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Atmos Energy Corporation (ATO)



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Upturn Advisory Summary
04/01/2025: ATO (1-star) has a low Upturn Star Rating. Not recommended to BUY.
Analysis of Past Performance
Type Stock | Historic Profit 8.37% | Avg. Invested days 46 | 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 24.59B USD | Price to earnings Ratio 22.17 | 1Y Target Price 152.82 |
Price to earnings Ratio 22.17 | 1Y Target Price 152.82 | ||
Volume (30-day avg) 912446 | Beta 0.66 | 52 Weeks Range 108.24 - 155.62 | Updated Date 04/1/2025 |
52 Weeks Range 108.24 - 155.62 | Updated Date 04/1/2025 | ||
Dividends yield (FY) 2.25% | Basic EPS (TTM) 6.99 |
Analyzing Revenue: Products, Geography and Growth
Revenue by Products
Product revenue - Year on Year
Earnings Date
Report Date - | When - | Estimate - | Actual - |
Profitability
Profit Margin 25.9% | Operating Margin (TTM) 39.66% |
Management Effectiveness
Return on Assets (TTM) 3.5% | Return on Equity (TTM) 9.01% |
Valuation
Trailing PE 22.17 | Forward PE 21.51 | Enterprise Value 32518943843 | Price to Sales(TTM) 5.88 |
Enterprise Value 32518943843 | Price to Sales(TTM) 5.88 | ||
Enterprise Value to Revenue 7.77 | Enterprise Value to EBITDA 14.92 | Shares Outstanding 158728000 | Shares Floating 158031380 |
Shares Outstanding 158728000 | Shares Floating 158031380 | ||
Percent Insiders 0.31 | Percent Institutions 105.21 |
Analyst Ratings
Rating 3.79 | Target Price 145.06 | Buy 2 | Strong Buy 5 |
Buy 2 | Strong Buy 5 | ||
Hold 6 | Sell 1 | Strong Sell - | |
Strong Sell - |
Upturn AI SWOT
Atmos Energy Corporation

Company Overview
History and Background
Atmos Energy Corporation, founded in 1906 as a unit of Lone Star Gas Company, is headquartered in Dallas, Texas. It evolved through mergers and acquisitions to become one of the largest natural gas-only distributors in the United States.
Core Business Areas
- Distribution: Involves the regulated distribution of natural gas to residential, commercial, public sector, and industrial customers. This segment is its primary revenue driver.
- Pipeline and Storage: Encompasses the regulated transmission and storage of natural gas. This segment transports natural gas for third parties and stores natural gas for later use.
Leadership and Structure
The company is led by a board of directors and executive leadership team. Kevin Akers serves as the President and CEO. It operates with a decentralized structure, with regional divisions managing distribution operations.
Top Products and Market Share
Key Offerings
- Natural Gas Distribution: Atmos Energy distributes natural gas to approximately 3 million customers across eight states. It has a significant market share in its operating territories, though specific market share data is proprietary. Competitors include other local gas distribution companies like Spire (SR) and ONE Gas (OGS).
- Natural Gas Transmission and Storage: Atmos's pipeline and storage facilities provide crucial infrastructure for transporting and storing natural gas. This segment supports energy reliability and helps manage supply and demand fluctuations. Competitors include larger pipeline operators like Kinder Morgan (KMI) and Energy Transfer (ET).
Market Dynamics
Industry Overview
The natural gas distribution industry is characterized by regulated monopolies or oligopolies. Demand is relatively stable, driven by heating, cooking, and industrial uses. The industry faces increasing scrutiny related to environmental concerns and methane emissions.
Positioning
Atmos Energy is a leading player in the natural gas distribution sector. Its competitive advantages include a large customer base, extensive infrastructure, and strong regulatory relationships.
Total Addressable Market (TAM)
The TAM for natural gas distribution in the U.S. is estimated to be in the tens of billions of dollars annually. Atmos Energy, with approximately 3 million customers, captures a portion of this market. It is positioned to maintain or grow its market share by investing in infrastructure upgrades and expanding its service territory.
Upturn SWOT Analysis
Strengths
- Large and stable customer base
- Extensive infrastructure network
- Strong regulatory relationships
- Consistent dividend payouts
- Geographic diversity within its operating regions
Weaknesses
- Dependence on regulated rates
- Exposure to commodity price fluctuations
- High capital expenditure requirements
- Aging infrastructure in some areas
Opportunities
- Infrastructure modernization projects
- Expansion into new service territories
- Adoption of renewable natural gas (RNG)
- Electrification alternatives
Threats
- Increasing environmental regulations
- Competition from alternative energy sources
- Economic downturns reducing demand
- Cybersecurity risks to infrastructure
Competitors and Market Share
Key Competitors
- ONE Gas (OGS)
- Spire (SR)
- National Fuel Gas Company (NFG)
Competitive Landscape
Atmos Energy competes primarily with other natural gas distribution companies. Its advantages include its size, geographic diversity, and strong regulatory relationships. Disadvantages include the higher initial capital costs of laying pipeline and environmental opposition.
Major Acquisitions
Reliant Energy Retail Gas Assets
- Year: 2004
- Acquisition Price (USD millions): 1850
- Strategic Rationale: Expanded Atmos Energy's customer base and geographic footprint in Texas.
Growth Trajectory and Initiatives
Historical Growth: Atmos Energy has experienced steady growth in revenue and earnings over the past decade, driven by customer growth and infrastructure investments.
Future Projections: Analysts project continued steady growth for Atmos Energy, driven by population growth in its service territories and ongoing infrastructure investments.
Recent Initiatives: Atmos Energy is actively investing in infrastructure modernization programs to enhance safety and reliability. It is also exploring opportunities to integrate renewable natural gas into its distribution system.
Summary
Atmos Energy is a stable and reliable utility company with a strong financial position and a long history of paying dividends. The company benefits from a large customer base, extensive infrastructure, and strong regulatory relationships. However, it faces challenges related to environmental regulations and competition from alternative energy sources. Atmos Energy's investments in infrastructure modernization and renewable natural gas could drive future growth.
Similar Companies

NFG

National Fuel Gas Company



NFG

National Fuel Gas Company

OGS

One Gas Inc



OGS

One Gas Inc

SR

Spire Inc



SR

Spire Inc
Sources and Disclaimers
Data Sources:
- Atmos Energy Corporation Investor Relations
- SEC Filings
- Analyst Reports
- Company Financial Documents
Disclaimers:
The information provided is for informational purposes only and should not be considered as financial advice. Investment decisions should be based on individual risk tolerance and thorough research. Market data is subject to change.
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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