Atmos Energy (US:ATO) ZACKSยท2025-09-26 14:21Core Insights - Atmos Energy Corporation (ATO) is positioned as a strong investment option in the utility sector due to strategic acquisitions, the addition of industrial customers, and favorable rate outcomes contributing to revenue and profitability growth [1] Growth Projections - The Zacks Consensus Estimate for fiscal 2025 earnings per share (EPS) has increased by 1.2% to $7.33 over the past 90 days [2] - The estimated sales for fiscal 2025 are projected at $4.81 billion, reflecting a year-over-year increase of 15.6% [2] - ATO's long-term earnings growth rate is forecasted at 7.32%, with an average earnings surprise of 1.7% over the last four quarters [2] Liquidity Position - Atmos Energy's current ratio stands at 1.37, significantly higher than the industry average of 0.54, indicating sufficient short-term assets to cover liabilities [3] Debt Management - ATO's total debt to capital ratio is 40.21%, which is better than the industry average of 51.09% [4] - The time-to-interest earned ratio is 8.6, demonstrating the company's capability to meet future interest obligations comfortably [4] Capital Investments - Atmos Energy has a robust capital expenditure plan, with $3.7 billion earmarked for fiscal 2025 and a total of $24 billion planned over the next five years to enhance pipeline safety and reliability [5][6] - This investment strategy is expected to yield annual earnings growth of 6-8% during the same period [6] Dividend Policy - ATO currently pays a quarterly dividend of 87 cents per share, resulting in an annualized dividend of $3.48, up from $3.22 the previous year [7] - The company aims to increase its dividend by 6-8% annually through fiscal 2026, subject to board approval, with a current dividend yield of 2.09% [7] Stock Performance - Over the past year, Atmos Energy's shares have appreciated by 20.8%, outperforming the industry's growth of 8.2% [9]