ATO
Atmos Energy
$171.75
▼ 0.1%Updated Aug 7, 11:30 AM ET
ATO at a glance — five pillars scored 0–100 from real filed financials.
Overall: Favorable · 66/100. A wider, greener shape means more pillars look healthy. Dividends scores 0 when a company pays none — that is a choice, not a flaw.
▲ Up 11.6% over the last 12 months
Market Cap
$29.52B
P/E
21.23x
Forward P/E (est.)
18.76x
ROE
9.6%
Revenue Growth
8.8%
EPS Growth
13.2%
Profit Margin
27.6%
FCF Yield
6.0%
Debt / Equity
0.66x
ROIC
7.0%
Interest Coverage
11.36x
Current Ratio
1x
Dividend Yield
2.4%
Implied Growth (rev. DCF)
—
Rating Score
66/100
Atmos Energy (ATO) is a large-cap company in the Gas Utilities industry, part of the Utilities sector of the S&P 500, with a market value around $29.52B.
In its latest reported year it generated about $4.70B in revenue and $1.20B in net profit.
Our model rates ATO Favorable (66/100) on growth, profitability, financial health, and valuation. The summary below is built from its filed financials and current ratios and refreshes automatically.
Evidence of durable competitive advantage in the filed financials (10 years of history).
Some durable-advantage evidence, but not across the board — dig into which ingredient is weak and whether it's cyclical or structural.
30.2% average over the last 3 years
±3.4 pts around 27.1% across 10 years
grew in 6 of the last 9 year-over-year periods
positive in 1 of 10 years
7.0% latest fiscal year
A moat can't be proven by numbers alone — this scores the evidence a durable advantage leaves behind (pricing power, consistency, returns on capital), computed the same way for every stock. Pair it with the business overview before concluding anything.
Technical analysis reads price and volume to judge momentum and timing. It complements the fundamentals above — it does not replace them. Here is what ATO's chart says today, with each tool explained.
Trend — moving averages. A moving average is the average closing price over a window, which smooths out daily noise. ATO trades near $171.75, below its 50-day average ($176.47) and 200-day average ($175.61). Price below both averages is a downtrend — momentum is against buyers for now.
Momentum — RSI. The Relative Strength Index runs 0–100 and measures how strong recent gains are versus losses. Above 70 is "overbought", below 30 "oversold". At 77 it is overbought — the recent rally is stretched and can cool off.
MACD. MACD compares two moving averages to flag shifts in momentum. Its histogram is currently positive — short-term momentum is improving.
Volatility — ATR. Average True Range is the typical daily move. ATO's is $2.49 (~1.4% of price), so swings of about that size each day are normal — handy for setting a stop that isn't too tight.
Support & resistance. Over the last month ATO found buyers near $166.33 (support) and sellers near $176.88 (resistance); its 52-week range is $149.98–$192.51. A decisive break beyond either edge often marks the next move.
Volume. The latest session traded 0.6× the 20-day average — lighter than usual, so the move carries less conviction. Rising volume on up-days suggests real buying; on down-days, real selling.
Educational information to help you read a chart — not a recommendation or a forecast. It updates daily as the price and indicators change.
4Y CAGR
8.4%
Revenue moved from $2.45B in 2016 to $4.70B in 2025, a 7.5% compound annual growth rate. The most recent year grew a steady 8.8% year over year. Slower, mature growth is common for established businesses.
Gross Margin
48.1%
Operating Margin
33.2%
Net Margin
25.5%
ROE
9.6%
Atmos Energy keeps about 27.6% of each sales dollar as net profit, with a 48.1% gross margin and 33.2% operating margin. Return on equity is 9.6% and return on invested capital about 7.0%. Margins this wide usually signal pricing power or a cost advantage.
Total Debt
$3.53B
Net Debt
$3.40B
Net Debt / EBITDA
2.18x
Debt / Equity
0.66x
Leverage: debt-to-equity is 0.7x, and operating profit covers interest about 11.4x, with a current ratio of 1.0x. That is a moderate, manageable debt load for most businesses. It carries roughly $3.53B of total debt against $125.69M of cash.
Operating CF
$2.05B
Free Cash Flow
-$1.51B
FCF Margin
-32.2%
In the latest year Atmos Energy produced about $2.05B of operating cash flow but negative free cash flow as it invested heavily. That is a free-cash-flow yield of about 6.0% on today's price. Strong cash generation funds dividends, buybacks, and reinvestment.
Can the payout survive a bad year? Scored from filed cash flow, earnings coverage, and the raise/cut record.
The dividend is being paid, but coverage or consistency is thinner than an income investor should rely on without a closer look.
Dividend yield
2.4%
Per share (latest FY)
$3.48
Total paid (latest FY)
$553.76M
History on record
10 years
free cash flow was negative in the latest year — the dividend is being financed
46% of net income paid out
total dividends increased 9 years in a row
no cuts in the last 10 years on record
Coverage uses the latest fiscal year as filed with the SEC; the streak counts total dollars paid (per-share figures can carry split artifacts). Educational information, not income advice.
P/E
21.23x
P/S
6x
P/B
2.05x
EV / EBITDA
—
ATO trades at 21.2x trailing earnings (about 18.8x on estimated forward earnings), 6.0x sales, and 2.0x book value. That is a fairly typical valuation for a profitable company.
Where ATO sits versus its Utilities sector peers in the S&P 500.
Bands show the middle half (25th–75th percentile) of the 38 Utilities companies in the S&P 500 — the peer-relative anchor professional comps analysis uses. Context only — not investment advice.
How ATO stacks up against its Utilities peers — valuation, profitability, and growth versus the sector median.
In the Utilities sector (47 S&P 500 companies), ATO ranks #6 of 47 by our overall rating. It trades at roughly in line versus the sector on earnings (21.2x P/E vs. 21.3x median) with a lower return on equity (9.6% vs. 10.3%) and slower revenue growth (8.8% vs. 8.8%).
P/E vs sector
21.2x
median 21.3x
ROE vs sector
9.6%
median 10.3%
Growth vs sector
8.8%
median 8.8%
Sector rank
#6
of 47 by rating
Valuation vs. quality map
The sweet spot is upper-left: more profitable (higher ROE) for a lower P/E. Dashed lines mark the sector median.
Peers are the closest Utilities companies by sub-industry and size. Sector median is across all 47 S&P 500 names in the sector. Educational, not a recommendation.
Project revenue → earnings → price. Edit the assumptions to build your own case.
2030 price target (Base Case)
$0.00 – $0.00
vs. $171.75 today · expected CAGR -4% – 5%
| Metric | 2026 | 2027 | 2028 | 2029 | 2030 |
|---|---|---|---|---|---|
| Revenue | $5.13B | $5.59B | $6.09B | $6.64B | $7.24B |
| Net income | $1.28B | $1.40B | $1.52B | $1.66B | $1.81B |
| EPS | $7.46 | $8.13 | $8.86 | $9.65 | $10.52 |
| Share price (low) | $96.92 | $105.64 | $115.15 | $125.51 | $136.81 |
| Share price (high) | $156.56 | $170.65 | $186.01 | $202.75 | $220.99 |
| CAGR (low–high) | -44% / -9% | -22% / -0% | -12% / 3% | -8% / 4% | -4% / 5% |
Educational model on sample fundamentals — not a forecast or investment advice. Outputs are only as good as your assumptions.
The case for ATO:
- High net margins (27.6%) point to pricing power or efficiency.
- Healthy free-cash-flow yield (~6.0%) funds buybacks and dividends.
- Pays a 2.4% dividend on top of any price gains.
- Our model's overall read is Favorable (66/100).
The case against ATO:
- Like any single stock, it is exposed to competition, the economic cycle, and shifts in its end markets.
Market risk — sector rotation, the economic cycle, and broad sentiment move the stock regardless of fundamentals.
On balance, the fundamentals screen favourably: Atmos Energy is a large-cap utilities business growing at a mature pace, with solid profitability, and a sound balance sheet. It trades at 21.2x earnings, which our model scores Favorable (66/100). Weigh this against your own goals and time horizon — this is educational information, not a recommendation.
Analyst Ratings
What 19 Wall Street analysts covering ATO recommend (August 2026). Consensus is a useful sanity check — not a substitute for your own homework.
Analysts have turned more positive over the last three months (+7 pts of buy ratings).
Latest SEC Filings
ATO's most recent filings, straight from SEC EDGAR. Annual and quarterly reports are the deep dives; 8-Ks flag material events the moment they happen.
In the Idea Lab
ATO — frequently asked questions
Is ATO a good stock to buy?
We don't give buy or sell advice. Our model rates Atmos Energy Favorable (66/100) based on its growth, profitability, financial health, and valuation — use that as a research starting point and make your own decision.
What is ATO's rating on The Stocks School?
Atmos Energy currently scores 66/100 (Favorable) on our transparent model, which weighs real fundamentals: growth, margins, returns on capital, balance-sheet strength, and valuation.
How our ratings work →Where does ATO's data come from?
Live price data plus real fundamentals and 5-year financials pulled directly from Atmos Energy's SEC filings — refreshed automatically, not hand-entered.
How is the 5-year projection for ATO calculated?
It's a scenario model: it grows revenue at an assumed rate, applies a profit margin and a valuation multiple, and shows the resulting share-price range. The assumptions are yours to change — it's a tool for thinking, not a prediction.
Is this ATO analysis financial advice?
No. Everything on this page is educational research, not financial advice or a recommendation to buy or sell ATO. Always do your own research and consider a licensed professional.
Data notice. Fundamentals and financial statements are sourced from company filings (SEC EDGAR) and market-data providers; prices and market caps refresh on trading days and may be delayed. Ratings, projections, technical signals, and written summaries are model- or rule-generated for education and may simplify or lag the latest filings.
Not advice. Nothing on this page is investment advice or a recommendation to buy, hold, or sell any security. Do your own research and consult a licensed financial professional before investing.