Latest Ratios: P/E Ratio 20.9x · EV/EBITDA 15.3x · ROE 9.3%. (1996–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $26.1B | $27.4B | $21.2B | $15.4B | $14.1B | $11.5B | $11.7B | $13.4B | $10.4B | $8.9B | $7.7B |
| Enterprise Value | $35.2B | $36.5B | $29.0B | $22.5B | $22.4B | $18.9B | $16.5B | $17.3B | $14.1B | $12.4B | $10.9B |
| P/E Ratio → | 20.94 | 22.89 | 20.31 | 17.37 | 18.16 | 17.23 | 19.55 | 26.18 | 17.29 | 22.48 | 22.03 |
| P/S Ratio | 5.55 | 5.83 | 5.08 | 3.60 | 3.35 | 3.36 | 4.16 | 4.61 | 3.35 | 3.22 | 3.14 |
| P/B Ratio | 1.85 | 2.02 | 1.74 | 1.41 | 1.49 | 1.45 | 1.73 | 2.33 | 2.19 | 2.28 | 2.23 |
| P/FCF | — | — | — | 23.52 | — | — | — | — | — | — | — |
| P/OCF | 12.73 | 13.38 | 12.21 | 4.44 | 14.39 | — | 11.32 | 13.81 | 9.27 | 10.26 | 9.70 |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 7.77 | 6.96 | 5.26 | 5.33 | 5.55 | 5.85 | 5.98 | 4.51 | 4.49 | 4.45 |
| EV / EBITDA | 15.33 | 15.91 | 14.32 | 13.45 | 15.37 | 13.66 | 13.15 | 15.25 | 12.91 | 11.74 | 11.50 |
| EV / EBIT | 22.55 | 22.14 | 20.33 | 19.78 | 23.45 | 20.93 | 19.84 | 23.02 | 19.58 | 17.10 | 16.64 |
| EV / FCF | — | — | — | 34.39 | — | — | — | — | — | — | — |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 52.4% | 52.4% | 57.9% | 48.1% | 43.1% | 49.8% | 54.3% | 48.7% | 43.4% | 46.9% | 47.7% |
| Operating Margin | 33.2% | 33.2% | 32.5% | 25.0% | 21.9% | 26.6% | 29.2% | 25.7% | 23.4% | 26.7% | 26.8% |
| Net Profit Margin | 25.5% | 25.5% | 25.0% | 20.7% | 18.4% | 19.5% | 21.3% | 17.6% | 19.4% | 14.4% | 14.3% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 9.3% | 9.3% | 9.1% | 8.7% | 8.9% | 9.1% | 9.6% | 9.7% | 13.9% | 10.8% | 10.5% |
| ROA | 4.4% | 4.4% | 4.4% | 4.0% | 3.7% | 3.8% | 4.2% | 4.1% | 5.3% | 3.8% | 3.7% |
| ROIC | 5.5% | 5.5% | 5.4% | 4.5% | 4.2% | 5.0% | 5.8% | 6.2% | 6.9% | 7.8% | 7.7% |
| ROCE | 6.1% | 6.1% | 6.0% | 5.4% | 5.3% | 5.9% | 6.2% | 6.7% | 7.4% | 8.2% | 8.1% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.69 | 0.69 | 0.67 | 0.66 | 0.89 | 0.96 | 0.70 | 0.69 | 0.76 | 0.90 | 0.94 |
| Debt / EBITDA | 4.05 | 4.05 | 4.01 | 4.26 | 5.75 | 5.47 | 3.80 | 3.51 | 3.35 | 3.33 | 3.44 |
| Net Debt / Equity | — | 0.67 | 0.64 | 0.65 | 0.88 | 0.94 | 0.70 | 0.69 | 0.76 | 0.89 | 0.93 |
| Net Debt / EBITDA | 3.97 | 3.97 | 3.86 | 4.25 | 5.71 | 5.38 | 3.79 | 3.49 | 3.33 | 3.31 | 3.39 |
| Debt / FCF | — | — | — | 10.87 | — | — | — | — | — | — | — |
| Interest Coverage | 9.61 | 9.61 | 7.48 | 8.28 | 9.29 | 10.81 | 9.84 | 7.30 | 6.73 | 6.03 | 5.72 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 0.67 | 0.67 | 0.94 | 0.65 | 0.85 | 0.81 | 0.60 | 0.38 | 0.25 | 0.53 | 0.38 |
| Quick Ratio | 0.53 | 0.53 | 0.78 | 0.45 | 0.74 | 0.75 | 0.45 | 0.27 | 0.16 | 0.35 | 0.28 |
| Cash Ratio | 0.15 | 0.15 | 0.25 | 0.01 | 0.01 | 0.03 | 0.03 | 0.02 | 0.01 | 0.03 | 0.03 |
| Asset Turnover | — | 0.16 | 0.17 | 0.19 | 0.19 | 0.17 | 0.18 | 0.22 | 0.26 | 0.26 | 0.25 |
| Inventory Turnover | 11.68 | 11.68 | 9.40 | 7.91 | 6.23 | 8.84 | 10.85 | 10.95 | 10.14 | 7.74 | 6.95 |
| Days Sales Outstanding | — | — | — | — | — | — | — | — | — | — | — |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 2.2% | 2.0% | 2.3% | 2.8% | 2.7% | 2.8% | 2.4% | 1.8% | 2.1% | 2.2% | 2.3% |
| Payout Ratio | 46.2% | 46.2% | 47.3% | 48.6% | 48.5% | 48.7% | 47.0% | 48.0% | 35.6% | 48.4% | 50.0% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 4.8% | 4.4% | 4.9% | 5.8% | 5.5% | 5.8% | 5.1% | 3.8% | 5.8% | 4.4% | 4.5% |
| FCF Yield | — | — | — | 4.3% | — | — | — | — | — | — | — |
| Buyback Yield | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% |
| Total Shareholder Yield | 2.2% | 2.0% | 2.3% | 2.8% | 2.7% | 2.8% | 2.4% | 1.8% | 2.1% | 2.2% | 2.3% |
| Shares Outstanding | — | $161M | $153M | $145M | $138M | $130M | $123M | $117M | $111M | $106M | $104M |
Includes 30+ ratios · 30 years · Updated daily
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Quick answers to the most common questions about buying ATO stock.
Atmos Energy Corporation's current P/E ratio is 20.9x. The historical average is 18.6x. This places it at the 80th percentile of its historical range.
Atmos Energy Corporation's current EV/EBITDA is 15.3x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 10.1x.
Atmos Energy Corporation's return on equity (ROE) is 9.3%. The historical average is 10.0%.
Based on historical data, Atmos Energy Corporation is trading at a P/E of 20.9x. This is at the 80th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Atmos Energy Corporation's current dividend yield is 2.21% with a payout ratio of 46.2%.
Atmos Energy Corporation has 52.4% gross margin and 33.2% operating margin. Operating margin above 20% indicates strong pricing power and cost efficiency.
Atmos Energy Corporation's Debt/EBITDA ratio is 4.1x, indicating high leverage. A ratio above 4x may signal elevated financial risk.
Key Metrics
Top Statement Risk
Regulatory lag and rate case outcomes
Metrics are mathematically derived from official filings.
Premium Multiple Reflects Texas Growth
Atmos trades at 22.78x trailing earnings and a 2.0% dividend yield, per current market data, a premium to peers like Spire and NJR, suggesting investors are pricing in superior rate base growth and regulatory support.
The P/E premium over peers (Spire at 18.98x, NJR at 16.68x) appears justified by Atmos's higher earned ROE and faster rate base expansion, driven by Texas GRIP mechanisms. The dividend yield of 2.0% is below the peer average of ~3.0%, reflecting the market's expectation of capital appreciation over income, consistent with a growth-oriented utility. However, the forward P/E of 20.12x implies continued earnings growth, which hinges on sustained regulatory approvals and CAPEX execution.
Earned ROE Exceeds Authorized Levels
Atmos's earned ROE of 10.4% (annualized from 2026Q3) appears to exceed typical authorized ROEs of 9.5-10.0%, as per regulatory filings, indicating constructive regulatory outcomes and efficient cost management.
The quarterly ROE of 1.6% in 2026Q3 annualizes to roughly 6.4%, but this is distorted by seasonality; the trailing twelve-month ROE is approximately 10.4%, based on reported figures. This suggests the company is earning above its allowed return, likely due to GRIP mechanisms that minimize regulatory lag. Investors should monitor whether this outperformance persists as rate cases reset authorized ROEs, which could compress the spread.
Operating Margin Expansion Signals Efficiency
Operating margin improved to 36.4% in 2026Q3 from 30.1% a year earlier, as per financial statements, indicating effective cost recovery and O&M discipline despite inflationary pressures.
The margin expansion appears driven by rate base growth and the pass-through of fuel costs, which insulate operating margins from commodity price volatility. The 33.2% operating margin over the last year is strong for a gas utility, suggesting efficient management of O&M expenses. However, this could be at risk if regulatory decisions delay cost recovery or if O&M inflation outpaces rate increases.
Leverage Creeps Higher Within Limits
Debt-to-capital rose to 0.40 in 2026Q3 from 0.39 a year earlier, as per balance sheet data, while FFO interest coverage improved to 15.75x, indicating adequate credit metrics despite rising debt.
Total debt increased from $7.9B to $10.3B over ten quarters, lifting leverage slightly, but the debt-to-capital ratio remains below the 0.45-0.50 typical for utilities. FFO-to-debt of 15.75% in 2026Q3 is healthy, though it dipped from 22.53% in 2026Q2 due to seasonal working capital swings. The company's reliance on external financing for its CAPEX program suggests leverage may continue to rise, but current metrics support a solid investment-grade credit profile.
Dividend Coverage Remains Adequate
Dividend payout ratio of 68.5% in 2026Q3, as per financial statements, is elevated but covered by operating cash flow, which averaged 3.7x dividends over the last year, supporting the company's Dividend Aristocrat status.
The payout ratio spiked in fiscal Q4 (80.8% in 2025Q4) due to seasonal earnings, but the trailing twelve-month payout is approximately 50%, based on reported figures. OCF-to-dividend coverage of 3.7x indicates that dividends are well-supported by cash flows, even as CAPEX outpaces internal funding. The company's commitment to dividend growth appears sustainable, but investors should monitor whether external equity issuance dilutes per-share growth.
Misapplied P/E Ignores Rate Base Growth
Comparing Atmos's P/E to industrial companies or even other utilities without adjusting for rate base growth and regulatory mechanisms can mislead, as per standard utility analysis, obscuring the true earnings power.
The P/E ratio for a regulated utility is anchored to the allowed ROE and interest rates, not growth expectations. Atmos's P/E of 22.78x appears high relative to the market, but it reflects the stability of regulated earnings and the premium for Texas GRIP. A more appropriate metric is the P/E-to-rate base growth ratio, which would show that Atmos's multiple is justified by its superior growth profile. Investors should also consider the impact of AFUDC, which can inflate reported earnings without cash flow, and adjust for regulatory assets to assess true earnings quality.