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, Transmission

ATO EPS (Earnings per Share)

EPS Growth (3Y CAGR): 34.83%
EPS Trend (3Y Correlation): 28.1%

ATO Revenue

Revenue Growth (3Y CAGR): 5.57%
Revenue Trend (3Y Correlation): 9.1%

Description: ATO Atmos Energy October 14, 2025

Atmos Energy (ATO) operates as a regulated natural-gas utility in the United States, split between a Distribution segment serving roughly 3.3 million residential, commercial, public-authority, and industrial customers across eight states, and a Pipeline & Storage segment that moves third-party gas and runs five underground storage facilities in Texas. The company owns about 73,689 mi of distribution and transmission mains and 5,645 mi of gas-transmission lines.

As of FY 2023, Atmos reported an operating cash flow of $2.1 billion and a regulated rate base of $30.5 billion, reflecting a modest 3 % year-over-year increase in customer connections and a 2 % rise in average residential consumption per customer, driven by mild-weather recovery after the 2022 winter storm.

Key economic drivers for Atmos include regional weather patterns (which influence heating-season demand), the ongoing shift toward electrification that could cap long-term gas growth, and state-level regulatory decisions on rate adjustments. The utility’s exposure to Texas storage assets also provides a hedge against price volatility, as storage utilization typically spikes when wholesale gas prices rise sharply.

For a deeper dive into Atmos’s valuation metrics and scenario analysis, you might find ValueRay’s data platform a useful next step.

ATO Stock Overview

Market Cap in USD	28,312m
Sub-Industry	Gas Utilities
IPO / Inception	1987-01-01

ATO Stock Ratings

Growth Rating	93.8%
Fundamental	42.1%
Dividend Rating	64.4%
Return 12m vs S&P 500	6.56%
Analyst Rating	3.60 of 5

ATO Dividends

Dividend Yield 12m	1.98%
Yield on Cost 5y	4.05%
Annual Growth 5y	8.73%
Payout Consistency	99.3%
Payout Ratio	48.0%

ATO Growth Ratios

Growth Correlation 3m	84.2%
Growth Correlation 12m	91.7%
Growth Correlation 5y	94.3%
CAGR 5y	21.20%
CAGR/Max DD 3y (Calmar Ratio)	1.26
CAGR/Mean DD 3y (Pain Ratio)	5.31
Sharpe Ratio 12m	1.24
Alpha	12.86
Beta	0.729
Volatility	15.24%
Current Volume	627.2k
Average Volume 20d	687.3k
Stop Loss	170.6 (-3%)
Signal	-0.09

Piotroski VR‑10 (Strict, 0-10) 4.5

Net Income (1.16b TTM) > 0 and > 6% of Revenue (6% = 277.4m TTM)

FCFTA -0.05 (>2.0%) and ΔFCFTA -0.09pp (YES ≥ +1.0pp, WARN ≥ +0.5pp)

NWC/Revenue 9.12% (prev 17.67%; Δ -8.55pp) (YES ≤20% & Δ≤-1pp; WARN ≤25% & Δ≤0 oder ≤40% & Δ≤-3pp)

CFO/TA 0.07 (>3.0%) and CFO 2.03b > Net Income 1.16b (YES >=105%, WARN >=100%)

Net Debt (8.29b) to EBITDA (2.33b) ratio: 3.56 <= 3.0 (WARN <= 3.5)

Current Ratio 1.37 (target 1.5–3.0; WARN 1.2–<1.5 or >3.0–5.0; CFO/TA gate active)

Outstanding Shares last Quarter (161.2m) change vs 12m ago 5.07% (target <= -2.0% for YES)

Gross Margin 53.93% (prev 57.72%; Δ -3.79pp) >=18% & Δ>=+0.5pp (WARN >=15% & Δ>=0)

Asset Turnover 17.58% (prev 16.45%; Δ 1.13pp) >=50% & Δ>=+2pp (WARN >=35% & Δ>=0)

Interest Coverage Ratio 10.12 (EBITDA TTM 2.33b / Interest Expense TTM 158.6m) >= 6 (WARN >= 3)

Altman Z'' 1.47

(A) 0.02 = (Total Current Assets 1.55b - Total Current Liabilities 1.13b) / Total Assets 27.71b

(B) 0.17 = Retained Earnings (Balance) 4.83b / Total Assets 27.71b

(D) 0.37 = Book Value of Equity 5.31b / Total Liabilities 14.33b

Total Rating: 1.47 = (6.56 * A) + (3.26 * B) + (6.72 * C) + (1.05 * D)

ValueRay F-Score (Strict, 0-100) 42.14

1. Piotroski 4.50pt = -0.50

2. FCF Yield -3.75% = -1.88

3. FCF Margin -29.71% = -7.50

4. Debt/Equity 0.67 = 2.28

5. Debt/Ebitda 3.56 = -2.35

6. ROIC - WACC (= -0.60)% = -0.75

7. RoE 9.00% = 0.75

8. Rev. Trend 9.09% = 0.68

9. EPS Trend 28.13% = 1.41

What is the price of ATO shares?

As of October 26, 2025, the stock is trading at USD 175.93 with a total of 627,246 shares traded.
Over the past week, the price has changed by -0.27%, over one month by +5.49%, over three months by +12.13% and over the past year by +26.10%.

Is Atmos Energy a good stock to buy?

No, based on ValueRay´s Fundamental Analyses, Atmos Energy (NYSE:ATO) is currently (October 2025) a stock to sell. It has a ValueRay Fundamental Rating of 42.14 and therefor a negative outlook according to the companies health.
Based on momentum, paid dividends and discounted-cash-flow analyses, the fair value of ATO is around 197.10 USD . This means that ATO is currently undervalued and has a potential upside of +12.03% (Margin of Safety).

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	168.1	-4.5%
Analysts Target Price	168.1	-4.5%
ValueRay Target Price	216.2	22.9%

ATO Fundamental Data Overview October 18, 2025

Market Cap USD = 28.31b (28.31b USD * 1.0 USD.USD)
P/E Trailing = 24.3942
P/E Forward = 21.5517
P/S = 6.1238
P/B = 2.0249
P/EG = 2.7754
Beta = 0.729
Revenue TTM = 4.62b USD
EBIT TTM = 1.61b USD
EBITDA TTM = 2.33b USD
Long Term Debt = 8.98b USD (from longTermDebt, last quarter)
Short Term Debt = 20.2m USD (from shortTermDebt, last quarter)
Debt = 9.00b USD (from shortLongTermDebtTotal, last quarter)
Net Debt = 8.29b USD (from netDebt column, last quarter)
Enterprise Value = 36.60b USD (28.31b + Debt 9.00b - CCE 713.6m)
Interest Coverage Ratio = 10.12 (Ebit TTM 1.61b / Interest Expense TTM 158.6m)
FCF Yield = -3.75% (FCF TTM -1.37b / Enterprise Value 36.60b)
FCF Margin = -29.71% (FCF TTM -1.37b / Revenue TTM 4.62b)
Net Margin = 25.04% (Net Income TTM 1.16b / Revenue TTM 4.62b)
Gross Margin = 53.93% ((Revenue TTM 4.62b - Cost of Revenue TTM 2.13b) / Revenue TTM)
Gross Margin QoQ = 44.95% (prev 48.09%)
Tobins Q-Ratio = 1.32 (Enterprise Value 36.60b / Total Assets 27.71b)
Interest Expense / Debt = 0.40% (Interest Expense 36.4m / Debt 9.00b)
Taxrate = 19.17% (44.2m / 230.6m)
NOPAT = 1.30b (EBIT 1.61b * (1 - 19.17%))
Current Ratio = 1.37 (Total Current Assets 1.55b / Total Current Liabilities 1.13b)
Debt / Equity = 0.67 (Debt 9.00b / totalStockholderEquity, last quarter 13.39b)
Debt / EBITDA = 3.56 (Net Debt 8.29b / EBITDA 2.33b)
Debt / FCF = -6.03 (negative FCF - burning cash) (Net Debt 8.29b / FCF TTM -1.37b)
Total Stockholder Equity = 12.87b (last 4 quarters mean from totalStockholderEquity)
RoA = 4.18% (Net Income 1.16b / Total Assets 27.71b)
RoE = 9.00% (Net Income TTM 1.16b / Total Stockholder Equity 12.87b)
RoCE = 7.35% (EBIT 1.61b / Capital Employed (Equity 12.87b + L.T.Debt 8.98b))
RoIC = 6.08% (NOPAT 1.30b / Invested Capital 21.34b)
WACC = 6.68% (E(28.31b)/V(37.31b) * Re(8.70%) + D(9.00b)/V(37.31b) * Rd(0.40%) * (1-Tc(0.19)))
Discount Rate = 8.70% (= CAPM, Blume Beta Adj.)
Shares Correlation 3-Years: 100.0 | Cagr: 3.73%
Fair Price DCF = unknown (Cash Flow -1.37b)
EPS Correlation: 28.13 | EPS CAGR: 34.83% | SUE: -0.11 | # QB: 0
Revenue Correlation: 9.09 | Revenue CAGR: 5.57% | SUE: 0.07 | # QB: 0

Additional Sources for ATO Stock

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