Atmos Energy
Market Cap
US$12.6b
Last Updated
2020/03/31 01:01 UTC
Data Sources
Company Financials +
Executive Summary
Atmos Energy Corporation, together with its subsidiaries, engages in the regulated natural gas distribution, and pipeline and storage businesses in the United States.
Rewards
Risk Analysis
Snowflake Analysis
Solid track record established dividend payer.
Similar Companies
Share Price & News
How has Atmos Energy's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: ATO has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
16.1%
ATO
15.3%
US Gas Utilities
7.2%
US Market
1 Year Return
2.6%
ATO
-18.9%
US Gas Utilities
-10.4%
US Market
Return vs Industry: ATO exceeded the US Gas Utilities industry which returned -18.9% over the past year.
Return vs Market: ATO exceeded the US Market which returned -10.4% over the past year.
Shareholder returns
| ATO | Industry | Market | |
|---|---|---|---|
| 7 Day | 16.1% | 15.3% | 7.2% |
| 30 Day | -0.4% | -4.0% | -12.6% |
| 90 Day | -8.1% | -17.5% | -19.4% |
| 1 Year | 4.7%2.6% | -16.6%-18.9% | -8.5%-10.4% |
| 3 Year | 37.6%29.1% | -2.0%-9.4% | 15.8%8.3% |
| 5 Year | 107.5%85.1% | 38.4%20.9% | 35.8%21.0% |
Price Volatility Vs. Market
How volatile is Atmos Energy's share price compared to the market and industry in the last 5 years?
Simply Wall St News
1 week ago | Simply Wall St
Is Atmos Energy Corporation’s (NYSE:ATO) Return On Capital Employed Any Good?3 weeks ago | Simply Wall St
Should You Be Adding Atmos Energy (NYSE:ATO) To Your Watchlist Today?1 month ago | Simply Wall St
Does Atmos Energy Corporation (NYSE:ATO) Have A Place In Your Dividend Portfolio?Valuation
Is Atmos Energy undervalued compared to its fair value and its price relative to the market?
23x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: ATO ($102.82) is trading above our estimate of fair value ($55.95)
Significantly Below Fair Value: ATO is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: ATO is poor value based on its PE Ratio (23x) compared to the Gas Utilities industry average (21.7x).
PE vs Market: ATO is poor value based on its PE Ratio (23x) compared to the US market (13.1x).
Price to Earnings Growth Ratio
PEG Ratio: ATO is poor value based on its PEG Ratio (2.1x)
Price to Book Ratio
PB vs Industry: ATO is overvalued based on its PB Ratio (2.1x) compared to the US Gas Utilities industry average (1.8x).
Next Steps
Future Growth
How is Atmos Energy forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?
11.0%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: ATO's forecast earnings growth (11% per year) is above the savings rate (1.7%).
Earnings vs Market: ATO's earnings (11% per year) are forecast to grow slower than the US market (12.2% per year).
High Growth Earnings: ATO's earnings are forecast to grow, but not significantly.
Revenue vs Market: ATO's revenue (9% per year) is forecast to grow faster than the US market (7.2% per year).
High Growth Revenue: ATO's revenue (9% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: ATO's Return on Equity is forecast to be low in 3 years time (9.3%).
Next Steps
Past Performance
How has Atmos Energy performed over the past 5 years?
13.8%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: ATO has high quality earnings.
Growing Profit Margin: ATO's current net profit margins (18.3%) are higher than last year (14.4%).
Past Earnings Growth Analysis
Earnings Trend: ATO's earnings have grown by 13.8% per year over the past 5 years.
Accelerating Growth: ATO's earnings growth over the past year (19.2%) exceeds its 5-year average (13.8% per year).
Earnings vs Industry: ATO earnings growth over the past year (19.2%) exceeded the Gas Utilities industry 8%.
Return on Equity
High ROE: ATO's Return on Equity (8.7%) is considered low.
Next Steps
Financial Health
How is Atmos Energy's financial position?
Financial Position Analysis
Short Term Liabilities: ATO's short term assets ($812.1M) do not cover its short term liabilities ($845.2M).
Long Term Liabilities: ATO's short term assets ($812.1M) do not cover its long term liabilities ($7.4B).
Debt to Equity History and Analysis
Debt Level: ATO's debt to equity ratio (70.5%) is considered high.
Reducing Debt: ATO's debt to equity ratio has reduced from 100.6% to 70.5% over the past 5 years.
Debt Coverage: ATO's debt is well covered by operating cash flow (22.6%).
Interest Coverage: ATO's interest payments on its debt are well covered by EBIT (7.8x coverage).
Balance Sheet
Inventory Level: ATO has a high level of physical assets or inventory.
Debt Coverage by Assets: ATO's debt is not covered by short term assets (assets are 0.2x debt).
Next Steps
Dividend
What is Atmos Energy's current dividend yield, its reliability and sustainability?
2.24%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: ATO's dividend (2.24%) is higher than the bottom 25% of dividend payers in the US market (1.95%).
High Dividend: ATO's dividend (2.24%) is low compared to the top 25% of dividend payers in the US market (5.4%).
Stability and Growth of Payments
Stable Dividend: ATO's dividends per share have been stable in the past 10 years.
Growing Dividend: ATO's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonably low payout ratio (48.1%), ATO's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: ATO's dividends in 3 years are forecast to be well covered by earnings (48.9% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
2.8yrs
Average management tenure
CEO
Kevin Akers (56yo)
0.42
Tenure
US$7,855,539
Compensation
Mr. John Kevin Akers, also known as Kevin, has been President, Chief Executive Officer and Director of Atmos Energy Corporation since October 1, 2019. Mr. Akers served as Executive Vice President of Safety ...
CEO Compensation Analysis
Compensation vs Market: Kevin's total compensation ($USD7.86M) is below average for companies of similar size in the US market ($USD11.74M).
Compensation vs Earnings: Kevin's compensation has increased by more than 20% in the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Executive Chairman of the Board | 2.42yrs | US$5.88m | 0.36% $45.6m | |
| CEO, President & Director | 0.42yr | US$7.86m | 0.037% $4.6m | |
| Senior VP & CFO | 3yrs | US$2.16m | 0.021% $2.6m | |
| Senior Vice President of Utility Operations | 3.17yrs | US$1.85m | 0.010% $1.3m | |
| VP & Chief Information Officer | 12.42yrs | no data | no data | |
| Vice President of Investor Relations | no data | no data | no data | |
| Senior VP | 2.58yrs | no data | 0.0039% $495.3k | |
| Vice President of Governmental & Public Affairs | 2.58yrs | no data | no data | |
| Senior Vice President of Human Resources | 3.17yrs | no data | 0.0072% $898.9k | |
| Senior Vice President of Technical & Operating Services | 1.58yrs | no data | no data |
2.8yrs
Average Tenure
51yo
Average Age
Experienced Management: ATO's management team is considered experienced (2.8 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Executive Chairman of the Board | 2.42yrs | US$5.88m | 0.36% $45.6m | |
| CEO, President & Director | 0.42yr | US$7.86m | 0.037% $4.6m | |
| Independent Director | 23.17yrs | US$250.00k | 0.51% $64.2m | |
| Independent Director | 26.17yrs | US$250.00k | 0.015% $1.8m | |
| Independent Director | 15.58yrs | US$262.51k | no data | |
| Lead Director | 4yrs | US$279.01k | 0.0082% $1.0m | |
| Director | 14.42yrs | US$250.00k | 0.00082% $103.1k | |
| Member of the Customer Advisory Board | no data | no data | no data | |
| Independent Director | 10.83yrs | US$260.00k | 0.0063% $787.0k | |
| Independent Director | 7.83yrs | US$265.00k | 0.0024% $308.0k |
10.8yrs
Average Tenure
70yo
Average Age
Experienced Board: ATO's board of directors are seasoned and experienced ( 10.8 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 6%.
Top Shareholders
Company Information
Atmos Energy Corporation's company bio, employee growth, exchange listings and data sources
Key Information
- Name: Atmos Energy Corporation
- Ticker: ATO
- Exchange: NYSE
- Founded: 1906
- Industry: Gas Utilities
- Sector: Utilities
- Market Cap: US$12.572b
- Shares outstanding: 122.27m
- Website: https://www.atmosenergy.com
Number of Employees
Location
- Atmos Energy Corporation
- Three Lincoln Centre
- Suite 1800
- Dallas
- Texas
- 75240
- United States
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| ATO | NYSE (New York Stock Exchange) | Yes | Common Shares | US | USD | Nov 1983 |
| AEO | DB (Deutsche Boerse AG) | Yes | Common Shares | DE | EUR | Nov 1983 |
| AEOCHF | BRSE (Berne Stock Exchange) | Yes | Common Shares | CH | CHF | Nov 1983 |
| A1TM34 | BOVESPA (Bolsa de Valores de Sao Paulo) | BDR EACH 2 REPR 1 COM | BR | BRL | Jan 2020 |
Biography
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 Distribution, and Pipeline and Storage segments. The Distribution segment is involved in the regulated natural gas distribution and related sales operations in eight states. This segment distributes natural gas to approximately three million residential, commercial, public authority, and industrial customers. As of September 30, 2019, it owned 70,875 miles of underground distribution and transmission mains. The Pipeline and Storage segment engages in the pipeline and storage operations. This segment transports natural gas for third parties and manages five underground storage reservoirs in Texas; and provides ancillary services to the pipeline industry, including parking arrangements, lending, and inventory sales. It owns 5,669 miles of gas transmission lines. The company was founded in 1906 and is headquartered in Dallas, Texas.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/03/31 01:01 |
| End of Day Share Price | 2020/03/30 00:00 |
| Earnings | 2019/12/31 |
| Annual Earnings | 2019/09/30 |
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.