ATO

Atmos Energy Corporation
UtilitiesUtilities - Regulated GasNASDAQ
$185.68
+$4.77 (2.57%)today
Conviction
5/ 10
Fair Value$183
Upside-1.44%
Signal0
Market Cap$30.6B
52W Range$141.59–$190.13
Next EarningsMay 6

Conviction History

Conviction Changes

Mar 18, 2026, 9:20 AM65conviction-rescore

Atmos Energy: No DCF P(above) data, FV=$22 vs current price ~$130+. The FV=$22 is almost certainly a model error (utility with stable regulated returns should not have FV this low), but until I can reconcile the data, cannot maintain 6. Regulated natural gas utility — stable but no upside at current multiples. Downgrade to 5 (Lean Avoid) pending DCF re-run.

Price History

FAIR VALUE ANALYSISMonte Carlo · 5,000 runs · 67% valid
Fair Value$20.94
Current Price$183.19
Upside / Down-88.6%
P(Undervalued)0.0%
P(20%+ Up)0.0%
P(15%+ Down)100.0%

Fair Value Distribution — percentile bands

0.0% of simulations place fair value above current price

WHAT IS PRICED IN

Revenue-Based Reverse DCF

32.8%/yr

±5.1% · revenue growth to justify current price

KEY VALUE DRIVERS

Spearman correlation — what moves this valuation most

Bull Case
Queued for analysis

Eagle will generate this view by the next trading session (~6h).

Bear Case
Queued for analysis

Eagle will generate this view by the next trading session (~6h).

Research Feed

sec_10qMar 27
Conviction: unchanged
Q1 FY2026: Rate Machine Accelerating, Interest Collapse Structural

Q1 FY2026 validates regulatory execution: +122.5M rate approvals, net income +14.5%, interest -37% YoY. Capex 1.033B on track. Two NTSB fatality investigations present tail risk. Valuation 23.9x P/E f...

sec_10qMar 20
Conviction: unchanged
Q1 FY2026 10-Q: Rate Machine Validated, Valuation Fully Extended

Q1 FY2026 validates ATO's rate execution thesis (+$122.5M approvals), but valuation is fully extended at 24.1x P/E (fair value $118). Interest expense benefit is temporary (refinancing wave exhausts i...

sec_10qMar 19
Conviction: unchanged
Q1 FY2026: Rate Machine Confirmed, Valuation Now Fully Extended

Rate execution flawless (+$122.5M approvals Q1), interest expense down 37% YoY, capex on track $1.033B/quarter. Thesis intact but now fully priced: 20.9x forward P/E vs historical 18-19x. Waiting for ...

sec_10qMar 17
Conviction: unchanged
Q1 FY2026 10-Q: Confirmatory Read — Rate Machine & Interest Collapse Validated, Valuation Now Full

7th read of same Q1 FY2026 10-Q. Thesis confirmed: rate machine humming (+$122.5M approvals), interest expense collapse structural (-37% YoY from locked AOCI gains), $26B capex plan on track. Risk: st...

sec_10qMar 16
Conviction: unchanged
Q1 FY2026 10-Q: Rate Execution Strengthening, Interest Expense Collapsing, Safety Spending Moat Deepening

ATO Q1 FY26: Rate execution validated (+$122.5M approvals), interest expense collapsed 37% YoY, capex ramping with tight recovery mechanisms in place. Consolidated net income +14.5% to $403M, EPS +9.4...

sec_10qMar 16
Conviction: unchanged
Q1 FY2026 10-Q: Rate Machine Humming, Interest Collapse Accelerating, Safety Overhang

ATO delivered strong Q1 results with revenue up 14.2% and net income up 14.5%, driven by 122.5M in rate approvals and a dramatic 37% collapse in interest expense. The company is executing on its regul...

sec_10qMar 16
Conviction: unchanged
Q1 FY2026 10-Q Read: Rate Machine Intact, Interest Expense Collapse Accelerating, Texas Legislation Bonus

Q1 FY2026 (Dec 31, 2025): Revenue +14.2% to $1.343B, net income +14.5% to $403.0M, EPS $2.44 diluted. Rate approvals: +$122.5M annual operating income in Q1 alone (formula rate mechanisms +$145.7M, ra...

sec_10qMar 15
Conviction: unchanged
Q1 FY2026 10-Q Deep Read: B Capex Plan, Interest Expense Collapse Continues, Rate Machine Humming

Q1 FY2026 (Dec 31, 2025): Revenue +14.2% YoY to $1.34B, net income +14.5% to $403M, EPS $2.44 diluted (+9.4%). Rate approvals of $122.5M annual op income in Q1 alone. Capex accelerating to $1.03B in Q...

sec_10qMar 13
Conviction: unchanged
Q1 FY2026 10-Q Deep Read: Safety Incidents, Interest Expense Collapse, Capex Ramp

Q1 FY2026 (Dec 31, 2025): Revenue +14.2% to .34B, net income +14.5% to M. Standout: interest charges DROPPED 37% (M → M) due to locked-in hedge gains. Capex .03B in Q1 alone. Debt/cap 41%. .09B in for...

sec_10qMar 3
Conviction: unchanged
ATO Q1 FY2026: Revenue acceleration driven by rate wins; safety spending thesis intact

ATO Q1 FY2026: Strong rate execution (+$122.5M approved increases) and capital spending ramp ($1.0B quarterly) drive 14% revenue growth. Regulated utility model with minimal execution risk. Valuation ...