ATMOS ENERGY CORP (ATO) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ATO - US0495601058 - Common Stock
176.37 USD
+0.63 (+0.36%)
176.37 USD
0 (0%)
Overall ATO gets a fundamental rating of 4 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. While showing a medium growth rate, ATO is valued expensive at the moment.
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.
Each year in the past 5 years ATO has 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 (4.24%) than 64.29% of its industry peers.
With a Return On Equity value of 8.84%, ATO perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 4.80%, ATO is doing worse than 64.29% of the companies in the same industry.
ATO had an Average Return On Invested Capital over the past 3 years of 4.53%. This is below the industry average of 8.85%.
The last Return On Invested Capital (4.80%) for ATO is above the 3 year average (4.53%), which is a sign of increasing profitability.
| 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
Looking at the Profit Margin, with a value of 25.48%, ATO belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
ATO's Profit Margin has improved in the last couple of years.
ATO has a Operating Margin of 33.17%. This is amongst the best in the industry. ATO outperforms 85.71% of its industry peers.
In the last couple of years the Operating Margin of ATO has grown nicely.
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.
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 | 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
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.
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
Based on the Altman-Z score of 1.73, we must say that ATO is in the distress zone and has some risk of bankruptcy.
ATO has a Altman-Z score of 1.73. This is amongst the best in the industry. ATO outperforms 92.86% of its industry peers.
ATO has a Debt/Equity ratio of 0.66. This is a neutral value indicating 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 | 1.73 |
ROIC/WACC0.65
WACC7.44%
2.3 Liquidity
A Current Ratio of 0.77 indicates that ATO may have some problems paying its short term obligations.
The Current ratio of ATO (0.77) is better than 78.57% of its industry peers.
A Quick Ratio of 0.65 indicates that ATO may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.65, ATO is in the better half of the industry, outperforming 71.43% 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.
The Earnings Per Share has been growing by 9.58% on average over the past years. This is quite good.
Looking at the last year, ATO shows a very negative growth in Revenue. The Revenue has decreased by -11.66% in the last year.
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
ATO is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.79% yearly.
Based on estimates for the next years, ATO will show a quite strong growth in Revenue. The Revenue will grow by 10.46% on average per year.
EPS Next Y6.9%
EPS Next 2Y7.28%
EPS Next 3Y7.28%
EPS Next 5Y6.79%
Revenue Next Year14.12%
Revenue Next 2Y10.42%
Revenue Next 3Y10.97%
Revenue Next 5Y10.46%
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 decreasing.
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 23.55 indicates a rather expensive valuation of ATO.
ATO's Price/Earnings ratio is a bit more expensive when compared to the industry. ATO is more expensive than 71.43% of the companies in the same industry.
When comparing the Price/Earnings ratio of ATO to the average of the S&P500 Index (26.15), we can say ATO is valued inline with the index average.
A Price/Forward Earnings ratio of 22.03 indicates a rather expensive valuation of ATO.
ATO's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. ATO is more expensive than 78.57% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 36.12. ATO is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.55 | ||
| Fwd PE | 22.03 |
4.2 Price Multiples
92.86% of the companies in the same industry are cheaper than ATO, based on the Enterprise Value to EBITDA ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 16.13 |
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 decent profitability rating of ATO may justify a higher PE ratio.
PEG (NY)3.41
PEG (5Y)2.46
EPS Next 2Y7.28%
EPS Next 3Y7.28%
5. Dividend
5.1 Amount
ATO has a Yearly Dividend Yield of 2.29%.
Compared to an average industry Dividend Yield of 3.78, 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!
ATO's Dividend Yield is comparable with the S&P500 average which is at 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.29% |
5.2 History
The dividend of ATO is nicely growing with an annual growth rate of 8.68%!
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)8.68%
Div Incr Years34
Div Non Decr Years34
5.3 Sustainability
ATO pays out 46.22% 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.
DP46.22%
EPS Next 2Y7.28%
EPS Next 3Y7.28%
176.37
+0.63 (+0.36%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryGas Utilities
Earnings (Last)
Earnings (Next)
Inst Owners102.53%
Inst Owner Change4.98%
Ins Owners0.34%
Ins Owner Change2.21%
Market Cap28.31B
Revenue(TTM)4.70B
Net Income(TTM)1.20B
Analysts68.42
Price Target176.79 (0.24%)
Short Float %3.41%
Short Ratio6.34
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.29% |
Yearly Dividend3.5
Dividend Growth(5Y)8.68%
DP46.22%
Div Incr Years34
Div Non Decr Years34
Ex-Date
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)5.43%
PT rev (3m)6.23%
EPS NQ rev (1m)0.74%
EPS NQ rev (3m)1.61%
EPS NY rev (1m)-0.01%
EPS NY rev (3m)0.46%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-6.95%
Revenue NY rev (1m)1.06%
Revenue NY rev (3m)1.11%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.55 | ||
| Fwd PE | 22.03 | ||
| P/S | 6.02 | ||
| P/FCF | N/A | ||
| P/OCF | 13.81 | ||
| P/B | 2.09 | ||
| P/tB | 2.22 | ||
| EV/EBITDA | 16.13 |
EPS(TTM)7.49
EY4.25%
EPS(NY)8.01
Fwd EY4.54%
FCF(TTM)-9.42
FCFYN/A
OCF(TTM)12.77
OCFY7.24%
SpS29.3
BVpS84.47
TBVpS79.44
PEG (NY)3.41
PEG (5Y)2.46
Graham Number119.31
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 | 1.73 |
F-Score4
WACC7.44%
ROIC/WACC0.65
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 Y6.9%
EPS Next 2Y7.28%
EPS Next 3Y7.28%
EPS Next 5Y6.79%
Revenue 1Y (TTM)-11.66%
Revenue growth 3Y3.83%
Revenue growth 5Y10.76%
Sales Q2Q%12.09%
Revenue Next Year14.12%
Revenue Next 2Y10.42%
Revenue Next 3Y10.97%
Revenue Next 5Y10.46%
EBIT growth 1Y-11.09%
EBIT growth 3Y19.2%
EBIT growth 5Y13.61%
EBIT Next Year65.6%
EBIT Next 3Y30.12%
EBIT Next 5Y23.22%
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 4 / 10 to ATO.
What is the valuation status of ATMOS ENERGY CORP (ATO) stock?
ChartMill assigns a valuation rating of 1 / 10 to ATMOS ENERGY CORP (ATO). This can be considered as Overvalued.
How profitable is ATMOS ENERGY CORP (ATO) stock?
ATMOS ENERGY CORP (ATO) has a profitability rating of 7 / 10.
Can you provide the PE and PB ratios for ATO stock?
The Price/Earnings (PE) ratio for ATMOS ENERGY CORP (ATO) is 23.55 and the Price/Book (PB) ratio is 2.09.
How sustainable is the dividend of ATMOS ENERGY CORP (ATO) stock?
The dividend rating of ATMOS ENERGY CORP (ATO) is 5 / 10 and the dividend payout ratio is 46.22%.