Atmos Energy Corp
Exchange: NYSESector: UtilitiesIndustry: Utilities - Regulated Gas
Atmos Energy Corporation, a natural gas-only distributor, is an S&P 500 company headquartered in Dallas. We safely deliver reliable, efficient, and abundant natural gas to over 3.3 million distribution customers in over 1,400 communities across eight states located primarily in the South. As part of our vision to be the safest provider of natural gas services, we are modernizing our business and infrastructure while continuing to invest in safety, innovation, environmental sustainability, and our communities. Atmos Energy manages proprietary pipeline and storage assets, including one of the largest intrastate natural gas pipeline systems in Texas. Find us online at http://www.atmosenergy.com, Facebook, Twitter, Instagram and YouTube.
Did you know?
A large-cap company with a $30.6B market cap.
Current Price
$188.97
+1.88%GoodMoat Value
$150.42
20.4% overvaluedProfile
Valuation (TTM)
Market Cap$30.56B
P/E24.45
EV$38.53B
P/B2.25
Shares Out161.69M
P/Sales6.28
Revenue$4.87B
EV/EBITDA16.24
Atmos Energy Corp (ATO) Stock Analysis
GoodMoat Analysis
Atmos Energy is a regulated natural gas utility with a stable, asset-heavy business model. While it possesses a durable regulatory moat, its valuation appears unfavourable, trading at a premium to its GoodMoat target price and showing a negative free cash flow yield.
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Atmos Energy Corp is a regulated natural gas distribution and transmission company, operating a capital-intensive, essential service business. Applying the GoodMoat framework, its primary competitive advantage is a regulatory moat (Section 1, Criterion 5), as it holds monopoly-like franchises in its service territories with rates set by government commissions. This provides predictable, albeit regulated, returns. However, this model scores low on other moat criteria, lacking network effects, high switching costs, or proprietary technology. Its asset-heavy nature also contradicts the 'Asset-Light Model' quality indicator (Section 2, Criterion 9).
Financially, it shows a solid operating margin of 33.2% and a manageable Debt/Equity ratio of 0.66. Yet, key quality metrics are mixed: the ROE of 9.2% is below the high-quality threshold of 15-20%, and the FCF Yield is negative at -5.2%, indicating high capital expenditure needs. The current P/E of 23.5x is elevated for a utility with this growth and return profile. According to the Decision Framework (Section 6), the stock fails the Valuation & Risk Gate. The GoodMoat target price is $150.42, suggesting the current price of $181.55 represents a negative margin of safety. Combined with the negative FCF yield, this points to an unfavourable valuation setup for a value investor seeking a margin of safety.
Analysis based on data as of 2024-05-15.
Market Cap$30.56B
Current Price$188.97
P/E Ratio24.45
Forward P/E—
PEG Ratio2.39
EPS$7.46
Book Value$83.86
P/B Ratio2.25
ATO Financial Charts
FCF vs CAPEX
FCFCAPEX
Cash vs Debt
Net Debt: 8.8B
Revenue
2.9B
FY19
2.8B
FY20
3.4B
FY21
4.2B
FY22
4.3B
FY23
4.2B
FY24
4.7B
FY25
Net Income
511M
FY19
601M
FY20
666M
FY21
774M
FY22
886M
FY23
1.0B
FY24
1.2B
FY25
ATO 52-Week Range
$141.91
$188.97
50-Day MA: $178.98200-Day MA: $168.19
Did you know?
Pays a 1.81% dividend yield.
Atmos Energy Corp (ATO) Financial Summary
Atmos Energy Corp (ATO) is a Utilities company in the Utilities - Regulated Gas industry, listed on NYSE. The stock currently trades at $188.97 with a market capitalization of $30.56B.
Key valuation metrics include a P/E ratio of 24.45, price-to-book ratio of 2.25, and EPS of $7.46. The company reports a profit margin of 25.7% and return on equity of 9.2%.
ATO Key Financial Metrics
| Metric | Value |
|---|---|
| Market Cap | $30.56B |
| P/E Ratio | 24.45 |
| EPS | $7.46 |
| P/B Ratio | 2.25 |
| P/S Ratio | 6.28 |
| EV/EBITDA | 16.24 |
| Dividend Yield | 1.81% |
| Profit Margin | 25.7% |
| Return on Equity | 9.2% |
| Debt/Equity | 0.66 |
ATO Revenue & Earnings History
| Year | Revenue | Net Income |
|---|---|---|
| FY19 | $2.90B | $511.41M |
| FY20 | $2.82B | $601.44M |
| FY21 | $3.41B | $665.56M |
| FY22 | $4.20B | $774.40M |
| FY23 | $4.28B | $885.86M |
| FY24 | $4.17B | $1.04B |
| FY25 | $4.70B | $1.20B |
Atmos Energy Corp (ATO) Valuation
Based on GoodMoat's DCF model, Atmos Energy Corp has a fair value estimate of $150.42. At the current price of $188.97, the stock appears 25.6% overvalued relative to our intrinsic value estimate.
ATO Quality Indicators
Atmos Energy Corp maintains a profit margin of 25.7% and an operating margin of 33.2%. Return on equity stands at 9.2%. The current ratio is 0.77. Debt-to-equity ratio is 0.66.
About Atmos Energy Corp
Atmos Energy Corporation, a natural gas-only distributor, is an S&P 500 company headquartered in Dallas. We safely deliver reliable, efficient, and abundant natural gas to over 3.3 million distribution customers in over 1,400 communities across eight states located primarily in the South. As part of our vision to be the safest provider of natural gas services, we are modernizing our business and infrastructure while continuing to invest in safety, innovation, environmental sustainability, and our communities. Atmos Energy manages proprietary pipeline and storage assets, including one of the largest intrastate natural gas pipeline systems in Texas. Find us online at http://www.atmosenergy.com, Facebook, Twitter, Instagram and YouTube.
ATO Free Cash Flow
Atmos Energy Corp generated $-1.51B in trailing twelve-month free cash flow, representing an FCF yield of -4.95%. This low FCF yield may reflect heavy reinvestment or growth spending.
ATO Shares Outstanding
Atmos Energy Corp has 0.16 billion shares outstanding at a share price of $188.97, giving it a market capitalization of $30.56B.