$138.40
arrow_drop_down0.25%Is ATO a Buy or Sell based on AI Analysis?
Fundamental Analysis
Atmos Energy Corp (ATO) has a strong financial performance, evident from its solid gross margin of 48.14% and operating margin of 34.9%. These margins indicate the company's ability to efficiently manage its costs and generate profits. Additionally, Atmos Energy Corp has a healthy return on equity of 8.77%, showcasing its ability to generate profits from shareholders' investments. Furthermore, the company maintains a low debt-to-equity ratio of 0.67, indicating a conservative approach to financing and a lower risk of financial distress. In terms of dividends, Atmos Energy Corp has a dividend yield of 2.86%, providing investors with a steady income stream. The company also has a history of consistent dividend payments, with an annual dividends per share of $3.02 and a payout ratio of 49.05%. This demonstrates the company's commitment to returning value to shareholders and its stable financial position. Additionally, the company's strong free cash flow margin of 15.29% indicates its ability to generate excess cash after expenses and investments, which can be used for further growth opportunities or returned to shareholders.
Positive Development
Atmos Energy has been identified as a Dividend Champion, Contender, and Challenger, which suggests the company has a strong financial performance and is a reliable investment. The company has a strong financial position with a high cash ratio and low net debt to total capital and equity. The company has a high operating margin and pre-tax margin, indicating efficient management of resources and profits. The company has a good track record of dividend payouts, which suggests a commitment to shareholder returns.
Negative Development
The company's stock price has been experiencing a downward trend in the past weeks, which may be a cause for concern for potential investors. The company's total debt to equity ratio is relatively high, which could indicate a risk of financial distress in the future. The company's asset turnover ratio is relatively low, which could indicate a lack of efficiency in asset utilization. The company's net margin is relatively low, which could indicate a lack of profitability.
Technical Analysis
Atmos Energy Corp (ATO) has a technical rating of "NEUTRAL" based on various indicators such as ATR, RSI, MACD, CCI, ADX, WILLR, ROC, and STOCHRSI. The stock price is currently at $114.68, with a seven-day price change percent of 2.16% and a one-month price change percent of 2.59%. The company has a beta value of 0.66, indicating that it is less volatile compared to the overall market. Additionally, the stock has a trailing PE ratio of 18.01 and a dividend yield of 2.86%. Furthermore, Atmos Energy Corp's technical analysis shows a technical buy indicator count of 1 for the month, while the technical hold indicator count stands at 7. The stock belongs to the Utilities sector, with a sector score of 92. The company has 4.79K employees and a market capitalization of $17.3B. With a current ratio of 1.44 and a quick ratio of 1.25, the company is in a strong financial position to meet its short-term obligations. Overall, the technical analysis suggests a neutral stance on the stock, with potential for stability and moderate growth in the near future.
Conclusion and recommendation
Based on the data provided, Atmos Energy Corp (ATO) appears to be a solid investment opportunity. With a market capitalization of $17.3B and a dividend yield of 2.86%, the company has a stable financial foundation. The stock has shown consistent growth over the years, with a five-year price change percent of 14.83% and a positive return on equity of 8.77%. Additionally, Atmos Energy Corp has a strong market and industry score, indicating a favorable position in its sector. The company's revenue growth of 1.75% and net income of $885.86M further support its financial stability and potential for long-term growth. In conclusion, Atmos Energy Corp presents a promising investment opportunity with a strong financial performance and market position. The company's consistent growth, solid dividend yield, and strong market scores are indicative of its stability and potential for future returns. With a diverse range of technical indicators supporting a favorable outlook, investors may consider adding Atmos Energy Corp to their portfolio for steady and reliable growth in the utilities sector.