ATO Stock Analysis: Atmos Energy | NYSE
Utilities - Regulated Gas | NYSE, USA | Market Cap: 29.239m USD | 12M Return: 16% | Charts, Fundamentals & Technical Analysis
Avg Turnover: 293M
EPS Trend: 98.5%
Qual. Beats: 0
Rev. Trend: 77.2%
Qual. Beats: 0
Warnings
Tailwinds
Seasonality 10.5 years of data
Average return per month, with how dependable it is below — did the month move the same way every year (high) or randomly (low). Above 60 is a pattern worth trusting; under 40 is noise.
Atmos Energy Corporation (NYSE: ATO) is a Dallas-based, large-cap U.S. gas utility founded in 1906 and publicly traded since 1987. It operates in two segments: Distribution, which delivers natural gas to approximately 3.4 million residential, commercial, public authority, and industrial customers across eight states through 76,000 miles of underground distribution and transmission mains; and Pipeline and Storage, which owns 5,700 miles of gas transmission lines and five underground storage facilities in Texas, transporting natural gas for third parties and offering ancillary services such as parking, lending, and inventory sales.
As a regulated gas utility, Atmos earns revenue primarily through rates set by state public utility commissions for its distribution business and by federal regulators for its interstate pipeline and storage operations. This dual-regulated structure typically delivers predictable, recurring cash flows, with growth driven largely by capital investment in rate base that is recovered over time through customer tariffs.
- Texas rate case approval expands Distribution segment earnings base
- Pipeline and Storage revenue grows on third-party gas transportation contracts
- Customer additions and cold winters boost residential gas distribution 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 (2.58b): 3.80 < 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 58.16%; Δ -6.73% > 0.5%) |
| Asset Turnover: 17.02% > 50% (prev 16.63%; Δ 0.39% > 0%) |
| Interest Coverage Ratio: 13.12 > 6 (EBIT TTM 1.82b / 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 1.82b / Avg Total Assets 28.7b) |
| D: 0.96 (Book Value of Equity 14.9b / Total Liabilities 15.5b) |
| Altman-Z'' = 2.03 = BBB |
| DSRI: 0.90 (Receivables 644.6m/660.6m, Revenue 4.88b/4.49b) |
| GMI: 1.13 (GM 58.16% / 51.43%) |
| 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 = -2.91 (Cap -4..+1) = A |
As of June 30, 2026, the stock is trading at USD 174.84 with a total of 874,827 shares traded. Over the past week, the price has changed by +3.10%, over one month by +3.38%, over three months by -4.97% and over the past year by +15.99%.
Current recommended Stop Loss: 168.70 (which is 3.5% or 2.2 ATR below the current price).
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 | 186.8 | 6.9% |
P/E Trailing = 21.5461
P/E Forward = 19.685
P/S = 5.9901
P/B = 1.9612
P/EG = 2.1244
Revenue TTM = 4.88b USD
EBIT TTM = 1.82b USD
EBITDA TTM = 2.58b USD
Long Term Debt = 9.62b USD (from longTermDebt, last quarter)
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 = 39.0b USD (29.2b + Debt 9.94b - CCE 127.1m)
Interest Coverage Ratio = 13.12 (Ebit TTM 1.82b / Interest Expense TTM 138.7m)
EV/FCF = -19.61x (Enterprise Value 39.0b / FCF TTM -1.99b)
FCF Yield = -5.10% (FCF TTM -1.99b / Enterprise Value 39.0b)
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 39.0b / Total Assets 30.4b)
Interest Expense / Debt = 1.40% (Interest Expense 138.7m / Debt 9.94b)
Taxrate = 19.91% (334.7m / 1.68b)
NOPAT = 1.46b (EBIT 1.82b * (1 - 19.91%))
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 = 3.80 (Net Debt 9.81b / EBITDA 2.58b)
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 = 7.69% (EBIT 1.82b / Capital Employed (Equity 14.0b + L.T.Debt 9.62b))
RoIC = 5.02% (NOPAT 1.46b / Invested Capital 29.0b)
WACC = 4.56% (E(29.2b)/V(39.2b) * Re(5.73%) + D(9.94b)/V(39.2b) * Rd(1.40%) * (1-Tc(0.20)))
Discount Rate = 5.73% (= 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 Year (2026-09-30): EPS=8.43 | Chg30d=+0.11% | Revisions=+50% | GrowthEPS=+13.0% | GrowthRev=+11.5%
EPS next Year (2027-09-30): EPS=8.98 | Chg30d=+0.36% | Revisions=+60% | GrowthEPS=+6.6% | GrowthRev=+10.5%
[Analyst] Revisions Ratio: +60%