Atmos Energy Corporation (ATO) — Fundamental Analysis & Key Financial Ratios

Kaplio's reading: Atmos Energy Corporation

Updated on October 16, 2026 · accounts published on August 5, 2026

Reading of October 15, 2026: A steadily growing regulated utility with record margins and a well-covered dividend

Atmos Energy trades at a P/E of 19.5, 9 % below its ten-year median, with revenue up 13 % and record margins over the last 12 months.

• Is Atmos Energy expensive or cheap? At a P/E of 19.5, Atmos Energy trades 9 % below its ten-year median and was cheaper only 19 % of the past decade.
• How is the business doing? The operating margin reached 37 % over the last 12 months, well above the 25 % average of fiscal 2014-2025.
• How strong is the balance sheet? Net debt was 3.8× EBITDA in fiscal 2025, below the 5.5× level considered healthy for utilities.
• What to expect from the next earnings? Analysts expect EPS of $1.14 for the quarter due November 4, 2026; Atmos Energy beat estimates in 7 of the last 8.
• Is the dividend sustainable with this debt? The payout was 46 % of earnings in fiscal 2025, far below the 80 % ceiling, after 11 straight years of dividend increases.

Is Atmos Energy expensive or cheap?

Over the last 12 months Atmos Energy trades at a P/E of 19.5, against a ten-year median of 21.5 and a decade range from 16.9 to 27.6. That puts today's multiple in the lower part of its own history: the stock traded at a lower P/E only 19 % of the time over the last decade. Against peers the discount is smaller, with the P/E 5 % below the utilities median of 20.6. The share price is down 7 % over the last 12 months and sits 14 % below its 52-week high of $192.29, so the market has cooled while earnings kept rising.

How is the business doing?

Revenue grew 13 % and EPS 9.2 % over the last 12 months, a brisk pace for a regulated utility. Margins point the same way: the operating margin of 37 % over the last 12 months compares with a 25 % average across fiscal 2014-2025, and fiscal 2025 had already set the 12-year high at 33 %. Returns on capital stay modest, as is normal in the sector. ROIC of 4.8 % over the last 12 months is 0.8 points above the sector median of 4.0 %, and it has not cleared 10 % in any of the last ten fiscal years. ROE of 9.7 % sits inside the 8 % to 12 % regulated range.

How strong is the balance sheet?

Net debt in fiscal 2025 came to $58.33 per share, equal to 36 % of the current price, and 3.8× EBITDA, comfortably below the 5.5× level considered healthy for the sector. Interest coverage of 9.1× in fiscal 2025 is three times the 3× floor, so financing costs are well covered by earnings. Debt to equity of 0.67 over the last 12 months is moderate. The weaker spot is liquidity: a current ratio of 0.81 means short-term liabilities exceed short-term assets, which leaves the company dependent on continued access to financing. A Piotroski score of 6 out of 9 points to sound but not spotless fundamentals.

What to expect from the next earnings?

Atmos Energy reports next on November 4, 2026, with consensus at EPS of $1.14 for the quarter. The track record sets a high bar: it has beaten EPS estimates in 7 of the last 8 quarters, most recently on August 5, 2026, with $1.43 against $1.35 expected, a 5.9 % surprise. Expectations are steady, as the 2027 EPS consensus barely moved in the last 30 days, from $9.03 to $9.04 across 9 analysts, and revenue forecasts are equally flat. Of the 23 analysts covering the stock, 9 rate it a buy, 14 a hold and none a sell.

Is the dividend sustainable with this debt?

Utilities behave like bonds with growth attached: investors own them for steady income, so the checks that matter are leverage, interest costs and the share of profit paid out, more than high returns on capital. Atmos Energy passes five of six. The fiscal 2025 payout of 46 % leaves ample room under the 80 % limit, and the dividend has grown 8.3 % a year over 2015-2025, double the 4 % healthy floor, with 11 consecutive annual increases and a yield of 2.4 % over the last 12 months. The one miss is a pleasant one: EPS grew 9.0 % a year over 2020-2025, above the 4 % to 7 % sector range, a pace that may be hard to repeat.

How this was prepared: the data comes from companies' official filings, collected by a professional provider, and from Kaplio's analysis engine (trailing-12-month ratios, 10 years of history and sector medians computed across US-listed companies). The text is written from that data alone, every figure is checked against it before publication, and it is reviewed when the company reports results. This is not investment advice.