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Atmos Energy ATO

Atmos Energy scores good on business quality (6.2 of 10). Here is why, in plain words, and what our sealed record shows.

Last price$161.66Oct 10, 2026
Business qualityGood
Next earningsNov 4, 2026, after the close
Insiders, 90 daysBuying

Why it matters

  1. What Atmos Energy does

    Atmos Energy distributes and stores natural gas to over 3 million residential and commercial customers across the South, generating regulated utility revenues. The company directs capital into extensive pipeline safety and system modernization programs.

  2. What it does best

    Atmos operates with an operating margin of 37%, placing it in the top decile of its sector at the 97th percentile. This efficiency stems from a deeply entrenched regulated footprint that insulates it from direct utility competition.

  3. The main risk

    Massive capital expenditure programs drive negative free cash flow of $2.0B, forcing heavy reliance on debt markets to fund ongoing pipeline upgrades.

Quality, check by check

Scored against its own industry, from company filings.

ProfitabilityFair

Operating margin stands at 37.0% and net margin is 28.5%. Profitability remains stable, though heavy capital investments weigh heavily on free cash flow generation as the business scales.

MoatFair

Regulatory moats protect its localized gas distribution networks, locking in residential and commercial customers. Its operating margin ranks in the 97th percentile of the sector.

GrowthSteady

Revenue grew 12.9% to $4.9B, accelerating compared to prior historical periods. This top-line expansion is driven by ongoing rate base growth and infrastructure investments.

Financial healthStrong

Interest coverage sits at 12.8x, showing debt servicing is manageable despite total debt of $9.0B. Free cash flow is negative $2.0B due to heavy capital spending of $4.0B, keeping the balance sheet under pressure.

Insiders

Executives and directors, from SEC Form 4 filings we read ourselves. Open market trades only; grants, option exercises and pre-planned sales left out.

1 insider bought $50K on the open market.

Our sealed record on ATO

Verdicts appear here 30 days after we publish them; members see today's. Each one is in the nightly ledger, fingerprinted the night it was made.

The first sealed verdicts appear here on Oct 11, 2026.

Questions

Is ATO a good business?

Atmos Energy scores good on the Cluenex quality check (6.2 of 10), measured against its own industry. Profitability is fair, moat fair, growth steady and financial health strong.

Are insiders buying ATO?

In the last 90 days of SEC Form 4 filings: 1 insider bought $50K on the open market.

When does ATO report earnings?

Nov 4, 2026, after the close.

For members

See ATO today

  • Today's verdict on ATO, and why
  • Fair value with cautious, base and optimistic cases
  • The exact price that would change the verdict
  • Which stocks each signal names, the night it fires
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Cite this page: Cluenex, “Atmos Energy (ATO)”, https://cluenex.com/stocks/ato/, data as of Oct 10, 2026.