Atmos Energy (ATO) AI Stock Analysis

• Market Cap: $26.98B
• Dividend Yield: 2.15%
• Average Volume (3M): 862.04K
• Price to Earnings (P/E): 22.3
• Beta (1Y): 0.12
• Revenue Growth: 12.91%
• EPS Growth: 9.86%
• Country: US
• Employees: 5,260
• Sector: Utilities
• Sector Strength: 65
• Industry: Regulated Gas
• EPS (TTM): 1.07
• Shares Outstanding: 161,748,000
• 10 Day Avg. Volume: 601,147
• 30 Day Avg. Volume: 862,045
• PEG Ratio: 2.18
• Price to Book (P/B): 2.00
• Price to Sales (P/S): 5.77
• P/FCF Ratio: -17.95
• Enterprise Value/Market Cap: 1.38
• Enterprise Value/Revenue: 7.94
• Enterprise Value/Gross Profit: 15.16
• Enterprise Value/Ebitda: 15.66
• 1Y Price Target: $180.86
• Price Target Upside: 7.90% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 7
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 66 Neutral
• Price Target: $180.00 ▲(7.39% Upside)

The overall stock score reflects strong financial performance and a positive earnings call outlook, tempered by bearish technical indicators and moderate valuation concerns. The recent corporate event adds a positive note, but liquidity risks from negative free cash flow and market volatility remain significant considerations.

Positive Factors

Earnings Growth

Consistent EPS growth over 23 years indicates strong business performance and resilience, supporting long-term shareholder value.

Regulatory Advantage

The new bill allows faster recovery of capital expenditures, enhancing financial stability and supporting sustained growth.

Customer Growth

Strong customer growth expands revenue base and market presence, indicating effective business strategy and execution.

Negative Factors

Negative Free Cash Flow

Negative free cash flow can strain liquidity, limiting investment capacity and financial flexibility, impacting long-term growth.

Rising Operating Costs

Increasing operating costs can pressure margins and profitability, challenging cost management and operational efficiency.

Volatile Gas Prices

Volatile gas prices can impact revenue predictability and require strategic management to mitigate financial risks.

Atmos Energy Business Overview & Revenue Model

Company Description

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.

How the Company Makes Money

Atmos Energy generates revenue primarily through the sale and distribution of natural gas to its customers. The company's revenue model is based on regulated rates set by state public utility commissions, which allow it to recover costs and earn a return on investment. Key revenue streams include residential and commercial gas sales, transportation fees for moving gas through its distribution network, and storage services. Additionally, Atmos Energy may benefit from partnerships with local governments and other agencies for infrastructure projects and energy efficiency programs, which can also enhance its earnings. Factors such as regulatory approvals, market demand for natural gas, and investments in infrastructure improvements significantly influence the company's financial performance.

Atmos Energy Financial Statement Overview

Summary

Atmos Energy demonstrates strong profitability and revenue growth, supported by efficient operations. The balance sheet reflects a stable financial position with manageable debt. However, negative free cash flow poses a risk to liquidity, which needs to be addressed for long-term sustainability.

Income Statement

Atmos Energy shows a consistent revenue growth trend with a 1.72% increase in the latest year. The net profit margin is strong at 25.49%, indicating efficient cost management. However, the gross profit margin is not provided, which limits a complete analysis of cost efficiency. The EBIT and EBITDA margins are healthy, reflecting strong operational performance.

Balance Sheet

The company's debt-to-equity ratio has improved to 0.53, indicating a stable leverage position. Return on equity is moderate at 7.18%, suggesting decent profitability for shareholders. The equity ratio is not provided, limiting insights into asset financing. Overall, the balance sheet shows a stable financial structure with manageable debt levels.

Cash Flow

Operating cash flow is robust, with a coverage ratio of 1.50, indicating good cash generation relative to net income. However, the free cash flow is negative, which could be a concern for liquidity. The free cash flow to net income ratio is negative, highlighting potential cash flow challenges despite profitability.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	4.70B	4.70B	4.17B	4.28B	4.20B	3.41B
Gross Profit	2.46B	2.46B	2.41B	2.06B	1.81B	1.70B
EBITDA	2.38B	2.38B	2.10B	1.74B	1.49B	1.38B
Net Income	1.20B	1.20B	1.04B	885.32M	774.40M	665.56M
Balance Sheet
Total Assets	28.91B	28.91B	25.19B	22.52B	22.19B	19.61B
Cash, Cash Equivalents and Short-Term Investments	203.80M	203.80M	307.34M	15.40M	51.55M	116.72M
Total Debt	9.30B	9.30B	8.13B	7.12B	8.37B	7.56B
Total Liabilities	15.35B	15.35B	13.04B	11.65B	12.77B	11.70B
Stockholders Equity	13.56B	13.56B	12.16B	10.87B	9.42B	7.91B
Cash Flow
Free Cash Flow	-1.51B	-1.51B	-1.20B	653.77M	-1.47B	-3.05B
Operating Cash Flow	2.05B	2.05B	1.73B	3.46B	977.58M	-1.08B
Investing Cash Flow	-3.56B	-3.56B	-2.92B	-2.80B	-2.43B	-1.96B
Financing Cash Flow	1.41B	1.41B	1.48B	-696.77M	1.39B	3.14B

Atmos Energy Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 167.61
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ATO, the sentiment is Neutral. The current price of 167.61 is below the 20-day moving average (MA) of 168.03, below the 50-day MA of 170.90, and above the 200-day MA of 161.93, indicating a neutral trend. The MACD of -0.96 indicates Negative momentum. The RSI at 46.40 is Neutral, neither overbought nor oversold. The STOCH value of 47.47 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for ATO.

Atmos Energy Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SWX	74 Outperform	$5.86B	12.64	5.42%	3.07%	-23.15%	157.45%
UGI	70 Outperform	$7.96B	11.98	14.87%	3.92%	1.10%	140.04%
OGS	68 Neutral	$4.62B	17.95	8.51%	3.45%	15.06%	12.27%
ATO	66 Neutral	$26.98B	22.35	9.32%	2.15%	12.91%	9.86%
Sector *	66 Neutral	$17.65B	18.10	5.60%	3.62%	6.62%	11.55%
NJR	64 Neutral	$4.68B	13.95	14.62%	4.01%	13.94%	13.93%
NI	64 Neutral	$20.06B	22.20	10.23%	2.69%	19.62%	12.87%