AI Spotlight on ATO
Company Description
Atmos Energy Corporation, together with its subsidiaries, engages in the regulated natural gas distribution, and pipeline and storage businesses in the United States.It operates through two segments, Distribution, and Pipeline and Storage.The Distribution segment is involved in the regulated natural gas distribution and related sales operations in eight states.
This segment distributes natural gas to approximately three million residential, commercial, public authority, and industrial customers.As of September 30, 2021, it owned 71,921 miles of underground distribution and transmission mains.The Pipeline and Storage segment engages in the pipeline and storage operations.
This segment transports natural gas for third parties and manages five underground storage reservoirs in Texas; and provides ancillary services to the pipeline industry, including parking arrangements, lending, and inventory sales.As of September 30, 2021, it owned 5,699 miles of gas transmission lines.Atmos Energy Corporation was founded in 1906 and is headquartered in Dallas, Texas.
Market Data
Last Price | 142.51 |
Change Percentage | -0.14% |
Open | 142.4 |
Previous Close | 142.71 |
Market Cap ( Millions) | 22149 |
Volume | 1240836 |
Year High | 152.65 |
Year Low | 110.46 |
M A 50 | 142.36 |
M A 200 | 131.04 |
Financial Ratios
FCF Yield | -5.43% |
Dividend Yield | 2.31% |
ROE | 8.83% |
Debt / Equity | 66.86% |
Net Debt / EBIDTA | 373.68% |
Price To Book | 1.78 |
Price Earnings Ratio | 20.7 |
Price To FCF | -18.41 |
Price To sales | 5.32 |
EV / EBITDA | 14.32 |
News
- Jan -30 - Atmos Energy to Release Q1 Earnings: Here's What You Need to Know
- Jan -14 - Consumer Sentiment Declines Amid Rate Cut Uncertainty: 4 Safe Bets
- Jan -14 - MDU vs. ATO: Which Stock Is the Better Value Option?
- Jan -09 - 5 Low-Beta Stocks With Upside to Buy Amid Ongoing Market Volatility
- Jan -09 - 3 Gas Distribution Stocks to Watch From a Flourishing Industry
- Jan -08 - Atmos Energy Corporation to Host Fiscal 2025 First Quarter Earnings Conference Call on February 5, 2025
- Jan -06 - Reasons to Add Atmos Energy Stock to Your Portfolio Now
- Jan -04 - 5 Relatively Secure And Cheap Dividend Stocks, Yields Up To 8% (January 2025)
- Jan -02 - Atmos Energy: Still A Hold After The Recent Dividend Boost
- Jan -02 - Atmos Energy: Credible Growth Plan Is Reflected In Valuation
- Dec -31 - The Zacks Analyst Blog Atmos Energy, Brown & Brown and Cintas
- Dec -30 - 3 Dividend Aristocrat Must-Haves for Your Portfolio in 2025
- Dec -30 - Is Atmos Energy (ATO) Stock Outpacing Its Utilities Peers This Year?
- Dec -24 - 2 Gas Distribution Stocks to Add to Your Portfolio as 2024 Wraps Up
- Dec -13 - Here's Why You Should Add Atmos Energy Stock to Your Portfolio Now
- Dec -12 - Is Atmos Energy (ATO) Outperforming Other Utilities Stocks This Year?
- Dec -12 - 5 Low-Beta Stocks to Buy as November Inflation Soars
- Dec -07 - 5 Relatively Secure And Cheap Dividend Stocks For December 2024: Yields Up To 9%
- Dec -05 - Atmos Energy Corporation Announces Retirement of Karen E. Hartsfield and Appointment of Jessica Bateman Pulliam to Senior Vice President, General Counsel and Corporate Secretary
- Nov -26 - My Best Dividend Aristocrats For December 2024
Business Breakdown
Expected Mid-Term Growth
Segment nΒ°1 -> Distribution
Expected Growth : 4.83 %
What the company do ?
Atmos Energy Corporation's distribution segment focuses on the regulated distribution of natural gas to residential, commercial, and industrial customers in various states.
Why we expect these perspectives ?
Atmos Energy's 4.83% distribution growth is driven by its consistent operating performance, strong cash flow generation, and a solid balance sheet. The company's regulated business model provides a stable earnings base, while its ongoing capital investment program and organic growth initiatives support long-term distribution growth.
Segment nΒ°2 -> Pipeline and Storage
Expected Growth : 4.65 %
What the company do ?
Atmos Energy Corporation's Pipeline transports natural gas to customers, while Storage facilities hold gas for future use, ensuring a reliable supply.
Why we expect these perspectives ?
Atmos Energy's Pipeline and Storage segment growth of 4.65% is driven by increasing demand for natural gas, expansion of existing infrastructure, and strategic acquisitions. Additionally, investments in pipeline modernization and safety initiatives contribute to growth. Furthermore, favorable regulatory environments and rising production from shale plays also support segment growth.
Atmos Energy Corporation Products
Product Range | What is it ? |
---|---|
Natural Gas Distribution | Atmos Energy Corporation provides natural gas distribution services to residential, commercial, and industrial customers. |
Pipeline and Storage Services | The company offers pipeline and storage services to transport and store natural gas for its customers. |
Natural Gas Marketing | Atmos Energy Corporation markets and sells natural gas to customers, including municipalities, utilities, and industrial customers. |
Intrastate Pipeline Services | The company provides intrastate pipeline services, transporting natural gas within specific states. |
Atmos Energy Corporation's Porter Forces
Threat Of Substitutes
The threat of substitutes for Atmos Energy Corporation is medium due to the availability of alternative energy sources such as solar and wind power. However, the high cost of switching to these alternatives and the lack of infrastructure in some areas reduce the threat.
Bargaining Power Of Customers
The bargaining power of customers is low due to the lack of alternative energy providers in many areas, giving Atmos Energy Corporation a significant market share and pricing power.
Bargaining Power Of Suppliers
The bargaining power of suppliers is medium due to the presence of multiple suppliers of natural gas and other energy sources. However, the high demand for these resources and the limited number of suppliers give them some bargaining power.
Threat Of New Entrants
The threat of new entrants is low due to the high barriers to entry in the energy industry, including the need for significant capital investment and regulatory approvals.
Intensity Of Rivalry
The intensity of rivalry is high due to the presence of several established energy companies competing for market share, leading to aggressive pricing and marketing strategies.
Capital Structure
Value | |
---|---|
Debt Weight | 38.80% |
Debt Cost | 3.95% |
Equity Weight | 61.20% |
Equity Cost | 7.23% |
WACC | 5.95% |
Leverage | 63.41% |
Atmos Energy Corporation : Quality Control
Atmos Energy Corporation passed 4 out of 9 key points:
Historical Valuation
Price/Earnings Ratio
Margin Valuation
Peers Valuation
Competitors
Company | Rational |
---|---|
SWX | Southwest Gas Holdings, Inc., through its subsidiaries, distributes and transports natural gas in Arizona, Nevada, and California. The company operates through Natural Gas Distribution, Utility Infrastructure Services, and Pipeline and β¦ |
NI | NiSource Inc., an energy holding company, operates as a regulated natural gas and electric utility company in the United States. It operates through two segments, Gas Distribution Operations and Electric β¦ |
OGS | ONE Gas, Inc., together with its subsidiaries, operates as a regulated natural gas distribution utility company in the United States. The company operates through three divisions: Oklahoma Natural Gas, Kansas β¦ |
NJR | New Jersey Resources Corporation, an energy services holding company, provides regulated gas distribution, and retail and wholesale energy services. The company operates through four segments: Natural Gas Distribution, Clean Energy β¦ |
NFE | New Fortress Energy Inc. operates as an integrated gas-to-power infrastructure company that provides energy and development services to end-users worldwide. The company operates in two segments, Terminals and Infrastructure, and β¦ |