Atmos Energy Corp (ATO)
Utilities · Gas Utilities · US stock · S&P 500 component
$173.91
▲ +6.96 (4.17%)
Fair valueFair
$153 −12.3% to fair value
$76fair band $130–$185$229
Day's range
$167.83 – $174.12
52-week range
$154.72 – $192.51
Red flags⚠ Heavy dilution⚠ Heavy dilution⚠ Heavy dilution⚠ Heavy dilution⚠ Heavy dilution
About Atmos Energy Corp
Atmos Energy is a regulated natural gas utility that delivers gas to homes, businesses and industrial users across several states, mostly in the southern and central United States. It also owns an extensive pipeline and storage system in Texas. Revenue comes from rates set with state regulators, which allow recovery of gas costs and a return on infrastructure investment, and the company spends heavily on pipeline replacement and system upgrades.
Revenue has grown 3.8% a year over three years, leaving the last twelve months at $4.9 billion. Operating margin is 37.0%. Return on invested capital comes to 6%. On leverage, net debt to EBITDA is 3.7 times. A dividend is paid, with a yield of 2.3%. This gives an X-Ray Score of 57 out of 100.
Price chart
52-wk range $154.72 – $192.51Volume 1,290,062Daily, split-adjusted
Vitals
Market cap$29.5B
52-week range$154.72 – $192.51
Volume (last day)1,290,062
P/E (TTM)20.5
EBIT / EV yield4.6%
Free-cash-flow yield-6.9%
Dividend yield2.3%
Revenue (TTM)$4.9B
Net income (TTM)$1.4B
Operating margin37.0%
Return on capital5.8%
Debt incl. leases$10.3B
Cash & securities$521M
Debt = borrowings plus lease liabilities. Cash & securities = cash, equivalents and short-term marketable securities (long-term securities are not counted, so net cash can be understated for companies that hold large long-term investments). Net debt = debt minus cash & securities. Source: latest SEC 10-Q/10-K. EBIT / EV yield = operating profit divided by market cap plus net debt.
Fair value estimate
$153middle half of models $138 – $178
Fair
−12.3% to fair value
Average of the 10 valuation models that pass our checks: multiples, discounted cash flow, dividend discount and earnings power value. A model more than 100% above or 60% below the price is left out as unrealistic. Model uncertainty is Medium, based on how far apart the models are. Undervalued or Overvalued means the gap to fair value is more than 17.5%.
Price $174
Undervalued < $130Fair $130 – $185Overvalued > $185
P/E multiple
$173
P/B multiple
$163
P/S multiple
$137
EV/EBITDA multiple
$182
EV/EBIT multiple
$179
EV/revenue multiple
$145
10-year DCF, EBITDA exit · not used
$32
5-year DCF, EBITDA exit
$105
10-year DCF, revenue exit · not used
$28
5-year DCF, revenue exit
$97
5-year DCF, growth exit · not used
$53
Dividend discount, stable
$205
Dividend discount, multi-stage · not used
$398
Earnings power value
$139
Growth the price implies
10.2%/yr
A model estimate, not a price target or recommendation. Inputs: risk-free 5.13%, equity risk premium 4.30% (Damodaran). How it works.
What this means
Average business, fairly priced
The price sits inside our fair-value band. A high score does not guarantee a good outcome; it shifts the odds a little. Use the checklist as a prompt for your own research.
Before you invest · decision checklist
Ticked boxes are filled in from our data; the rest are yours to answer.
The five-lens scan
Every score explained in one sentence, ranked against Utilities peers. Open a lens to see the numbers behind it.
Strong: 70 to 100Fair: 50 to 69Weak: under 50No score: not enough data
Valuation
Weak
28/100
Expensive against its sector on earnings and cash flow.
See the numbers →
EBIT / EV yield4.6%
Free-cash-flow yield-6.9%
Fair value vs price0.9×
Growth
Strong
73/100
Growing faster than most of its sector.
See the numbers →
Revenue growth (3y)3.8%
EPS growth (3y)10.0%
Growth consistency100%
Profitability
Fair
57/100
Returns on capital are typical for its sector.
See the numbers →
Return on invested capital5.8%
Operating margin37.0%
Financial health
Strong
77/100
Balance sheet looks strong: debt is well covered.
See the numbers →
Piotroski F-Score6 / 9
Net debt / EBITDA3.7×
Interest cover12.8×
Dividends
Fair
61/100
Dividend is typical for its sector.
See the numbers →
Dividend yield2.3%
Dividend growth13.8%
Quarterly results: last 6 quarters
+18.4%
Mar '25
+19.6%
Jun '25
+12.1%
Sep '25
+14.2%
Dec '25
+0.6%
Mar '26
+4.8%
Jun '26
Revenue against the same quarter a year earlier. Latest quarter revenue $879M, diluted EPS $1.43.
SWOT analysis: Atmos Energy Corp
Strengthsinside the company
- Operating margin of 37.0% is well above the 22.8% median of sector peers, a sign of pricing power or lower costs.
- Operating profit covers interest 13x, so debt costs are a small drag.
Weaknessesinside the company
- Return on invested capital is only 5.8% (median 5.5% for sector peers), so the business earns little above its cost of capital.
- Free cash flow is negative, so spending or debt has to be financed from outside.
- Net debt is 3.7x EBITDA, above the 3x level that lenders usually watch.
Opportunitiesvaluation and setting
- Revenue growth picked up to 12.9% last year from 3.8% a year over three years.
- Price momentum is strong on the weekly and monthly signals (trends can reverse).
Threatsvaluation and setting
- Heavy debt makes profits sensitive to interest rates and refinancing conditions.
- Our Market Compass rates the backdrop for Utilities as unfavourable.
- Our checks raised: Heavy dilution; Heavy dilution.
Written by fixed rules from the figures on this page and the peer table below: filings, our fair value, the sector climate and the price trend. It summarises the data, it is not a forecast or advice.
Compare ATO with peers and sector
Medians of 30 Utilities peers and of 30 Utilities stocks in our universe.
Largest peers (X-Ray Score): NEE 45, SO 45, DUK 58, CEG 49, AEP 58, D 53.
| Metric | ATO | Peers | Sector |
|---|---|---|---|
| X-Ray Score (out of 100) | 57 | 50 | 50 |
| Valuation | 28 | 50 | 50 |
| Growth | 73 | 53 | 53 |
| Profitability | 57 | 49 | 49 |
| Financial health | 77 | 51 | 51 |
| Dividends | 61 | 53 | 53 |
Sector leaders: highest X-Ray Score in Utilities
ATO ranks #8 of 31 in Utilities by X-Ray Score. A higher score is stronger on our five pillars; it is a ranking of facts, not a forecast.
Green means better than the peer median, red worse (only where a higher or lower figure is clearly better). A dash means too few companies report the figure. P/E, EV/EBITDA and price changes are not graded: a different level is not good or bad by itself.
Factor ratings for ATO
Each factor is rated by where ATO stands among the 31 Utilities stocks in our universe.
Rating against the sector
Goodthe top third of these stocks
Averagethe middle third of these stocks
Badthe bottom third of these stocks
"Beats" is the share of those stocks it is ahead of.
Against its own history
The last columns set today's figure against the company's own median of its last five financial years:
▲ Betterbetter than its usual level
▼ Worseworse than its usual level
≈ In linewithin its usual range
For valuation factors Good means cheaper than most of the sector and Better means cheaper than usual for this company, which is not the same as a bargain.
In total: 7 Good · 7 Average · 6 Bad of 20
Growth: 1 · 2 · 0
Profitability: 3 · 0 · 1
Financial strength: 2 · 2 · 0
Valuation: 0 · 3 · 2
Cash flow: 0 · 0 · 3
Efficiency: 1 · 0 · 0
| Factor | ATO | Rating | Sector median | Own 5-year median | Against own history |
|---|---|---|---|---|---|
| Growth | |||||
| Revenue growth, 3 years a year | +3.8% | Average beats 62% | +3.4% | – | – |
| Revenue growth, last year | +12.9% | Good beats 75% | +9.6% | +12.9% | ≈ In line |
| EPS growth, 3 years a year | +10.0% | Average beats 61% | +8.1% | – | – |
| Profitability | |||||
| Operating margin | 37.0% | Good beats 92% | 22.9% | 26.6% | ▲ Better |
| Net margin | 28.5% | Good beats 92% | 14.4% | 20.7% | ▲ Better |
| Return on invested capital | 5.8% | Good beats 76% | 5.5% | – | – |
| Return on equity | 9.2% | Bad beats 24% | 10.1% | 8.4% | ≈ In line |
| Financial strength | |||||
| Net debt / EBITDA | 3.7x | Good beats 88% | 5.8x | 4.1x | ≈ In line |
| Interest cover | 12.8x | Good beats 85% | 2.5x | 9.0x | ▲ Better |
| Current ratio | 0.81 | Average beats 56% | 0.78 | 0.81 | ≈ In line |
| Piotroski F-score | 6 / 9 | Average beats 58% | 6 / 9 | – | – |
| Valuation | |||||
| P/E ratio | 21.0x | Average beats 60% | 21.8x | 18.2x | ▼ Worse |
| Price / book | 1.9x | Average beats 66% | 2.1x | 1.5x | ▼ Worse |
| Price / sales | 6.0x | Bad beats 8% | 2.9x | 3.6x | ▼ Worse |
| EV / EBITDA | 15.1x | Average beats 40% | 14.0x | 14.1x | ≈ In line |
| Free cash flow yield | -6.9% | Bad beats 23% | -4.9% | -5.7% | ▼ Worse |
| Cash flow | |||||
| Free cash flow margin | -41.1% | Bad beats 5% | -9.1% | -32.2% | ▼ Worse |
| Cash from operations / net income | 1.44 | Bad beats 5% | 2.20 | 1.66 | ▼ Worse |
| Accruals (lower is better) | −2.0% | Bad beats 18% | −3.3% | – | – |
| Efficiency | |||||
| Days sales outstanding | 35 days | Good beats 70% | 44 days | 32 days | ≈ In line |
These ratings compare companies with each other and describe the past; they are not a forecast, a recommendation or part of the X-Ray Score. A factor is left out when its data is missing or meaningless (for example a P/E on negative earnings). A dash in the history columns means fewer than three usable years.
Fundamentals checklist
● 6 Good · ● 5 Average · ● 3 BadCash quality
Earnings backed by cashBad
Free-cash-flow yieldBad
Risk models
Altman Z''Good
Piotroski F-ScoreAverage
Growth
EPS growth (3y)Average
Revenue growth (3y)Average
Growth consistencyGood
Balance sheet
Current ratioAverage
Net debt / EBITDAGood
Interest coverGood
Valuation
Fair value vs priceBad
EBIT / EV yieldAverage
Profitability
Return on invested capitalGood
Operating marginGood
Each check is graded against the company's sector, not a fixed number. Checklist score 61/100.
Financials
| FY21 | FY22 | FY23 | FY24 | FY25 | |
|---|---|---|---|---|---|
| Revenue | $3.4B | $4.2B | $4.3B | $4.2B | $4.7B |
| Operating income | $905M | $921M | $1.1B | $1.4B | $1.6B |
| Net income | $666M | $774M | $886M | $1.0B | $1.2B |
| Operating cash flow | −$1.1B | $978M | $3.5B | $1.7B | $2.0B |
| Operating margin | 26.6% | 21.9% | 25.0% | 32.5% | 33.2% |
| Free cash flow | −$3.1B | −$1.5B | $654M | −$1.2B | −$1.5B |
| Diluted EPS | $5.12 | $5.60 | $6.10 | $6.83 | $7.46 |
Fiscal years, from SEC filings.
Technical summary
Daily
Bullish
12 bullish · 0 neutral · 4 bearish
Weekly
Strongly bullish
10 bullish · 1 neutral · 1 bearish
Monthly
Strongly bullish
7 bullish · 1 neutral · 0 bearish
Moving averages (daily)
| SMA 10 | 165.5 | Bullish |
| EMA 10 | 166.1 | Bullish |
| SMA 20 | 161.7 | Bullish |
| EMA 20 | 164.0 | Bullish |
| SMA 50 | 163.9 | Bullish |
| EMA 50 | 164.6 | Bullish |
| SMA 100 | 168.0 | Bullish |
| EMA 100 | 167.4 | Bullish |
| SMA 200 | 172.7 | Bullish |
| EMA 200 | 168.5 | Bullish |
Oscillators (daily)
| RSI (14) | 74.86 | Bearish |
| MACD (12, 26) | 1.76 | Bullish |
| Momentum (12) | 8.87 | Bullish |
| Stochastic %K (14) | 98.84 | Bearish |
| Williams %R (14) | -1.16 | Bearish |
| CCI (20) | 185.3 | Bearish |
Pivot points (classic, last session)
S3 163.5 | S2 165.7 | S1 169.8 | Pivot 172.0 | R1 176.1 | R2 178.2 | R3 182.4 |
Signals describe what the chart is doing, not what to do. Moving averages: price above the average is bullish. Oscillators use the usual thresholds (RSI 30/70, Stochastic 20/80, CCI ±100, Williams %R −80/−20; MACD and momentum above zero are bullish). Weekly and monthly views use closing prices only.
Dividends
Paid, last 12 months
4.00 USD
Yield on today's price
2.30%
Frequency
Quarterly
Next ex-dividend date
Not announced
| Ex-dividend date | Amount per share |
|---|---|
| 1.0000 | |
| 1.0000 | |
| 1.0000 | |
| 1.0000 | |
| 0.8700 | |
| 0.8700 | |
| 0.8700 | |
| 0.8700 | |
| 0.8050 | |
| 0.8050 | |
| 0.8050 | |
| 0.8050 |
Ex-dividend dates and amounts from EODHD. Shown as declared, before tax.
ETFs that hold ATO
| ETF | Share of the fund |
|---|---|
| GQGU The Advisors’ Inner Circle Fund III | 2.12% |
| XLU Utilities Select Sector SPDR | 2.02% |
| FUTY Fidelity MSCI Utilities Index | 1.86% |
| VPU Vanguard Utilities | 1.80% |
| IDU iShares U.S. Utilities | 1.76% |
| NOBL ProShares S&P 500 Dividend Aristocrats | 1.36% |
| KNG FT Cboe Vest S&P 500 Dividend Aristocr... | 1.33% |
| EMLP First Trust North American Energy Infr... | 1.21% |
The eight funds with the largest weight in ATO among the ETFs we cover, from each fund's latest SEC Form N-PORT (quarter-end positions, so they can be months old). All ETFs.
ATO stock splits
ATO has split its stock once since 1994. The latest was a 3-for-2 split on 17 May 1994.
Full ATO stock split history →ATO SEC filings
8-KSEC EDGAR
Entered a material agreement
8-KSEC EDGAR
Other events
424B5SEC EDGAR
424B5
8-KSEC EDGAR
Director or officer change; Regulation FD disclosure
10-QSEC EDGAR
Quarterly report
8-KSEC EDGAR
Results of operations
8-KSEC EDGAR
Entered a material agreement
8-KSEC EDGAR
Other events
Where the numbers come from
Statements SEC EDGAR filings (10-K, 10-Q), quarters derived from year-to-date figures.
Prices end-of-day closes, split-adjusted.
Industry inputs beta, multiples and equity risk premium from Damodaran Online (NYU Stern).
StocksXray is for education only and is not financial advice. Scores and fair values are model estimates from public filings and carry uncertainty.