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ATO Atmos Energy

energy · valued with glm-5.2 medium conviction · deep-dived 2026-09-03

STRONG SELL
Intrinsic value$36.42
Price (at call)$167.68
Margin of safety -78.3%
vs market (rating basis) -46.6%

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The story

Value drivers

Revenue growth (Y1)3.8%
Terminal growth3.5%
Forecast horizon10y
Target operating margin25.3%
Years to target margin5
Sales-to-capital0.50
Beta0.60
Failure probability0.0%
Cost of capital (WACC)7.3%
Terminal WACC8.7%

Valuation bridge

PV of explicit FCFF6.48B
PV of terminal value8.47B
Equity value6.15B
÷ shares → per share$36.42

News

bearish -0.20 · 8 articles

  • Can SR's Strategic Investments Support Sustainable Long-Term Growth?
  • Why Atmos Energy (ATO) Lost Its Investment Appeal
  • ONE Gas (OGS) On Rising Gas Demand And Infrastructure Spending With Valuation In Focus
  • Atmos (ATO) Upgraded to Buy: What Does It Mean for the Stock?
  • Are Wall Street Analysts Predicting Atmos Energy Stock Will Climb or Sink?
  • Improved Infrastructure-Driven Earnings Outlook Might Change The Case For Investing In ONE Gas (OGS)
  • 3 Gas Utility Stocks Poised to Gain Despite Industry Challenges
  • Volatility Returns Amid Ongoing Geopolitical Tension: 3 Utility Picks

Projected free cash flow to the firm

YrRevenueGrowthMarginNOPATReinvestFCFFPV
1 5.11B 3.8% 35.9% 1.49B 376.70M 1.11B 1.03B
2 5.30B 3.8% 33.2% 1.43B 387.40M 1.04B 904.00M
3 5.50B 3.8% 30.6% 1.36B 398.23M 966.01M 781.09M
4 5.71B 3.7% 27.9% 1.29B 409.18M 882.99M 665.15M
5 5.92B 3.7% 25.3% 1.21B 420.25M 792.19M 555.95M
6 6.13B 3.6% 25.3% 1.26B 431.42M 825.22M 539.53M
7 6.35B 3.6% 25.3% 1.30B 442.69M 859.30M 523.40M
8 6.58B 3.6% 25.3% 1.35B 454.05M 894.46M 507.56M
9 6.81B 3.5% 25.3% 1.40B 465.49M 930.71M 492.02M
10 7.05B 3.5% 25.3% 1.45B 477.00M 968.07M 476.78M

History

DatePriceIntrinsicMoSRating
2026-09-03$167.68 $36.42 -78.3% STRONG SELL
2026-07-31$174.26 $65.23 -62.6% SELL
2026-06-26$173.67 $67.27 -61.3% SELL
2026-06-23$171.08 $63.58 -62.8% SELL