Atmos Beneish M Score

ATO
 Stock
  

USD 114.47  0.81  0.70%   

This module uses fundamental data of Atmos Energy to approximate the value of its Beneish M Score. Atmos Energy M Score tells investors if the company management is likely to be manipulating earnings. The score is calculated using eight financial indicators that are adjusted by a specific multiplier. Please note, the M Score is a probabilistic model and cannot detect companies that manipulate their earnings with 100% accuracy. Please continue to Atmos Energy Piotroski F Score and Atmos Energy Altman Z Score analysis.
  
Atmos Energy Total Debt is quite stable at the moment as compared to the past year. The company's current value of Total Debt is estimated at 9.1 Billion. Debt Current is expected to rise to about 3 B this year, although the value of Debt Non Current will most likely fall to about 4.7 B. Atmos Energy Accounts Payable Turnover is quite stable at the moment as compared to the past year. The company's current value of Accounts Payable Turnover is estimated at 27.18. Accrued Expenses Turnover is expected to rise to 14.13 this year, although the value of Operating Margin will most likely fall to 20.47.
At this time, it appears that Atmos Energy Corp is an unlikely manipulator. The earnings manipulation may begin if Atmos Energy's top management creates an artificial sense of financial success, forcing the stock price to be traded at a high price-earnings multiple than it should be. In general, excessive earnings management by Atmos Energy executives may lead to removing some of the operating profits from subsequent periods to inflate earnings in the following periods. This way, the manipulation of Atmos Energy's earnings can lead to misrepresentations of actual financial condition, taking the otherwise loyal stakeholders on to the path of questionable ethical practices and plain fraud.
-2.54
Beneish M Score - Unlikely Manipulator
Elasticity of Receivables0.9Focus
Asset QualityN/AFocus
Expense Coverage0.92Focus
Gross Margin Strengs0.93Focus
Accruals Factor0.92Focus
Depreciation Resistance0.96Focus
Net Sales Growth0.99Focus
Financial Leverage Condition1.14Focus

Atmos Energy Beneish M-Score Indicator Trends

The cure to earnings manipulation is the transparency of financial reporting. It will typically remove the temptation of the top executives to inflate earnings (i.e., to promote the idea of 'winning at any cost'). Because a healthy internal audit department can enhance transparency, the board should promote the auditors' access to all the record-keeping systems across the enterprise. For example, if Atmos Energy's auditors report directly to the board (not management), the managers will be reluctant to manipulate simply due to the fear of punishment. On the other hand, the auditors will be free to investigate the ledgers properly because they know that the board has their back.
Current ValueLast YearChange From Last Year 10 Year Trend
RevenuesB3.1 B
Fairly Down
Decreasing
Slightly volatile
Selling General and Administrative Expense325.2 M359.7 M
Moderately Down
Increasing
Slightly volatile
Net Cash Flow from Operations(1 B)(975.8 M)
Fairly Down
Decreasing
Slightly volatile
Depreciation Amortization and Accretion474.5 M549.7 M
Fairly Down
Increasing
Slightly volatile
Total Assets18.3 B22.5 B
Significantly Down
Increasing
Slightly volatile
Property Plant and Equipment Net14.3 B17.3 B
Significantly Down
Increasing
Slightly volatile
Trade and Non Trade Receivables275.1 M308.7 M
Fairly Down
Increasing
Very volatile
Total Liabilities11 B13.5 B
Significantly Down
Increasing
Slightly volatile
Current Assets3.5 B3.3 B
Significantly Up
Increasing
Slightly volatile
Assets Non Current16 B19.3 B
Significantly Down
Increasing
Slightly volatile
Current Liabilities4.4 BB
Significantly Up
Increasing
Slightly volatile
Liabilities Non Current8.1 B9.4 B
Fairly Down
Increasing
Slightly volatile
Total Debt9.1 B8.4 B
Significantly Up
Increasing
Slightly volatile
Debt CurrentB2.8 B
Significantly Up
Increasing
Slightly volatile
Debt Non Current4.7 B5.7 B
Significantly Down
Increasing
Slightly volatile
Operating Income926.4 MB
Fairly Down
Increasing
Slightly volatile
Gross Margin0.740.8
Significantly Down
Increasing
Slightly volatile

Atmos Energy Corp Beneish M-Score Driver Matrix

One of the toughest challenges investors face today is learning how to quickly synthesize historical financial statements and information provided by the company, SEC reporting, and various external parties in order to detect the potential manipulation of earnings. Understanding the correlation between Atmos Energy's different financial indicators related to revenue, expenses, operating profit, and net earnings helps investors identify and prioritize their investing strategies towards Atmos Energy in a much-optimized way. Analyzing correlations between earnings drivers directly associated with dollar figures is the most effective way to find Atmos Energy's degree of accounting gimmicks and manipulations.

About Atmos Energy Beneish M Score

M-Score is one of many grading techniques for value stocks. It was developed by Professor M. Daniel Beneish of the Kelley School of Business at Indiana University and published in 1999 under the paper titled The Detection of Earnings Manipulation. The Beneish score is a multi-factor model that utilizes financial identifiers to compile eight variables used to classify whether a company has manipulated its reported earnings. The variables are built from the officially filed financial statements to create a final score call 'M Score.' The score helps to identify companies that are likely to manipulate their profits if they show deteriorating gross margins, operating expenses, and leverage against growing revenue.

Operating Expenses

1.53 Billion

Atmos Energy Operating Expenses is quite stable at the moment as compared to the past year. The company's current value of Operating Expenses is estimated at 1.53 Billion

Atmos Energy Earnings Manipulation Drivers

Although earnings manipulation is typically not the result of intentional misconduct by the c-level executives, it is still a widespread practice by the senior management of public companies such as Atmos Energy. It is usually done by a series of misrepresentations of various accounting rules and operating activities across multiple financial cycles. The best way to spot the manipulation is to examine the historical financial statement to find inconsistencies in earning reports to find trends in assets or liabilities that are not sustainable in the future.
201720182019202020212022 (projected)
Revenues3.12 B2.9 B2.82 B3.41 B3.07 B3.03 B
Total Assets11.87 B13.37 B15.36 B19.61 B22.55 B18.26 B
Current Assets478.85 M458.03 M471.26 M2.84 B3.26 B3.52 B
Assets Non Current11.4 B12.91 B14.89 B16.77 B19.29 B16.04 B
Total Liabilities7.1 B7.62 B8.57 B11.7 B13.46 B11.05 B
Current Liabilities1.92 B1.21 B782.4 M3.51 B4.04 B4.36 B
Total Debt3.64 B3.99 B4.53 B7.33 B8.43 B9.1 B
Debt Current1.15 B464.92 M165 K2.4 B2.76 B2.98 B
Debt Non Current2.49 B3.53 B4.53 B4.93 B5.67 B4.68 B
Operating Income727.93 M746.06 M824.1 M905 M1.04 B926.38 M
Gross Margin0.70.670.630.770.80.74

Atmos Energy ESG Sustainability

Some studies have found that companies with high sustainability scores are getting higher valuations than competitors with lower social-engagement activities. While most ESG disclosures are voluntary and do not directly affect the long term financial condition, Atmos Energy's sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to Atmos Energy's managers, analysts, and investors.
Environment Score
Governance Score
Social Score

About Atmos Energy Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze Atmos Energy Corp's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Atmos Energy using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Atmos Energy Corp based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
Please read more on our fundamental analysis page.
Atmos Energy Corporation, together with its subsidiaries, engages in the regulated natural gas distribution, and pipeline and storage businesses in the United States. Atmos Energy Corporation was founded in 1906 and is headquartered in Dallas, Texas. Atmos Energy operates under UtilitiesRegulated Gas classification in the United States and is traded on New York Stock Exchange. It employs 4684 people.

Be your own money manager

Our tools can tell you how much better you can do entering a position in Atmos Energy without increasing your portfolio risk or giving up expected return. As an individual investor, you need to find a reliable way to track all your investment portfolios. However, your requirements will often be based on how much of the process you decide to do yourself. In addition to allowing all investors analytical transparency into all their portfolios, our tools can evaluate.risk-adjusted returns of your individual positions relative to your overall portfolio.

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Pair Trading with Atmos Energy

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Atmos Energy position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Atmos Energy will appreciate offsetting losses from the drop in the long position's value.

Moving together with Atmos Energy

0.67AQNAlgonquin Pwr Util Earnings Call  TodayPairCorr
The ability to find closely correlated positions to Atmos Energy could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Atmos Energy when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Atmos Energy - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Atmos Energy Corp to buy it.
The correlation of Atmos Energy is a statistical measure of how it moves in relation to other equities. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Atmos Energy moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Atmos Energy Corp moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Atmos Energy can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching
Please continue to Atmos Energy Piotroski F Score and Atmos Energy Altman Z Score analysis. Note that the Atmos Energy Corp information on this page should be used as a complementary analysis to other Atmos Energy's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.

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When running Atmos Energy Corp price analysis, check to measure Atmos Energy's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Atmos Energy is operating at the current time. Most of Atmos Energy's value examination focuses on studying past and present price action to predict the probability of Atmos Energy's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Atmos Energy's price. Additionally, you may evaluate how the addition of Atmos Energy to your portfolios can decrease your overall portfolio volatility.
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Is Atmos Energy's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Atmos Energy. If investors know Atmos will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Atmos Energy listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth YOY
0.18
Market Capitalization
15.9 B
Quarterly Revenue Growth YOY
0.35
Return On Assets
0.0279
Return On Equity
0.0882
The market value of Atmos Energy Corp is measured differently than its book value, which is the value of Atmos that is recorded on the company's balance sheet. Investors also form their own opinion of Atmos Energy's value that differs from its market value or its book value, called intrinsic value, which is Atmos Energy's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Atmos Energy's market value can be influenced by many factors that don't directly affect Atmos Energy's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Atmos Energy's value and its price as these two are different measures arrived at by different means. Investors typically determine Atmos Energy value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Atmos Energy's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.