Atmos Energy ATO
Atmos Energy is a regulated natural gas utility that distributes gas to approximately 3.3 million customers across more than 1,400 communities in eight southern US states, operating under a regulated tariff model that provides stable and predictable cash flows. Atmos Energy presents solid financial health (7.73) backed by an operating margin of 37.22%, although its net debt/EBITDA of 3.74 and negative free cash flow conversion (-84.63%) are weak points. Earnings growth of 23.30% and a dividend with a payout of 46.13% offer appeal, but valuation (P/E 18.72) and momentum (3.81) reflect the pressure of the high-rate environment.
Detailed metrics
Market and fundamental data as of the analysis date.
Full AI report
Generated automatically from the metrics, the macro context and the company's news.
Atmos Energy is a regulated natural gas utility that distributes gas to approximately 3.3 million customers across more than 1,400 communities in eight southern US states, operating under a regulated tariff model that provides stable and predictable cash flows. Atmos Energy presents solid financial health (7.73) backed by an operating margin of 37.22%, although its net debt/EBITDA of 3.74 and negative free cash flow conversion (-84.63%) are weak points. Earnings growth of 23.30% and a dividend with a payout of 46.13% offer appeal, but valuation (P/E 18.72) and momentum (3.81) reflect the pressure of the high-rate environment.
Score by category
| Category | Score |
|---|---|
| Financial health | 8.0 |
| Quality / Moat | 4.3 |
| Valuation | 4.6 |
| Growth | 6.5 |
| Dividend | 7.1 |
| Momentum | 3.8 |
| Risk & Context | 7.6 |
OVERALL SCORE: 6.3/10
Context and risks
Moderate regulatory risk in the US and position at the 6th percentile of the 52-week range, reflecting already-discounted market pressure. The regulated rate model mitigates interest rate risk, but dependence on rate case approvals remains a key factor.
News considered in the analysis
- Is Atmos Energy Stock Underperforming the Dow? — Artículo comparativo sin información nueva sobre los fundamentales de la empresa.
- 3 U.S. Utility Stocks Built For Higher Rates And Inflation Pass Through — Destaca la capacidad de Atmos para trasladar costes a tarifas, un atenuante relevante en un entorno de tipos al alza.
- This Quiet Utility Has a Multi-Decade Dividend Growth Streak -- Here's Why Almost Nobody Talks About It — Refuerza la calidad del negocio y su historial de dividendos, un factor positivo para la confianza del inversor.
- Can Infrastructure Investments Drive Atmos Energy's Long-Term Growth? — El plan de inversión en infraestructuras es un motor de crecimiento conocido, pero su éxito depende de la aprobación regulatoria.
- Here Are Friday’s Top Wall Street Analyst Research Calls: Atmos Energy, Celanese, Check Point Software, Chewy, Dell Technologies, Fortinet, Global Payments, HP, Shopify, and More — Listado genérico de llamadas de analistas sin detalle específico para Atmos.
Verdict: Hold; regulated stability and growing dividend offer support, but valuation and weak momentum limit upside potential in the short term.
Main risk: The main risk is the rise in 10-year Treasury yields, which pressures utility valuations and makes refinancing a net debt/EBITDA of 3.74 more expensive, although the regulated rate model partially mitigates this effect.
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