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Atmos Energy Corporation (ATO)



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Upturn Advisory Summary
09/16/2025: ATO (2-star) has a low Upturn Star Rating. Not recommended to BUY.
1 Year Target Price $162.7
1 Year Target Price $162.7
4 | Strong Buy |
2 | Buy |
8 | Hold |
1 | Sell |
0 | Strong Sell |
Analysis of Past Performance
Type Stock | Historic Profit 17.32% | Avg. Invested days 56 | Today’s Advisory Consider higher Upturn Star rating |
Upturn Star Rating ![]() ![]() | Upturn Advisory Performance ![]() | Stock Returns Performance ![]() |
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Key Highlights
Company Size Large-Cap Stock | Market Capitalization 26.73B USD | Price to earnings Ratio 23.03 | 1Y Target Price 162.7 |
Price to earnings Ratio 23.03 | 1Y Target Price 162.7 | ||
Volume (30-day avg) 15 | Beta 0.74 | 52 Weeks Range 131.96 - 167.99 | Updated Date 09/16/2025 |
52 Weeks Range 131.96 - 167.99 | Updated Date 09/16/2025 | ||
Dividends yield (FY) 2.05% | Basic EPS (TTM) 7.2 |
Analyzing Revenue: Products, Geography and Growth
Revenue by Products
Product revenue - Year on Year
Earnings Date
Report Date - | When - | Estimate - | Actual - |
Profitability
Profit Margin 25.05% | Operating Margin (TTM) 30.87% |
Management Effectiveness
Return on Assets (TTM) 3.61% | Return on Equity (TTM) 9.06% |
Valuation
Trailing PE 23.03 | Forward PE 21.28 | Enterprise Value 35024970514 | Price to Sales(TTM) 5.78 |
Enterprise Value 35024970514 | Price to Sales(TTM) 5.78 | ||
Enterprise Value to Revenue 7.58 | Enterprise Value to EBITDA 15.01 | Shares Outstanding 160524000 | Shares Floating 159781952 |
Shares Outstanding 160524000 | Shares Floating 159781952 | ||
Percent Insiders 0.32 | Percent Institutions 102.51 |
Upturn AI SWOT
Atmos Energy Corporation

Company Overview
History and Background
Atmos Energy Corporation was founded in 1906 as Amarillo Gas Company. Over the years, it expanded through acquisitions and organic growth, becoming one of the largest natural gas-only distributors in the United States.
Core Business Areas
- Distribution: The company's largest segment, distributing natural gas to residential, commercial, public sector, and industrial customers. This includes maintaining and upgrading the distribution infrastructure.
- Pipeline and Storage: Owns and operates interstate pipelines and underground storage facilities. It transports natural gas for other entities.
Leadership and Structure
Kim R. Cocklin is the Chairman, President, and CEO. The company operates with a standard corporate structure, with various vice presidents overseeing different functional areas such as operations, finance, and marketing.
Top Products and Market Share
Key Offerings
- Interstate Pipelines and Storage: Transports natural gas for other companies. Revenue data is unavailable. Competitors include Kinder Morgan (KMI), Williams Companies (WMB).
- Natural Gas Distribution: Delivers natural gas to over 3 million customers primarily in the South-Central part of the United States. Atmos Energy does not explicitly report product specific market share. The natural gas distribution market is fragmented, with many regional players. Competitors include local utilities and energy providers. No revenue data is available at this time.
Market Dynamics
Industry Overview
The natural gas distribution industry is mature and heavily regulated. Demand is influenced by weather patterns, economic activity, and energy prices. There's a growing focus on infrastructure modernization and environmental sustainability.
Positioning
Atmos Energy is a leading natural gas-only distributor with a strong regional presence in the South-Central United States. Its competitive advantages include a large customer base, established infrastructure, and regulatory expertise.
Total Addressable Market (TAM)
The TAM for natural gas distribution in the US is estimated to be $150 Billion (annual revenue) as of 2023. Atmos Energy, with ~$4.2 billion revenue, captures a portion of the market. The TAM includes residential, commercial, and industrial sectors across the US, however Atmos Energy is focused on the South-Central US region
Upturn SWOT Analysis
Strengths
- Large Customer Base
- Established Infrastructure
- Strong Regional Presence
- Regulatory Expertise
- Stable Revenue Stream
Weaknesses
- Geographic Concentration (South-Central US)
- Dependence on Natural Gas Prices
- Capital Intensive Infrastructure
Opportunities
- Infrastructure Modernization Programs
- Expansion of Service Territory
- Adoption of Renewable Natural Gas (RNG)
- Acquisition of Smaller Utilities
Threats
- Increasing Regulatory Scrutiny
- Fluctuations in Natural Gas Prices
- Competition from Alternative Energy Sources
- Climate Change and Environmental Concerns
Competitors and Market Share
Key Competitors
- NI (NI)
- UGI (UGI)
- NWN (NWN)
Competitive Landscape
Atmos Energy competes primarily with other regional natural gas utilities. Its advantages include its large customer base and strong regional presence. Disadvantages may include geographic concentration and higher operating costs in certain areas. Atmos has the largest number of gas distribution customers in the United States.
Growth Trajectory and Initiatives
Historical Growth: Atmos Energy has grown steadily through organic customer growth and strategic acquisitions. Revenue growth has averaged around 3-5% annually over the past decade.
Future Projections: Analyst estimates project continued steady growth, driven by infrastructure investments and customer growth. EPS is expected to grow in the mid-single digits annually. Revenue growth in the mid single digits annually.
Recent Initiatives: Focusing on pipeline modernization programs, investing in renewable natural gas (RNG) projects, and expanding service territories through acquisitions.
Summary
Atmos Energy is a stable natural gas distributor with a strong regional presence and a history of dividend growth. Its infrastructure investments are bolstering long-term growth prospects. Regulatory scrutiny and competition from alternative energy sources pose some challenges. Overall, the company maintains a stable position in the industry due to the necessity and wide acceptance of natural gas. The company's focus on infrastructure modernization is key to its long-term success.
Peer Comparison
Sources and Disclaimers
Data Sources:
- Company Filings (10-K, 10-Q)
- Investor Presentations
- Analyst Reports
- Industry Reports
Disclaimers:
The information provided is for informational purposes only and should not be considered investment advice. Investment decisions should be based on your own research and due diligence. Market share data is approximate and may vary depending on the source.
AI Summarization is directionally correct and might not be accurate.
Summarized information shown could be a few years old and not current.
Fundamental Rating based on AI could be based on old data.
AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.
About Atmos Energy Corporation
Exchange NYSE | Headquaters 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 5260 | Website https://www.atmosenergy.com |
Full time employees 5260 | Website https://www.atmosenergy.com |
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 3.3 million residential, commercial, public authority, and industrial customers; and owned 73,689 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 5,645 miles of gas transmission lines. Atmos Energy Corporation was founded in 1906 and is headquartered in Dallas, Texas.

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