ATO

Atmos Energy Corporation

Fundamental data last updated:June 4, 2026

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company profile

SECTOR

Utilities

industry

Regulated Gas

Exchange

NYSE

County of HQ

US

Next Earnings Date

08/05/2026

Business Summary

Atmos Energy Corporation, together with its subsidiaries, engages in the regulated natural gas distribution, and pipeline and storage businesses in the United States. It operates through two segments, Distribution, and Pipeline and Storage. The Distribution segment is involved in the regulated natural gas distribution and related sales operations in eight states. This segment distributes natural gas to approximately three million residential, commercial, public authority, and industrial customers. As of September 30, 2021, it owned 71,921 miles of underground distribution and transmission mains. The Pipeline and Storage segment engages in the pipeline and storage operations. This segment transports natural gas for third parties and manages five underground storage reservoirs in Texas; and provides ancillary services to the pipeline industry, including parking arrangements, lending, and inventory sales. As of September 30, 2021, it owned 5,699 miles of gas transmission lines. Atmos Energy Corporation was founded in 1906 and is headquartered in Dallas, Texas.

 


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VALUATION

P/E

21.17

Market Cap ($M USD)

$28.58B

Forward P/E

14.92

PEG

0.36

PRICE TO SALES

5.86

PRICE TO BOOK

1.91

EV / EBITDA

14.91

5-Year Average P/E

Free Cash Flow Yield

-6.97%

DCF Value

$-171.65

Graham Number

$127.66

Price to FCF

-14.35

EV to FCF

-19.12

Earnings Yield

4.72%

FCF Yield

-6.97%

DIVIDEND

Yield

2.26%

Annual Payout

$3.87

Payout Ratio

44.90%

Consecutive Years of Dividend Growth

5-Year Dividend Growth Rate

Financial Health & Profitability

Earnings Per Share

$8.09

Next Year EPS Growth Estimate

$11.48

Next Year Revenue Growth Estimate

$740.85B

Return on Equity (ROE)

9.59%

FREE CASH FLOW

Operating Margin

35.87%

Debt-to-Equity

0.69

Piotroski F-Score

4

Altman Z-Score

1.75

Return on Invested Capital (ROIC)

6.01%

Current Ratio

1.00

Quick Ratio

0.89

Net Debt to EBITDA

3.72

Interest Coverage

12.63

Gross Profit margin

51.43%

FCF PER SHARE

$-11.96

REVENUE PER SHARE

$29.32

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Gainseekers Quantitative Analysis

Summary

Atmos Energy Corporation’s valuation paints a complex picture. The stock traded above its DCF value, suggesting potential overvaluation, yet the Graham Number indicates a more reasonable pricing. With a Forward P/E of 16.24 and an Earnings Yield of 4.47%, the market seems to expect moderate growth. The Altman Z-score of 4.64 signals financial stability, reducing bankruptcy risk. Overall, the market may be pricing in its growth potential, but caution is warranted given the valuation discrepancies.

AI Exposure / Tech Reliance

As a regulated gas utility, Atmos Energy is less exposed to rapid AI or tech shifts compared to tech-heavy sectors. Its core operations focus on infrastructure and service reliability, which are less susceptible to digital disruption. However, integrating smart technologies could enhance operational efficiency and customer service.

The Bull Case

For value or GARP investors, Atmos Energy offers compelling reasons to buy. The company boasts a robust ROIC of 5.47%, indicating efficient capital use. Despite a negative FCF Yield, its operating margin of 35.87% showcases strong pricing power. The Piotroski F-Score of 4 suggests moderate financial health, but the low Debt/Equity ratio enhances its appeal as a stable investment.

The Bear Case

Atmos Energy faces significant structural risks. The negative FCF Yield and Price to FCF ratio highlight cash flow challenges, raising concerns about liquidity. Trading near its 52-week high, the stock appears technically overextended. Additionally, the Price/Sales ratio of 6.19 suggests a premium valuation, which may not be justified given its modest growth prospects.

Market Sentiment & Smart Money

Short Interest %

Analyst Consensus

Hold

Average Analyst Price Target

$179.00

Institutional Ownership %

1-Year Beta

0.65

Insider Buying % (6 Mo)

Distance to 52-Week High

12.43%

Distance to 52-Week Low

12.41%

EARNINGS SURPRISE %

1.76%

50-DAY SMA

$183.82

200-DAY SMA

$175.03

⚠️ Financial Disclaimer:
This content is for informational purposes only and is not financial advice. Information may be delayed or inaccurate. We may earn a commission from partner links.