Last Updated: 15 Sep 2024
## Executive Summary
Atmos Energy Corporation (ATO) is a leading natural gas distributor in the United States. The company has a strong track record of financial performance and is well-positioned to benefit from the growing demand for natural gas. The current stock price of $136.97 is attractive relative to the company's fundamentals and analyst target price.
## Company Overview
Atmos Energy Corporation is headquartered in Dallas, Texas and serves approximately 3 million natural gas customers in eight states. The company's distribution network spans approximately 1,400 miles and includes over 100,000 miles of pipeline. Atmos Energy is the largest natural gas distributor in Texas and is also a major distributor in Mississippi, Louisiana, Alabama, Tennessee, and Arkansas.
## Fundamental Analysis
Atmos Energy Corporation has a strong financial profile. The company's revenue and earnings have grown steadily in recent years, and the company has a strong balance sheet with low levels of debt. The company's key financial metrics are as follows:
Revenue: $4.09 billion (TTM)
Net income: $1.02 billion (TTM)
EBITDA: $1.99 billion (TTM)
Net debt: $4.6 billion
Debt-to-equity ratio: 0.55
Atmos Energy Corporation is also a dividend-paying stock. The company has paid a dividend for over 50 years and has a current dividend yield of 0.0235%.
## Technical Analysis
The technical analysis of Atmos Energy Corporation's stock price shows that the stock is currently trading in a bullish trend. The stock price has been making higher highs and higher lows since the beginning of the year, and the 50-day and 200-day moving averages are both trending up. The relative strength index (RSI) is also above 50, which indicates that the stock is in a bullish trend.
## Short Term Outlook
The short-term outlook for Atmos Energy Corporation is positive. The company's financial performance is strong, and the technical analysis indicates that the stock is in a bullish trend. The stock price is currently trading at $136.97, which is below the analyst target price of $134.89. This suggests that the stock has the potential to appreciate in the short term.
## Long Term Outlook
The long-term outlook for Atmos Energy Corporation is also positive. The demand for natural gas is expected to grow in the coming years, and Atmos Energy is well-positioned to benefit from this growth. The company has a strong distribution network and a track record of financial performance, which will enable it to continue to grow in the long term.
## Analyst Recommendations
The majority of analysts who cover Atmos Energy Corporation have a buy rating on the stock. The average analyst target price is $134.89, which is above the current stock price of $136.97. This suggests that analysts believe that the stock has the potential to appreciate in the long term.
