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ATO

Atmos Energy NYSE:ATO Stock Report

Last Price

US$115.27

Market Cap

US$16.1b

7D

-0.5%

1Y

14.6%

Updated

11 Aug, 2022

Data

Company Financials +
ATO fundamental analysis
Snowflake Score
Valuation2/6
Future Growth1/6
Past Performance3/6
Financial Health3/6
Dividends4/6

ATO Stock Overview

Atmos Energy Corporation, together with its subsidiaries, engages in the regulated natural gas distribution, and pipeline and storage businesses in the United States.

Atmos Energy Corporation Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Atmos Energy
Historical stock prices
Current Share PriceUS$115.27
52 Week HighUS$122.96
52 Week LowUS$85.80
Beta0.49
1 Month Change3.06%
3 Month Change2.05%
1 Year Change14.62%
3 Year Change5.40%
5 Year Change31.80%
Change since IPO874.11%

Recent News & Updates

Jul 30
These 4 Measures Indicate That Atmos Energy (NYSE:ATO) Is Using Debt Extensively

These 4 Measures Indicate That Atmos Energy (NYSE:ATO) Is Using Debt Extensively

Some say volatility, rather than debt, is the best way to think about risk as an investor, but Warren Buffett famously...

Jul 25

Atmos Energy: Put This Dividend Aristocrat On Your Radar

Atmos Energy is a well-positioned, diversified, and growing natural gas utility with a strong balance sheet. It's relatively immune to residential solar installations, and has a short payback period on capital investments. I also highlight the dividend, valuation, and whether the stock is a buy, hold, or sell. Market volatility can be painful, especially if one holds a basket of non-dividend paying growth stocks that are underwater. That's why it pays to have portfolio stabilizers such as utilities that can withstand all-weather market environments. These names generally have far lower volatility than the market average, all while providing income to boot. This brings me to the dividend aristocrat, Atmos Energy (ATO), which has outperformed the market on both one-year and year-to-date bases. In this article, I highlight what makes ATO a good 'all weather' stock to own, so let's get started. Why ATO? Atmos Energy is the largest fully regulated, natural gas-only distributor in the U.S. It’s headquartered in Dallas, Texas and serves over 3 million customers in 1,400+ communities across 8 states. It manages a proprietary pipeline and storage assets, including one of the largest intrastate natural gas pipelines in Texas. Atmos is member of the S&P 500 (SPY) and generated $3.8 billion in revenue over the trailing 12 months. ATO's pure-play focus on natural gas makes it well-positioned in a lower carbon future, as natural gas is far cleaner than coal, and should serve as an essential fuel source that complements the growth in renewable energy. This is supported by estimates from the US EIA, which projects that natural gas will remain the most consumed energy source in 2050. ATO also has good diversification by customer type, with around 55% of its customer base being residential, 31% commercial & industrial, and the remaining 14% being comprised of transportation and wholesale customers. Moreover, Atmos operates in regions with favorable regulatory frameworks, and over 90% of its capital expenditures are generally recovered within 6 months. This quick payback period means less risk to its operating model. The steady nature of ATO's business model has translated to lower volatility in its stock price. As shown below, ATO carries a 3-year in the 0.45 to 0.6 range, sitting well below the 1.0 market average. ATO Beta (YCharts) ATO continued to demonstrate healthy growth, with consolidated operating income growing by $3.3 million YoY to $385 million. Excluding one-time tax effects, adjusted operating income grew by a stronger $46.6 million YoY, driven by positive rate outcomes and customer growth in its key markets. Looking forward, I see reasons to be optimistic, as ATO has strong prospects for growth that should flow to the bottom line. Moreover, its focus on natural gas makes it relatively immune to residential solar panels. These factors were reflected by Morningstar in its recent analyst report: Atmos has a clear near-term growth trajectory. We estimate its annual capital investments will grow from $2.5 billion in fiscal 2022 to over $3 billion by 2026. This should nearly double Atmos' rate base and support our annual earnings growth outlook at the high end of management's 6%-8% target. We expect earnings growth to trail rate base growth as we forecast the company will issue over $2.5 billion of common equity to maintain a strong balance sheet. Long term, we think growth will slow in part due to policymaking that aims to reduce fossil fuel use. Renewable energy and electrification continue to grow as gas substitutes. Unlike some of its peers, Atmos will not benefit from home electrification as it serves only natural gas customers.

Jul 13
Atmos Energy Corporation (NYSE:ATO) Shares Could Be 23% Above Their Intrinsic Value Estimate

Atmos Energy Corporation (NYSE:ATO) Shares Could Be 23% Above Their Intrinsic Value Estimate

Today we'll do a simple run through of a valuation method used to estimate the attractiveness of Atmos Energy...

Shareholder Returns

ATOUS Gas UtilitiesUS Market
7D-0.5%0.08%1.3%
1Y14.6%3.2%-11.7%

Return vs Industry: ATO exceeded the US Gas Utilities industry which returned 2.2% over the past year.

Return vs Market: ATO exceeded the US Market which returned -11.6% over the past year.

Price Volatility

Is ATO's price volatile compared to industry and market?
ATO volatility
ATO Average Weekly Movement3.2%
Gas Utilities Industry Average Movement3.6%
Market Average Movement7.8%
10% most volatile stocks in US Market16.9%
10% least volatile stocks in US Market3.2%

Stable Share Price: ATO is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: ATO's weekly volatility (3%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19064,684John Akershttps://www.atmosenergy.com

Atmos Energy Corporation, together with its subsidiaries, engages in the regulated natural gas distribution, and pipeline and storage businesses in the United States. It operates through two segments, Distribution, and Pipeline and Storage. The Distribution segment is involved in the regulated natural gas distribution and related sales operations in eight states.

Atmos Energy Corporation Fundamentals Summary

How do Atmos Energy's earnings and revenue compare to its market cap?
ATO fundamental statistics
Market CapUS$16.13b
Earnings (TTM)US$750.99m
Revenue (TTM)US$4.05b

21.5x

P/E Ratio

4.0x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
ATO income statement (TTM)
RevenueUS$4.05b
Cost of RevenueUS$2.28b
Gross ProfitUS$1.77b
Other ExpensesUS$1.02b
EarningsUS$750.99m

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)5.37
Gross Margin43.67%
Net Profit Margin18.56%
Debt/Equity Ratio85.3%

How did ATO perform over the long term?

See historical performance and comparison

Dividends

2.4%

Current Dividend Yield

48%

Payout Ratio

Does ATO pay a reliable dividends?

See ATO dividend history and benchmarks
When do you need to buy ATO by to receive an upcoming dividend?
Atmos Energy dividend dates
Ex Dividend DateAug 19 2022
Dividend Pay DateSep 06 2022
Days until Ex dividend7 days
Days until Dividend pay date25 days

Does ATO pay a reliable dividends?

See ATO dividend history and benchmarks