Zacks Investment Research·5 days ago
Atmos Energy (ATO) Could Be a Great ChoiceDividends are one of the best benefits to being a shareholder, but finding a great dividend stock is no easy task. Does Atmos (ATO) have what it takes?
Atmos Energy Corporation(ATO)Earnings, Financials & Key Ratios
ATO•NYSE•Utilities
$173.83
23.3× P/E·Price updated Jul 6, 2026
AboutAtmos 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 three million residential, commercial, public authority, and industrial customers. As of September 30, 2021, it owned 71,921 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 reservoirs in Texas; and provides ancillary services to the pipeline industry, including parking arrangements, lending, and inventory sales. As of September 30, 2021, it owned 5,699 miles of gas transmission lines. Atmos Energy Corporation was founded in 1906 and is headquartered in Dallas, Texas.Show more
- Revenue$4.7B+12.9%
- EBITDA$2.29B+13.3%
- Net Income$1.2B+14.9%
- Free Cash Flow-$1.51B-25.6%
- EBITDA Margin48.8%+0.3%
- Net Margin25.49%+1.8%
- ROE9.32%+2.9%
- Interest Coverage9.61+28.4%
- Debt/Equity0.69+2.6%
ATO Price & Volume
Atmos Energy Corporation (ATO) stock price & volume — 10-year historical chart
Loading chart...
Regulated Infrastructure Investment Drives Consistent Earnings Growth
Investment Thesis • Updated 2026Q2
VerdictPositive: The company demonstrates strong earnings quality with 14.5% EPS growth in 2026Q2 and a disciplined dividend payout ratio of 28.2%
Growth:Expanding
Profitability:Strong
Financial:Healthy
Cash Flow:Mixed
Primary Risk:Regulatory capital recovery lag
Key Thesis Takeaways
- Atmos Energy leverages a robust regulatory framework in Texas and Mississippi to drive consistent earnings growth, evidenced by a 14.5% EPS increase in 2026Q2.
- The company's aggressive capital deployment strategy, with quarterly CAPEX reaching $1.0B, serves as the primary engine for rate base expansion and long-term value creation.
- However, investors should monitor the structural reliance on external equity financing and potential long-term terminal value risks associated with municipal electrification mandates.
Verdict Logic
suggesting sustainable long-term value despite high capital expenditure requirements.
ATO Growth Metrics
Atmos Energy Corporation (ATO) revenue, earnings & EPS growth — 3, 5 & 10-year CAGR
Revenue CAGR
10 Years4.86%
5 Years10.76%
3 Years3.83%
TTM8.81%
Profit CAGR
10 Years14.3%
5 Years14.79%
3 Years15.68%
TTM18.4%
EPS CAGR
10 Years9.21%
5 Years8.81%
3 Years9.97%
TTM12.6%
Return on Capital
10 Years6.53%
5 Years5.73%
3 Years5.81%
Last Year6.05%
ATO Recent Earnings
Atmos Energy Corporation (ATO) EPS & revenue vs analyst estimates — last 4 quarters
●Beat EPS 10/12 qtrs (83%)●Beat Revenue 7/12 qtrs (58%)
Q2 2026Latest
May 6, 2026Metric
Actual
Est
EPS
$3.47+1.8%
$3.41
Rev
$2.0B+1.1%
$1.9B
Q1 2026
Feb 4, 2026Metric
Actual
Est
EPS
$2.44+0.0%
$2.44
Rev
$1.3B+3.6%
$1.3B
Q1 2026
Feb 3, 2026Metric
Actual
Est
EPS
$2.44+0.0%
$2.44
Rev
$1.3B+3.6%
$1.3B
Q4 2025
Nov 5, 2025Metric
Actual
Est
EPS
$1.07+8.1%
$0.99
Rev
$737M+2.2%
$721M
| Quarter | Date | EPS (Act vs Est) | Revenue (Act vs Est) |
|---|---|---|---|
| Q2 2026Latest | May 6, 2026 | $3.47vs $3.41+1.8% | $2.0Bvs $1.9B+1.1% |
| Q1 2026 | Feb 4, 2026 | $2.44vs $2.44+0.0% | $1.3Bvs $1.3B+3.6% |
| Q1 2026 | Feb 3, 2026 | $2.44vs $2.44+0.0% | $1.3Bvs $1.3B+3.6% |
| Q4 2025 | Nov 5, 2025 | $1.07vs $0.99+8.1% | $737Mvs $721M+2.2% |
Based on last 12 quarters of dataView full earnings history →
Latest ATO News
Recent stock market news and headlines for Atmos Energy Corporation (ATO)
Peers Comparison
Key metrics vs top competitors for Atmos Energy Corporation (ATO)
| Company | Price | Market Cap | P/E Ratio | Rev Growth (1Y) | Net Margin | ROE | Div Yield |
|---|---|---|---|---|---|---|---|
| $173.83 | $29.02B | 23.30 | 12.91% | 25.49% | 9.32% | 1.98% | |
| $78.46 | $4.64B | 17.95 | -4.5% | 14.12% | 10.44% | — | |
| $56.26 | $5.68B | 16.89 | 13.94% | 15.45% | 18.74% | — | |
| $88.51 | $6.41B | 14.56 | -62.05% | 18.55% | 11.53% | — | |
| $48.65 | $2.05B | 17.56 | 11.83% | 9.56% | 8.27% | — | |
| $122.02 | $2.93B | 20.44 | 18.14% | 15.1% | 9.49% | — |
Compare ATO vs Peers
Atmos Energy Corporation (ATO) vs competitors — business, growth, and fundamentals comparison against the closest industry rivals.
ATO SEC Filings & Documents
Atmos Energy Corporation (ATO) SEC filings — annual & quarterly reports (10-K, 10-Q)
8-K Announcements
6Material company update
May 6, 2026·SEC
Material company update
Mar 30, 2026·SEC
Material company update
Feb 10, 2026·SEC
10-K Annual Reports
310-Q Quarterly Reports
6Get notified when ATO posts new earnings or crosses analyst targets
Free. No account needed. Unsubscribe any time.
ATO Frequently Asked Questions
Atmos Energy Corporation (ATO) stock FAQ — growth, dividends, profitability & financials explained
Growth & Financials
What is Atmos Energy Corporation's revenue?
Atmos Energy Corporation (ATO) reported $4.88B in revenue for fiscal year 2025. This represents a 450% increase from $886.7M in 1996.
How fast is Atmos Energy Corporation growing?
Atmos Energy Corporation (ATO) grew revenue by 12.9% over the past year. This is steady growth.
Is ATO profitable?
Yes, Atmos Energy Corporation (ATO) is profitable, generating $1.35B in net income for fiscal year 2025 (25.5% net margin).
Dividend & Returns
Does ATO pay dividends?
Yes, Atmos Energy Corporation (ATO) pays a dividend with a yield of 1.98%. This makes it attractive for income-focused investors.
What is ATO's return on equity?
Atmos Energy Corporation (ATO) has a return on equity (ROE) of 9.3%. This is below average, suggesting room for improvement.
What is Atmos Energy Corporation's free cash flow?
Atmos Energy Corporation (ATO) had negative free cash flow of $1.99B in fiscal year 2025, likely due to heavy capital investments.
Industry Metrics
Is ATO's dividend sustainable?
Atmos Energy Corporation (ATO) has a dividend payout ratio of 46%. This suggests the dividend is well-covered and sustainable.