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

2.0%

NYSE:ATO

1.5%

US Gas Utilities

0.8%

US Market


1 Year Return

17.4%

NYSE:ATO

2.9%

US Gas Utilities

1.9%

US Market

ATO outperformed the Gas Utilities industry which returned 2.5% over the past year.

ATO outperformed the Market in United States of America which returned 2.1% over the past year.


Share holder returns

ATOIndustryMarket
7 Day2.0%1.5%0.8%
30 Day0.5%1.7%3.4%
90 Day5.0%-1.7%2.1%
1 Year19.9%17.4%5.4%2.9%4.2%1.9%
3 Year57.6%47.6%33.8%24.1%46.7%37.2%
5 Year158.8%129.8%85.3%62.1%62.3%44.5%

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 based on future cash flows and its price relative to the stock market?

26.05x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Atmos Energy's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

Atmos Energy's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

Atmos Energy is overvalued based on earnings compared to the US Gas Utilities industry average.

Atmos Energy is overvalued based on earnings compared to the United States of America market.


Price Based on Expected Growth

Atmos Energy is poor value based on expected growth next year.


Price Based on Value of Assets

Atmos Energy is overvalued based on assets compared to the US Gas Utilities industry average.


Next Steps

Future Growth

How is Atmos Energy expected 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 Estimates


Future Annual Growth Analysis

Atmos Energy's revenue is expected to grow by 8.2% yearly, however this is not considered high growth (20% yearly).

Atmos Energy's earnings are expected to grow by 10.7% yearly, however this is not considered high growth (20% yearly).

Atmos Energy's revenue growth is expected to exceed the United States of America market average.

Atmos Energy's earnings growth is positive but not above the United States of America market average.

Atmos Energy's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Atmos Energy is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


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

Atmos Energy's year on year earnings growth rate has been positive over the past 5 years.

Atmos Energy's 1-year earnings growth is negative, it can't be compared to the 5-year average.

Atmos Energy's 1-year earnings growth is negative, it can't be compared to the US Gas Utilities industry average.


Return on Equity

Atmos Energy has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Atmos Energy used its assets more efficiently than the US Gas Utilities industry average last year based on Return on Assets.


Return on Capital Employed

Atmos Energy's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Atmos Energy's financial position?


Financial Position Analysis

Atmos Energy's short term (1 year) commitments are greater than its holdings of cash and other short term assets.

Atmos Energy's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

Atmos Energy's level of debt (66.1%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has been reduced over the past 5 years (78.9% vs 66.1% today).

Debt is well covered by operating cash flow (24.1%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 7.6x coverage).


Balance Sheet

High level of physical assets or inventory.

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?

2.05%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Atmos Energy's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.43%).

Atmos Energy's dividend is below the markets top 25% of dividend payers in United States of America (3.67%).

Dividends per share have been stable in the past 10 years.

Dividends per share have increased over the past 10 years.


Current Payout to Shareholders

Dividends paid are well covered by earnings (2.1x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be well covered by earnings (2x coverage).


Next Steps

Management

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

2.6yrs

Average management tenure


CEO

Mike Haefner (59yo)

1.9yrs

Tenure

US$10,964,985

Compensation

Mr. Michael E. Haefner, also known as Mike, has been the President and Chief Executive Officer of Atmos Energy Corporation since October 1, 2017 and October 1, 2015 respectively. Mr. Haefner served as Chie ...


CEO Compensation Analysis

Mike's remuneration is about average for companies of similar size in United States of America.

Mike's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Management Age and Tenure

2.6yrs

Average Tenure

53yo

Average Age

The tenure for the Atmos Energy management team is about average.


Board Age and Tenure

10.3yrs

Average Tenure

70yo

Average Age

The average tenure for the Atmos Energy board of directors is over 10 years, this suggests they are a seasoned and experienced board.


Insider Trading

No 3 month open market individual insider trading information.


Ownership Breakdown


Management Team

  • Mike Haefner (59yo)

    President

    • Tenure: 1.9yrs
    • Compensation: US$10.96m
  • Kim Cocklin (68yo)

    Executive Chairman of the Board

    • Tenure: 1.9yrs
    • Compensation: US$4.35m
  • John Akers (56yo)

    Executive Vice President of Safety & Enterprise Services

    • Tenure: 2.7yrs
    • Compensation: US$1.74m
  • Rich Gius (62yo)

    VP & Chief Information Officer

    • Tenure: 11.9yrs
  • Chris Forsythe (47yo)

    Senior VP & CFO

    • Tenure: 2.6yrs
    • Compensation: US$1.41m
  • David Park (48yo)

    Senior Vice President of Utility Operations

    • Tenure: 2.7yrs
    • Compensation: US$1.40m
  • Matt Robbins (49yo)

    Senior Vice President of Human Resources

    • Tenure: 2.7yrs
  • Karen Hartsfield (49yo)

    Senior VP

    • Tenure: 2.1yrs
  • Liz Beauchamp

    Vice President of Governmental & Public Affairs

    • Tenure: 2.1yrs
  • Jennifer Hills (53yo)

    Vice President of Investor Relations

    • Tenure: 0yrs

Board Members

  • Bob Best (73yo)

    Director

    • Tenure: 22.7yrs
    • Compensation: US$314.40k
  • Richard Ware (73yo)

    Director

    • Tenure: 25.7yrs
    • Compensation: US$314.59k
  • Nancy Quinn (66yo)

    Director

    • Tenure: 15.1yrs
    • Compensation: US$326.91k
  • Richard Gordon (70yo)

    Lead Director

    • Tenure: 3.6yrs
    • Compensation: US$339.40k
  • Mike Haefner (59yo)

    President

    • Tenure: 1.9yrs
    • Compensation: US$10.96m
  • Kim Cocklin (68yo)

    Executive Chairman of the Board

    • Tenure: 1.9yrs
    • Compensation: US$4.35m
  • Steve Springer (73yo)

    Director

    • Tenure: 14yrs
    • Compensation: US$314.40k
  • Denise Bunkley

    Member of the Customer Advisory Board

    • Tenure: 0yrs
  • Bob Grable (73yo)

    Director

    • Tenure: 10.3yrs
    • Compensation: US$324.60k
  • Dick Sampson (69yo)

    Director

    • Tenure: 7.3yrs
    • 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$13.116b
  • 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 Analysis2019/09/17 23:31
End of Day Share Price2019/09/17 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.