ATMOS ENERGY CORP (ATO) Fundamental Analysis & Valuation

NYSE:ATO • US0495601058

Current stock price

183.44 USD
+0.26 (+0.14%)
Last:

This ATO fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

7

1. ATO Profitability Analysis

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.
ATO Yearly Net Income VS EBIT VS OCF VS FCFATO Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 2B -2B

1.2 Ratios

  • With a decent Return On Assets value of 4.19%, ATO is doing good in the industry, outperforming 66.67% of the companies in the same industry.
  • Looking at the Return On Equity, with a value of 8.75%, ATO is in line with its industry, outperforming 46.67% of the companies in the same industry.
  • Looking at the Return On Invested Capital, with a value of 4.71%, ATO is in line with its industry, outperforming 46.67% 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 6.14%.
  • The last Return On Invested Capital (4.71%) for ATO is above the 3 year average (4.53%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA 4.19%
ROE 8.75%
ROIC 4.71%
ROA(3y)4.1%
ROA(5y)3.84%
ROE(3y)8.52%
ROE(5y)8.44%
ROIC(3y)4.53%
ROIC(5y)4.46%
ATO Yearly ROA, ROE, ROICATO Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2 4 6 8 10

1.3 Margins

  • Looking at the Profit Margin, with a value of 25.66%, ATO belongs to the top of the industry, outperforming 93.33% of the companies in the same industry.
  • In the last couple of years the Profit Margin of ATO has grown nicely.
  • ATO has a better Operating Margin (33.17%) than 86.67% of its industry peers.
  • In the last couple of years the Operating Margin of ATO has grown nicely.
  • ATO has a Gross Margin of 76.83%. This is in the better half of the industry: ATO outperforms 80.00% of its industry peers.
  • ATO's Gross Margin has been stable in the last couple of years.
Industry RankSector Rank
OM 33.17%
PM (TTM) 25.66%
GM 76.83%
OM growth 3Y14.81%
OM growth 5Y2.57%
PM growth 3Y11.42%
PM growth 5Y3.65%
GM growth 3Y8.86%
GM growth 5Y0.18%
ATO Yearly Profit, Operating, Gross MarginsATO Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20 40 60

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4

2. ATO Health Analysis

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.
  • Compared to 5 years ago, ATO has more shares outstanding
  • ATO has a worse debt/assets ratio than last year.
ATO Yearly Shares OutstandingATO Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 50M 100M 150M
ATO Yearly Total Debt VS Total AssetsATO Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5B 10B 15B 20B 25B

2.2 Solvency

  • Based on the Altman-Z score of 1.76, we must say that ATO is in the distress zone and has some risk of bankruptcy.
  • ATO's Altman-Z score of 1.76 is amongst the best of the industry. ATO outperforms 93.33% of its industry peers.
  • A Debt/Equity ratio of 0.67 indicates that ATO is somewhat dependend on debt financing.
  • ATO's Debt to Equity ratio of 0.67 is amongst the best of the industry. ATO outperforms 93.33% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.67
Debt/FCF N/A
Altman-Z 1.76
ROIC/WACC0.61
WACC7.76%
ATO Yearly LT Debt VS Equity VS FCFATO Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 5B 10B

2.3 Liquidity

  • A Current Ratio of 1.13 indicates that ATO should not have too much problems paying its short term obligations.
  • The Current ratio of ATO (1.13) is better than 93.33% of its industry peers.
  • ATO has a Quick Ratio of 1.02. 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 Quick ratio value of 1.02, ATO belongs to the best of the industry, outperforming 93.33% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 1.13
Quick Ratio 1.02
ATO Yearly Current Assets VS Current LiabilitesATO Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1B 2B 3B

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6

3. ATO Growth Analysis

3.1 Past

  • ATO shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 10.16%, which is quite good.
  • ATO shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 9.58% yearly.
  • ATO shows a decrease in Revenue. In the last year, the revenue decreased by -8.83%.
  • 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)10.16%
EPS 3Y9.79%
EPS 5Y9.58%
EPS Q2Q%9.42%
Revenue 1Y (TTM)-8.83%
Revenue growth 3Y3.83%
Revenue growth 5Y10.76%
Sales Q2Q%14.17%

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 8.34% on average per year.
  • The Revenue is expected to grow by 9.60% on average over the next years. This is quite good.
EPS Next Y11.21%
EPS Next 2Y9.02%
EPS Next 3Y8.65%
EPS Next 5Y8.34%
Revenue Next Year14.06%
Revenue Next 2Y12.65%
Revenue Next 3Y11.06%
Revenue Next 5Y9.6%

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.
ATO Yearly Revenue VS EstimatesATO Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2B 4B 6B
ATO Yearly EPS VS EstimatesATO Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2 4 6 8 10

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1

4. ATO Valuation Analysis

4.1 Price/Earnings Ratio

  • Based on the Price/Earnings ratio of 23.82, the valuation of ATO can be described as rather expensive.
  • 80.00% of the companies in the same industry are cheaper than ATO, based on the Price/Earnings ratio.
  • The average S&P500 Price/Earnings ratio is at 25.23. ATO is around the same levels.
  • ATO is valuated rather expensively with a Price/Forward Earnings ratio of 20.61.
  • Compared to the rest of the industry, the Price/Forward Earnings ratio of ATO indicates a rather expensive valuation: ATO more expensive than 86.67% of the companies listed in the same industry.
  • ATO is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 22.51, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 23.82
Fwd PE 20.61
ATO Price Earnings VS Forward Price EarningsATO Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

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 93.33% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 16.74
ATO Per share dataATO EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 20 40 60 80

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)2.13
PEG (5Y)2.49
EPS Next 2Y9.02%
EPS Next 3Y8.65%

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5

5. ATO Dividend Analysis

5.1 Amount

  • With a Yearly Dividend Yield of 2.16%, ATO has a reasonable but not impressive dividend return.
  • Compared to an average industry Dividend Yield of 3.64, ATO's dividend is way lower than its industry peers. On top of this 86.67% of the companies listed in the same industry pay a better dividend than ATO!
  • Compared to an average S&P500 Dividend Yield of 1.90, ATO has a dividend comparable with the average S&P500 company.
Industry RankSector Rank
Dividend Yield 2.16%

5.2 History

  • On average, the dividend of ATO grows each year by 8.68%, which is quite nice.
  • ATO has been paying a dividend for at least 10 years, so it has 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
ATO Yearly Dividends per shareATO Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 1 2 3

5.3 Sustainability

  • 46.32% 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.
DP46.32%
EPS Next 2Y9.02%
EPS Next 3Y8.65%
ATO Yearly Income VS Free CF VS DividendATO Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 1B -1B -2B -3B
ATO Dividend Payout.ATO Dividend Payout, showing the Payout Ratio.ATO Dividend Payout.PayoutRetained Earnings

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ATO Fundamentals: All Metrics, Ratios and Statistics

ATMOS ENERGY CORP

NYSE:ATO (3/27/2026, 2:34:34 PM)

183.44

+0.26 (+0.14%)

Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryGas Utilities
Earnings (Last)02-03
Earnings (Next)05-05
Inst Owners99.74%
Inst Owner Change0.15%
Ins Owners0.31%
Ins Owner Change4.3%
Market Cap30.35B
Revenue(TTM)4.87B
Net Income(TTM)1.25B
Analysts68.42
Price Target182.25 (-0.65%)
Short Float %2.62%
Short Ratio3.09
Dividend
Industry RankSector Rank
Dividend Yield 2.16%
Yearly Dividend3.5
Dividend Growth(5Y)8.68%
DP46.32%
Div Incr Years34
Div Non Decr Years34
Ex-Date02-23
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)2.66%
Min EPS beat(2)-0.38%
Max EPS beat(2)5.71%
EPS beat(4)3
Avg EPS beat(4)2.49%
Min EPS beat(4)-0.38%
Max EPS beat(4)5.71%
EPS beat(8)7
Avg EPS beat(8)2.85%
EPS beat(12)9
Avg EPS beat(12)2.22%
EPS beat(16)11
Avg EPS beat(16)3.08%
Revenue beat(2)1
Avg Revenue beat(2)-1.3%
Min Revenue beat(2)-3.83%
Max Revenue beat(2)1.23%
Revenue beat(4)3
Avg Revenue beat(4)1.11%
Min Revenue beat(4)-3.83%
Max Revenue beat(4)6.12%
Revenue beat(8)3
Avg Revenue beat(8)-8.37%
Revenue beat(12)3
Avg Revenue beat(12)-15.53%
Revenue beat(16)7
Avg Revenue beat(16)-5.85%
PT rev (1m)1.57%
PT rev (3m)2.57%
EPS NQ rev (1m)-0.35%
EPS NQ rev (3m)-2.02%
EPS NY rev (1m)0.29%
EPS NY rev (3m)0.89%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.98%
Revenue NY rev (1m)4.23%
Revenue NY rev (3m)2.12%
Valuation
Industry RankSector Rank
PE 23.82
Fwd PE 20.61
P/S 6.23
P/FCF N/A
P/OCF 14.62
P/B 2.12
P/tB 2.25
EV/EBITDA 16.74
EPS(TTM)7.7
EY4.2%
EPS(NY)8.9
Fwd EY4.85%
FCF(TTM)-9.84
FCFYN/A
OCF(TTM)12.55
OCFY6.84%
SpS29.43
BVpS86.33
TBVpS81.47
PEG (NY)2.13
PEG (5Y)2.49
Graham Number122.3
Profitability
Industry RankSector Rank
ROA 4.19%
ROE 8.75%
ROCE 5.7%
ROIC 4.71%
ROICexc 4.78%
ROICexgc 4.92%
OM 33.17%
PM (TTM) 25.66%
GM 76.83%
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-Score3
Asset Turnover0.16
Health
Industry RankSector Rank
Debt/Equity 0.67
Debt/FCF N/A
Debt/EBITDA 4.07
Cap/Depr 494.56%
Cap/Sales 76.06%
Interest Coverage 250
Cash Conversion 87.79%
Profit Quality N/A
Current Ratio 1.13
Quick Ratio 1.02
Altman-Z 1.76
F-Score3
WACC7.76%
ROIC/WACC0.61
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)10.16%
EPS 3Y9.79%
EPS 5Y9.58%
EPS Q2Q%9.42%
EPS Next Y11.21%
EPS Next 2Y9.02%
EPS Next 3Y8.65%
EPS Next 5Y8.34%
Revenue 1Y (TTM)-8.83%
Revenue growth 3Y3.83%
Revenue growth 5Y10.76%
Sales Q2Q%14.17%
Revenue Next Year14.06%
Revenue Next 2Y12.65%
Revenue Next 3Y11.06%
Revenue Next 5Y9.6%
EBIT growth 1Y-11%
EBIT growth 3Y19.2%
EBIT growth 5Y13.61%
EBIT Next Year60.48%
EBIT Next 3Y26.93%
EBIT Next 5Y22.49%
FCF growth 1Y-321.17%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-40.97%
OCF growth 3Y27.99%
OCF growth 5Y14.57%

ATMOS ENERGY CORP / ATO Fundamental Analysis 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 11.21% 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 46.32%.