ATMOS ENERGY CORP (ATO) Stock Fundamental Analysis
USA - NYSE:ATO - US0495601058 - Common Stock
177.1 USD
+0.06 (+0.03%)
177.1 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to ATO. ATO was compared to 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
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
ATO's Return On Assets of 4.18% is fine compared to the rest of the industry. ATO outperforms 71.43% of its industry peers.
ATO has a better Return On Equity (8.65%) than 71.43% of its industry peers.
With a Return On Invested Capital value of 4.96%, ATO perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for ATO is in line with the industry average of 6.32%.
The last Return On Invested Capital (4.96%) for ATO is above the 3 year average (4.48%), which is a sign of increasing profitability.
| 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
ATO's Profit Margin of 25.03% is amongst the best of the industry. ATO outperforms 100.00% of its industry peers.
In the last couple of years the Profit Margin of ATO has grown nicely.
Looking at the Operating Margin, with a value of 33.00%, ATO belongs to the top of the industry, outperforming 85.71% of the companies in the same industry.
ATO's Operating Margin has improved in the last couple of years.
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
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 1 year ago.
ATO has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, ATO has a worse debt to assets ratio.
2.2 Solvency
ATO has an Altman-Z score of 1.80. This is a bad value and indicates that ATO is not financially healthy and even has some risk of bankruptcy.
ATO has a Altman-Z score of 1.80. This is amongst the best in the industry. ATO outperforms 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 | 1.8 |
ROIC/WACC0.65
WACC7.59%
2.3 Liquidity
A Current Ratio of 1.37 indicates that ATO should not have too much problems paying its short term obligations.
ATO has a Current ratio of 1.37. This is amongst the best in 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.
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 | 1.37 | ||
| Quick Ratio | 1.25 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 6.46% over the past year.
ATO shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 9.37% yearly.
ATO shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -11.99%.
The Revenue has been growing slightly by 7.50% on average over the past years.
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
ATO is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.69% yearly.
The Revenue is expected to grow by 8.91% on average over the next years. This is quite good.
EPS Next Y8.73%
EPS Next 2Y7.95%
EPS Next 3Y7.86%
EPS Next 5Y7.69%
Revenue Next Year2.76%
Revenue Next 2Y7.03%
Revenue Next 3Y7.54%
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.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 24.43, the valuation of ATO can be described as rather expensive.
Based on the Price/Earnings ratio, ATO is valued more expensive than 85.71% of the companies in the same industry.
ATO's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.57.
Based on the Price/Forward Earnings ratio of 22.22, the valuation of ATO can be described as rather expensive.
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.
When comparing the Price/Forward Earnings ratio of ATO to the average of the S&P500 Index (23.09), we can say ATO is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.43 | ||
| Fwd PE | 22.22 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ATO is valued more expensive than 92.86% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 16.33 |
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.
ATO has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)2.8
PEG (5Y)2.61
EPS Next 2Y7.95%
EPS Next 3Y7.86%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.97%, ATO has a reasonable but not impressive dividend return.
With a Dividend Yield of 1.97, ATO pays less dividend than the industry average, which is at 3.84. 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 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.97% |
5.2 History
The dividend of ATO is nicely growing with an annual growth rate of 8.76%!
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
46.53% 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.
DP46.53%
EPS Next 2Y7.95%
EPS Next 3Y7.86%
177.1
+0.06 (+0.03%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryGas Utilities
Earnings (Last)
Earnings (Next)
Inst Owners102.53%
Inst Owner Change0.19%
Ins Owners0.34%
Ins Owner Change-0.55%
Market Cap28.43B
Revenue(TTM)4.62B
Net Income(TTM)1.16B
Analysts71.11
Price Target167.69 (-5.31%)
Short Float %3.43%
Short Ratio6.26
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.97% |
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)0.75%
PT rev (3m)2.02%
EPS NQ rev (1m)2.12%
EPS NQ rev (3m)9.63%
EPS NY rev (1m)0.1%
EPS NY rev (3m)1.7%
Revenue NQ rev (1m)-15.53%
Revenue NQ rev (3m)-27.68%
Revenue NY rev (1m)-0.67%
Revenue NY rev (3m)1.06%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.43 | ||
| Fwd PE | 22.22 | ||
| P/S | 6.15 | ||
| P/FCF | N/A | ||
| P/OCF | 13.99 | ||
| P/B | 2.12 | ||
| P/tB | 2.26 | ||
| EV/EBITDA | 16.33 |
EPS(TTM)7.25
EY4.09%
EPS(NY)7.97
Fwd EY4.5%
FCF(TTM)-8.56
FCFYN/A
OCF(TTM)12.66
OCFY7.15%
SpS28.8
BVpS83.39
TBVpS78.35
PEG (NY)2.8
PEG (5Y)2.61
Graham Number116.63
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%
ROICexgc growth 3Y-0.04%
ROICexgc 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 | 1.8 |
F-Score4
WACC7.59%
ROIC/WACC0.65
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 Y8.73%
EPS Next 2Y7.95%
EPS Next 3Y7.86%
EPS Next 5Y7.69%
Revenue 1Y (TTM)-11.99%
Revenue growth 3Y6.92%
Revenue growth 5Y7.5%
Sales Q2Q%19.56%
Revenue Next Year2.76%
Revenue Next 2Y7.03%
Revenue Next 3Y7.54%
Revenue Next 5Y8.91%
EBIT growth 1Y-11.49%
EBIT growth 3Y14.41%
EBIT growth 5Y12.68%
EBIT Next Year66.14%
EBIT Next 3Y28.15%
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%