Atmos Energy Corp

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ATO : NYSE : Utilities
$83.89 | %
Today's Range: 83.76 - 84.88
Avg. Daily Volume: 345400.0
09/22/17 - 4:02 PM ET

Financial Analysis


ATMOS ENERGY CORP's gross profit margin for the third quarter of its fiscal year 2017 is essentially unchanged when compared to the same period a year ago. Even though sales increased, the net income has decreased. ATMOS ENERGY CORP has very weak liquidity. Currently, the Quick Ratio is 0.43 which clearly shows a lack of ability to cover short-term cash needs. The company's liquidity has increased from the same period last year, indicating improving cash flow.

During the same period, stockholders' equity ("net worth") has increased by 12.54% 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.

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Income Statement Q3 FY17 Q3 FY16
Net Sales ($mil)526.5456.21
EBITDA ($mil)220.69201.28
EBIT ($mil)140.66128.4
Net Income ($mil)70.8171.19


Balance Sheet Q3 FY17 Q3 FY16
Cash & Equiv. ($mil)69.7866.21
Total Assets ($mil)10498.789727.37
Total Debt ($mil)3325.313126.11
Equity ($mil)3901.713466.72


Profitability Q3 FY17 Q3 FY16
Gross Profit Margin41.9244.12
EBITDA Margin41.9144.11
Operating Margin26.7228.14
Sales Turnover0.280.28
Return on Assets3.763.48
Return on Equity9.769.64
Debt Q3 FY17 Q3 FY16
Current Ratio0.720.42
Debt/Capital0.460.47
Interest Expense28.527.68
Interest Coverage4.944.64


Share Data Q3 FY17 Q3 FY16
Shares outstanding (mil)106.06103.83
Div / share0.450.42
EPS0.670.64
Book value / share36.7933.39
Institutional Own % n/a n/a
Avg Daily Volume351794.0356857.0

Valuation


BUY. ATMOS ENERGY CORP's P/E ratio indicates a discount compared to an average of 32.43 for the Gas Utilities industry and a value on par with the S&P 500 average of 24.88. For additional comparison, its price-to-book ratio of 2.36 indicates a discount versus the S&P 500 average of 3.10 and a discount versus the industry average of 2.64. 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 24.15 Peers 32.43   ATO 10.04 Peers 11.57

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

ATO is trading at a significant 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 22.77 Peers 26.12   ATO 3.34 Peers 2.95

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.

 

Premium. 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 premium to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
ATO 2.36 Peers 2.64   ATO 10.76 Peers 16.07

Discount. 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 discount to 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 3.10 Peers 2.16   ATO 11.03 Peers 9.83

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.

 

Higher. A sales growth rate that exceeds the industry implies that a company is gaining market share.

ATO has a sales growth rate that exceeds its peers.

 

 

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