its short term obligations.
The Quick ratio of ATO (1.22) is better than 100.00% of its industry peers.
Industry RankSector Rank
Current Ratio 1.36
Quick Ratio 1.22

4

3. Growth

3.1 Past

The Earnings Per Share has grown by an nice 14.60% 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 8.80% on average per year.
Looking at the last year, ATO shows a very negative growth in Revenue. The Revenue has decreased by -11.13% in the last year.
ATO shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.53% yearly.
EPS 1Y (TTM)14.6%
EPS 3Y8.95%
EPS 5Y8.8%
EPS Q2Q%14.92%
Revenue 1Y (TTM)-11.13%
Revenue growth 3Y14.86%
Revenue growth 5Y6.53%
Sales Q2Q%6.9%

3.2 Future

The Earnings Per Share is expected to grow by 7.58% on average over the next years.
Based on estimates for the next years, ATO will show a small growth in Revenue. The Revenue will grow by 6.05% on average per year.
EPS Next Y11.52%
EPS Next 2Y7.84%
EPS Next 3Y7.66%
EPS Next 5Y7.58%
Revenue Next Year0.73%
Revenue Next 2Y4.74%
Revenue Next 3Y5.63%
Revenue Next 5Y6.05%

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.

2

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 18.34, which indicates a rather expensive current valuation of ATO.
ATO's Price/Earnings ratio is a bit more expensive when compared to the industry. ATO is more expensive than 76.92% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 29.19, ATO is valued a bit cheaper.
A Price/Forward Earnings ratio of 17.16 indicates a rather expensive valuation of ATO.
ATO's Price/Forward Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.63, ATO is valued at the same level.
Industry RankSector Rank
PE 18.34
Fwd PE 17.16

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, ATO is valued a bit more expensive than 76.92% of the companies in the same industry.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 13.33

4.3 Compensation for Growth

The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
ATO has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)1.59
PEG (5Y)2.08
EPS Next 2Y7.84%
EPS Next 3Y7.66%

5

5. Dividend

5.1 Amount

ATO has a Yearly Dividend Yield of 2.69%.
Compared to an average industry Dividend Yield of 4.48, ATO's dividend is way lower than its industry peers. On top of this 84.62% of the companies listed in the same industry pay a better dividend than ATO!
Compared to an average S&P500 Dividend Yield of 2.33, ATO has a dividend comparable with the average S&P500 company.
Industry RankSector Rank
Dividend Yield 2.69%

5.2 History

On average, the dividend of ATO grows each year by 8.50%, 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)8.5%
Div Incr Years33
Div Non Decr Years33

5.3 Sustainability

46.16% 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.
DP46.16%
EPS Next 2Y7.84%
EPS Next 3Y7.66%

ATMOS ENERGY CORP

NYSE:ATO (7/16/2024, 3:22:15 PM)

After market: 122.34 0 (0%)

122.34

+1.51 (+1.25%)

Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryGas Utilities
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap18.46B
Analysts
Price Target
Dividend
Industry RankSector Rank
Dividend Yield 2.69%
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
Industry RankSector Rank
PE 18.34
Fwd PE 17.16
P/S
P/FCF
P/OCF
P/B
P/tB
EV/EBITDA
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)1.59
PEG (5Y)2.08
Profitability
Industry RankSector Rank
ROA 4.16%
ROE 8.6%
ROCE
ROIC
ROICexc
ROICexgc
OM 31.4%
PM (TTM) 24.63%
GM 75.07%
FCFM
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.17
Health
Industry RankSector Rank
Debt/Equity 0.65
Debt/FCF
Debt/EBITDA
Cap/Depr
Cap/Sales
Interest Coverage
Cash Conversion
Profit Quality
Current Ratio 1.36
Quick Ratio 1.22
Altman-Z
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)14.6%
EPS 3Y8.95%
EPS 5Y
EPS Q2Q%
EPS Next Y11.52%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-11.13%
Revenue growth 3Y14.86%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y