ATO (Atmos Energy Corp) vs S&P 500 Comparison

ATO

S&P 500

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ATO

S&P 500

Difference

1Y 3Y 5Y 10Y 15Y 20Y

ATO

S&P 500

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Compare the stock's returns with its benchmark index and competitors. Gain insights into its relative performance over time.

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S&P 500

ATO

NTGY

SRG

GAIL

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1Y 3Y 5Y 10Y 15Y 20Y

Compare the stock's returns with its benchmark index and competitors. Gain insights into its relative performance over time.

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Atmos Energy Corp
Glance View

Economic Moat

None

Market Cap

25.4B USD

Industry

Utilities

Atmos Energy Corp., a prominent player in the natural gas distribution sector, operates with a focused commitment to delivering safe and reliable energy. The company stands as one of the largest fully regulated natural gas-only distributors in the United States, serving over three million customers across eight states, primarily in the South-Central region. Atmos Energy’s comprehensive operations span from sourcing and procurement of natural gas to its safe transport and delivery to residential, commercial, and industrial consumers. With a robust infrastructure network of pipelines and storage facilities, the company ensures the efficient movement and availability of natural gas, leveraging its scale and expertise to maintain a seamless supply. Revenue generation for Atmos Energy primarily hinges on its regulated distribution and pipeline operations. The utility earns money by charging customers for delivering gas and providing related services, rates that are set and approved by regulatory authorities in each state it operates. This regulatory model provides a stable revenue stream, aligning the company’s interests with public policy priorities such as safety and reliability, while also allowing for capital investments to expand and modernize infrastructure. Additionally, Atmos Energy strategically manages procurement and storage to optimize its gas purchase costs, further enhancing its profitability. This dynamic, combined with its commitment to maintaining regulatory compliance and operational excellence, underpins the company's stable financial performance and its growing reputation as a leader in the natural gas sector.

View ATO Analysis

ATO Intrinsic Value

What is Intrinsic Value?

Economic Moat is a concept popularized by Warren Buffett to describe a company's durable competitive advantage. It represents the 'moat' that protects a company from competitors and helps it sustain profitability over the long term. Our analysis of the past 10 years showed that companies with a wide economic moat significantly outperformed the market, delivering +645% returns compared to +189% for the S&P 500.

Our research into Economic Moat performance spans the past 10 years and focuses on companies with a wide economic moat. For this analysis, we calculated the average stock price returns of these companies, comparing them to the performance of the S&P 500 index over the same period.

The results were compelling: wide moat stocks achieved a remarkable +645% average return, compared to +188% for the broader market. This difference highlights the long-term benefits of investing in businesses that can maintain their market position and pricing power over time.

Note: This research does not account for survivorship bias. Past performance is not indicative of future results.

Determining whether a company has an economic moat requires both a deep dive into financial metrics and a qualitative assessment of its competitive position. Our analysts conduct a rigorous evaluation that focuses on identifying structural advantages that enable a company to sustain profitability and defend its market share over the long term.

The process begins with an analysis of a company’s historical financial performance. We assess how consistently the company has generated returns above its cost of capital and whether those returns have been stable or improving. However, financial performance alone doesn’t reveal the full picture. To understand the sources of these advantages, we evaluate five key drivers of economic moats:

Network Effect: We analyze whether the value of a company’s product or service grows as its user base expands. Platforms like payment systems or marketplaces benefit from this self-reinforcing.

Switching Costs: We assess whether customers face significant costs or disruptions when switching to a competitor’s product or service. High switching costs create customer stickiness and provide pricing power.

Intangible Assets: Strong brands, patents, and regulatory licenses can protect a company’s market position by creating barriers for competitors or enabling premium pricing. For example, a well-recognized consumer brand may command higher customer loyalty and margins.

Efficient scale: Occurs when a market is optimally served by one or a few players, making it unprofitable for new entrants to compete. This typically happens in industries with high fixed costs or geographic constraints, such as utilities or pipelines.

Cost Advantage: Companies with structural cost advantages can produce goods or services at a lower cost than their competitors, enabling them to offer competitive pricing or maintain higher margins. These advantages often arise from economies of scale, superior supply chain management, or proprietary technology. Firms like Walmart leverage their massive scale to negotiate better terms with suppliers, allowing them to undercut competitors on price.

By examining these factors in combination with a company’s financial performance and market positioning, we classify each company into one of three categories:

This rigorous evaluation ensures that our moat ratings are both comprehensive and reliable, giving investors the tools they need to make well-informed, long-term decisions.

ES		Naturgy Energy Group SA MAD:NTGY	Add
IT		Snam SpA MIL:SRG	Add
HK		Hong Kong and China Gas Co Ltd HKEX:3	Add
IN		GAIL (India) Ltd NSE:GAIL	Add
JP	T	Tokyo Gas Co Ltd TSE:9531	Add
JP		Osaka Gas Co Ltd TSE:9532	Add
CN		ENN Energy Holdings Ltd HKEX:2688	Add
HK		Kunlun Energy Company Ltd HKEX:135	Add
IN		Adani Total Gas Ltd NSE:ATGL	Add
CN		ENN Natural Gas Co Ltd SSE:600803	Add

ES		Naturgy Energy Group SA MAD:NTGY	Select
IT		Snam SpA MIL:SRG	Select
HK		Hong Kong and China Gas Co Ltd HKEX:3	Select
IN		GAIL (India) Ltd NSE:GAIL	Select
JP	T	Tokyo Gas Co Ltd TSE:9531	Select
JP		Osaka Gas Co Ltd TSE:9532	Select
CN		ENN Energy Holdings Ltd HKEX:2688	Select
HK		Kunlun Energy Company Ltd HKEX:135	Select
IN		Adani Total Gas Ltd NSE:ATGL	Select
CN		ENN Natural Gas Co Ltd SSE:600803	Select

ES		Naturgy Energy Group SA MAD:NTGY	Add
IT		Snam SpA MIL:SRG	Add
HK		Hong Kong and China Gas Co Ltd HKEX:3	Add
IN		GAIL (India) Ltd NSE:GAIL	Add
JP	T	Tokyo Gas Co Ltd TSE:9531	Add
JP		Osaka Gas Co Ltd TSE:9532	Add
CN		ENN Energy Holdings Ltd HKEX:2688	Add
HK		Kunlun Energy Company Ltd HKEX:135	Add
IN		Adani Total Gas Ltd NSE:ATGL	Add
CN		ENN Natural Gas Co Ltd SSE:600803	Add

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ATO

vs

S&P 500

Stocks Performance
ATO vs S&P 500

Performance Gap
ATO vs S&P 500

Performance By Year
ATO vs S&P 500

Competitors Performance
Atmos Energy Corp vs Peers

Atmos Energy Corp
Glance View

Company

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ATO vs S&P 500

Stocks Performance ATO vs S&P 500

Performance Gap ATO vs S&P 500

Performance By Year ATO vs S&P 500

Competitors Performance Atmos Energy Corp vs Peers

Atmos Energy Corp Glance View

Company

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Stocks

ATO

vs

S&P 500

Stocks Performance
ATO vs S&P 500

Performance Gap
ATO vs S&P 500

Performance By Year
ATO vs S&P 500

Competitors Performance
Atmos Energy Corp vs Peers

Atmos Energy Corp
Glance View