Overview Dividends

(ATO) Atmos Energy - Ratings and Ratios

Exchange: NYSE • Country: United States • Currency: USD • Type: Common Stock • ISIN: US0495601058

Natural Gas, Distribution, Pipeline, Storage

Gas Utilities
Market Cap in USD: 27,238m

IPO / Inception: 1987-01-01
Return 12m vs S&P 500: 5.0%

EPS (Earnings per Share)

EPS CAGR: -13.71%
EPS Trend: 4.0%

Last SUE: 0.85
Qual. Beats: 1

Revenue

Rev. CAGR: -8.11%
Rev. Trend: -10.6%

Last SUE: -0.08
Qual. Beats: 0

Dividends

Dividend Yield	2.14%
Yield on Cost 5y	4.29%
Yield CAGR 5y	8.73%
Payout Consistency	98.3%
Payout Ratio	48.2%

Risk via 5d forecast
Volatility	16.9%
Value at Risk 5%th	27.7%
Relative Tail Risk	-0.34%

Reward TTM
Sharpe Ratio	1.07
Alpha	17.34
CAGR/Max DD	1.07

Character TTM
Hurst Exponent	0.406
Beta	0.146
Beta Downside	0.157

Drawdowns 3y
Max DD	16.87%
Mean DD	3.92%
Median DD	3.48%

Description: ATO Atmos Energy December 17, 2025

Atmos Energy (ATO) operates as a regulated natural-gas utility in the United States, split between a Distribution segment that serves roughly 3.4 million customers across eight states via ≈ 76,000 miles of underground mains, and a Pipeline & Storage segment that moves third-party gas and runs five underground storage facilities in Texas, owning about 5,700 miles of transmission lines.

Key metrics from the most recent 10-K (FY 2023) show total revenue of $5.2 billion and an adjusted EBITDA margin near 30 %, reflecting the high-margin nature of regulated distribution. The company’s growth is driven primarily by modest demand-side expansion (≈ 1 % annual residential consumption growth) and periodic rate-case approvals that fund infrastructure upgrades. Capital intensity remains a sector hallmark: ATO’s 2023 capex was $1.1 billion, funded largely through regulated earnings and debt at an average cost of 4.5 %.

Broader industry forces that will shape ATO’s outlook include: (1) the transition toward low-carbon gases (e.g., renewable natural gas) that could create new revenue streams; (2) tightening pipeline capacity in key markets, which may increase third-party transport fees; and (3) macro-economic pressure from rising interest rates, which can elevate financing costs for long-term infrastructure projects.

For a deeper quantitative view, the ValueRay platform provides a granular breakdown of ATO’s cash-flow assumptions and sensitivity analyses, which can help you gauge the robustness of its valuation under different scenarios.

Piotroski VR‑10 (Strict, 0-10) 4.0

Net Income (1.20b TTM) > 0 and > 6% of Revenue (6% = 282.2m TTM)

FCFTA -0.05 (>2.0%) and ΔFCFTA -0.45pp (YES ≥ +1.0pp, WARN ≥ +0.5pp)

NWC/Revenue -9.58% (prev -1.77%; Δ -7.81pp) (YES ≤20% & Δ≤-1pp; WARN ≤25% & Δ≤0 oder ≤40% & Δ≤-3pp)

CFO/TA 0.07 (>3.0%) and CFO 2.05b > Net Income 1.20b (YES >=105%, WARN >=100%)

Net Debt (9.10b) to EBITDA (2.38b) ratio: 3.82 <= 3.0 (WARN <= 3.5)

Current Ratio 0.67 (target 1.5–3.0; WARN 1.2–<1.5 or >3.0–5.0; CFO/TA gate active)

Outstanding Shares last Quarter (160.6m) change vs 12m ago 4.93% (target <= -2.0% for YES)

Gross Margin 52.37% (prev 57.92%; Δ -5.55pp) >=18% & Δ>=+0.5pp (WARN >=15% & Δ>=0)

Asset Turnover 17.39% (prev 16.53%; Δ 0.85pp) >=50% & Δ>=+2pp (WARN >=35% & Δ>=0)

Interest Coverage Ratio 9.61 (EBITDA TTM 2.38b / Interest Expense TTM 171.7m) >= 6 (WARN >= 3)

Altman Z'' 1.22

(A) -0.02 = (Total Current Assets 912.1m - Total Current Liabilities 1.36b) / Total Assets 28.91b

(B) 0.17 = Retained Earnings (Balance) 4.86b / Total Assets 28.91b

(D) 0.35 = Book Value of Equity 5.34b / Total Liabilities 15.35b

Total Rating: 1.22 = (6.56 * A) + (3.26 * B) + (6.72 * C) + (1.05 * D)

ValueRay F-Score (Strict, 0-100) 40.89

1. Piotroski 4.0pt

2. FCF Yield -4.16%

3. FCF Margin -32.15%

4. Debt/Equity 0.69

5. Debt/Ebitda 3.82

6. ROIC - WACC (= 1.21)%

7. RoE 9.07%

8. Rev. Trend -10.58%

9. EPS Trend 4.03%

What is the price of ATO shares?

As of December 30, 2025, the stock is trading at USD 168.78 with a total of 526,625 shares traded.
Over the past week, the price has changed by +0.86%, over one month by -1.71%, over three months by +0.12% and over the past year by +24.22%.

Is ATO a buy, sell or hold?

Atmos Energy has received a consensus analysts rating of 3.60. Therefor, it is recommend to hold ATO.

Strong Buy: 4
Buy: 2
Hold: 8
Sell: 1
Strong Sell: 0

What are the forecasts/targets for the ATO price?

Issuer	Target	Up/Down from current
Wallstreet Target Price	175.7	4.1%
Analysts Target Price	175.7	4.1%
ValueRay Target Price	203.2	20.4%

ATO Fundamental Data Overview December 27, 2025

Market Cap USD = 27.24b (27.24b USD * 1.0 USD.USD)
P/E Trailing = 22.5737
P/E Forward = 21.097
P/S = 5.792
P/B = 2.0089
P/EG = 2.0702
Beta = 0.747
Revenue TTM = 4.70b USD
EBIT TTM = 1.65b USD
EBITDA TTM = 2.38b USD
Long Term Debt = 8.98b USD (from longTermDebt, last quarter)
Short Term Debt = 65.6m USD (from shortTermDebt, last quarter)
Debt = 9.30b USD (from shortLongTermDebtTotal, last quarter)
Net Debt = 9.10b USD (from netDebt column, last quarter)
Enterprise Value = 36.34b USD (27.24b + Debt 9.30b - CCE 202.7m)
Interest Coverage Ratio = 9.61 (Ebit TTM 1.65b / Interest Expense TTM 171.7m)
FCF Yield = -4.16% (FCF TTM -1.51b / Enterprise Value 36.34b)
FCF Margin = -32.15% (FCF TTM -1.51b / Revenue TTM 4.70b)
Net Margin = 25.49% (Net Income TTM 1.20b / Revenue TTM 4.70b)
Gross Margin = 52.37% ((Revenue TTM 4.70b - Cost of Revenue TTM 2.24b) / Revenue TTM)
Gross Margin QoQ = 56.00% (prev 44.95%)
Tobins Q-Ratio = 1.26 (Enterprise Value 36.34b / Total Assets 28.91b)
Interest Expense / Debt = 0.35% (Interest Expense 32.3m / Debt 9.30b)
Taxrate = 17.94% (38.2m / 213.1m)
NOPAT = 1.35b (EBIT 1.65b * (1 - 17.94%))
Current Ratio = 0.67 (Total Current Assets 912.1m / Total Current Liabilities 1.36b)
Debt / Equity = 0.69 (Debt 9.30b / totalStockholderEquity, last quarter 13.56b)
Debt / EBITDA = 3.82 (Net Debt 9.10b / EBITDA 2.38b)
Debt / FCF = -6.02 (negative FCF - burning cash) (Net Debt 9.10b / FCF TTM -1.51b)
Total Stockholder Equity = 13.22b (last 4 quarters mean from totalStockholderEquity)
RoA = 4.15% (Net Income 1.20b / Total Assets 28.91b)
RoE = 9.07% (Net Income TTM 1.20b / Total Stockholder Equity 13.22b)
RoCE = 7.43% (EBIT 1.65b / Capital Employed (Equity 13.22b + L.T.Debt 8.98b))
RoIC = 6.16% (NOPAT 1.35b / Invested Capital 21.97b)
WACC = 4.95% (E(27.24b)/V(36.54b) * Re(6.55%) + D(9.30b)/V(36.54b) * Rd(0.35%) * (1-Tc(0.18)))
Discount Rate = 6.55% (= CAPM, Blume Beta Adj.) -> floored to rf + 0.7*ERP = 8.05%
Shares Correlation 3-Years: 100.0 | Cagr: 3.53%
Fair Price DCF = unknown (Cash Flow -1.51b)
EPS Correlation: 4.03 | EPS CAGR: -13.71% | SUE: 0.85 | # QB: 1
Revenue Correlation: -10.58 | Revenue CAGR: -8.11% | SUE: -0.08 | # QB: 0
EPS next Quarter (2026-03-31): EPS=3.26 | Chg30d=-0.021 | Revisions Net=+2 | Analysts=6
EPS current Year (2026-09-30): EPS=8.07 | Chg30d=+0.024 | Revisions Net=+5 | Growth EPS=+8.1% | Growth Revenue=+14.1%
EPS next Year (2027-09-30): EPS=8.68 | Chg30d=+0.074 | Revisions Net=+5 | Growth EPS=+7.6% | Growth Revenue=+9.2%

Additional Sources for ATO Stock

News: Wall Street Journal | Benzinga | Yahoo Finance
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Fund Manager Positions: Dataroma | Stockcircle