Atmos Energy Corporation (ATO) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

-192.8%

-$160.95

vs $173.47 price

Levered DCF

-$561.04

After debt service

Piotroski score

5 / 9

Average

Altman Z-score

1.66

Distress zone

Rating

A-

Overall 4 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
P/E	22.65×	20.31×	17.37×	18.12×	17.23×	19.55×	26.12×	17.08×
P/B	2×	1.74×	1.41×	1.49×	1.45×	1.73×	2.32×	2.16×
P/S	5.77×	5.08×	3.6×	3.34×	3.36×	4.16×	4.6×	3.3×
EV / EBITDA	15.2×	13.82×	12.91×	15×	13.68×	13.07×	15.13×	12.91×
Gross margin	52.4%	57.9%	48.1%	43.1%	49.8%	54.3%	48.7%	43.4%
Operating margin	33.2%	32.5%	25.0%	21.9%	26.6%	29.2%	25.7%	23.4%
Net margin	25.5%	25.0%	20.7%	18.4%	19.5%	21.3%	17.6%	19.4%
Current ratio	0.67×	0.94×	0.65×	0.85×	0.81×	0.6×	0.38×	0.25×
Debt / equity	0.69×	0.67×	0.66×	0.89×	0.96×	0.7×	0.69×	0.76×
Interest coverage	9.09×	7.11×	7.77×	8.96×	10.83×	9.76×	7.23×	6.83×
Dividend yield	2.0%	2.3%	2.8%	2.7%	2.8%	2.4%	1.8%	2.1%
Payout ratio	46.2%	47.3%	48.6%	48.5%	48.7%	47.0%	48.0%	35.6%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	8.8%	8.6%	8.1%	8.2%	8.4%	8.9%	8.9%	12.6%
Return on invested capital	4.6%	4.8%	4.4%	4.0%	4.0%	4.5%	4.6%	6.5%
Return on assets	4.1%	4.1%	3.9%	3.5%	3.4%	3.9%	3.8%	5.1%
Free cash flow yield	-5.6%	-5.7%	4.3%	-10.4%	-26.7%	-7.6%	-5.4%	-3.3%
Earnings yield	4.4%	4.9%	5.8%	5.5%	5.8%	5.1%	3.8%	5.9%
Enterprise value	$36.2B	$29B	$22.5B	$22.4B	$18.9B	$16.5B	$17.3B	$13.9B
Net debt / EBITDA	3.82×	3.73×	4.08×	5.58×	5.39×	3.76×	3.47×	3.37×
Cash conversion cycle (days)	-1	1	39	52	30	24	19	38