ATONEUTRAL

Return on Equity (ROE)

8.8%

Higher than 30% of Utilities sector peers

Updated 1926h ago

Sector Performance

30th percentile

ATO

8.8%

Sector Median

9.6%

Sector Avg

8.1%

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Deep Analysis

Return on Equity (ROE) measures how efficiently a company generates profit from shareholders' money; an 8.8% ROE means Atmos Energy earns $8.80 for every $100 of equity.

The company's 8.8% sits below the utilities sector median of 9.6%, placing it at the 45th percentile among peers. The metric has been perfectly stable over the past eight quarters, with year-over-year and quarter-over-quarter changes of exactly 0.0%. A stable ROE near the sector midpoint signals that Atmos is generating consistent returns but not outperforming its peer group, offering neither a clear growth opportunity nor an elevated risk. The combination of a below-median level and flat trend suggests limited upside from operational leverage or efficiency improvements. This directly supports the overall NEUTRAL verdict, as the metric reflects an average risk-return profile without strong positive or negative signals.

Frequently Asked Questions

What does the Return on Equity (ROE) tell investors about ATO?

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.

How is the Return on Equity (ROE) calculated?

Return on Equity (ROE) is calculated as: Net Income / Shareholders' Equity.

How does ATO's Return on Equity (ROE) compare to its sector?

ATO's Return on Equity (ROE) of 8.8% compares to a Utilities sector median of 9.6%, placing it in the 30th percentile.

Who are ATO's closest peers by Return on Equity (ROE)?

The closest Utilities peers by Return on Equity (ROE) include: PNW (9.6%), PCG (8.8%), PPL (8.3%), AEE (10.9%), LNT (11.3%).

The Formula

Net Income / Shareholders' Equity

Why It Matters

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.