Skip to Content
Morningstar
Get 14 Days Free

Atmos Energy Corp ATO

Morningstar Rating
Rating as of

Morningstar’s Analysis

Valuation
Currency in USD
Is it the right time to buy or sell?
Find out with Morningstar Premium
Is it the right time to buy or sell?
Find out with Morningstar Premium

1-Star Price

PREMIUM

5-Star Price

PREMIUM

Economic Moat

PREMIUM

Capital Allocation

PREMIUM

Atmos Energy Reports Strong Fiscal-Year Earnings; Forecasts $14 Billion of 2022-26 in Capital Need

Andrew Bischof, CFA, CPA Senior Equity Analyst

Analyst Note

| Andrew Bischof, CFA, CPA |

We are reaffirming our $98 per share fair value estimate after Atmos reported fiscal-year 2021 operating earnings of $5.12 per share, compared with $4.72 in fiscal 2020. Earnings were slightly ahead of management's full-year guidance of $4.90 to $5.10. The company increased its dividend 8.8%, a growth rate among the highest of its utility peers, to $2.72 per share annualized representing a 2.9% dividend yield as of mid-November. Our narrow moat and stable moat trend remain unchanged.

Read Full Analysis

Company Profile

Business Description

Atmos Energy is the largest publicly traded, fully regulated, pure-play natural gas utility in the United States, serving more than 3 million customers in Texas, Colorado, Kansas, Kentucky, Louisiana, Mississippi, Tennessee, and Virginia. About 70% of its earnings come from Texas, where it distributes natural gas in northern Texas, including Dallas, and has a 5,700-mile intrastate gas transmission pipeline spanning several key shale gas formations and interconnected with five storage facilities.

Contact
5430 LBJ Freeway, Suite 1800, Three Lincoln Centre
Dallas, TX, 75240
T +1 972 934-9227
Sector Utilities
Industry Utilities - Regulated Gas
Most Recent Earnings Sep 30, 2021
Fiscal Year End Sep 30, 2021
Stock Type Slow Growth
Employees 4,684

Related

Our Picks
3 Investing Ideas for Contrarians
Those with the right constitution may find opportunity in these pockets of the market.
Susan Dziubinski
Stock Strategist Industry Reports
4 Utilities Positioned Well for Biden's Infrastructure Overhaul
Here's how regulation can dictate their growth and valuation.
Andrew Bischof
Our Picks
10 Solid Dividend-Paying Stocks on Sale
We think the payouts on these names are sustainable.
Susan Dziubinski
Our Picks
4 Utilities With an Edge After Texas Power Outages
We look at which utility companies stand to benefit as the Lone Star state recovers from last month's blackouts.
Sachin Nagarajan
Stock Strategist Industry Reports
Utilities Have Rarely Been This Attractive
We see the best values in high-quality gas utilities.
Travis Miller
Our Picks
3 Inexpensive Stocks with Sturdy Dividends
We think the payouts on these undervalued names are sustainable.
Susan Dziubinski
Stock Strategist Industry Reports
Utility Dividend Leaders and Laggards
In a post-pandemic world, most utilities’ dividends offer investors an attractive income alternative.
Andrew Bischof
US Videos
4 Stocks With Healthy Dividend Growth Potential
These utilities feature low payout ratios, solid investment opportunities, and constructive regulatory environments--though they’re not cheap.
Morningstar
Stock Strategist Industry Reports
3 Things for U.S. Utilities Investors to Watch
Valuation, growth capital expenditure, and renewable energy are top of mind.
Andrew Bischof
Stock Strategist Industry Reports
Coronavirus Opportunity and Risk: Industrials, Energy, and Basic Materials
Our analysts discuss where they see value in their sectors today.
Susan Dziubinski
Quarter-End Insights
Utilities: Running in Place, but Hurdles Ahead
Utilities continue trading near fair value with only a few high-quality dividend payers trading at attractive prices.
Travis Miller
Stock Strategist
Utilities' Dividends Still Attractive, but Headwinds Remain
Even though the utilities sector appears fairly valued, there are pockets of opportunities and potential pitfalls that investors must watch carefully in the coming months.
Travis Miller
US Videos
Utilities: Who Are the Next M&A Targets?
Given the high prices acquisitors have been willing to pay, Atmos Energy, WGL Holdings, and New Jersey Resources could all be prime targets.
Travis Miller
Quarter-End Insights
Utilities: Low Rates Keep the Sector's Lovefest Raging
Only the Fed could break up utilities' M&A party.
Travis Miller
Quarter-End Insights
Utilities: Starting to Look Attractive After a Woeful 2015 Start
Utilities' 4% dividend yields still look attractive even with the chance for rising interest rates.
Travis Miller
Quarter-End Insights
Utilities: Bloody February Brings Valuations Back In Line
We don't see an end to this atypical volatility until interest rates rise back toward historical norms.
Travis Miller
Quarter-End Insights
Utilities: Repeating a Stellar 2014 Performance Will Be Tough
Utilities' 23% total return through mid-December topped all sectors except for M&A-fueled health care.
Travis Miller
Quarter-End Insights
Utilities: Roller-Coaster Ride Continues, but Fundamentals Are Strong
Stock price volatility offers opportunities for investors committed to holding utilities for the long run.
Travis Miller
Investing Specialists
The Ultimate Stock-Pickers’ Top 10 Dividend Stocks
Top managers continue to focus on higher-quality dividend-paying stocks in a fully valued market.
The Morningstar Ultimate Stock-Pickers Team
Stock Strategist Industry Reports
Pipe Dreams: Time to Sell These Gas Utilities
Attractive growth opportunities can't cover up nosebleed valuations.
Mark Barnett