Stock Analysis
Atmos Energy CorporationATO
P/E 20.16×· 5Y range 16.77–64.57×· 26th percentile of history
Sector: Utilities · Industry: Natural Gas Distribution
AnalystsHold18 analystsP/E 20.2× sits at the 26th percentile of its 5.089664613278576-year history.
Cash covers 4% of debt · Q1 2026.
PMP Verdict
Mixed fundamentals, fairly valued
Strengths
- Profitability67
- Growth64
Risks
- Financial Health38
Mixed picture — no clear quality or value edge.
Market context
+2.1% today· Z 3.2σ· ATO rose 1.72% despite Truist lowering its price target to $174.
Bull Case
- ✓Interest coverage 8.9× — debt well covered
Why is ATO moving?
SectorATO rose 1.72% despite Truist lowering its price target to $174.
Profile
financial health and valuation lag behind.
How is each axis scored?
- Valuation44/100 · Weak
- P/E vs own history (26th pct)20/25
- FCF yield (-7.1%)0/25
- P/S (5.7x)12/25
- EV/EBIT (20.6x)12/25
- Growth64/100 · Moderate
- Revenue CAGR (8.4%)12/25
- Net income CAGR (15.9%)20/25
- EPS CAGR 5Y (9.9%)12/25
- Fwd implied growth (15.8%)20/25
- Profitability67/100 · Moderate
- ROIC (6.1%)5/25
- ROE (9.8%)12/25
- Net margin (28.5%)25/25
- Operating margin (37.0%)25/25
- Financial Health38/100 · Weak
- Altman Z (1.42)3/25
- Current ratio (1.13)12/25
- Interest coverage (8.9x)18/25
- Net cash / debt (D/A 31%)5/25
- Quality60/100 · Moderate
- Piotroski F (5/9)15/25
- Beneish M (-2.72)25/25
- FCF conversion (-144%)0/25
- Margin stability (σ 5.1%)20/25
- Moat50/100 · Moderate
- ROIC >12% years (0/8 yrs)0/25
- Median gross margin (75.1%)25/25
- FCF-positive years (1/9 yrs)0/25
- Worst-year net margin (worst 14.4%)25/25
Risk Flags
- ⚠Altman Z 1.4 — distress-zone balance sheet
- ⚠Negative FCF margin (-0.4%) — burning cash
About Atmos Energy Corporation
Atmos Energy is the largest publicly traded, fully regulated, pure-play natural gas utility in the United States, serving more than 3. Show more
3 million customers in Texas, Colorado, Kansas, Kentucky, Louisiana, Mississippi, Tennessee, and Virginia. About two thirds of its earnings come from Texas, where it distributes natural gas in northern Texas and owns an intrastate gas pipeline spanning several key shale gas formations and interconnected with five storage facilities.
Headquarters: DALLAS, TX · Employees: 5,487 · Website ↗
Price History
Weekly Candlestick Chart — up to 5Y
Key Metrics
Financial snapshot · Tap any metric for its definition and grade
TTM Snapshot
trailing twelve months · YoYValuation
44D+P/E (TTM)20.2xB
Grade B: FairPrice / TTM EPS (own statements) — vs own 5Y history: 16.8x–64.6x · 26th pct
P/FCF333.0xD
Grade D: ExpensivePrice / Free Cash Flow per share (Finnhub). Inverse of FCF yield — negative when FCF is negative · CapEx exceeds operating cash flow (200% of OCF) — reported FCF understates normalized earning power in this investment phase
FCF Yield-7.1%D
Grade D: NegativeTTM (OCF − CapEx) / Market Cap — vs own 5Y history: -25.9%–4.4% · 44th pct · CapEx exceeds operating cash flow (200% of OCF) — reported FCF understates normalized earning power in this investment phase
P/S (TTM)5.75xC
Grade C: ExpensivePrice / TTM Revenue (own statements) — vs own 5Y history: 3.3x–6.6x · 83rd pct
EV/EBIT20.6xC
Grade C: ExpensiveEnterprise value / TTM EBIT (D&A not in our data) — capital-structure neutral — vs own 5Y history: 18.4x–27.1x · 11th pct
EV/Sales7.6xC
Grade C: ExpensiveEnterprise Value / TTM Revenue (Finnhub) — capital-structure neutral sales multiple
Forward P/E17.4xB
Grade B: FairPrice / next-year EPS estimate — shows whether the TTM multiple is rich or just front-loading growth
P/B Ratio1.98xA
Grade A: FairPrice to Book Value. Neg. equity = heavy buybacks
PEG Ratio1.91B
Grade B: FairFinnhub PEG — their P/E basis ÷ expected EPS growth. Suppressed when their P/E diverges >2× from our TTM P/E (different basis)
Dividend Yield2.28%A
Grade A: PaysTTM dividend yield (Finnhub) — annual dividends / price. None = no dividend; very high yield can signal distress
Payout Ratio45.1%A
Grade A: SafeDividends / Net Income (Finnhub) — share of earnings paid out; >90% or negative = unsustainable
CapEx exceeds OCF: CapEx exceeds operating cash flow (200% of OCF) — reported FCF understates normalized earning power in this investment phase
Profitability
67BROIC6.1%D
Grade D: LowNOPAT (EBIT less ~21% tax) / invested capital (equity + debt − cash). Flagship quality metric — durable >15% signals a moat
ROE9.8%D
Grade D: WeakReturn on Equity. Neg. equity = heavy buybacks
ROA4.7%D
Grade D: WeakReturn on Assets (Finnhub) — Net Income / Total Assets; how efficiently assets produce profit
Net Margin28.5%A
Grade A: HighNet Income / Revenue
Operating Margin37.0%A
Grade A: HighTTM EBIT / TTM Revenue
Gross Margin48.1%C
Grade C: AverageGross Profit / Revenue
FCF Margin-41.1%D
Grade D: LowFCF / Revenue · CapEx exceeds operating cash flow (200% of OCF) — reported FCF understates normalized earning power in this investment phase
True FCF Margin-41.3%D
Grade D: LowTTM (OCF − CapEx − SBC) / TTM Revenue — SBC treated as a real cost · CapEx exceeds operating cash flow (200% of OCF) — reported FCF understates normalized earning power in this investment phase
Growth
64BRevenue CAGR8.4%C
Grade C: OkCompound annual revenue growth (up to 5Y depending on data availability)
Net Income CAGR15.9%A
Grade A: HighCompound annual net income growth (up to 5Y depending on data availability)
EPS CAGR (5Y)9.9%C
Grade C: OkCompound annual EPS growth over up to 5Y of per-share earnings (own statements). Null when either endpoint EPS ≤ 0
Implied EPS Growth15.8%C
Grade C: MedAnalyst forward EPS (normalized basis) vs our GAAP TTM EPS — different bases, so extreme values usually mark cyclically depressed TTM earnings, not real growth
Dilution (5Y)+30.8%D
Grade D: DilutiveShare count change over 5Y
SBC / Net Income0.9%A
Grade A: LowStock-based comp/Net income. >30% = dilution risk
SBC / Revenue0.3%A
Grade A: LowTTM stock-based comp / TTM Revenue
Financial Health
38DAltman Z-Score1.42D
Grade D: DistressBankruptcy risk. >3 Safe, <1.8 Distress
Current Ratio1.13xC
Grade C: OkCurrent Assets/Liabilities
Quick Ratio0.73xC
Grade C: Ok(Current Assets − Inventory) / Current Liabilities (Finnhub) — stricter liquidity test, excludes inventory
Interest Coverage8.9xC
Grade C: OkEBIT/Interest. >10 Strong
Debt Repayment—
Years to repay net debt via FCF · CapEx exceeds operating cash flow (200% of OCF) — reported FCF understates normalized earning power in this investment phase
Net Debt/EBIT5.1xD
Grade D: HighLeverage. <2x Low, >4x High
Debt/Equity0.67xA
Grade A: LowDebt / Equity: <1 Conservative, >2 Risky. Not meaningful with non-positive equity; shown as unavailable rather than low debt.
Cash / Debt0.04xD
Grade D: ThinCash covers how much of total debt. >1 = could repay all debt from cash
Quality
60BPiotroski F-Score5/9C
Grade C: AverageFinancial strength 0–9. >7 Strong
Beneish M-Score-2.72A
Grade A: SafeEarnings manipulation risk. < -2.22 Safe
FCF Conversion-144.1%D
Grade D: PoorFCF / Net Income · CapEx exceeds operating cash flow (200% of OCF) — reported FCF understates normalized earning power in this investment phase
Margin Stability5.1%A
Grade A: StableEBIT margin std deviation. Lower = stable
Capex / Revenue82.1%D
Grade D: HeavyTTM CapEx / TTM Revenue — high % = capital-hungry business
Asset Turnover0.16xD
Grade D: LowRevenue / Total Assets (Finnhub) — how efficiently the asset base generates sales
Insider Transactions
SEC Form 4 · 8 recordsP/S codes are the directional signal; grants, option exercises and tax withholding carry none. Form 4 doesn't flag 10b5-1 plans — scheduled sales may appear within open-market sells.
| Trade date | Insider | Transaction | Shares | Filed |
|---|---|---|---|---|
Geiser Edward Filed | Geiser Edward | Grant / award | +225 | |
GARZA RAFAEL G Filed | GARZA RAFAEL G | Grant / award | +77 | |
ROBBINS J MATT Filed | ROBBINS J MATT | Gift | -1500 | |
Jeffries James Henry IV Filed | Jeffries James Henry IV | Grant / award | +1.0K | |
WARE WILLIAM JAMES Filed | WARE WILLIAM JAMES | BuyOpen market buy | +300 |
Show 3 more filingsShow fewer filings
| Trade date | Insider | Transaction | Shares | Filed |
|---|---|---|---|---|
Geiser Edward Filed | Geiser Edward | Grant / award | +188 | |
GARZA RAFAEL G Filed | GARZA RAFAEL G | Grant / award | +65 | |
FAULK MICHELLE Filed | FAULK MICHELLE | Option exercise | -175 |
Option exercise (M) rows report a derivative leg, not an open-market sale — a paired negative entry is the option position being consumed.
More metrics — Moat, Per Share, Balance Sheet, MarketHide additional metrics
Moat
50CROIC >12% Years0/8 yrsD
Grade D: WeakShare of completed fiscal years with ROIC > 12% — measures multi-year capital-return durability
Gross Margin (Med.)75.1%A
Grade A: DurableMedian annual gross margin across available fiscal years — pricing-power durability
FCF-Positive Years1/9 yrsD
Grade D: WeakShare of completed fiscal years with positive free cash flow
Net Margin Floor14.4%A
Grade A: DurableWeakest annual net margin across completed fiscal years — recession/downcycle resilience
Per Share
EPS (TTM)$8.30
Own TTM net income / shares — same earnings basis as P/E
Cash / Share$3.08
Cash & short-term investments per share (Finnhub)
Book Value / Share$90.29
Shareholders' equity per share (Finnhub). Negative = accumulated losses / heavy buybacks
Balance Sheet
Total Debt$9.56B
Total debt obligations (short + long term)
Cash & Equiv.$367.02M
Cash and short-term investments
Net Debt$9.19B
Total Debt minus Cash. Negative = Net Cash position
Total Equity$14.28B
Shareholders' equity (book value)
Asset / Liability1.92xC
Grade C: AdequateTotal Assets / Total Liabilities
Market
Market Cap$28.28B
Current Market Capitalization
Beta0.57B
Grade B: DefensivePrice sensitivity vs the market (Finnhub) — 1.0 moves with market, >1.2 amplifies swings
How grades work: each metric is graded A–D against fixed thresholds (tap a row for the meaning). Card grades map the pillar score to A+–E — a card grade is that pillar's own score, not an average of the rows shown.
Financials as of Jun 2026 · Ratio snapshot Oct 17, 2026
Key Insights: Atmos Energy Corporation (ATO)
ATO is up 2.07% at the last close — ATO rose 1.72% despite Truist lowering its price target to $174.. Piotroski F-Score of 5/9 indicates mixed fundamentals for Atmos Energy Corporation. Altman Z-Score of 1.42 is below the 1.81 distress threshold — an elevated financial-risk flag. Beneish M-Score of -2.72 suggests a low likelihood of earnings manipulation.
- Free-cash-flow margin is negative (-41%) — the business currently burns cash.
- Company has negative FCF, making debt repayment from operations difficult.
- The stock currently yields 2.3% in dividends.
See how ATO ranks on the Capex Tracker — top 50 capital spenders compared.
Recent Market Moves
See all ATO moves →| Date | Session | Price | Move | Z-Score |
|---|---|---|---|---|
| Oct 16 | Regular | 167.29 | +2.03% | 3.15 |
| Oct 16 | After-hours | 167.34 | +2.07% | 3.20 |
| Oct 6 | After-hours | 159.74 | +1.07% | 2.22 |
Frequently Asked Questions about ATO
What is the current Atmos Energy Corporation (ATO) stock price?
ATO is trading at $167.34 at the last market close, up 2.07% on the session. PreMarketPrice tracks ATO pre-market, intraday and after-hours prices.
Is ATO stock a buy right now?
PreMarketPrice's quantitative model rates Atmos Energy Corporation's financial health at 38/100. This is a data-driven snapshot of fundamentals, not investment advice.
Is ATO stock overvalued?
Atmos Energy Corporation trades at a trailing P/E of 20.2 and our valuation score rates it 44/100 (higher = cheaper vs. its own history). See the Valuation History and Key Metrics sections for forward P/E, EV/EBITDA and PEG context.
When does Atmos Energy Corporation report earnings?
No confirmed earnings date is currently scheduled for ATO. The Earnings section lists recent reports and updates as dates are announced.
What sector does Atmos Energy Corporation operate in?
Atmos Energy Corporation operates in the Utilities sector, within the Natural Gas Distribution industry. The Related Stocks section lists sector peers for comparison.
What does Atmos Energy Corporation do?
Atmos Energy is the largest publicly traded, fully regulated, pure-play natural gas utility in the United States, serving more than 3.
About Atmos Energy Corporation (ATO) Stock
Atmos Energy Corporation (ATO) is a US-listed stock operating in the Utilities sector, specifically the Natural Gas Distribution industry. As of the latest update, Atmos Energy Corporation is trading at $167.34, up 2.07% on the day with a market capitalization of $28.3 billion. The financial health score for ATO is 38/100, which indicates weak financial strength based on profitability, leverage, liquidity, and growth metrics. This page provides real-time pre-market pricing, earnings calendar, financial health analysis, and valuation metrics for ATO stock.
ATO Stock Analysis & Key Metrics
On PreMarketPrice, you can track Atmos Energy Corporation (ATO) across multiple dimensions:
- Pre-market price & movement: Real-time ATO stock price with percentage change, updated continuously during pre-market and regular trading hours.
- Valuation & P/E history: Historical P/E, P/S, and P/B ratios for ATO with trend analysis and normalized valuation multiples.
- Financial statements: Revenue, net income, assets, liabilities, and equity for Atmos Energy Corporation across multiple reporting periods.
- Financial health score: A composite score of 38/100 based on Altman Z-Score, Piotroski F-Score, profitability, and leverage metrics for ATO.
- Sector peers: Compare ATO against 6 other utilities stocks on key financial metrics.
Is ATO a Good Stock to Buy?
This page provides data-driven analysis to help you evaluate Atmos Energy Corporation (ATO) as an investment. The financial health score of 38/100 suggests weak financial fundamentals. Valuation metrics show whether the stock is trading above or below its historical average.However, this is not financial advice — always do your own research before investing.
Data on this page is sourced from real-time market feeds, Polygon.io, and Finnhub.Atmos Energy Corporation (ATO) trades on NYSE/NASDAQ. Pre-market trading occurs 4:00 AM – 9:30 AM ET. Regular market hours are 9:30 AM – 4:00 PM ET.