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Atmos Energy Corporation (ATO)



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Upturn Advisory Summary
08/28/2025: ATO (2-star) has a low Upturn Star Rating. Not recommended to BUY.
1 Year Target Price $163.1
1 Year Target Price $163.1
4 | Strong Buy |
2 | Buy |
8 | Hold |
1 | Sell |
0 | Strong Sell |
Analysis of Past Performance
Type Stock | Historic Profit 18.92% | Avg. Invested days 54 | 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 26.56B USD | Price to earnings Ratio 22.88 | 1Y Target Price 163.1 |
Price to earnings Ratio 22.88 | 1Y Target Price 163.1 | ||
Volume (30-day avg) 15 | Beta 0.68 | 52 Weeks Range 127.77 - 167.99 | Updated Date 08/28/2025 |
52 Weeks Range 127.77 - 167.99 | Updated Date 08/28/2025 | ||
Dividends yield (FY) 2.05% | Basic EPS (TTM) 7.23 |
Analyzing Revenue: Products, Geography and Growth
Revenue by Products
Product revenue - Year on Year
Earnings Date
Report Date 2025-08-06 | When After Market | Estimate 1.16 | Actual 1.16 |
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 22.88 | Forward PE 21.14 | Enterprise Value 34846789350 | Price to Sales(TTM) 5.74 |
Enterprise Value 34846789350 | Price to Sales(TTM) 5.74 | ||
Enterprise Value to Revenue 7.54 | Enterprise Value to EBITDA 14.93 | Shares Outstanding 160524000 | Shares Floating 159781952 |
Shares Outstanding 160524000 | Shares Floating 159781952 | ||
Percent Insiders 0.32 | Percent Institutions 107.93 |
Upturn AI SWOT
Atmos Energy Corporation

Company Overview
History and Background
Atmos Energy Corporation was founded in 1906 as a pipeline company. It evolved through various acquisitions and mergers to become one of the largest natural gas distributors in the United States.
Core Business Areas
- Distribution: Atmos Energy's primary business segment involves the regulated distribution of natural gas to residential, commercial, and industrial customers.
- Pipeline and Storage: This segment focuses on transporting natural gas through company-owned pipelines and providing storage services.
Leadership and Structure
The leadership team consists of the Chairman, President, and CEO along with other senior executives overseeing various functions. The organizational structure is hierarchical, divided by functional areas and geographic regions.
Top Products and Market Share
Key Offerings
- Natural Gas Distribution: Atmos Energy distributes natural gas to over 3 million customers. The company's market share varies by region. Competitors include other local natural gas distribution companies such as Spire (SR), ONE Gas (OGS), and South Jersey Industries (SJI).
- Pipeline Transportation: The company transports natural gas through its pipeline network. Revenue from this segment contributes to overall earnings. Competitors include Energy Transfer (ET) and Kinder Morgan (KMI).
Market Dynamics
Industry Overview
The natural gas distribution industry is regulated and essential, providing energy for heating, cooking, and industrial processes. The industry is influenced by factors such as weather patterns, economic conditions, and regulatory changes.
Positioning
Atmos Energy holds a strong position in its service territories due to its established infrastructure and customer base. Its competitive advantage lies in its operational efficiency and regulatory relationships.
Total Addressable Market (TAM)
The TAM for natural gas distribution in the US is estimated to be over $100 billion. Atmos Energy captures a significant portion of this market through its operations in various states.
Upturn SWOT Analysis
Strengths
- Extensive infrastructure network
- Large customer base
- Regulated business model
- Stable revenue streams
- Operational expertise
Weaknesses
- Dependence on regulatory approvals
- Exposure to commodity price fluctuations
- Geographic concentration
- Aging infrastructure
- Capital expenditure requirements
Opportunities
- Infrastructure modernization projects
- Expansion into new markets
- Acquisitions of smaller utilities
- Adoption of renewable natural gas
- Increased demand from industrial customers
Threats
- Changes in regulatory policies
- Competition from alternative energy sources
- Economic downturns
- Environmental concerns
- Cybersecurity risks
Competitors and Market Share
Key Competitors
- Spire (SR)
- ONE Gas (OGS)
- South Jersey Industries (SJI)
Competitive Landscape
Atmos Energy competes with other natural gas distribution companies primarily based on service quality, reliability, and price. Its large scale and established presence provide a competitive advantage.
Major Acquisitions
Reliant Energy's Texas Gas Distribution Business
- Year: 2007
- Acquisition Price (USD millions): 1875
- Strategic Rationale: Expanded Atmos Energy's customer base and geographic footprint in Texas, enhancing its position as a leading natural gas distributor.
Growth Trajectory and Initiatives
Historical Growth: Atmos Energy has experienced steady growth in revenue and earnings driven by infrastructure investments and customer base expansion.
Future Projections: Analysts project continued growth in revenue and earnings, supported by infrastructure modernization and increasing demand for natural gas.
Recent Initiatives: Recent initiatives include pipeline replacement programs, system modernization, and investments in renewable natural gas projects.
Summary
Atmos Energy is a stable and reliable natural gas distributor with a large customer base and extensive infrastructure. The company benefits from a regulated business model and consistent demand. However, it faces challenges related to regulatory changes and infrastructure investments. The company has demonstrated consistent growth and shareholder returns.
Peer Comparison
Sources and Disclaimers
Data Sources:
- Company Filings (10-K, 10-Q)
- Analyst Reports
- Industry Publications
Disclaimers:
The data provided is for informational purposes only and should not be considered financial advice. Investment decisions should be based on individual research and consultation with a qualified financial advisor.
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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