Atmos Energy Corporation (ATO)

FairStock Score: 56/100 — STEADY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look for a business I can understand, with a durable competitive position and a price that leaves room for error. Atmos is a regulated gas utility I can understand: it distributes natural gas to roughly 3.4 million customers across eight states and owns pipeline and storage assets. Regulation is not a romantic moat, but it creates a predictable franchise and helps explain the 0.59 beta. The latest filed numbers are decent: in fiscal Q3 2026, the quarter ended 2026-06-30, revenue was $879.1 million, net income $242.7 million, and diluted EPS $1.43, versus $838.8 million, $186.4 million, and $1.16 in fiscal Q3 2025. FairStock’s stalwart label, citing 14.8% annual profit growth and 10.8% revenue growth over five years, fits a steady compounder. But I am cautious on capital intensity. Trailing free cash flow was negative $2.0 billion, a negative 7.0% FCF yield, and ROCE was only 3.89%; utilities can earn regulated returns, but that requires heavy investment and debt. D/E of 0.68 is manageable but not trivial. At the 2026-10-26 close of $171.29, FairStock’s P/E is 20.44, P/B 1.90, EV/EBITDA 14.55, and the Graham Number is $130.48, leaving a negative 31.98% margin of safety on that measure. PEG of 0.68 looks attractive only if the growth is real. Piotroski 4/9 and Altman 1.37 say the balance sheet is not flawless. I would call this a good, steady utility, but the price already reflects much of the steadiness.

In plain English: Atmos Energy sells and delivers natural gas to about 3.4 million homes and businesses in eight states and also runs gas pipelines and storage. The business looks steady: its latest reported quarter showed higher sales and profit than a year earlier, but it spends a lot on its system and takes in less cash than it invests. At the October 26, 2026 closing price of $171.29, the stock looks somewhat expensive compared with simple accounting measures, though the regulated utility model softens that view.

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Data as of 2026-10-26 close · note generated 2026-10-28 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q3 2026 10-Q (period ended 2026-06-30) · fiscal Q2 2026 10-Q (period ended 2026-03-31) · fiscal Q1 2026 10-Q (period ended 2025-12-31) · fiscal Q3 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-09-30) · FY2024 10-K (period ended 2024-09-30) · FY2023 10-K (period ended 2023-09-30)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer