Atmos Energy Corporation (ATO) AI Stock Analysis

Headquartered in Dallas, Texas, Atmos Energy Corporation operates in regulated natural gas distribution, pipeline, and storage markets across the United States. Established in 1906, the company operates through two segments: Distribution and Pipeline and Storage. The Distribution segment provides regulated natural gas sales and delivery to approximately 3.3 million residential, commercial, industrial, and public authority customers across eight states through 73,243 miles of mains. The Pipeline and Storage segment operates 5,652 miles of gas transmission lines and five underground storage reservoirs in Texas, transporting gas for third parties and offering ancillary storage services.

Between FY2021 and FY2025, Atmos Energy increased annual revenue from $3.41B to $4.70B, recording a five-year revenue CAGR of 10.8%. Annual net income grew from $665.6M in FY2021 to $1.20B in FY2025, lifting EPS from $5.16 to $7.49. Although revenue fell 2.6% in FY2024, it rebounded 12.9% in FY2025 with an operating margin of 33.2% and a net margin of 25.5%. For the trailing twelve months ended June 30, 2026, revenue was $4.92B with an operating margin of 37.2% and a profit margin of 28.5%. In the latest quarter, revenue grew 4.8% year-over-year while quarterly earnings expanded 23.3%.

As of June 30, 2026, Atmos Energy held $525.8M in cash and short-term investments against total debt of $10.26B, resulting in net debt of $9.73B. The current ratio stood at 0.81, and debt-to-equity was 0.67 on shareholders' equity of $15.26B. During FY2025, operating cash flow reached $2.05B, while capital expenditures totaled $3.56B, leading to free cash flow of -$1.51B. Capital funding during FY2025 included $713.7M from share issuance, alongside $553.8M distributed in dividends.

Atmos Energy trades at a trailing P/E of 19.9x, below the 21.0x median of its S&P 500 Utilities peers. However, its forward P/E of 17.6x and EV/EBITDA of 13.6x sit above the peer medians of 16.0x and 12.2x, respectively. The company's price-to-sales multiple is 5.7x, compared to the peer median of 2.9x. Over the past year, the stock returned -2.9%, trailing the S&P 500 return of 16.8%. Over five years, the stock gained 103.6% compared to 83.0% for the S&P 500.

Atmos Energy provides an annual forward dividend of $4.00 per share, reflecting a 2.39% dividend yield and a payout ratio of 47.6%. The company has paid dividends for 42 consecutive years and increased them at a five-year annualized rate of 9.0%. Its last ex-dividend date was August 24, 2026.

Wall Street coverage includes 2 Strong Buy ratings and 12 Hold ratings, with no Buy, Sell, or Strong Sell recommendations. The mean price target of $184.55 implies a 10.3% upside compared to the last close of $167.34. For the current fiscal year ending September 30, 2026, consensus estimates project EPS of $8.46 on revenue of $5.12B. Atmos Energy beat EPS expectations in 3 of the last 4 quarters, with next earnings scheduled for November 4, 2026.

This page is an AI-written research summary of Atmos Energy Corporation (ATO). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

Related: ATO income statement, ATO balance sheet, ATO key metrics, ATO analyst forecast, ATO chart. See the ATO stock overview for the latest quote and news.