📊 ATO Key Takeaways
Investment Thesis
Atmos Energy demonstrates solid operational profitability with strong margins (38.3% operating margin) and consistent revenue growth (+12.9% YoY), but fundamental concerns about cash flow generation and capital intensity limit investment enthusiasm. The company's negative free cash flow of -$725.3M combined with high capital expenditure relative to operating cash flow raises questions about sustainable dividend capacity and financial flexibility.
ATO Strengths
- Strong operating margins of 38.3% indicating efficient utility operations
- Consistent revenue growth of 12.9% YoY with net income stability
- Reasonable leverage at 0.67x debt-to-equity with 4.8x interest coverage
- Solid cash position of $367M providing operational cushion
ATO Risks
- Severe negative free cash flow of -$725.3M with FCF margin of -54%, unsustainable for long-term growth
- Capital expenditure of $1.0B significantly exceeds operating cash flow of $308.1M, suggesting dependency on external financing
- Low ROE of 2.8% and ROA of 1.4% indicate poor capital efficiency despite high profitability ratios
- High capital intensity in utility sector creates ongoing refinancing requirements and cash flow pressure
Key Metrics to Watch
- Free cash flow trend and sustainability relative to capital investment plans
- Operating cash flow growth trajectory and ability to fund capex internally
- Debt levels and refinancing activity given negative FCF generation
- Return on equity improvement as capital investments mature
ATO Financial Metrics
💡 AI Analyst Insight
ATMOS ENERGY CORP presents a mixed fundamental picture. Review the detailed metrics above to form your own investment thesis.
ATO Profitability Ratios
ATO vs Energy Sector
How ATMOS ENERGY CORP compares to Energy sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
ATO Balance Sheet & Liquidity
ATO 5-Year Financial Trend
5-Year Trend Summary: ATMOS ENERGY CORP's revenue has grown significantly by 38% over the 5-year period, indicating strong business expansion. The most recent EPS of $6.10 reflects profitable operations.
ATO Growth Metrics (YoY)
ATO Quarterly Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $1.2B | $351.9M | $2.23 |
| Q3 2025 | $701.5M | $165.6M | $1.08 |
| Q2 2025 | $1.6B | $311.3M | $2.85 |
| Q1 2025 | $1.2B | $311.3M | $2.08 |
| Q3 2024 | $662.7M | $137.8M | $0.94 |
| Q2 2024 | $1.5B | $271.9M | $2.48 |
| Q1 2024 | $1.2B | $271.9M | $1.91 |
| Q3 2023 | $662.7M | $128.5M | $0.92 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
ATO Capital Allocation
ATO SEC Filings
Access official SEC EDGAR filings for ATMOS ENERGY CORP (CIK: 0000731802)
📋 Recent SEC Filings
❓ Frequently Asked Questions about ATO
What is the AI rating for ATO?
ATMOS ENERGY CORP (ATO) has an AI rating of HOLD with 65% confidence, based on fundamental analysis of SEC EDGAR filings.
What are ATO's key strengths?
Strong operating margins of 38.3% indicating efficient utility operations. Consistent revenue growth of 12.9% YoY with net income stability.
What are the risks of investing in ATO?
Severe negative free cash flow of -$725.3M with FCF margin of -54%, unsustainable for long-term growth. Capital expenditure of $1.0B significantly exceeds operating cash flow of $308.1M, suggesting dependency on external financing.
What is ATO's revenue and growth?
ATMOS ENERGY CORP reported revenue of $1.3B.
Does ATO pay dividends?
ATMOS ENERGY CORP pays dividends, with $160.4M distributed to shareholders in the trailing twelve months.
Where can I find ATO SEC filings?
Official SEC filings for ATMOS ENERGY CORP (CIK: 0000731802) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is ATO's EPS?
ATMOS ENERGY CORP has a diluted EPS of $2.44.
How is the AI analysis conducted?
Our AI (Claude) analyzes publicly available SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports to evaluate financial health, profitability ratios, balance sheet strength, and growth metrics.