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ATO

Atmos EnergyNYSE:ATO Stock Report

Market Cap

US$11.6b

7D

-1.8%

1Y

-5.8%

Updated

23 Sep, 2021

Data

Company Financials +
ATO fundamental analysis
Snowflake Score
Valuation2/6
Future Growth1/6
Past Performance2/6
Financial Health2/6
Dividends5/6

ATO 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 Competitors

UGI

NYSE:UGI

US$8.9b

National Fuel Gas

NYSE:NFG

US$4.6b

Southwest Gas Holdings

NYSE:SWX

US$4.0b

ONE Gas

NYSE:OGS

US$3.5b

Price History & Performance

Summary of all time highs, changes and price drops for Atmos Energy
Historical stock prices
Current Share PriceUS$88.13
52 Week HighUS$84.59
52 Week LowUS$104.99
Beta0.40
1 Month Change-10.18%
3 Month Change-10.92%
1 Year Change-5.83%
3 Year Change-5.53%
5 Year Change17.70%
Change since IPO644.76%

Recent News & Updates

Sep 17

Atmos Is An Overlooked Dividend Aristocrat That Can Fit Your Portfolio

Atmos is a utility company that has been growing dividends for over 35 years. The company is often overlooked as like most of its peers it's a "boring utility" I think many investors can enjoy this 3% yield, and sleep well at night while they do so.

Sep 01
Atmos Energy (NYSE:ATO) Could Be Struggling To Allocate Capital

Atmos Energy (NYSE:ATO) Could Be Struggling To Allocate Capital

If you're looking for a multi-bagger, there's a few things to keep an eye out for. In a perfect world, we'd like to see...

Shareholder Returns

ATOUS Gas UtilitiesUS Market
7D-1.8%-1.7%-0.5%
1Y-5.8%12.8%37.5%

Return vs Industry: ATO underperformed the US Gas Utilities industry which returned 14.2% over the past year.

Return vs Market: ATO underperformed the US Market which returned 36.2% over the past year.

Price Volatility

Is ATO's price volatile compared to industry and market?
ATO volatility
ATO Beta0.40
Industry Beta0.60
Market Beta1

Stable Share Price: ATO is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 2% a week.

Volatility Over Time: ATO's weekly volatility (2%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19064,694Kevin 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 in 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 Fundamentals Summary

How do Atmos Energy's earnings and revenue compare to its market cap?
ATO fundamental statistics
Market CapUS$11.61b
Earnings (TTM)US$681.70m
Revenue (TTM)US$3.31b

16.9x

P/E Ratio

3.5x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
ATO income statement (TTM)
RevenueUS$3.31b
Cost of RevenueUS$1.63b
Gross ProfitUS$1.69b
ExpensesUS$1.01b
EarningsUS$681.70m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)5.33
Gross Margin50.92%
Net Profit Margin20.57%
Debt/Equity Ratio94.1%

How did ATO perform over the long term?

See historical performance and comparison

Dividends

2.8%

Current Dividend Yield

46%

Payout Ratio

Valuation

Is Atmos Energy undervalued compared to its fair value and its price relative to the market?

16.91x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: ATO ($88.13) is trading above our estimate of fair value ($72.08)

Significantly Below Fair Value: ATO is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: ATO's PE Ratio (16.9x) is in line with the US Gas Utilities industry average.

PE vs Market: ATO is good value based on its PE Ratio (16.9x) compared to the US market (17.7x).


Price to Earnings Growth Ratio

PEG Ratio: ATO is poor value based on its PEG Ratio (1.6x)


Price to Book Ratio

PB vs Industry: ATO is good value based on its PB Ratio (1.5x) compared to the US Gas Utilities industry average (1.7x).


Future Growth

How is Atmos Energy forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

10.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ATO's forecast earnings growth (10.7% per year) is above the savings rate (2%).

Earnings vs Market: ATO's earnings (10.7% per year) are forecast to grow slower than the US market (14.9% per year).

High Growth Earnings: ATO's earnings are forecast to grow, but not significantly.

Revenue vs Market: ATO's revenue (7.2% per year) is forecast to grow slower than the US market (9.8% per year).

High Growth Revenue: ATO's revenue (7.2% 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%).


Past Performance

How has Atmos Energy performed over the past 5 years?

12.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ATO has a high level of non-cash earnings.

Growing Profit Margin: ATO's current net profit margins (20.6%) are lower than last year (21.3%).


Past Earnings Growth Analysis

Earnings Trend: ATO's earnings have grown by 12% per year over the past 5 years.

Accelerating Growth: ATO's earnings growth over the past year (14.7%) exceeds its 5-year average (12% per year).

Earnings vs Industry: ATO earnings growth over the past year (14.7%) underperformed the Gas Utilities industry 26.4%.


Return on Equity

High ROE: ATO's Return on Equity (8.8%) is considered low.


Financial Health

How is Atmos Energy's financial position?


Financial Position Analysis

Short Term Liabilities: ATO's short term assets ($1.1B) exceed its short term liabilities ($1.1B).

Long Term Liabilities: ATO's short term assets ($1.1B) do not cover its long term liabilities ($10.5B).


Debt to Equity History and Analysis

Debt Level: ATO's debt to equity ratio (94.1%) is considered high.

Reducing Debt: ATO's debt to equity ratio has increased from 90.3% to 94.1% over the past 5 years.

Debt Coverage: ATO's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: ATO's interest payments on its debt are well covered by EBIT (11.1x coverage).


Balance Sheet


Dividend

What is Atmos Energy current dividend yield, its reliability and sustainability?

2.84%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: ATO's dividend (2.84%) is higher than the bottom 25% of dividend payers in the US market (1.35%).

High Dividend: ATO's dividend (2.84%) is low compared to the top 25% of dividend payers in the US market (3.63%).


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 (46%), 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 (49.6% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

4.1yrs

Average management tenure


CEO

Kevin Akers (58 yo)

1.92yrs

Tenure

US$9,826,659

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 ($USD9.83M) is about average for companies of similar size in the US market ($USD11.36M).

Compensation vs Earnings: Kevin's compensation has increased by more than 20% in the past year.


Leadership Team

Experienced Management: ATO's management team is considered experienced (4.1 years average tenure).


Board Members

Experienced Board: ATO's board of directors are seasoned and experienced ( 12.3 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: ATO insiders have only sold shares 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 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$11.608b
  • Shares outstanding: 130.79m
  • Website: https://www.atmosenergy.com

Number of Employees


Location

  • Atmos Energy Corporation
  • 1800 Three Lincoln Centre
  • 5430 LBJ Freeway
  • Dallas
  • Texas
  • 75240
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/23 22:55
End of Day Share Price2021/09/23 00:00
Earnings2021/06/30
Annual Earnings2020/09/30


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.