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Verdict
Quantitative factor alignment verified for current market regime.
Quant Score
Rank
#466
Positioning
Market Dominance
Transportation, Communications, Electric, Gas, And Sanitary Services
Utilities
$24.5B
John K. Akers
Atmos Energy Corporation owns 71,921 miles of underground distribution and transmission mains. As of September 30, 2021, it owned 5,699 miles of gas transmission lines. The Pipeline and Storage segment transports natural gas for third parties and manages five underground storage reservoirs in Texas.
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Dates updated upon official exchange announcement.
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| Stock | Rating | Score▼ | Quality | Value | Momentum | P/E | EV/EBITDA | ROE | ROA | Gross Mgn | Op Mgn | Net Mgn | Rev Growth | Div Yield | D/E | Mkt Cap | AUDIT |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
$UGP ULTRAPAR HOLDINGS INC | 79 | 90 | 95 | 87 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$TNK TEEKAY TANKERS LTD. | 78 | 94 | 97 | 82 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$DHT DHT Holdings, Inc. | 75 | 84 | 88 | 78 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$STNG Scorpio Tankers Inc. | 75 | 86 | 95 | 74 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$NAT NORDIC AMERICAN TANKERS Ltd | 75 | 82 | 88 | 87 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$AMX AMERICA MOVIL SAB DE CV/ | 74 | 86 | 81 | 68 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$PAC Pacific Airport Group | 73 | 94 | 80 | 78 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$GSL Global Ship Lease, Inc. | 73 | 82 | 94 | 81 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$TRMD TORM plc | 73 | 86 | 94 | 65 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$VIV TELEFONICA BRASIL S.A. | 73 | 82 | 90 | 78 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$ATO ATMOS ENERGY CORP | 63 | 65 | 64 | 52 | 24.1x | 12.8x | 8.7% | 4.2% | 60.1% | 33.0% | 25.2% | -18.5% | 2.2% | 109.0x | $24.5B | ||
| SECTOR BENCH | - | - | - | - | - | 16.9x | 6.1x | 11.9% | 3.2% | 52.6% | 14.8% | 7.7% | 4.2% | 1.4% | 1.3x | - | REF |
ATMOS ENERGY CORP (ATO) receives a "Hold" rating with a composite score of 62.5/100. It ranks #466 out of 7,333 stocks in our coverage universe and carries a 3-star rating. Ratings are driven by a 6-factor quantitative model measuring quality, value, momentum, investment, stability, and short interest.
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In-line with peers — no strong momentum signal
Trading at a discount to fundamentals — favorable entry valuation
High profitability & efficiency — strong quality floor supports entry
Low volatility — smoother ride and historically better risk-adjusted returns
Moderate investment profile
Mid-range overall rating
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Relative valuation derived from Transportation, Communications, Electric, Gas, And Sanitary Services sector benchmarks. Model weights: EV/EBITDA (40%), P/B (35%), P/S (25%). Re-calculated daily.
Projection based on user-defined inputs. Re-calculated daily against current market data.
Reverse DCF Framework — Mauboussin Methodology
Institutional-grade Reverse DCF analysis. This model identifies the growth hurdles embedded in current market prices. When implied growth is significantly lower than historical or projected rates, a margin of safety may exist. Re-audited daily.
No analyst ratings for ATO.
View All Ratings| Factor | Global | Sector | Tilt |
|---|---|---|---|
| PROFITABILITY | 65 | 75 | -10DRAG |
| MOMENTUM | 52 | 55 | -3NEUTRAL |
| VALUATION | 64 | 72 | -8DRAG |
| INVESTMENT | 37 | 55 | -18DRAG |
| STABILITY | 95 | 98 | -3NEUTRAL |
| SHORT INT | 79 | 90 | -11DRAG |
Global = full universe. Sector = relative to industry peers. Positive tilt indicates idiosyncratic strength.
ROE proxy 8.7% (sector 11.9%)
GM 60% vs sector 53%, OM 33% vs sector 15%
Capital turnover N/A
Rev growth -18%, 11yr history
Interest coverage N/A
Composite assessment of profitability, capital efficiency, and financial strength. Top-tier entities demonstrate sustainable cash flow generation and elite competitive moats.
Profit generated per dollar of shareholder equity
Efficiency of asset utilization
Pricing power and cost efficiency
Core business profitability
Bottom-line profitability
The Quality factor evaluates the persistence and magnitude of realized cash flows. Companies with scores >70 exhibit superior pricing power and structural financial resilience through diverse economic regimes.
Our uncertainty rating tracks the predictability of future cash flows and potential for permanent capital loss. Moderate visibility with standard industry cyclicality.
We rate ATMOS ENERGY CORP (ATO) as a Hold with a composite score of 62.5/100 at a current price of $182.02. The stock presents a mixed quantitative picture — neither compelling enough to warrant new accumulation nor weak enough to justify selling.
ATMOS ENERGY CORP holds a top-quartile position (#0 of 50) within the Transportation, Communications, Electric, Gas, And Sanitary Services sector, based on our composite quantitative scoring across quality, value, momentum, and stability factors. The composite score of 62.5/100 places it at rank #466 in our full universe.
No Moat
Medium
Standard
Undervalued
Gross margins of 60% signal strong pricing power.
Stable competitive position in a defensive sector.
Leverage of 109% D/E amplifies downside risk.
Vulnerability to macroeconomic shocks and interest rate volatility.
ATMOS ENERGY CORP represents a hold based on multi-factor quantitative performance.
Our model assigns ATMOS ENERGY CORP a Hold rating, with a composite score of 62.5/100 and 3 out of 5 stars. Ranked #466 of 7,333 stocks, ATO presents a mixed quantitative picture — neither compelling enough to initiate new positions nor weak enough to warrant selling. Investors already holding may consider maintaining their position while monitoring for changes in the factor profile.
ATO earns a quality score of 65/100, indicating above-average business quality. The company reports a return on equity of 8.7% (sector avg: 11.9%), gross margins of 60.1% (sector avg: 52.6%), net margins of 25.2% (sector avg: 7.7%). Companies in this tier generally demonstrate consistent profitability and efficient capital deployment, though they may face some competitive pressure.
ATO's value score of 64/100 indicates the stock is fairly valued based on its current fundamentals. Key valuation metrics include a P/E ratio of 24.13x, an EV/EBITDA of 12.76x, a P/B ratio of 2.10x. At this level, neither a clear bargain nor overpriced, the stock's attractiveness depends more on forward growth expectations and qualitative factors.
ATMOS ENERGY CORP's investment score of 37/100 suggests limited reinvestment activity. Key growth metrics include revenue growth of -18.5% vs. a sector average of 4.2% and a return on assets of 4.2% (sector: 3.2%). While this can be positive for mature, cash-generative businesses returning capital to shareholders, it may also signal a lack of growth opportunities or management conservatism.
ATO demonstrates moderate momentum with a score of 52/100, suggesting a neutral price trend without strong directional conviction. Revenue growth stands at -18.5% year-over-year, while a beta of 0.15 reflects its sensitivity to broader market moves. Moderate momentum may indicate the stock is consolidating or transitioning between trends, warranting close monitoring of upcoming catalysts.
ATMOS ENERGY CORP earns an excellent stability score of 95/100, reflecting low price volatility and a conservatively managed balance sheet. Key stability metrics include a beta of 0.15 and a debt-to-equity ratio of 109.00x (sector avg: 1.3x). Stocks with this level of stability tend to act as portfolio anchors, providing downside protection during market corrections while still participating in broad market advances.
ATO carries a short interest score of 79/100, indicating moderate short selling activity. This is a neutral reading — not enough to signal systemic bearishness, but worth monitoring. Specific risk factors include elevated leverage (D/E: 109.00x). At $24.5B market cap (large-cap), ATMOS ENERGY CORP offers reasonable institutional liquidity.
ATO pays a solid dividend yield of 2.2%, contributing an income component to total returns. This compares to a sector average dividend yield of 1.4%. This moderate yield suggests a balance between returning capital to shareholders and retaining earnings for reinvestment — a common profile among quality compounders.
ATMOS ENERGY CORP is a large-cap company in the Transportation, Communications, Electric, Gas, And Sanitary Services sector, ranked #0 of 50 in its sector (100th percentile) and #466 of 7,333 overall (94th percentile). Key comparisons include ROE of 8.7% trailing the 11.9% sector median and operating margins of 33.0% above the 14.8% sector average. This top-quartile standing reflects exceptional competitive strength relative to Transportation, Communications, Electric, Gas, And Sanitary Services peers.
While ATO currently exhibits a HOLD profile, superior opportunities exist within the TRANSPORTATION, COMMUNICATIONS, ELECTRIC, GAS, AND SANITARY SERVICES sector. Our model identifies several "Strong Buy" candidates with higher quality scores and more attractive valuations among direct industry competitors.
View Top Transportation, Communications, Electric, Gas, And Sanitary Services Alpha →Quant Factor Profile
Key factor gap
Stability (95) vs Investment (37) — closing this gap could shift the rating.
EV/EBITDA 109% ABOVE SECTOR MEDIAN
ROE 27% BELOW SECTOR MEDIAN
Gross Margin 14% ABOVE SECTOR MEDIAN (FAVORABLE)
Above 50MA
37.18%
Net New Highs
+51081

The $27.4B question: What happens when a company this good becomes this expensive? In the constellation of American capitalism, certain companies shine brighter than others — not because they are inherently more valuable, but because they have positioned themselves at the nexus of forces that shape the economy. ATMOS ENERGY CORP is one such company. At $27.4B in market capitalization, ATMOS ENERGY CORP (ATO) currently ranks #83 in our quantitative model, with a composite score of 78.4/10

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