Atmos Energy Corporation [NYSE:ATO]: Analyst Rating and Earnings
Pro stock market traders often keep their attention pointed at what top market analysts have to say regarding a potential equity investment. For Atmos Energy Corporation [ATO] currently, the latest-available mean analyst rating is for the fiscal quarter that will end in September. On average, stock market experts give ATO an Outperform rating. Its stock price has been found in the range of 219.97 to 365.86. This is compared to its latest closing price of $96.85.
Wall Street analysts provide their ratings on a scale of 1 to 5, and the current average score for Atmos Energy Corporation [ATO] is sitting at 2.25. This is compared to 1 month ago, when its average rating was 2.25.
For the quarter ending in Dec-18 Atmos Energy Corporation [ATO] generated $0.88 billion in sales. That’s 8.77% lower than the average estimate of $0.96 billion as provided by Wall Street analysts. The three indicators above suggest that on the whole, this stock is not presenting an attractive investment option, as there are too many red flags that don’t point to a high-value ROI.
Keep your eyes peeled for this company’s upcoming financial results publication, which is slated for Wed 1 May (In 78 Days).
Fundamental Analysis of Atmos Energy Corporation [ATO]
Now let’s turn to look at profitability: with a current Operating Margin for Atmos Energy Corporation [ATO] sitting at +23.13 and its Gross Margin at +32.08.
This company’s Return on Total Capital is 9.11, and its Return on Invested Capital has reached 6.60%. Its Return on Equity is 13.90, and its Return on Assets is 4.99. These metrics suggest that this Atmos Energy Corporation does a poor job of managing its assets, and likely won’t be able to provide successful business outcomes for its investors in the near term.
Turning to investigate this organization’s capital structure, Atmos Energy Corporation [ATO] has generated a Total Debt to Total Equity ratio of 76.40. Similarly, its Total Debt to Total Capital is 43.31, while its Total Debt to Total Assets stands at 28.87. Looking toward the future, this publicly-traded company’s Long-Term Debt to Equity is 52.28, and its Long-Term Debt to Total Capital is 29.64. This company has a healthy balance between its debt and its current holdings, suggesting it is a reliable investment due to its ability to leverage debt in an efficient way.
What about valuation? This company’s Enterprise Value to EBITDA is 13.94 and its Total Debt to EBITDA Value is 3.37. The Enterprise Value to Sales for this firm is now 4.86, and its Total Debt to Enterprise Value stands at 0.26. Atmos Energy Corporation [ATO] has a Price to Book Ratio of 2.19, a Price to Cash Flow Ratio of 9.27 and P/E Ratio of 24.18. These metrics show that this company has a mixed appeal, and ROI could be a gain or a loss.
Shifting the focus to workforce efficiency, Atmos Energy Corporation [ATO] earns $673,195 for each employee under its payroll. Similarly, this company’s Receivables Turnover is 13.10 and its Total Asset Turnover is 0.26. This publicly-traded organization’s liquidity data is also interesting: its Quick Ratio is 0.16 and its Current Ratio is 0.25. This company is not investing its short-term assets in an optimally efficient way, making it a riskier investment.
Let’s now turn our attention to trading performance: Atmos Energy Corporation [ATO] has 115.78M shares outstanding, amounting to a total market cap of $11.21B. Its stock price has been found in the range of 78.75 to 100.76. At its current price, it has moved by -4.71% from its 52-week high, and it has moved 21.92% from its 52-week low.
This stock’s Beta value is currently 0.26, which indicates that it is more volatile that the wider market. This stock’s Relative Strength Index (RSI) is at 50.05. This RSI score is good, suggesting this stock is neither overbought or oversold.
Conclusion: Is Atmos Energy Corporation [ATO] a Reliable Buy?
Atmos Energy Corporation [ATO] stock is presenting a less attractive investment opportunity when compared to similarly-sized corporations in the same industry. The price performance of these shares has not shown much promise, and the financial results that this company has recently delivered present a highly risky investment.