ATO

Atmos Energy

Fundamental data last updated:April 13, 2026

company profile

SECTOR

Utilities

industry

Utilities - Regulated Gas

Exchange

NYSE

County of HQ

United States

Next Earnings Date

05/06/26

Business Summary

Atmos Energy operates as a regulated natural gas distribution utility, generating predictable cash flows through state-approved rate structures that allow recovery of capital expenditures plus a regulated return. Its moat is rooted in exclusive service territories, high infrastructure replacement costs, and regulatory frameworks that discourage competition. Revenue stability comes from essential-service demand rather than cyclical consumption, creating durable baseline cash generation. Capital is deployed into long-lived pipeline and distribution assets, which expand the regulated rate base and drive incremental earnings growth over time.

VALUATION

P/E

24.8

Market Cap ($M USD)

$31,492

Forward P/E

21.6

PEG

2.8

PRICE TO SALES

6.4

PRICE TO BOOK

2.2

EV / EBITDA

16.6

5-Year Average P/E

DIVIDEND

Yield

2.00%

Annual Payout

$4.00

Payout Ratio

46.50%

Consecutive Years of Dividend Growth

10+

5-Year Dividend Growth Rate

9.90%

Financial Health & Profitability

Earnings Per Share

$7.77

Next Year EPS Growth Estimate

$8.83

Next Year Revenue Growth Estimate

13.00%

Return on Equity (ROE)

8.80%

Operating Margin

33.20%

Debt-to-Equity

0.7

Piotroski F-Score

4

Altman Z-Score

1.8

Return on Invested Capital (ROIC)

5.90%%

Current Ratio

1.1

Quick Ratio

Gainseekers Quantitative Analysis

Summary

At 24.8x earnings and 21.6x forward earnings, ATO is not statistically cheap, but it is priced like a premium regulated utility rather than a distressed asset. The 2.8 forward PEG suggests growth is modest relative to valuation, meaning investors are paying up for stability, not acceleration. The 1.8 Altman Z-Score is the real tension point here—it signals balance sheet vulnerability that is uncomfortable for a utility, even with a manageable 33.20% Debt/Equity ratio. This is not a screaming bargain, but neither is it a speculative bubble; it’s a quality-regulated operator priced for steady execution with limited margin for error.

AI Exposure / Tech Reliance

As a Utilities - Regulated Gas operator, ATO is not directly exposed to AI disruption risk, which makes its core demand profile structurally resilient. Modernization efforts in grid management and data optimization can incrementally improve operating efficiency, but AI is an enhancer—not a revenue driver—for this business. The defensive nature of regulated gas distribution insulates it from rapid technological obsolescence.

The Bull Case

A GARP-oriented investor could justify owning ATO based on its 13.00% Return on Equity and 5.90% ROIC, which, while not explosive, demonstrate consistent capital productivity in a regulated framework. The 8.80% operating margin reflects stable cost control typical of a rate-regulated utility, and a Current Ratio of 1.1 indicates adequate short-term liquidity. With a $31,492M market cap and institutional ownership listed at $183.64, the stock clearly sits on institutional radar, reinforcing stability. While the Piotroski F-Score of 4 is neutral rather than strong, it does not signal financial deterioration, suggesting the business is steady rather than weakening—precisely what conservative capital seeks in volatile markets.

The Bear Case

The 2.8 PEG Forward is the clearest warning sign: investors are paying a premium multiple for muted growth, which compresses future upside. A 9.90% Short % of Float is elevated for a regulated utility and implies skepticism around valuation or balance sheet durability. The 1.8 Altman Z-Score introduces solvency sensitivity, and with a Price/Sales ratio of 6.4 and Price/Book of 2.2, the stock is hardly distressed. Add in a modest 0.7 TTM Yield against a Payout Ratio listed at $4.00, and the income profile does not overwhelmingly compensate investors for these structural risks.

Market Sentiment & Smart Money

Short Interest %

2.80%

Analyst Consensus

2.71

Average Analyst Price Target

$183.64

Institutional Ownership %

99.80%

1-Year Beta

0.06

Insider Buying % (6 Mo)

0.40%%

Distance to 52-Week High

98.90%%

Distance to 52-Week Low

129.20%%