ATMOS ENERGY CORP (ATO)
US0495601058 - Common Stock
We assign a fundamental rating of 5 out of 10 to ATO. ATO was compared to 13 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 quite expensive at the moment. 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.
In the past 5 years ATO has always been profitable.
ATO had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
ATO's Return On Assets of 5.38% is amongst the best of the industry. ATO outperforms 92.31% of its industry peers.
With a Return On Equity value of 10.98%, ATO perfoms like the industry average, outperforming 53.85% of the companies in the same industry.
ATO has a Return On Invested Capital of 6.47%. This is in the better half of the industry: ATO outperforms 61.54% of its industry peers.
ATO had an Average Return On Invested Capital over the past 3 years of 4.64%. This is in line with the industry average of 6.26%.
The 3 year average ROIC (4.64%) for ATO is below the current ROIC(6.47%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.38% | ||
| ROE | 10.98% | ||
| ROIC | 6.47% |
ROA(3y)3.6%
ROA(5y)3.71%
ROE(3y)8.26%
ROE(5y)8.5%
ROIC(3y)4.64%
ROIC(5y)4.86%
1.3 Margins
The Profit Margin of ATO (25.47%) is better than 92.31% of its industry peers.
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 32.81%, ATO belongs to the top of the industry, outperforming 84.62% 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 (75.20%) is better than 84.62% of its industry peers.
ATO's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 32.81% | ||
| PM (TTM) | 25.47% | ||
| GM | 75.2% |
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.
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 better debt/assets ratio than last year.
2.2 Solvency
ATO has an Altman-Z score of 1.76. 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 1.76. This is amongst the best in the industry. ATO outperforms 100.00% of its industry peers.
ATO has a Debt/Equity ratio of 0.65. This is a neutral value indicating ATO is somewhat dependend on debt financing.
ATO has a better Debt to Equity ratio (0.65) than 92.31% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.65 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.76 |
ROIC/WACC0.89
WACC7.26%
2.3 Liquidity
ATO has a Current Ratio of 1.73. This is a normal value and indicates that ATO is financially healthy and should not expect problems in meeting its short term obligations.
ATO has a Current ratio of 1.73. This is amongst the best in the industry. ATO outperforms 100.00% of its industry peers.
ATO has a Quick Ratio of 1.57. This is a normal value and indicates that ATO is financially healthy and should not expect problems in meeting its short term obligations.
ATO has a better Quick ratio (1.57) than 92.31% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.73 | ||
| Quick Ratio | 1.57 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 16.61% 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 8.80% yearly.
The Revenue has grown by 19.11% in the past year. This is quite good.
Measured over the past years, ATO shows a small growth in Revenue. The Revenue has been growing by 6.53% on average per year.
EPS 1Y (TTM)16.61%
EPS 3Y8.95%
EPS 5Y8.8%
EPS Q2Q%14.89%
Revenue 1Y (TTM)19.11%
Revenue growth 3Y14.86%
Revenue growth 5Y6.53%
Sales Q2Q%5.86%
3.2 Future
ATO is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.58% yearly.
The Revenue is expected to grow by 6.05% on average over the next years.
EPS Next Y11.72%
EPS Next 2Y8.06%
EPS Next 3Y7.91%
EPS Next 5Y7.58%
Revenue Next Year-0.77%
Revenue Next 2Y4.53%
Revenue Next 3Y5.54%
Revenue Next 5Y6.05%
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.
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
With a Price/Earnings ratio of 20.88, ATO is valued on the expensive side.
Compared to the rest of the industry, the Price/Earnings ratio of ATO indicates a slightly more expensive valuation: ATO is more expensive than 76.92% of the companies listed in the same industry.
ATO's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 31.46.
With a Price/Forward Earnings ratio of 19.87, ATO is valued on the expensive side.
ATO's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. ATO is more expensive than 69.23% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of ATO to the average of the S&P500 Index (22.63), we can say ATO is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.88 | ||
| Fwd PE | 19.87 |
4.2 Price Multiples
ATO's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. ATO is more expensive than 76.92% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 12.37 |
4.3 Compensation for Growth
ATO's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
ATO has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)1.78
PEG (5Y)2.37
EPS Next 2Y8.06%
EPS Next 3Y7.91%
5. Dividend
5.1 Amount
ATO has a Yearly Dividend Yield of 2.24%.
Compared to an average industry Dividend Yield of 4.16, ATO's dividend is way lower than its industry peers. On top of this 84.62% of the companies listed in the same industry pay a better dividend than ATO!
Compared to an average S&P500 Dividend Yield of 2.18, ATO has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.24% |
5.2 History
On average, the dividend of ATO grows each year by 8.50%, 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)8.5%
Div Incr Years33
Div Non Decr Years33
5.3 Sustainability
35.72% of the earnings are spent on dividend by ATO. This is a low number and sustainable payout ratio.
The dividend of ATO is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP35.72%
EPS Next 2Y8.06%
EPS Next 3Y7.91%
ATMOS ENERGY CORP
NYSE:ATO (10/21/2024, 8:04:00 PM)
After market: 142.21 0 (0%)142.21
-1.05 (-0.73%)
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 Cap22.08B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.24% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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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 | 20.88 | ||
| Fwd PE | 19.87 | ||
| 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)1.78
PEG (5Y)2.37
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.38% | ||
| ROE | 10.98% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 32.81% | ||
| PM (TTM) | 25.47% | ||
| GM | 75.2% | ||
| 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 Turnover0.21
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.65 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.73 | ||
| Quick Ratio | 1.57 | ||
| 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)
High Growth Momentum
Growth
EPS 1Y (TTM)16.61%
EPS 3Y8.95%
EPS 5Y
EPS Q2Q%
EPS Next Y11.72%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)19.11%
Revenue growth 3Y14.86%
Revenue growth 5Y
Sales 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