Atmos Energy CorporationATO
NYSE • Utilities
$190.36
P/E
24.72
PEG
2.63
FCF Yield
0.3%
Rev Growth YoY
+14.2% YoY
Gross Margin
57.8%
Health Score
6/10
D/E Ratio
0.66
Confidence
MEDIUM
Business Snapshot
Atmos Energy Corporation is a large-cap regulated natural gas utility operating primarily in the United States, distributing and transmitting natural gas to residential, commercial, and industrial customers. The company operates within the tightly regulated gas utility sector, where revenues and returns are largely governed by state regulatory bodies. With a market capitalisation of $31.81B, Atmos Energy sits firmly in large-cap territory.
Financial Health
Score: 6/10 Atmos Energy demonstrates solid margin discipline, with a net margin of 25.7% and a gross margin of 57.8%, which are healthy for a regulated utility. Debt is manageable at a debt/equity ratio of 0.66x, a modest leverage level for an infrastructure-heavy business that routinely carries long-term debt to fund capital programmes...
Risk Assessment
- VALUATION PREMIUM: Python DCF estimate of $12.90 per share versus a current price of $190.36 suggests substantial premium to modelled intrinsic value, even accounting for model sensitivity.
- FCF YIELD: Free cash flow yield of just 0.3% on a $31.81B market cap signals the stock generates minimal cash relative to its price, a concern for income-oriented utility investors.
- ANALYST SENTIMENT: Only 32% of analysts rate the stock a buy, with 68% on hold and a sell consensus designation — a notably weak endorsement for a large-cap utility.
- CURRENT RATIO: A current ratio of 0.77x (below 1.0x) indicates current liabilities exceed current assets, pointing to near-term liquidity tightness typical but worth monitoring in rising rate environments.
- TECHNICAL PRESSURE: A bearish MACD signal at a price near the 52-week high of $192.51 suggests near-term momentum may be fading at elevated levels....
Score: 6/10 Atmos Energy demonstrates solid margin discipline, with a net margin of 25.7% and a gross margin of 57.8%, which are healthy for a regulated utility. Debt is manageable at a debt/equity ratio of 0.66x, a modest leverage level for an infrastructure-heavy business that routinely carries long-term debt to fund capital programmes. However, free cash flow of $83.13M translates to a very thin FCF yield of just 0.3%, reflecting the capital-intensive nature of the business and limiting financial flexibility relative to the company's $31.81B market cap.
- **VALUATION PREMIUM:** Python DCF estimate of $12.90 per share versus a current price of $190.36 suggests substantial premium to modelled intrinsic value, even accounting for model sensitivity. - **FCF YIELD:** Free cash flow yield of just 0.3% on a $31.81B market cap signals the stock generates minimal cash relative to its price, a concern for income-oriented utility investors. - **ANALYST SENTIMENT:** Only 32% of analysts rate the stock a buy, with 68% on hold and a sell consensus designation — a notably weak endorsement for a large-cap utility. - **CURRENT RATIO:** A current ratio of 0.77x (below 1.0x) indicates current liabilities exceed current assets, pointing to near-term liquidity tightness typical but worth monitoring in rising rate environments. - **TECHNICAL PRESSURE:** A bearish MACD signal at a price near the 52-week high of $192.51 suggests near-term momentum may be fading at elevated levels.
Unlock the full AI report
Full 8-section analysis includes:
Metric deep-dives