ATMOS ENERGY CORP (ATO)
US0495601058 - Common Stock
ATO gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 14 industry peers in the Gas Utilities industry. ATO has an average financial health and profitability rating. ATO is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year ATO was profitable.
ATO had a positive operating cash flow in the past year.
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 a decent Return On Assets value of 3.90%, ATO is doing good in the industry, outperforming 78.57% of the companies in the same industry.
With a Return On Equity value of 8.20%, ATO perfoms like the industry average, outperforming 57.14% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 4.57%, ATO is in line with its industry, outperforming 50.00% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for ATO is in line with the industry average of 5.94%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.9% | ||
| ROE | 8.2% | ||
| ROIC | 4.57% |
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 23.41%, ATO belongs to the best 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 remained more or less at the same level.
Looking at the Operating Margin, with a value of 28.99%, ATO belongs to the top 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 remained more or less at the same level.
The Gross Margin of ATO (73.34%) is better than 78.57% of its industry peers.
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 | 28.99% | ||
| PM (TTM) | 23.41% | ||
| GM | 73.34% |
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
ATO has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
ATO has more shares outstanding than it did 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
Based on the Altman-Z score of 1.44, we must say that ATO is in the distress zone and has some risk of bankruptcy.
ATO has a Altman-Z score of 1.44. This is amongst the best in the industry. ATO outperforms 92.86% of its industry peers.
The Debt to FCF ratio of ATO is 10.24, which is on the high side as it means it would take ATO, 10.24 years of fcf income to pay off all of its debts.
ATO's Debt to FCF ratio of 10.24 is amongst the best of the industry. ATO outperforms 85.71% of its industry peers.
A Debt/Equity ratio of 0.67 indicates that ATO is somewhat dependend on debt financing.
ATO has a better Debt to Equity ratio (0.67) than 92.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.67 | ||
| Debt/FCF | 10.24 | ||
| Altman-Z | 1.44 |
ROIC/WACC0.62
WACC7.42%
2.3 Liquidity
ATO has a Current Ratio of 1.44. This is a normal value and indicates that ATO is financially healthy and should not expect problems in meeting its short term obligations.
With an excellent Current ratio value of 1.44, ATO belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
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.
Looking at the Quick ratio, with a value of 1.25, ATO belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.44 | ||
| Quick Ratio | 1.25 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 10.33% 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.
The Revenue for ATO has decreased by -15.47% 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 6.53% yearly.
EPS 1Y (TTM)10.33%
EPS 3Y8.95%
EPS 5Y8.8%
EPS growth Q2Q8.9%
Revenue 1Y (TTM)-15.47%
Revenue growth 3Y14.86%
Revenue growth 5Y6.53%
Revenue growth Q2Q-21.94%
3.2 Future
Based on estimates for the next years, ATO will show a small growth in Earnings Per Share. The EPS will grow by 7.09% on average per year.
ATO is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.26% yearly.
EPS Next Y8.84%
EPS Next 2Y7.79%
EPS Next 3Y7.79%
EPS Next 5Y7.09%
Revenue Next Year4.42%
Revenue Next 2Y5.93%
Revenue Next 3Y6.19%
Revenue Next 5Y6.26%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
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
Based on the Price/Earnings ratio of 18.76, the valuation of ATO can be described as rather expensive.
ATO's Price/Earnings ratio is in line with the industry average.
When comparing the Price/Earnings ratio of ATO to the average of the S&P500 Index (25.20), we can say ATO is valued slightly cheaper.
The Price/Forward Earnings ratio is 16.59, which indicates a correct valuation of ATO.
ATO's Price/Forward Earnings is on the same level as the industry average.
The average S&P500 Price/Forward Earnings ratio is at 21.63. ATO is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.76 | ||
| Fwd PE | 16.59 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ATO is valued a bit more expensive than the industry average as 78.57% of the companies are valued more cheaply.
ATO's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.21 | ||
| EV/EBITDA | 14.19 |
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.
The decent profitability rating of ATO may justify a higher PE ratio.
PEG (NY)2.12
PEG (5Y)2.13
EPS Next 2Y7.79%
EPS Next 3Y7.79%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.81%, ATO has a reasonable but not impressive dividend return.
With a Dividend Yield of 2.81, ATO pays less dividend than the industry average, which is at 4.77. 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 2.44, ATO has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.81% |
5.2 History
The dividend of ATO is nicely growing with an annual growth rate of 8.50%!
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
48.19% 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.
DP48.19%
EPS Next 2Y7.79%
EPS Next 3Y7.79%
ATMOS ENERGY CORP
NYSE:ATO (4/25/2024, 7:04:00 PM)
After market: 118.17 0 (0%)118.17
-0.49 (-0.41%)
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 Cap17.82B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.81% |
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 Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.76 | ||
| Fwd PE | 16.59 | ||
| 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)2.12
PEG (5Y)2.13
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.9% | ||
| ROE | 8.2% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 28.99% | ||
| PM (TTM) | 23.41% | ||
| GM | 73.34% | ||
| 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 Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.67 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.44 | ||
| Quick Ratio | 1.25 | ||
| 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)
Growth
EPS 1Y (TTM)10.33%
EPS 3Y8.95%
EPS 5Y
EPS growth Q2Q
EPS Next Y8.84%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-15.47%
Revenue growth 3Y14.86%
Revenue growth 5Y
Revenue growth 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