NYSE:ATO

Stock Analysis Report

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.

Snowflake

Fundamentals

Established dividend payer with mediocre balance sheet.


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


Market Performance


7 Day Return

0.2%

ATO

-0.04%

US Gas Utilities

1.8%

US Market


1 Year Return

15.0%

ATO

1.5%

US Gas Utilities

7.3%

US Market

Return vs Industry: ATO exceeded the US Gas Utilities industry which returned 1.5% over the past year.

Return vs Market: ATO exceeded the US Market which returned 7.3% over the past year.


Shareholder returns

ATOIndustryMarket
7 Day0.2%-0.04%1.8%
30 Day-0.2%-1.8%-0.7%
90 Day4.0%-1.3%0.06%
1 Year17.4%15.0%4.0%1.5%9.7%7.3%
3 Year66.2%55.6%37.0%27.0%46.3%36.9%
5 Year143.5%116.2%71.9%50.3%64.5%46.5%

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

Valuation

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

26.2x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Undervalued: ATO ($111.6) is trading above our estimate of fair value ($49.71)

Significantly Undervalued: 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 (26.2x) compared to the Gas Utilities industry average (25.5x).

PE vs Market: ATO is poor value based on its PE Ratio (26.2x) compared to the US market (17.7x).


Price to Earnings Growth Ratio

Low PEG Ratio: ATO is poor value based on its PEG Ratio (2.4x)


Price to Book Ratio

PB vs Industry: ATO is overvalued based on its PB Ratio (2.3x) compared to the US Gas Utilities industry average (2.3x).


Next Steps

Future Growth

How is Atmos Energy forecast to perform in the next 1 to 3 years based on estimates from 8 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 (2.7%).

Earnings vs Market: ATO's earnings (10.7% per year) are forecast to grow slower than the US market (14.6% per year).

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

Revenue vs Market: ATO's revenue (7.9% per year) is forecast to grow faster than the US market (7.3% per year).

High Growth Revenue: ATO's revenue (7.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High 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?

15.2%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: ATO's earnings have grown by 15.2% per year over the past 5 years.

Accelerating Growth: ATO's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: ATO had negative earnings growth (-18.1%) over the past year, making it difficult to compare to the Gas Utilities industry average (-8.9%).


Return on Equity

High ROE: ATO's Return on Equity (8.7%) is considered low.


Return on Assets

ROA vs Industry: ATO has a higher Return on Assets than the Gas Utilities industry average last year.


Return on Capital Employed

ROCE Improving: ATO's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Atmos Energy's financial position?


Financial Position Analysis

Short Term Liabilities: ATO's short term assets ($503.5M) do not cover its short term liabilities ($901.4M)

Long Term Liabilities: ATO's short term assets (503.5M) do not cover its long term liabilities (6.3B)


Debt to Equity History and Analysis

Debt Level: ATO's debt to equity ratio (66.1%) is considered high

Reducing Debt: ATO's debt to equity ratio has reduced from 78.9% to 66.1% over the past 5 years.

Debt Coverage: ATO's debt is well covered by operating cash flow (24.1%).

Interest Coverage: ATO's interest payments on its debt are well covered by EBIT (7.6x 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 0.1x debt).


Next Steps

Dividend

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

1.88%

Current Dividend Yield


Dividend Yield vs Market

company1.9%marketbottom25%1.5%markettop25%3.7%industryaverage2.5%forecastin3Years2.1%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: ATO's dividend (1.88%) is higher than the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: ATO's dividend (1.88%) is low compared to the top 25% of dividend payers in the US market (3.72%).

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 (48.4%), 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% payout ratio).


Next Steps

Management

What is the CEO of Atmos Energy's salary, the management and board of directors tenure and is there insider trading?

2.7yrs

Average management tenure


CEO

John Akers (56yo)

0yrs

Tenure

US$1,736,610

Compensation

Mr. John Kevin Akers 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 & Enterprise Services ...


CEO Compensation Analysis

Compensation vs. Market: John has recently become CEO, making it difficult to compare their total compensation against companies of similar size in the US market.

Compensation vs Earnings: John's compensation has been consistent with company performance over the past year.


Management Age and Tenure

2.7yrs

Average Tenure

51yo

Average Age

Experienced Management: ATO's management team is considered experienced (2.7 years average tenure).


Board Age and Tenure

10.4yrs

Average Tenure

69.5yo

Average Age

Experienced Board: ATO's board of directors are seasoned and experienced ( 10.4 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown


Management Team

  • Kim Cocklin (68yo)

    Executive Chairman of the Board

    • Tenure: 2yrs
    • Compensation: US$4.35m
  • John Akers (56yo)

    CEO, President & Director

    • Tenure: 0yrs
    • Compensation: US$1.74m
  • Rich Gius (62yo)

    VP & Chief Information Officer

    • Tenure: 12yrs
  • Chris Forsythe (47yo)

    Senior VP & CFO

    • Tenure: 2.7yrs
    • Compensation: US$1.41m
  • David Park (48yo)

    Senior Vice President of Utility Operations

    • Tenure: 2.8yrs
    • Compensation: US$1.40m
  • Matt Robbins (49yo)

    Senior Vice President of Human Resources

    • Tenure: 2.8yrs
  • Karen Hartsfield (49yo)

    Senior VP

    • Tenure: 2.2yrs
  • Liz Beauchamp

    Vice President of Governmental & Public Affairs

    • Tenure: 2.2yrs
  • Jennifer Hills (53yo)

    Vice President of Investor Relations

    • Tenure: 0yrs
  • Jeff Knights

    Senior Vice President of Technical & Operating Services

    • Tenure: 1.2yrs

Board Members

  • Bob Best (73yo)

    Director

    • Tenure: 22.8yrs
    • Compensation: US$314.40k
  • Richard Ware (73yo)

    Director

    • Tenure: 25.8yrs
    • Compensation: US$314.59k
  • Nancy Quinn (66yo)

    Director

    • Tenure: 15.2yrs
    • Compensation: US$326.91k
  • Richard Gordon (70yo)

    Lead Director

    • Tenure: 3.7yrs
    • Compensation: US$339.40k
  • Mike Haefner (59yo)

    Director

    • Tenure: 3.9yrs
    • Compensation: US$10.96m
  • Kim Cocklin (68yo)

    Executive Chairman of the Board

    • Tenure: 2yrs
    • Compensation: US$4.35m
  • John Akers (56yo)

    CEO, President & Director

    • Tenure: 0yrs
    • Compensation: US$1.74m
  • Steve Springer (73yo)

    Director

    • Tenure: 14.1yrs
    • Compensation: US$314.40k
  • Bob Grable (73yo)

    Director

    • Tenure: 10.4yrs
    • Compensation: US$324.60k
  • Dick Sampson (69yo)

    Director

    • Tenure: 7.4yrs
    • Compensation: US$329.40k

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$13.191b
  • Shares outstanding: 118.20m
  • Website: https://www.atmosenergy.com

Number of Employees


Location

  • Atmos Energy Corporation
  • Three Lincoln Centre
  • Suite 1800
  • Dallas
  • Texas
  • 75240
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ATONYSE (New York Stock Exchange)YesCommon SharesUSUSDNov 1983
AEODB (Deutsche Boerse AG)YesCommon SharesDEEURNov 1983

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  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/18 23:32
End of Day Share Price2019/10/18 00:00
Earnings2019/06/30
Annual Earnings2018/09/30


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.