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ATO

S&P 500
Favorable · 66/100

Atmos Energy

Utilities
Gas Utilities

$169.59

0.3%

Updated Today 7:15 PM ET

Price — Past Year

▲ Up 11.6% over the last 12 months

Price 50-day average 200-day averageSource: Yahoo Finance · refreshed daily
Key Metrics

Market Cap

$28.39B

P/E

21.03x

Forward P/E (est.)

18.58x

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

Technical Analysis (Educational)
Research

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 $169.59, below its 50-day average ($179.45) and 200-day average ($175.22). 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 41 it is in neutral territory — neither stretched nor washed out.

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 $2.83 (~1.7% 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 $179.02 (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 0.8× the 20-day average — about normal. 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.

Business Overview
Research

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 $28.39B.

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.

Revenue Growth
Research

4Y CAGR

8.4%

Revenue moved from $3.41B in 2021 to $4.70B in 2025, a 8.4% compound annual growth rate. The most recent year grew a steady 8.8% year over year. Slower, mature growth is common for established businesses.

Profitability
Research

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.

Debt Analysis
Research

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.

Cash Flow Analysis
Research

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.

Valuation Analysis
Research

P/E

21.03x

P/S

6x

P/B

2.03x

EV / EBITDA

13.82x

ATO trades at 21.0x trailing earnings (about 18.6x on estimated forward earnings), 6.0x sales, and 2.0x book value. That is a fairly typical valuation for a profitable company.

Metrics vs. Typical Range

Where this stock sits versus what most companies trade at.

TTM P/E
21.0xFair
Forward P/E
18.6xFair
P/S ratio
6.0xExpensive
Revenue growth
8.8%Strong
EPS growth
13.2%Strong
Gross margin
48.1%Strong
Net margin
27.6%Strong
ROE
9.6%Weak

Typical ranges are general references (e.g., many stocks trade at ~18–26x earnings), not hard rules. Context only — not investment advice.

Sector Peer Comparison

How ATO stacks up against its Utilities peers — valuation, profitability, and growth versus the sector median.

In the Utilities sector (31 S&P 500 companies), ATO ranks #4 of 31 by our overall rating. It trades at roughly in line versus the sector on earnings (21x P/E vs. 21.8x median) with a lower return on equity (9.6% vs. 10.4%) and slower revenue growth (8.8% vs. 9.0%).

P/E vs sector

21x

median 21.8x

ROE vs sector

9.6%

median 10.4%

Growth vs sector

8.8%

median 9.0%

Sector rank

#4

of 31 by rating

CompanyP/ERev Gr.Rating
ATOThis stock21x8.8%Favorable· 66
NRG120.6x10.6%Weak· 15
CNP26x1.4%Weak· 37
EIX7.4x13.2%Favorable· 65
FE25.3x8.9%Weak· 38
AEE19.7x12.3%Favorable· 64
PPL21.8x-58.8%Neutral· 55
DTE24.4x-15.5%Weak· 34
Utilities median21.8x9.0%54/100

Valuation vs. quality map

sector medianNRGCNPEIXFEAEEPPLDTEATOP/E — cheaper ←→ pricierROE — more profitable ↑

The sweet spot is upper-left: more profitable (higher ROE) for a lower P/E. Dashed lines mark the sector median.

Compare side by side

Peers are the closest Utilities companies by sub-industry and size. Sector median is across all 31 S&P 500 names in the sector. Educational, not a recommendation.

5-Year Projection Model

Project revenue → earnings → price. Edit the assumptions to build your own case.

2030 price target (Base Case)

$140.88$227.58

vs. $169.59 today · expected CAGR -4%6%

Metric20262027202820292030
Revenue$5.13B$5.59B$6.09B$6.64B$7.24B
Net income$1.28B$1.40B$1.52B$1.66B$1.81B
EPS$7.68$8.37$9.12$9.94$10.84
Share price (low)$99.81$108.79$118.58$129.25$140.88
Share price (high)$161.22$175.73$191.55$208.79$227.58
CAGR (low–high)-41% / -5%-20% / 2%-11% / 4%-7% / 5%-4% / 6%

Educational model on sample fundamentals — not a forecast or investment advice. Outputs are only as good as your assumptions.

Bull Case

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).
Bear Case

The case against ATO:

  • Like any single stock, it is exposed to competition, the economic cycle, and shifts in its end markets.
Key Risks
Research

Market risk — sector rotation, the economic cycle, and broad sentiment move the stock regardless of fundamentals.

Investment Thesis
Research

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 21.0x earnings, which our model scores Favorable (66/100). Weigh this against your own goals and time horizon — this is educational information, not a recommendation.

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.