ATOAtmos Energy
Is the business good?
A genuinely good business: earnings fully cash-backed (1.4×) and margins widening.
Operating profit is fully backed by cash. Conversion is worsening vs a year ago.
Positive operating leverage, operating profit is growing faster than sales, so margins widen as the business scales.
Margin-driven, fat margins on slower asset turns. ROE 9% = margin × turnover × leverage.
Unless marked, from derived.
Against the whole market›
Percentile against every name Ryufin tracks. Higher is better; the tick marks the middle of the market. Context, not one of the checks above.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
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.
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
- 1.39×
Cash conversion · 1.64× a year ago · operating cash flow covers the operating profit after tax
- 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 is operating cash flow over operating profit after tax.
Utilities, Regulated Gas
The closest names by size in the same industry