ATMOS ENERGY CORP (ATO) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ATO - US0495601058 - Common Stock
167.54 USD
+0.66 (+0.4%)
168 USD
+0.46 (+0.27%)
Overall ATO gets a fundamental rating of 5 out of 10. We evaluated ATO against 14 industry peers in the Gas Utilities industry. ATO has an excellent profitability rating, but there are 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
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.
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 4.24%, ATO is in line with its industry, outperforming 57.14% of the companies in the same industry.
ATO has a Return On Equity (8.84%) which is in line with its industry peers.
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.
The Average Return On Invested Capital over the past 3 years for ATO 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
ATO has a Profit Margin of 25.48%. This is amongst the best in the industry. ATO outperforms 100.00% of its industry peers.
ATO's Profit Margin has improved in the last couple of years.
ATO has a better Operating Margin (33.17%) than 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 77.33%, ATO is in the better half of the industry, outperforming 78.57% of the companies in the same industry.
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), ATO is destroying value.
Compared to 1 year ago, ATO has more shares outstanding
The number of shares outstanding for ATO has been increased compared to 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 0.66 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 | 1.68 |
ROIC/WACC0.64
WACC7.53%
2.3 Liquidity
A Current Ratio of 0.77 indicates that ATO may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.77, ATO is in the better half of the industry, outperforming 78.57% of the companies in the same industry.
ATO has a Quick 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.
With a decent Quick ratio value of 0.65, ATO is doing good in the industry, outperforming 78.57% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.77 | ||
| Quick Ratio | 0.65 |
3. Growth
3.1 Past
ATO shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 9.50%, which is quite good.
Measured over the past years, ATO shows a quite strong growth in Earnings Per Share. The EPS has been growing by 9.58% on average per year.
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
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.
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
ATO is valuated rather expensively with a Price/Earnings ratio of 22.37.
Compared to the rest of the industry, the Price/Earnings ratio of ATO indicates a slightly more expensive valuation: ATO is more expensive than 78.57% of the companies listed in the same industry.
ATO's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.17.
ATO is valuated rather expensively with a Price/Forward Earnings ratio of 20.18.
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 23.79, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.37 | ||
| Fwd PE | 20.18 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ATO indicates a rather expensive valuation: ATO more expensive than 92.86% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 15.64 |
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 a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)2.06
PEG (5Y)2.33
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 1.94, 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 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)8.68%
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 2Y8.96%
EPS Next 3Y8.67%
167.54
+0.66 (+0.4%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryGas Utilities
Earnings (Last)
Earnings (Next)
Inst Owners102.27%
Inst Owner Change0%
Ins Owners0.32%
Ins Owner Change2.06%
Market Cap27.09B
Revenue(TTM)4.70B
Net Income(TTM)1.20B
Analysts69.47
Price Target178.14 (6.33%)
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)0.76%
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 | 22.37 | ||
| Fwd PE | 20.18 | ||
| P/S | 5.76 | ||
| P/FCF | N/A | ||
| P/OCF | 13.22 | ||
| P/B | 2 | ||
| P/tB | 2.12 | ||
| EV/EBITDA | 15.64 |
EPS(TTM)7.49
EY4.47%
EPS(NY)8.3
Fwd EY4.96%
FCF(TTM)-9.35
FCFYN/A
OCF(TTM)12.68
OCFY7.57%
SpS29.09
BVpS83.86
TBVpS78.87
PEG (NY)2.06
PEG (5Y)2.33
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 | 1.68 |
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%.