Atmos Energy Corp. (ATO) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Targa Resources Corp.

Atmos Energy Corp.

Chesapeake Utilities Corp.

Spire Inc.

ONE Gas, Inc.

Cheniere Energy Partners LP

NiSource, Inc.

New Jersey Resources Corp.

Southwest Gas Holdings, Inc.

MDU Resources Group, Inc.

New Fortress Energy, Inc.

Why is Atmos Energy Corp. ?

Company has a low Debt to Equity ratio (avg) at times

Low Debt Company with Strong Long Term Fundamental Strength

Positive results in Jun 25

ROCE(HY) Highest at 9.05%
DIVIDEND PER SHARE(HY) Highest at USD 11.69
INVENTORY TURNOVER RATIO(HY) Highest at 17.96 times

With ROCE of 7.10%, it has a very expensive valuation with a 1.52 Enterprise value to Capital Employed

The stock is trading at a discount compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 19.32%, its profits have risen by 13.8% ; the PEG ratio of the company is 2.6

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Atmos Energy Corp. should be less than 10%
Overall Portfolio exposure to Gas should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Gas)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Atmos Energy Corp. for you?

Low Risk, High Return

Absolute

Risk Adjusted

Volatility

Atmos Energy Corp.

19.88%

2.56

17.45%

S&P 500

16.41%

0.70

20.15%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

11.23%

EBIT Growth (5y)

13.17%

EBIT to Interest (avg)

9.29

Debt to EBITDA (avg)

4.28

Net Debt to Equity (avg)

0.60

Sales to Capital Employed (avg)

0.21

Tax Ratio

18.36%

Dividend Payout Ratio

46.63%

Pledged Shares

Institutional Holding

100.00%

ROCE (avg)

6.36%

ROE (avg)

8.47%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

2.18

EV to EBIT

24.91

EV to EBITDA

17.02

EV to Capital Employed

1.72

EV to Sales

8.26

PEG Ratio

2.29

Dividend Yield

1.91%

ROCE (Latest)

6.89%

ROE (Latest)

8.75%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Mildly Bearish

Dow Theory

Bullish

OBV

Mildly Bullish

Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

9What is working for the Company

DIVIDEND PAYOUT RATIO(Y)

Highest at 40.93%

ROCE(HY)

Highest at 9.23%

DIVIDEND PER SHARE(HY)

Highest at USD 7.16

INTEREST COVERAGE RATIO(Q)

Highest at 2,597.33

RAW MATERIAL COST(Y)

Fallen by 1.73% (YoY

-3What is not working for the Company

INTEREST(Q)

At USD 27.31 MM has Grown at 23.58%

DEBT-EQUITY RATIO (HY)

Highest at 64.84 %

Here's what is working for Atmos Energy Corp.

Interest Coverage Ratio

Highest at 2,597.33

in the last five periods

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Dividend per share

Highest at USD 7.16 and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (USD)

Dividend Payout Ratio

Highest at 40.93% and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Raw Material Cost

Fallen by 1.73% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Depreciation

Highest at USD 194.65 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (USD MM)

Here's what is not working for Atmos Energy Corp.

Interest

At USD 27.31 MM has Grown at 23.58%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (USD MM)

Debt-Equity Ratio

Highest at 64.84 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio