(ATO) Atmos Energy - Overview
Sector: Utilities | Industry: Utilities - Regulated Gas | Exchange: NYSE (USA) | Market Cap: 29.458m USD | Total Return: 17.1% in 12m
Avg Turnover: 193M
EPS Trend: 98.5%
Qual. Beats: 0
Rev. Trend: 77.2%
Qual. Beats: 0
Warnings
High Debt while negative Cash Flow
Below Avwap Earnings
Tailwinds
No distinct edge detected
Atmos Energy Corporation (ATO) is a Dallas-based energy company focused on regulated natural gas distribution and pipeline management across eight states. The company operates through two primary segments: Distribution, serving approximately 3.4 million customers via an extensive underground network, and Pipeline and Storage, which manages infrastructure and storage facilities primarily in Texas.
As a regulated utility, Atmos Energy operates under a cost-of-service model where rates are set by state commissions, providing a predictable revenue stream linked to infrastructure investment. The gas utility sector typically benefits from high barriers to entry due to the capital-intensive nature of maintaining thousands of miles of transmission mains and storage assets. Further analysis of the companys valuation metrics on ValueRay can help determine how these regulated assets align with current market pricing. Atmos Energy maintains a significant footprint in the Mid-Continent and Southeastern United States, leveraging its 1906 founding history to support long-term regional energy demand.
- Rate-base investment and infrastructure modernization drive consistent regulated earnings growth
- Texas regulatory environment enables timely recovery of capital expenditures through annual filings
- Population growth in core service territories expands natural gas customer base
- Interest rate fluctuations impact financing costs for capital-intensive utility infrastructure projects
- Natural gas price volatility influences customer bills and industrial consumption volumes
| Net Income: 1.35b TTM > 0 and > 6% of Revenue |
| FCF/TA: -0.07 > 0.02 and ΔFCF/TA -1.72 > 1.0 |
| NWC/Revenue: 0.07% < 20% (prev 8.76%; Δ -8.68% < -1%) |
| CFO/TA 0.06 > 3% & CFO 1.88b > Net Income 1.35b |
| Net Debt (9.81b) to EBITDA (2.55b): 3.84 < 3 |
| Current Ratio: 1.00 > 1.5 & < 3 |
| Outstanding Shares: last quarter (167.8m) vs 12m ago 4.60% < -2% |
| Gross Margin: 51.43% > 18% (prev 0.58%; Δ 5.08k% > 0.5%) |
| Asset Turnover: 17.02% > 50% (prev 16.63%; Δ 0.39% > 0%) |
| Interest Coverage Ratio: 12.92 > 6 (EBITDA TTM 2.55b / Interest Expense TTM 138.7m) |
| A: 0.00 (Total Current Assets 1.26b - Total Current Liabilities 1.26b) / Total Assets 30.4b |
| B: 0.18 (Retained Earnings 5.52b / Total Assets 30.4b) |
| C: 0.06 (EBIT TTM 1.79b / Avg Total Assets 28.7b) |
| D: 0.39 (Book Value of Equity 5.98b / Total Liabilities 15.5b) |
| Altman-Z'' = 1.42 = BB |
| DSRI: 0.90 (Receivables 644.6m/660.6m, Revenue 4.88b/4.49b) |
| GMI: 1.13 (GM 51.43% / 58.16%) |
| AQI: 1.04 (AQ_t 0.07 / AQ_t-1 0.07) |
| SGI: 1.09 (Revenue 4.88b / 4.49b) |
| TATA: -0.02 (NI 1.35b - CFO 1.88b) / TA 30.4b) |
| Beneish M = -2.93 (Cap -4..+1) = A |
As of May 24, 2026, the stock is trading at USD 177.81 with a total of 1,013,388 shares traded.
Over the past week, the price has changed by +0.75%,
over one month by -2.56%,
over three months by -2.15% and
over the past year by +17.05%.
Atmos Energy has received a consensus analysts rating of 3.60. Therefore, it is recommended to hold ATO.
- StrongBuy: 4
- Buy: 2
- Hold: 8
- Sell: 1
- StrongSell: 0
| Analysts Target Price | 191 | 7.4% |
P/E Forward = 22.0264
P/S = 6.0349
P/B = 2.0251
P/EG = 2.1585
Revenue TTM = 4.88b USD
EBIT TTM = 1.79b USD
EBITDA TTM = 2.55b USD
Long Term Debt = 8.98b USD (from longTermDebt, last fiscal year)
Short Term Debt = 11.3m USD (from shortTermDebt, last quarter)
Debt = 9.94b USD (from shortLongTermDebtTotal, last quarter) + Leases 307.6m
Net Debt = 9.81b USD (calculated: Debt 9.94b - CCE 127.1m)
Enterprise Value = 39.3b USD (29.5b + Debt 9.94b - CCE 127.1m)
Interest Coverage Ratio = 12.92 (Ebit TTM 1.79b / Interest Expense TTM 138.7m)
EV/FCF = -19.72x (Enterprise Value 39.3b / FCF TTM -1.99b)
FCF Yield = -5.07% (FCF TTM -1.99b / Enterprise Value 39.3b)
FCF Margin = -40.80% (FCF TTM -1.99b / Revenue TTM 4.88b)
Net Margin = 27.58% (Net Income TTM 1.35b / Revenue TTM 4.88b)
Gross Margin = 51.43% ((Revenue TTM 4.88b - Cost of Revenue TTM 2.37b) / Revenue TTM)
Gross Margin QoQ = 46.05% (prev 60.84%)
Tobins Q-Ratio = 1.29 (Enterprise Value 39.3b / Total Assets 30.4b)
Interest Expense / Debt = 1.40% (Interest Expense 138.7m / Debt 9.94b)
Taxrate = 20.68% (151.7m / 733.6m)
NOPAT = 1.42b (EBIT 1.79b * (1 - 20.68%))
Current Ratio = 1.00 (Total Current Assets 1.26b / Total Current Liabilities 1.26b)
Debt / Equity = 0.67 (Debt 9.94b / totalStockholderEquity, last quarter 14.9b)
Debt / EBITDA = 3.84 (Net Debt 9.81b / EBITDA 2.55b)
Debt / FCF = -4.93 (negative FCF - burning cash) (Net Debt 9.81b / FCF TTM -1.99b)
Total Stockholder Equity = 14.0b (last 4 quarters mean from totalStockholderEquity)
RoA = 4.69% (Net Income 1.35b / Total Assets 30.4b)
RoE = 9.59% (Net Income TTM 1.35b / Total Stockholder Equity 14.0b)
RoCE = 7.79% (EBIT 1.79b / Capital Employed (Equity 14.0b + L.T.Debt 8.98b))
RoIC = 4.89% (NOPAT 1.42b / Invested Capital 29.0b)
WACC = 4.62% (E(29.5b)/V(39.4b) * Re(5.80%) + D(9.94b)/V(39.4b) * Rd(1.40%) * (1-Tc(0.21)))
Discount Rate = 5.80% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: 91.11 | Cagr: 5.18%
[DCF] Fair Price = unknown (Cash Flow -1.99b)
EPS Correlation: 98.50 | EPS CAGR: 11.07% | SUE: 0.71 | # QB: 0
Revenue Correlation: 77.15 | Revenue CAGR: 6.41% | SUE: 0.12 | # QB: 0
EPS current Quarter (2026-06-30): EPS=1.38 | Chg30d=+0.81% | Revisions=+14% | Analysts=4
EPS current Year (2026-09-30): EPS=8.41 | Chg30d=+1.63% | Revisions=+60% | GrowthEPS=+12.8% | GrowthRev=+11.0%
EPS next Year (2027-09-30): EPS=8.93 | Chg30d=+1.06% | Revisions=+60% | GrowthEPS=+6.1% | GrowthRev=+11.6%
[Analyst] Revisions Ratio: +60%