Is the business good?
How good a business is ATO?
Atmos Energy earns 5.8% on the capital it employs against a 9.0% cost of capital, so growth costs more than it returns.
5.8%
Return on invested capital · cost of capital 9.0% · 3.3 points below what the capital costs: growth destroys value
- Operating margin
- 37%
Operating margin · Utilities - Regulated Gas median 22% · 12 months to Q3 2026
- Cash conversion
- −1.44×
Cash conversion · −1.19× a year ago · some of the reported profit has not turned into cash yet
- Share count, year on year
- +5.1%
Share count, year on year · shareholders own a smaller slice than a year ago
| Year | Operating margin |
|---|---|
| FY2020 | 29% |
| FY2021 | 27% |
| FY2022 | 22% |
| FY2023 | 25% |
| FY2024 | 33% |
| FY2025 | 33% |
Details›
- Operating margin12 months to Q3 2026
- 37%
- Net margin12 months to Q3 2026
- 28%
- Free cash flow margin
- −41%
- Revenue, trailing twelve months
- $4.92B
- Free cash flow, trailing twelve months
- −$2.02B
- Net income, trailing twelve months
- $1.40B
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 5.8%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion from the cash flow statement.
Utilities - Regulated Gas
Ranks #10 of 13 by Smart Score