ATMOS ENERGY CORP (ATO) Stock Fundamental Analysis

USA • New York Stock Exchange • NYSE:ATO • US0495601058

171.26 USD
-0.24 (-0.14%)
Last: Feb 6, 2026, 03:45 PM
Fundamental Rating

5

Overall ATO gets a fundamental rating of 5 out of 10. We evaluated ATO against 14 industry peers in the Gas Utilities industry. While ATO has a great profitability rating, there are quite some concerns on its financial health. While showing a medium growth rate, ATO is valued expensive at the moment.


Dividend Valuation Growth Profitability Health

7

1. Profitability

1.1 Basic Checks

  • ATO had positive earnings in the past year.
  • In the past year ATO had a positive cash flow from operations.
  • In the past 5 years ATO has always been profitable.
  • ATO had a positive operating cash flow in 4 of the past 5 years.
ATO Yearly Net Income VS EBIT VS OCF VS FCFATO Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 2B -2B

1.2 Ratios

  • Looking at the Return On Assets, with a value of 4.24%, ATO is in line with its industry, outperforming 57.14% of the companies in the same industry.
  • ATO's Return On Equity of 8.84% is in line compared to the rest of the industry. ATO outperforms 50.00% of its industry peers.
  • ATO has a Return On Invested Capital (4.80%) which is comparable to the rest of the industry.
  • The Average Return On Invested Capital over the past 3 years for ATO is below the industry average of 8.44%.
  • The last Return On Invested Capital (4.80%) for ATO is above the 3 year average (4.53%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA 4.24%
ROE 8.84%
ROIC 4.8%
ROA(3y)4.1%
ROA(5y)3.84%
ROE(3y)8.52%
ROE(5y)8.44%
ROIC(3y)4.53%
ROIC(5y)4.46%
ATO Yearly ROA, ROE, ROICATO Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2 4 6 8 10

1.3 Margins

  • Looking at the Profit Margin, with a value of 25.48%, ATO belongs to the top of the industry, outperforming 92.86% of the companies in the same industry.
  • ATO's Profit Margin has improved in the last couple of years.
  • ATO has a better Operating Margin (33.17%) than 85.71% of its industry peers.
  • In the last couple of years the Operating Margin of ATO has grown nicely.
  • ATO has a Gross Margin of 77.33%. This is in the better half of the industry: ATO outperforms 78.57% of its industry peers.
  • In the last couple of years the Gross Margin of ATO has remained more or less at the same level.
Industry RankSector Rank
OM 33.17%
PM (TTM) 25.48%
GM 77.33%
OM growth 3Y14.81%
OM growth 5Y2.57%
PM growth 3Y11.42%
PM growth 5Y3.65%
GM growth 3Y8.86%
GM growth 5Y0.18%
ATO Yearly Profit, Operating, Gross MarginsATO Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20 40 60

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3

2. Health

2.1 Basic Checks

  • With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), ATO is destroying value.
  • ATO has more shares outstanding than it did 1 year ago.
  • ATO has more shares outstanding than it did 5 years ago.
  • The debt/assets ratio for ATO is higher compared to a year ago.
ATO Yearly Shares OutstandingATO Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 50M 100M 150M
ATO Yearly Total Debt VS Total AssetsATO Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5B 10B 15B 20B 25B

2.2 Solvency

  • ATO has an Altman-Z score of 1.71. This is a bad value and indicates that ATO is not financially healthy and even has some risk of bankruptcy.
  • ATO's Altman-Z score of 1.71 is amongst the best of the industry. ATO outperforms 100.00% of its industry peers.
  • A Debt/Equity ratio of 0.66 indicates that ATO is somewhat dependend on debt financing.
  • ATO's Debt to Equity ratio of 0.66 is amongst the best of the industry. ATO outperforms 85.71% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.66
Debt/FCF N/A
Altman-Z 1.71
ROIC/WACC0.63
WACC7.65%
ATO Yearly LT Debt VS Equity VS FCFATO Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 5B 10B

2.3 Liquidity

  • ATO has a Current Ratio of 0.77. This is a bad value and indicates that ATO is not financially healthy enough and could expect problems in meeting its short term obligations.
  • Looking at the Current ratio, with a value of 0.77, ATO is in the better half of the industry, outperforming 78.57% of the companies in the same industry.
  • A Quick Ratio of 0.65 indicates that ATO may have some problems paying its short term obligations.
  • ATO's Quick ratio of 0.65 is fine compared to the rest of the industry. ATO outperforms 78.57% of its industry peers.
Industry RankSector Rank
Current Ratio 0.77
Quick Ratio 0.65
ATO Yearly Current Assets VS Current LiabilitesATO Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1B 2B 3B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

6

3. Growth

3.1 Past

  • ATO shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 10.16%, which is quite good.
  • Measured over the past years, ATO shows a quite strong growth in Earnings Per Share. The EPS has been growing by 9.58% on average per year.
  • Looking at the last year, ATO shows a quite strong growth in Revenue. The Revenue has grown by 12.91% in the last year.
  • The Revenue has been growing by 10.76% on average over the past years. This is quite good.
EPS 1Y (TTM)10.16%
EPS 3Y9.79%
EPS 5Y9.58%
EPS Q2Q%9.42%
Revenue 1Y (TTM)12.91%
Revenue growth 3Y3.83%
Revenue growth 5Y10.76%
Sales Q2Q%14.17%

3.2 Future

  • The Earnings Per Share is expected to grow by 8.21% on average over the next years. This is quite good.
  • The Revenue is expected to grow by 9.15% on average over the next years. This is quite good.
EPS Next Y10.89%
EPS Next 2Y9.26%
EPS Next 3Y8.74%
EPS Next 5Y8.21%
Revenue Next Year14%
Revenue Next 2Y12.2%
Revenue Next 3Y8.88%
Revenue Next 5Y9.15%

3.3 Evolution

  • When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
  • When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
ATO Yearly Revenue VS EstimatesATO Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2B 4B 6B
ATO Yearly EPS VS EstimatesATO Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2 4 6 8 10

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1

4. Valuation

4.1 Price/Earnings Ratio

  • With a Price/Earnings ratio of 22.24, ATO is valued on the expensive side.
  • Based on the Price/Earnings ratio, ATO is valued a bit more expensive than 71.43% of the companies in the same industry.
  • The average S&P500 Price/Earnings ratio is at 27.67. ATO is around the same levels.
  • With a Price/Forward Earnings ratio of 19.15, ATO is valued on the expensive side.
  • Based on the Price/Forward Earnings ratio, ATO is valued a bit more expensive than the industry average as 64.29% of the companies are valued more cheaply.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 27.20, ATO is valued a bit cheaper.
Industry RankSector Rank
PE 22.24
Fwd PE 19.15
ATO Price Earnings VS Forward Price EarningsATO Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

  • Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ATO indicates a rather expensive valuation: ATO more expensive than 92.86% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 15.92
ATO Per share dataATO EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 20 40 60 80

4.3 Compensation for Growth

  • The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
  • ATO has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)2.04
PEG (5Y)2.32
EPS Next 2Y9.26%
EPS Next 3Y8.74%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

5

5. Dividend

5.1 Amount

  • ATO has a Yearly Dividend Yield of 2.33%. Purely for dividend investing, there may be better candidates out there.
  • With a Dividend Yield of 2.33, ATO pays less dividend than the industry average, which is at 3.87. 85.71% of the companies listed in the same industry pay a better dividend than ATO!
  • Compared to an average S&P500 Dividend Yield of 1.82, ATO pays a bit more dividend than the S&P500 average.
Industry RankSector Rank
Dividend Yield 2.33%

5.2 History

  • On average, the dividend of ATO grows each year by 8.68%, which is quite nice.
  • ATO has been paying a dividend for at least 10 years, so it has a reliable track record.
  • ATO has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)8.68%
Div Incr Years34
Div Non Decr Years34
ATO Yearly Dividends per shareATO Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1 2 3

5.3 Sustainability

  • ATO pays out 46.22% of its income as dividend. This is a bit on the high side, but may be sustainable.
  • The dividend of ATO is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP46.22%
EPS Next 2Y9.26%
EPS Next 3Y8.74%
ATO Yearly Income VS Free CF VS DividendATO Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 1B -1B -2B -3B
ATO Dividend Payout.ATO Dividend Payout, showing the Payout Ratio.ATO Dividend Payout.PayoutRetained Earnings

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ATMOS ENERGY CORP

NYSE:ATO (2/6/2026, 3:45:50 PM)

171.26

-0.24 (-0.14%)

Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryGas Utilities
Earnings (Last)02-03
Earnings (Next)05-05
Inst Owners102.27%
Inst Owner Change-1.3%
Ins Owners0.32%
Ins Owner Change2.16%
Market Cap27.69B
Revenue(TTM)4.70B
Net Income(TTM)1.20B
Analysts68.42
Price Target179.44 (4.78%)
Short Float %2.78%
Short Ratio3.47
Dividend
Industry RankSector Rank
Dividend Yield 2.33%
Yearly Dividend3.5
Dividend Growth(5Y)8.68%
DP46.22%
Div Incr Years34
Div Non Decr Years34
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)2.98%
Min EPS beat(2)0.25%
Max EPS beat(2)5.71%
EPS beat(4)4
Avg EPS beat(4)2.75%
Min EPS beat(4)0.25%
Max EPS beat(4)5.71%
EPS beat(8)8
Avg EPS beat(8)2.96%
EPS beat(12)9
Avg EPS beat(12)2.1%
EPS beat(16)11
Avg EPS beat(16)3.08%
Revenue beat(2)2
Avg Revenue beat(2)1.07%
Min Revenue beat(2)0.91%
Max Revenue beat(2)1.23%
Revenue beat(4)3
Avg Revenue beat(4)-1.36%
Min Revenue beat(4)-13.72%
Max Revenue beat(4)6.12%
Revenue beat(8)3
Avg Revenue beat(8)-11.94%
Revenue beat(12)4
Avg Revenue beat(12)-12.79%
Revenue beat(16)7
Avg Revenue beat(16)-5.72%
PT rev (1m)0%
PT rev (3m)2.28%
EPS NQ rev (1m)-0.44%
EPS NQ rev (3m)2.77%
EPS NY rev (1m)-0.39%
EPS NY rev (3m)3.29%
Revenue NQ rev (1m)5.36%
Revenue NQ rev (3m)-0.78%
Revenue NY rev (1m)2.11%
Revenue NY rev (3m)0.69%
Valuation
Industry RankSector Rank
PE 22.24
Fwd PE 19.15
P/S 5.89
P/FCF N/A
P/OCF 13.51
P/B 2.04
P/tB 2.17
EV/EBITDA 15.92
EPS(TTM)7.7
EY4.5%
EPS(NY)8.94
Fwd EY5.22%
FCF(TTM)-9.35
FCFYN/A
OCF(TTM)12.68
OCFY7.4%
SpS29.09
BVpS83.86
TBVpS78.87
PEG (NY)2.04
PEG (5Y)2.32
Graham Number120.53
Profitability
Industry RankSector Rank
ROA 4.24%
ROE 8.84%
ROCE 5.8%
ROIC 4.8%
ROICexc 4.84%
ROICexgc 4.99%
OM 33.17%
PM (TTM) 25.48%
GM 77.33%
FCFM N/A
ROA(3y)4.1%
ROA(5y)3.84%
ROE(3y)8.52%
ROE(5y)8.44%
ROIC(3y)4.53%
ROIC(5y)4.46%
ROICexc(3y)4.57%
ROICexc(5y)4.49%
ROICexgc(3y)4.73%
ROICexgc(5y)4.67%
ROCE(3y)5.5%
ROCE(5y)5.41%
ROICexgc growth 3Y5.6%
ROICexgc growth 5Y0.22%
ROICexc growth 3Y5.92%
ROICexc growth 5Y0.64%
OM growth 3Y14.81%
OM growth 5Y2.57%
PM growth 3Y11.42%
PM growth 5Y3.65%
GM growth 3Y8.86%
GM growth 5Y0.18%
F-Score4
Asset Turnover0.17
Health
Industry RankSector Rank
Debt/Equity 0.66
Debt/FCF N/A
Debt/EBITDA 3.91
Cap/Depr 484.71%
Cap/Sales 75.73%
Interest Coverage 4.47
Cash Conversion 89.31%
Profit Quality N/A
Current Ratio 0.77
Quick Ratio 0.65
Altman-Z 1.71
F-Score4
WACC7.65%
ROIC/WACC0.63
Cap/Depr(3y)462.48%
Cap/Depr(5y)451.16%
Cap/Sales(3y)70.63%
Cap/Sales(5y)65.57%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)10.16%
EPS 3Y9.79%
EPS 5Y9.58%
EPS Q2Q%9.42%
EPS Next Y10.89%
EPS Next 2Y9.26%
EPS Next 3Y8.74%
EPS Next 5Y8.21%
Revenue 1Y (TTM)12.91%
Revenue growth 3Y3.83%
Revenue growth 5Y10.76%
Sales Q2Q%14.17%
Revenue Next Year14%
Revenue Next 2Y12.2%
Revenue Next 3Y8.88%
Revenue Next 5Y9.15%
EBIT growth 1Y-11.09%
EBIT growth 3Y19.2%
EBIT growth 5Y13.61%
EBIT Next Year64.24%
EBIT Next 3Y28.98%
EBIT Next 5Y22.54%
FCF growth 1Y-25.64%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y18.21%
OCF growth 3Y27.99%
OCF growth 5Y14.57%

ATMOS ENERGY CORP / ATO FAQ

What is the fundamental rating for ATO stock?

ChartMill assigns a fundamental rating of 5 / 10 to ATO.


What is the valuation status for ATO stock?

ChartMill assigns a valuation rating of 1 / 10 to ATMOS ENERGY CORP (ATO). This can be considered as Overvalued.


What is the profitability of ATO stock?

ATMOS ENERGY CORP (ATO) has a profitability rating of 7 / 10.


What is the expected EPS growth for ATMOS ENERGY CORP (ATO) stock?

The Earnings per Share (EPS) of ATMOS ENERGY CORP (ATO) is expected to grow by 10.89% in the next year.


Can you provide the dividend sustainability for ATO stock?

The dividend rating of ATMOS ENERGY CORP (ATO) is 5 / 10 and the dividend payout ratio is 46.22%.