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Atmos Energy Corp (ATO)

Overvalued
UtilitiesUtilities - Regulated GasUnited States

Fundamental

64

Price

$155.59

Market Cap

$26.54B

Part 1 · What the company is worth

Overview

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 3.4 million residential, commercial, public authority, and industrial customers; and owned 76,000 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 facilities in Texas; provides ancillary services customary to the pipeline industry, including parking arrangements, lending, and inventory sales; and owned 5,700 miles of gas transmission lines. Atmos Energy Corporation was founded in 1906 and is based in Dallas, Texas.

No editorial profile for this company yet

Direct competitors

Who this company fights with for the same customers

Compare

Generated on September 18, 2026 with claude-haiku-4-5 — shared with all users

P/E: 22.6Score: 55Market cap: $23.96B

CenterPoint runs the gas distribution utility serving Houston and other Texas communities, competing for the same Texas residential and commercial gas customers and before the same Texas regulator as Atmos's Mid-Tex division.

ONE Gas, Inc.OGS

Like Atmos, ONE Gas is a pure-play regulated gas distributor with no electric business, and its Texas Gas Service and Kansas Gas Service units serve households in the same two states where Atmos has its Mid-Tex and Colorado-Kansas divisions.

Spire Inc.SR

Spire is another gas-only regulated utility holding company whose Missouri, Alabama and Mississippi utilities sell residential and commercial gas service under the same rate-case model, overlapping Atmos in Mississippi.

Southwest Gas Holdings, Inc.SWX

Southwest Gas distributes regulated natural gas to roughly two million residential and commercial customers in Arizona, Nevada and California, the closest match to Atmos's gas-only distribution model outside its own service territory.

Oncor Electric Delivery Company LLCNot tracked

Atmos's own 10-K names electric utilities as its rival energy source, and Oncor delivers the electricity that competes with Atmos gas for space heating, water heating and cooking in the Dallas-Fort Worth homes that are Atmos's largest market.

Balance Sheet & Liquidity

Revenue

$4.92B

Trailing 12 months (through 6/30/2026)

Net Income

$1.40B

Trailing 12 months (through 6/30/2026)

Free Cash Flow

$-1.51B

Total Equity

$13.56B

Total Liabilities

$14.69B

Current Ratio

0.81

Interest Coverage

12.77

Debt/EBITDA

4.47

Earnings Per Share

Revenue & Net Income

Free Cash Flow

Income Breakdown

Historical statement

Margins over time

Debt over time

How heavy the debt is

Growth grid

Growth — Revenue

Fair Value Estimation

Regulated utilityOvervalued

Fair Value

$124.68

Current Price

$155.59

Margin of Safety

-24.8%

Fair Value Range

$84.23 - $165.12

Spread across the valuation methods used, not a statistically calibrated confidence interval.

Estimation Methods

Analyst price target:$185.55
Discounted cash flow (DCF):$88.32
Earnings multiple (P/E):$146.60
Graham growth formula:Not applicable to this type of company
Earnings power value (EPV):$106.08
Justified P/B:Not applicable to this type of company
Dividend discount (Gordon):$90.89
P/FFO, funds from operations:Not applicable to this type of company
Mid-cycle earnings:Not applicable to this type of company
Revenue multiple:Not applicable to this type of company
Analyst Consensus:Buy (7B / 11H / 0S)
Last Earnings Surprise:+4.75%

Valuation Metrics

P/E Ratio

18.67

ROE

8.8%

P/B Ratio

1.73

P/FCF

-

Gross Margin

-

ROIC

4.8%

Profitability Radar

Value Creation (Economic Moat)

ROIC

4.8%

WACC

6.1%

ROIC − WACC

-1.3 pp

ROIC is below the cost of capital — the company is destroying value for every dollar invested.

Fundamental Analysis Criteria

Passed (17)

  • EPS shows upward trend
  • EPS CAGR 8.34%
  • Price CAGR 8.21%
  • P/B Ratio 1.73
  • Debt/Equity ratio
  • Operating Margin 37.0%
  • Current Ratio
  • Interest Coverage
  • Debt/EBITDA
  • Return on Tangible Assets
  • Low reliance on intangibles
  • ROE 9.7%
  • Revenue Growth 5Y 10.8%
  • Earnings Surprise avg 2.8%
  • Earnings Quality (OCF/NI) 1.44
  • Net Margin Trend 28.5% vs 25.0%
  • Piotroski F-Score 5/9

Failed (7)

  • ROIC 4.8%
  • Positive Free Cash Flow
  • Price below Graham Number
  • DCF valuation (Overvalued)
  • Analyst Consensus 39% Buy
  • PEG Ratio 2.14
  • Share Dilution 5.2%

Unavailable (4)

  • Gross Margin NaN%
  • P/FCF NaN
  • Dividend Payout NaN%
  • CapEx intensity

Piotroski F-Score

5/9

Mixed signals: some areas need attention

score
criteria

Earnings Quality

1.44

High quality: earnings backed by cash

Share Dilution

5.2%

Issuing new shares, diluting ownership

Institutional Holdings

Governance

Executive Team

NameTitleAge
Mr. John Kevin AkersCEO, President & Director62
Mr. Christopher T. ForsytheSenior VP & CFO53
Ms. Jessica W. Bateman PulliamSenior VP, General Counsel & Corporate Secretary47
Mr. John S. McDillSenior Vice President of Utility Operations60
Ms. Michelle H. FaulkVP, Controller & Principal Accounting Officer47
Mr. Richard A MitschkeVP & Chief Information Officer-
Mr. Daniel M. Meziere CPAVP of Investor Relations & Treasurer64
Ms. Liz C. BeauchampVice President of Governmental & Public Affairs-
Mr. John Matt RobbinsSenior Vice President of Human Resources55
Mr. John A. ParisPresident of Mid-Tex Division61

Audit Risk

9

Board Risk

8

Compensation Risk

6

Shareholder Rights Risk

7

Part 2 · The price and when to enter

This part won't tell you whether the company is worth owning: it helps you choose when to buy it, once the fundamentals have convinced you. Inside: technical analysis, potential, historical drawdowns, gamma exposure.

Documents

  • Annual Report (10-K)

    A yearly overview of the business, its financial results, and the risks it faces.

    Filed on 2025-11-14

    View document
  • Quarterly Report (10-Q)

    A snapshot of financial performance for the most recent three-month period.

    Filed on 2026-08-05

    View document
  • Current Report (8-K)

    An announcement of a major event, such as a leadership change or big news.

    Filed on 2026-08-10

    View document

via SEC EDGAR

Income History

via SEC EDGAR

Latest News

Recent headlines for ATO, sourced from Markets Gazette.

No recent news for ATO.