ATMOS ENERGY CORP (ATO) Stock Fundamental Analysis
NYSE:ATO - US0495601058 - Common Stock
165.51 USD
-0.5 (-0.3%)
ATO gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals 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 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 has a better Return On Assets (4.18%) than 78.57% of its industry peers.
ATO has a better Return On Equity (8.65%) than 71.43% of its industry peers.
Looking at the Return On Invested Capital, with a value of 4.96%, 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 4.48%. This is in line with the industry average of 6.36%.
The 3 year average ROIC (4.48%) for ATO is below the current ROIC(4.96%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.18% | ||
| ROE | 8.65% | ||
| ROIC | 4.96% |
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
The Profit Margin of ATO (25.03%) is better than 100.00% of its industry peers.
In the last couple of years the Profit Margin of ATO has grown nicely.
ATO's Operating Margin of 33.00% is amongst the best of the industry. ATO outperforms 85.71% of its industry peers.
In the last couple of years the Operating Margin of ATO has grown nicely.
ATO's Gross Margin of 77.50% is fine compared to the rest of the industry. ATO outperforms 78.57% of its industry peers.
ATO's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 33% | ||
| PM (TTM) | 25.03% | ||
| GM | 77.5% |
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), ATO is destroying value.
ATO has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, ATO has more shares outstanding
The debt/assets ratio for ATO is higher compared to a year ago.
2.2 Solvency
ATO has an Altman-Z score of 1.73. This is a bad value and indicates that ATO is not financially healthy and even has some risk of bankruptcy.
ATO has a better Altman-Z score (1.73) than 100.00% of its industry peers.
A Debt/Equity ratio of 0.67 indicates that ATO is somewhat dependend on debt financing.
ATO has a Debt to Equity ratio of 0.67. This is amongst the best in the industry. ATO outperforms 92.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.67 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.73 |
ROIC/WACC0.64
WACC7.77%
2.3 Liquidity
A Current Ratio of 1.37 indicates that ATO should not have too much problems paying its short term obligations.
ATO's Current ratio of 1.37 is amongst the best of the industry. ATO outperforms 100.00% of its industry peers.
ATO has a Quick Ratio of 1.25. This is a normal value and indicates that ATO is financially healthy and should not expect problems in meeting its short term obligations.
ATO has a better Quick ratio (1.25) than 100.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.37 | ||
| Quick Ratio | 1.25 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 6.46% 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.
The Revenue for ATO has decreased by -11.99% in the past year. This is quite bad
ATO shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.50% yearly.
EPS 1Y (TTM)6.46%
EPS 3Y9.85%
EPS 5Y9.37%
EPS Q2Q%7.41%
Revenue 1Y (TTM)-11.99%
Revenue growth 3Y6.92%
Revenue growth 5Y7.5%
Sales Q2Q%19.56%
3.2 Future
The Earnings Per Share is expected to grow by 7.69% on average over the next years.
The Revenue is expected to grow by 8.91% on average over the next years. This is quite good.
EPS Next Y8.63%
EPS Next 2Y7.94%
EPS Next 3Y7.81%
EPS Next 5Y7.69%
Revenue Next Year3.45%
Revenue Next 2Y7.72%
Revenue Next 3Y8.19%
Revenue Next 5Y8.91%
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.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 22.83 indicates a rather expensive valuation of ATO.
85.71% of the companies in the same industry are cheaper than ATO, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 27.08, ATO is valued at the same level.
The Price/Forward Earnings ratio is 20.77, which indicates a rather expensive current valuation of ATO.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ATO indicates a rather expensive valuation: ATO more expensive than 85.71% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.67. ATO is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.83 | ||
| Fwd PE | 20.77 |
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 | 15.54 |
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 excellent profitability rating of ATO may justify a higher PE ratio.
PEG (NY)2.65
PEG (5Y)2.44
EPS Next 2Y7.94%
EPS Next 3Y7.81%
5. Dividend
5.1 Amount
ATO has a Yearly Dividend Yield of 2.09%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.99, ATO's dividend is way lower than its industry peers. On top of this 92.86% 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 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.09% |
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 their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)8.76%
Div Incr Years34
Div Non Decr Years34
5.3 Sustainability
ATO pays out 46.53% of its income as dividend. 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.
DP46.53%
EPS Next 2Y7.94%
EPS Next 3Y7.81%
NYSE:ATO (8/27/2025, 11:16:28 AM)
165.51
-0.5 (-0.3%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryGas Utilities
Earnings (Last)
Earnings (Next)
Inst Owners107.6%
Inst Owner Change-3.77%
Ins Owners0.35%
Ins Owner Change-0.3%
Market Cap26.57B
Analysts73.68
Price Target166.43 (0.56%)
Short Float %3.58%
Short Ratio6.95
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.09% |
Yearly Dividend3.25
Dividend Growth(5Y)8.76%
DP46.53%
Div Incr Years34
Div Non Decr Years34
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)2.32%
Min EPS beat(2)0.25%
Max EPS beat(2)4.39%
EPS beat(4)4
Avg EPS beat(4)1.87%
Min EPS beat(4)0.25%
Max EPS beat(4)4.39%
EPS beat(8)8
Avg EPS beat(8)3.5%
EPS beat(12)9
Avg EPS beat(12)3.04%
EPS beat(16)11
Avg EPS beat(16)3.15%
Revenue beat(2)2
Avg Revenue beat(2)3.52%
Min Revenue beat(2)0.91%
Max Revenue beat(2)6.12%
Revenue beat(4)2
Avg Revenue beat(4)-8.95%
Min Revenue beat(4)-29.12%
Max Revenue beat(4)6.12%
Revenue beat(8)2
Avg Revenue beat(8)-17.01%
Revenue beat(12)4
Avg Revenue beat(12)-10.58%
Revenue beat(16)7
Avg Revenue beat(16)-5.65%
PT rev (1m)1.26%
PT rev (3m)3.05%
EPS NQ rev (1m)3.96%
EPS NQ rev (3m)4.34%
EPS NY rev (1m)1.6%
EPS NY rev (3m)2.05%
Revenue NQ rev (1m)-9.14%
Revenue NQ rev (3m)-14.26%
Revenue NY rev (1m)1.74%
Revenue NY rev (3m)1.67%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.83 | ||
| Fwd PE | 20.77 | ||
| P/S | 5.75 | ||
| P/FCF | N/A | ||
| P/OCF | 13.07 | ||
| P/B | 1.98 | ||
| P/tB | 2.11 | ||
| EV/EBITDA | 15.54 |
EPS(TTM)7.25
EY4.38%
EPS(NY)7.97
Fwd EY4.82%
FCF(TTM)-8.56
FCFYN/A
OCF(TTM)12.66
OCFY7.65%
SpS28.8
BVpS83.39
TBVpS78.35
PEG (NY)2.65
PEG (5Y)2.44
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.18% | ||
| ROE | 8.65% | ||
| ROCE | 5.74% | ||
| ROIC | 4.96% | ||
| ROICexc | 5.1% | ||
| ROICexgc | 5.26% | ||
| OM | 33% | ||
| PM (TTM) | 25.03% | ||
| GM | 77.5% | ||
| 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 | 0.67 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 3.99 | ||
| Cap/Depr | 471.38% | ||
| Cap/Sales | 73.67% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 90.39% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.37 | ||
| Quick Ratio | 1.25 | ||
| Altman-Z | 1.73 |
F-Score4
WACC7.77%
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)6.46%
EPS 3Y9.85%
EPS 5Y9.37%
EPS Q2Q%7.41%
EPS Next Y8.63%
EPS Next 2Y7.94%
EPS Next 3Y7.81%
EPS Next 5Y7.69%
Revenue 1Y (TTM)-11.99%
Revenue growth 3Y6.92%
Revenue growth 5Y7.5%
Sales Q2Q%19.56%
Revenue Next Year3.45%
Revenue Next 2Y7.72%
Revenue Next 3Y8.19%
Revenue Next 5Y8.91%
EBIT growth 1Y-11.49%
EBIT growth 3Y14.41%
EBIT growth 5Y12.68%
EBIT Next Year70.76%
EBIT Next 3Y30.07%
EBIT Next 5Y23.19%
FCF growth 1Y-393.6%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-37.86%
OCF growth 3YN/A
OCF growth 5Y12.34%