Atmos Energy Corp

Find Ratings Reports
ATO : NYSE : Utilities
$82.85 | %
Today's Range: 82.63 - 83.3
Avg. Daily Volume: 358700.0
05/26/17 - 4:02 PM ET

Financial Analysis


ATMOS ENERGY CORP's gross profit margin for the second quarter of its fiscal year 2017 is essentially unchanged when compared to the same period a year ago. Sales and net income have grown, and although the growth in revenues has outpaced the average competitor within the industry, the net income growth has not. ATMOS ENERGY CORP has very weak liquidity. Currently, the Quick Ratio is 0.26 which clearly shows a lack of ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year.

During the same period, stockholders' equity ("net worth") has increased by 14.65% from the same quarter last year. The key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the near future.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. To learn more visit www.TheStreetRatings.com.



Income Statement Q2 FY17 Q2 FY16
Net Sales ($mil)988.19890.04
EBITDA ($mil)362.84323.05
EBIT ($mil)285.17251.66
Net Income ($mil)164.73141.81


Balance Sheet Q2 FY17 Q2 FY16
Cash & Equiv. ($mil)45.447.92
Total Assets ($mil)10361.479543.93
Total Debt ($mil)3235.233082.49
Equity ($mil)3834.863344.57


Profitability Q2 FY17 Q2 FY16
Gross Profit Margin36.7236.3
EBITDA Margin36.7136.29
Operating Margin28.8628.27
Sales Turnover0.30.3
Return on Assets3.813.39
Return on Equity9.949.69
Debt Q2 FY17 Q2 FY16
Current Ratio0.380.53
Debt/Capital0.460.48
Interest Expense26.9427.56
Interest Coverage10.589.13


Share Data Q2 FY17 Q2 FY16
Shares outstanding (mil)105.28102.21
Div / share0.450.42
EPS1.521.39
Book value / share36.4332.72
Institutional Own % n/a n/a
Avg Daily Volume363148.0446588.0

Valuation


BUY. This stock's P/E ratio indicates a discount compared to an average of 28.61 for the Gas Utilities industry and a discount compared to the S&P 500 average of 25.02. For additional comparison, its price-to-book ratio of 2.21 indicates a discount versus the S&P 500 average of 3.00 and a discount versus the industry average of 2.34. The price-to-sales ratio is well above both the S&P 500 average and the industry average, indicating a premium. Upon assessment of these and other key valuation criteria, ATMOS ENERGY CORP proves to trade at a discount to investment alternatives within the industry.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
ATO 22.20 Peers 28.61   ATO 9.53 Peers 11.39

Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations.

ATO is trading at a discount to its peers.

 

Discount. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.

ATO is trading at a discount to its peers.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
ATO 21.18 Peers 23.82   ATO 3.66 Peers 3.39

Average. An average price-to-projected earnings ratio can signify an industry neutral stock price and average future growth expectations.

ATO is trading at a valuation on par with its peers.

 

Average. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.

ATO trades at a valuation on par to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
ATO 2.21 Peers 2.34   ATO 14.55 Peers 23.06

Average. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.

ATO is trading at a valuation on par with its peers.

 

Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

However, ATO is expected to significantly trail its peers on the basis of its earnings growth rate.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
ATO 2.75 Peers 2.03   ATO 5.90 Peers 5.54

Premium. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.

ATO is trading at a significant premium to its industry.

 

Average. Comparing a company's sales growth to its industry helps to determine if the company is adding or losing market share.

ATO is keeping pace with its peers on the basis of sales growth.

 

 

Latest Stock Upgrades/Downgrades