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Fundamental analysis: Atmos Energy Corporation (ATO)

Awarener score: 4.6

Conclusion

The higher the Awarener score, the more bang you get for the buck. It measures how much genuine funds the company generates for the stock price paid (Modest), the business stability (Good) and growth (Poor), and the company's inclination to return cash to the stockholders (Lacking).

Note: All scores range from 1 (worst) to 10 (best). Conclusions are updated daily with closing stock prices and new reported quarterly financial statements.

Revenue score: 5.0

  • Business has been shrinking. It's been almost average when measured against peer companies.
  • Atmos Energy Corporation business trend stability is good. The higher the stability, the lower the risk. It looks slightly better than rivals.

Margins score: 9.2

  • ATO profit margins -on goods and services sold- are usually excellent. They stand better than most rival companies.
  • Business profit on sales tends to be huge. It's great when measured against competitors.
  • Profits on sales made -available to repay debt and purchase properties- are usually excellent. They remain impressive in relation to peers.
  • Earnings -before income taxes and interests on loans taken- tend to be excellent in relation to total revenues. They're still top-notch against similar companies.
  • Profits -before income taxes- are usually excellent considering total sales, and remain top tier when measured against rivals.
  • Total net profit tends to be excellent when confronted to sales. Company stands top tier when measured against comparable firms.

Growth score: 2.6

  • Atmos Energy Corporation profit -on goods and services sold- has been shrinking. It's been in a weak position compared to competitors.
  • In recent years, earnings growth -on operations- have been almost stagnant, which has been somewhat worse than comparable firms.
  • Profits growth -available to repay debt and purchase properties- have been almost stagnant, which compares below average when measured against peer enterprises.
  • Growth on earnings -before income taxes and interests on loans taken- have been almost stagnant. It turns to be lacking compared to similar stocks.
  • In past years, growth on profits -before income taxes- was almost stagnant. It was somewhat worse than rivals.
  • In the previous years, growth on total net profit has been negative, and below average when measured against peer companies.
  • Earnings per share have been shrinking in the past years. It's been in a very weak position compared to industry peers.

Miscellaneous score: 7.0

  • ATO had hardly to pay income taxes in relation to profits made in the past years. It's been slightly better than peers.
  • The company does not report R&D expenses. It's meaningless to measure in relation to competitors.
  • We have insufficient data to estimate how effective is research and development effort. It stands unknown against rival companies.

Profitability score: 6.8

  • Atmos Energy Corporation usually gets good returns on the resources it controls. It proves encouraging in relation to peer firms.
  • The company normally gets sufficient proceeds -on the resources directly invested in the business-. They remain a slight improvement compared to similar companies.
  • Profitability -in relation to owned resources- is usually quite good. It ranks encouraging in relation to competitors.
  • In the past, got good returns -on the tangible resources it controls-. This metric is usually related to the industry in which operates and combines profitability versus reinvestment needs. It's encouraging in relation to comparable enterprises.

Usage of Funds score: 5.4

  • ATO usually uses a sparse portion of genuine funds generated to buy or replace property, plant, or equipment. The need for reinvestments is modest. It stands encouraging in relation to rival firms.
  • The company is usually heavily investing in new property, plant, and equipment, to expand its operating capabilities, which is more than average in relation to industry peers.
  • In the past twelve months it paid some dividends, considering the current stock price. It came mediocre against competitors.
  • Has somewhat increased dividend payments in the past years. Business prospects may have improved. The company has behaved a slight improvement compared to similar firms.
  • The company generates very few genuine funds. Dividend payments are usually on borrowed money, which isn't sustainable in the long run. Unless business prospects improve greatly, future payments could be at risk. Sustainability looks bottom tier against comparable companies.
  • The company usually enlarges quite a bit the pool of investors, resulting in more mouths feeding on the pie of profits. It remains in a weak position compared to peer enterprises.
  • Repurchase effectiveness metric is very complex. Run again in analytical mode if you're interested in a technical explanation. It stands in a very weak position compared to rivals.
  • We do not have sufficient data to comment on buybacks and their sustainability. It still looks dubious against competitors.

Balance Sheet score: 4.6

  • Atmos Energy Corporation intangible assets (like brands and goodwill) represent a small portion of resources controlled, according to accounting books. It isn't that a significant risk of liquidating them if the company ever gets in financial distress. It happens to be weak when measured against peer companies.
  • The company has somewhat lower short-term resources than short-term obligations. Unless it's part of the business model, there might some liquidity concerns. It turns to be in good shape compared to similar firms.
  • A significant part of resources controlled were provided for with financial debt. Creditors have almost as many claims on the company as shareholders. It remains somewhat better than rival firms.
  • Controlled resources take time to be turned into cash and equivalents, which is somewhat risky. It looks encouraging in relation to rivals.
  • For every dollar of short-term obligations, the company has few cents of cash and short-term receivables. It's in a weak position compared to peer firms.
  • For every dollar of short-term obligations, the company has very few cents of cash and equivalents, which is slightly worse than similar enterprises.
  • Usually, sales are on a month and a half credit. It still ranks almost average when measured against peers.
  • Normally has no inventories. It comes up as in a very weak position compared to competitors.
  • On average, it takes approximately two months from the purchase to charging customers. It happens to be mediocre against peers.
  • Pays suppliers mostly in cash. It ranks last-in-rank when measured against industry peers.
  • The company pays its suppliers roughly one month before charging its customers, so there's sparse money invested in working capital. It's a disappointment compared to similar companies.
  • Net interest expenses consume a slight portion of usual business earnings, and are very easily bearable. It stands better than most rival firms.
  • Business earnings have usually been very low when measured against loans taken. Even significantly cutting back reinvesting in the business, it could take more than ten years to repay the obligations with current profitability. It ranks similar to comparable enterprises.
  • Last twelve months revenues were non-significant in relation to fixed assets. The company must improve income to take advantage of used resources. It looks a disappointment compared to similar firms.
  • Resource exploitation is low when yearly sales are considered, business volume must be significantly increased. This metric is normally tied to the industry where the firm belongs. It's still bottom tier against peer companies.

Valuation score: 4.6

  • Atmos Energy Corporation looks heavily expensive in relation to profits and financial position. It happens to be similar to competitors.
  • Price-to-Tangible-Book-Value is a fairly complex metric. Run again in analytical mode if you're interested in a technical explanation. It remains excellent in relation to peers.
  • In the past twelve months, the company generated some slightly better free funds in relation to the stock price, which stands somewhat better than similar companies.
  • In the past years the company hardly generated enough genuine funds to cover up for its business needs. Business prospects should improve enough to be in a better position to reward investors. It's still weak when measured against industry firms.
  • In the past twelve months, the company has enlarged the pool of investors by issuing new shares. Future profits need to be high enough to justify the measure, as the pie of earnings will now be split among somewhat more stockholders. It came up in a very weak position compared to peer ventures.
  • The company is indebted, it should focus on loan repayment. It looks well ranked against similar enterprises.
  • Considering the past twelve months, traditional Price-to-Earnings relation is high. Substantial improvement expectations are already in the stock price, which is somewhat risky. It ranks almost average when measured against peer companies.
  • Comparing the current stock price with the past twelve-months revenues gives a very high relationship. This is an important metric to check its evolution through time, and to compare to industry peers. It looks a disappointment compared to rival firms.
  • The relation between the stock price and accounting book value is somewhat high. It's important both to check this metric through time and to compare it with rival companies. The company remains slightly better than peer firms.
  • In the past twelve months, the operating business lost a little money. It happens to be weak when measured against industry peers.
  • In an alternate metric of bang for the buck, the company has usually shown a modest earnings power ability when measured against the current stock price and financial position. It's still rather normal in relation to peer companies.

Total score: 5.6


ATO logos

Company at a glance: Atmos Energy Corporation (ATO)

Sector, industry: Utilities, Utilities—Regulated Gas

Market Cap: 15.60 billions

Revenues TTM: 3.19 billions

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 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. This segment distributes natural gas to approximately three million residential, commercial, public authority, and industrial customers. As of September 30, 2021, it owned 71,921 miles of underground distribution and transmission mains. The Pipeline and Storage segment engages in the pipeline and storage operations. This segment transports natural gas for third parties and manages five underground storage reservoirs in Texas; and provides ancillary services to the pipeline industry, including parking arrangements, lending, and inventory sales. As of September 30, 2021, it owned 5,699 miles of gas transmission lines. Atmos Energy Corporation was founded in 1906 and is headquartered in Dallas, Texas.

Awarener score: 4.6

Conclusion

The higher the Awarener score, the more bang you get for the buck. It measures how much genuine funds the company generates for the stock price paid (Modest), the business stability (Good) and growth (Poor), and the company's inclination to return cash to the stockholders (Lacking).