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Atmos Energy Corporation(ATO)

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ADVISORIES YOU CAN VERIFY
QUALITY SIGNAL
1-STAR RATING
PASS
LAST CLOSE
$157.05
09/28/2026
(24-hour delay)

Advisory History & Simulated Performance *

*as per simulation (see disclosures)
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Upturn Advisory & Investor View for ATO

09/28/2026: ATO (1-star) is currently NOT-A-BUY. Pass it for now.

Atmos Energy is a regulated natural gas utility that provides essential distribution and storage services, primarily in Texas and several other states. The company maintains a steady business model characterized by rate-regulated revenue and a consistent, long-term focus on infrastructure safety. Its primary growth opportunity lies in ongoing capital investment and modernization projects within its established service areas. However, investors should monitor risks related to the regulatory environment, the potential for policy-driven energy transitions, and sensitivity to interest rate fluctuations. Atmos is generally suited for conservative, income-oriented investors seeking reliable dividends from a stable utility operator.

How to Read the Upturn Advisory

The Upturn Star Rating and the current BUY, SELL, or PASS advisory are generated by Upturn’s AI advisory engine based on proprietary signal analysis, price behavior, advisory history, and historical signal performance.

Company fundamentals, valuation, risks, and news provide supporting context about the business.

Investor Fit

Investor styleFitWhy
Growth investorWeak fitAtmos is a slow-growing utility, not a high-growth stock.
Momentum investorWeak fitThe stock typically exhibits low beta and steady performance rather than momentum.
Value investorMixed fitUtility valuations are often driven by interest rates rather than traditional value metrics.
Dividend investorStrong fitAtmos offers a reliable and growing dividend stream suitable for income investors.
Low-risk investorStrong fitRegulated utilities offer stable, predictable operations with lower volatility.

Risk Profile

Risk factorLevelWhy it matters
Price volatilityLowRegulated utilities generally experience less market volatility than the broader equity market.
Valuation riskMediumValuations are sensitive to long-term interest rate trends which influence utility yield attractiveness.
Competition risk (energy transition)MediumThe push toward electrification poses a long-term competitive threat to natural gas usage.
Business qualityStrongThe company benefits from a regulated business model with protected service territories.
Dividend incomeStrongAtmos has a consistent history of supporting and growing its dividend.
Execution riskMediumLarge-scale pipeline projects carry inherent construction and regulatory hurdles.

Price Behavior

Downtrend
PRICE PATH

Downtrend

The stock has experienced a sustained decline in price over recent periods.

Very Smooth
PRICE STABILITY

Very Smooth

The stock has followed a highly orderly price path with minimal short-term disruption.

Analysis of Past Performance

Type Stock
Historic Profit 20.92%
Avg. Invested days 56
Today’s Advisory PASS
Upturn Advisory Rating upturn star rating icon
Upturn Advisory Performance Upturn Advisory Performance icon 3.0
Stock Returns Performance Upturn Returns Performance icon 3.0
Upturn Profits based on simulation icon Profits based on simulation
Upturn last close icon Last Close 09/28/2026

Upturn Scorecard

Upturn Star Rating

★★★★★
ATO receives a 3-star rating, supported by solid company fundamentals, solid quantitative characteristics, and solid analyst coverage. The rating is constrained by weak price momentum.

Company Fundamentals

★★★★★
ATO has solid overall fundamentals (4 stars), with moderate financial health, moderate growth momentum, and solid ownership. In FY2025 versus FY2024, solid earnings growth (+14.9%) and solid revenue growth (+12.9%) are partially offset by weak cash generation (FCF margin -32.2%), very low insider ownership of 0.40%.

Financial Health Rating

★★★★★
ATO's financial health is supported by solid profitability, including gross margin of 52.4% and operating margin of 33.2%. Liquidity is soft (2 stars), which helps explain the 3-star overall score.

Growth Momentum Score

★★★★★
Earnings growth is ATO's strongest growth driver at +14.9% FY2025 versus FY2024 (solid, 4 stars). By comparison, revenue growth (+12.9%, solid) is also solid, while free-cash-flow growth (-25.6%, negative) holds the profile back, so recent growth is not broad-based across the business.

Ownership

★★★★★
Institutional ownership is 97.8% and approximately 99.5% of outstanding shares are publicly tradable, supporting liquidity and institutional participation. Insider ownership is only 0.40%, which materially reduces the ownership score.

Top 5 Institutional Investors

BlackRock Inc 10.33%
State Street Corp 6.73%
Vanguard Capital Management, LLC 6.35%
Vanguard Portfolio Management, LLC 5.49%
Wellington Management Company LLP 5.44%

Unit Economics (Per $1K Revenue)

★★★★★
ATO generates approximately $524 of gross profit, $332 of operating income, and $-322 of free cash flow for every $1,000 of revenue. Based on FY2025 results. Weak margins and weak cash conversion support a 3-star rating, while capital efficiency is soft.

Economic Dimensions

★★★★★
Effective Tax Rate: 18.90%

Quantitative Style Profile

★★★★★
ATO has a large-cap, liquid, relatively low-volatility profile. Weak momentum is the primary drawback, while valuation that is moderately attractive rather than deeply discounted.

Style Classification

Quality Focused

Low VolatilityLarge / Mega Cap StabilityHighly Liquid / Institution-Friendly

Key Highlights

Company Size Large-Cap Stock
Market Capitalization 26.57B USD
Price to earnings Ratio 18.72
1Y Target Price 185.55
Price to earnings Ratio 18.72
1Y Target Price 185.55
Volume (30-day avg) 998.5K shares
Beta 0.59
52 Weeks Range 155.00 - 190.28
Updated Date 09/27/2026
52 Weeks Range 155.00 - 190.28
Updated Date 09/27/2026
Dividends yield (FY) 2.47%
Basic EPS (TTM) 8.4

How Company Makes Money

Business areaWhat it includesRetail investor read
Natural Gas DistributionDelivering gas to residential and commercial customers through regulated rates.This is the primary source of stable, predictable revenue for the company.
Pipeline and StorageTransporting and storing gas to ensure supply reliability.This infrastructure segment provides essential support services and secondary revenue streams.
Geography (Texas Focus)Significant operations centered in Texas.Exposure to Texas provides growth opportunities due to population and economic trends in the state.

Analyzing Revenue: Products, Geography and Growth

Revenue by Products

Product revenue - Year on Year

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Valuation

Trailing PE 18.72
Forward PE 17.57
Enterprise Value 36.21B
Price to Sales(TTM) 5.4
Enterprise Value 36.21B
Price to Sales(TTM) 5.4
Enterprise Value to Revenue 7.39
Enterprise Value to EBITDA 13.61
Shares Outstanding 168.99M
Shares Floating 168.20M
Shares Outstanding 168.99M
Shares Floating 168.20M
Percent Insiders 0.4
Percent Institutions 97.83

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Financial Metrics

🧭 Investment Snapshot

Total Revenue (Scale)

Information icon Total money earned from selling products or services before any costs. It is needed to understand the scale of the business and its ability to generate income.

Net Income (Profit)

Information icon Final profit after all expenses, interest, and taxes are deducted. It is needed to determine the overall profitability available to shareholders.

Free Cash Flow (Cash Strength)

Information icon Cash remaining after operating activities and capital expenditures, showing cash available for growth. It is needed to evaluate the company’s ability to invest, pay dividends, or reduce debt.

📈 Growth & Strength

Operating Income (Core Profit)

Information icon Profit from core operations after deducting all operating expenses. It is needed to measure how efficiently the company runs its primary business activities.

EBITDA (Cash Earnings)

Information icon Earnings before interest, taxes, depreciation, and amortization, indicating operating cash potential. It is needed to compare operating performance across companies without accounting or financing differences.

Gross Profit (Unit Profitability)

Information icon Revenue minus cost of revenue, showing profit after direct production costs. It is needed to evaluate core business profitability before overhead expenses.

🛡️ Financial Safety

Cash (Liquidity Buffer)

Information icon Total cash and cash equivalents on hand. It is needed to evaluate immediate liquidity and financial flexibility.

Total Debt (Leverage Risk)

Information icon Total debt including both short-term and long-term components. It is needed to assess the company’s leverage and financial risk.

Net Working Capital (Short-Term Health)

Information icon Current assets minus current liabilities, indicating short-term liquidity strength. It is needed to assess whether the company can meet its short-term obligations.

🧱 Balance Sheet Strength

Stockholder Equity (Net Worth)

Information icon Total equity value held by shareholders. It is needed to understand the net worth of the company from the owners’ perspective.

Total Assets (Asset Base)

Information icon The full value of everything the company owns, including cash, inventory, equipment, and investments. It is needed to understand the resource base used to generate revenue.

Income Before Tax (Pre-Tax Earnings)

Information icon Income before provision for income taxes. It is needed to analyze profitability independent of tax structures.

⚙️ Cost & Drag Factors

Cost of Revenue (Production Cost)

Information icon Direct costs required to produce and deliver the products or services sold. It is needed to assess efficiency in production and service delivery.

Total Operating Expenses (Operating Cost)

Information icon Indirect costs of running the business such as salaries, marketing, and administration. It is needed to understand how much it costs to sustain ongoing business operations.

Income Tax Expense (Tax Drag)

Information icon Amount of taxes paid or payable to the government. It is needed to evaluate the impact of taxation on overall profitability.

About Atmos Energy Corporation

Exchange NYSE
Headquarters Dallas, TX, United States
IPO Launch date 1987-01-01
CEO, President & Director Mr. John Kevin Akers
Sector Utilities
Industry Utilities - Regulated Gas
Full time employees 5487
Full time employees 5487

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.