US0495601058 - Common Stock

**ATO** gets a fundamental rating of **4** out of 10. The analysis compared the fundamentals against 14 industry peers in the **Gas Utilities** industry. **ATO** has only an average score on both its financial health and profitability. **ATO** is valied quite expensively at the moment, while it does show a decent growth rate.

In the past 5 years **ATO** has always been profitable.

Of the past 5 years **ATO** 4 years had a positive operating cash flow.

Looking at the **Return On Equity**, with a value of **8.14%**, **ATO** is in the better half of the industry, outperforming **64.29%** of the companies in the same industry.

Looking at the **Return On Invested Capital**, with a value of **4.47%**, **ATO** is in line with its industry, outperforming **42.86%** of the companies in the same industry.

Industry Rank | Sector Rank | ||
---|---|---|---|

ROA | 3.93% | ||

ROE | 8.14% | ||

ROIC | 4.47% |

ROA(3y)3.6%

ROA(5y)3.71%

ROE(3y)8.26%

ROE(5y)8.5%

ROIC(3y)4.64%

ROIC(5y)4.86%

Looking at the **Gross Margin**, with a value of **66.03%**, **ATO** is in the better half of the industry, outperforming **78.57%** of the companies in the same industry.

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 | 24.96% | ||

PM (TTM) | 20.71% | ||

GM | 66.03% |

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%

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 5 years ago.

Compared to 1 year ago, **ATO** has an improved debt to assets ratio.

The **Altman-Z score** of **ATO** (**1.41**) is better than **85.71%** of its industry peers.

Industry Rank | Sector Rank | ||
---|---|---|---|

Debt/Equity | 0.63 | ||

Debt/FCF | 10.54 | ||

Altman-Z | 1.41 |

ROIC/WACC0.63

WACC7.15%

Looking at the **Current ratio**, with a value of **0.65**, **ATO** is in line with its industry, outperforming **42.86%** of the companies in the same industry.

Industry Rank | Sector Rank | ||
---|---|---|---|

Current Ratio | 0.65 | ||

Quick Ratio | 0.47 |

The **Earnings Per Share** has grown by an nice **8.30%** over the past year.

The **Revenue** has been growing slightly by **1.75%** in the past year.

The **Revenue** has been growing slightly by **6.53%** on average over the past years.

EPS 1Y (TTM)8.3%

EPS 3Y8.95%

EPS 5Y8.8%

EPS growth Q2Q56.86%

Revenue 1Y (TTM)1.75%

Revenue growth 3Y14.86%

Revenue growth 5Y6.53%

Revenue growth Q2Q-18.68%

Based on estimates for the next years, **ATO** will show a small growth in **Revenue**. The Revenue will grow by **5.73%** on average per year.

EPS Next Y6.54%

EPS Next 2Y6.68%

EPS Next 3Y6.83%

EPS Next 5Y6.88%

Revenue Next Year10.12%

Revenue Next 2Y7.68%

Revenue Next 3Y5.44%

Revenue Next 5Y5.73%

The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.

The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.

The **Price/Earnings** ratio is **18.35**, which indicates a rather expensive current valuation of **ATO**.

Based on the **Price/Earnings** ratio, **ATO** is valued a bit more expensive than 71.43% of the companies in the same industry.

The average S&P500 **Price/Earnings** ratio is at **24.46**. **ATO** is valued slightly cheaper when compared to this.

Based on the **Price/Forward Earnings** ratio of **17.23**, the valuation of **ATO** can be described as rather expensive.

Based on the **Price/Forward Earnings** ratio, **ATO** is valued a bit more expensive than 64.29% of the companies in the same industry.

Industry Rank | Sector Rank | ||
---|---|---|---|

PE | 18.35 | ||

Fwd PE | 17.23 |

Compared to the rest of the industry, the **Enterprise Value to EBITDA** ratio of **ATO** indicates a slightly more expensive valuation: **ATO** is more expensive than 78.57% of the companies listed in the same industry.

Compared to the rest of the industry, the **Price/Free Cash Flow** ratio of **ATO** indicates a somewhat cheap valuation: **ATO** is cheaper than 64.29% of the companies listed in the same industry.

Industry Rank | Sector Rank | ||
---|---|---|---|

P/FCF | 25.55 | ||

EV/EBITDA | 13.96 |

The high **PEG Ratio(NY)**, which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.

The decent profitability rating of **ATO** may justify a higher PE ratio.

PEG (NY)2.81

PEG (5Y)2.08

EPS Next 2Y6.68%

EPS Next 3Y6.83%

With a **Yearly Dividend Yield** of **2.85%**, **ATO** has a reasonable but not impressive dividend return.

Compared to an average industry **Dividend Yield** of **4.84**, **ATO**'s dividend is way lower than its industry peers. On top of this 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 **2.63**, **ATO** has a dividend comparable with the average S&P500 company.

Industry Rank | Sector Rank | ||
---|---|---|---|

Dividend Yield | 2.85% |

On average, the dividend of **ATO** grows each year by **8.50%**, which is quite nice.

Dividend Growth(5Y)8.5%

Div Incr Years19

Div Non Decr Years19

The dividend of **ATO** is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.

DP48.6%

EPS Next 2Y6.68%

EPS Next 3Y6.83%

**ATMOS ENERGY CORP**

NYSE:ATO (11/28/2023, 7:04:00 PM)

After market: 112.5 0 (0%)**112.5**

**-0.14 (-0.12%) **

Chartmill FA Rating

GICS SectorUtilities

GICS IndustryGroupUtilities

GICS IndustryGas Utilities

Earnings (Last)11-08 2023-11-08/amc

Earnings (Next)02-05 2024-02-05/amc

Inst Owners91.06%

Inst Owner Change-1.5%

Ins Owners0.94%

Ins Owner Change0.48%

Market Cap16.70B

Analysts72.86

Price Target125.46 (11.52%)

Dividend

Industry Rank | Sector Rank | ||
---|---|---|---|

Dividend Yield | 2.85% |

Dividend Growth(5Y)8.5%

DP48.6%

Div Incr Years19

Div Non Decr Years19

Ex-Date11-24 2023-11-24 (0.81)

Surprises & Revisions

EPS beat(2)1

Avg EPS beat(2)1.8%

Min EPS beat(2)-6.38%

Max EPS beat(2)9.99%

EPS beat(4)1

Avg EPS beat(4)0.37%

Min EPS beat(4)-6.38%

Max EPS beat(4)9.99%

Revenue beat(2)0

Avg Revenue beat(2)-35.51%

Min Revenue beat(2)-39.34%

Max Revenue beat(2)-31.68%

Revenue beat(4)1

Avg Revenue beat(4)-14.51%

Min Revenue beat(4)-39.34%

Max Revenue beat(4)29.04%

PT rev (1m)-3.66%

PT rev (3m)-6.11%

EPS NQ rev (1m)-1.06%

EPS NQ rev (3m)-2.69%

EPS NY rev (1m)0%

EPS NY rev (3m)-0.1%

Revenue NQ rev (1m)-1.2%

Revenue NQ rev (3m)-0.84%

Revenue NY rev (1m)0%

Revenue NY rev (3m)-1.52%

Valuation

Industry Rank | Sector Rank | ||
---|---|---|---|

PE | 18.35 | ||

Fwd PE | 17.23 | ||

P/S | 3.91 | ||

P/FCF | 25.55 | ||

P/OCF | 4.83 | ||

P/B | 1.54 | ||

P/tB | 1.66 | ||

EV/EBITDA | 13.96 |

EPS(TTM)6.13

EY5.45%

EPS(NY)6.53

Fwd EY5.81%

FCF(TTM)4.4

FCFY3.91%

OCF(TTM)23.3

OCFY20.71%

SpS28.8

BVpS73.22

TBVpS67.67

PEG (NY)2.81

PEG (5Y)2.08

Profitability

Industry Rank | Sector Rank | ||
---|---|---|---|

ROA | 3.93% | ||

ROE | 8.14% | ||

ROCE | 5.04% | ||

ROIC | 4.47% | ||

ROICexc | 4.48% | ||

ROICexgc | 4.66% | ||

OM | 24.96% | ||

PM (TTM) | 20.71% | ||

GM | 66.03% | ||

FCFM | 15.29% |

ROA(3y)3.6%

ROA(5y)3.71%

ROE(3y)8.26%

ROE(5y)8.5%

ROIC(3y)4.64%

ROIC(5y)4.86%

ROICexc(3y)4.66%

ROICexc(5y)4.87%

ROICexgc(3y)4.86%

ROICexgc(5y)5.11%

ROCE(3y)5.21%

ROCE(5y)5.48%

ROICexcg growth 3Y-4.52%

ROICexcg growth 5Y-6.82%

ROICexc growth 3Y-4.13%

ROICexc growth 5Y-6.21%

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%

F-Score6

Asset Turnover0.19

Health

Industry Rank | Sector Rank | ||
---|---|---|---|

Debt/Equity | 0.63 | ||

Debt/FCF | 10.54 | ||

Debt/EBITDA | 4.12 | ||

Cap/Depr | 464.34% | ||

Cap/Sales | 65.63% | ||

Interest Coverage | 4.28 | ||

Cash Conversion | 206.98% | ||

Profit Quality | 73.84% | ||

Current Ratio | 0.65 | ||

Quick Ratio | 0.47 | ||

Altman-Z | 1.41 |

F-Score6

WACC7.15%

ROIC/WACC0.63

Cap/Depr(3y)444.22%

Cap/Depr(5y)443.12%

Cap/Sales(3y)60.54%

Cap/Sales(5y)61.72%

Profit Quality(3y)N/A

Profit Quality(5y)N/A

Growth

EPS 1Y (TTM)8.3%

EPS 3Y8.95%

EPS 5Y8.8%

EPS growth Q2Q56.86%

EPS Next Y6.54%

EPS Next 2Y6.68%

EPS Next 3Y6.83%

EPS Next 5Y6.88%

Revenue 1Y (TTM)1.75%

Revenue growth 3Y14.86%

Revenue growth 5Y6.53%

Revenue growth Q2Q-18.68%

Revenue Next Year10.12%

Revenue Next 2Y7.68%

Revenue Next 3Y5.44%

Revenue Next 5Y5.73%

EBIT growth 1Y15.87%

EBIT growth 3Y9%

EBIT growth 5Y8.09%

EBIT Next Year74.17%

EBIT Next 3Y30.48%

EBIT Next 5Y25.37%

FCF growth 1Y144.57%

FCF growth 3YN/A

FCF growth 5YN/A

OCF growth 1Y253.9%

OCF growth 3Y49.38%

OCF growth 5Y25.2%