Atmos EnergyATO +0.63%85 Gross Margin % is 56.02% as of Mar. 2026, which is 16% above its 10-year median of 48.41. GuruFocus rates ATO with a GF Score™ of 85/100 and a GF Value™ of $155.92 (Modestly Overvalued). The stock has 6 warning signs investors should review. Among 489 Utilities - Regulated companies, Atmos Energy ranks better than 87.32% on this metric.
The historical rank and industry rank for Atmos Energy's Gross Margin % or its related term are showing as below:
ATO'
s Gross Margin % Range Over the Past 10 Years
Min: 43.05 Med: 48.41 Max: 60.99
Current: 60.99
During the past 13 years, the highestGross Margin % of Atmos Energy was 60.99%. The lowest was 43.05%. And the median was 48.41%.
ATO's Gross Margin % is ranked better than 87.32% of 489
companies
in the Utilities - Regulated industry
Industry Median: 30.88
vs ATO: 60.99
Atmos Energy had a gross margin of 56.02% for the quarter that ended in Mar. 2026 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Atmos Energy was 2.60% per year.
Atmos Energy (NYSE:ATO) Gross Margin % Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Atmos Energy had a gross margin of 56.02% for the quarter that ended in Mar. 2026 => Durable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Atmos Energy Gross Margin % Related Terms
Atmos Energy Gross Margin % Historical Data
* Premium members only.
The historical data trend for Atmos Energy's Gross Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Utilities - Regulated Gas subindustry, Atmos Energy's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Atmos Energy Gross Margin % vs Utilities - Regulated Industry
For the Utilities - Regulated industry and Utilities sector, Atmos Energy's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Atmos Energy's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Atmos Energy (ATO) has a Gross Margin % of 56.02% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Atmos Energy and its competitors. This is 16% above median its historical median of 48.41. Over the past decade, Atmos Energy's Gross Margin % has ranged from 43.05 to 60.99. According to the industry distribution chart, Atmos Energy ranks #62 out of 489 companies in the Utilities - Regulated industry, placing it in the top 12.7%.
Is Atmos Energy's Gross Margin % too high?
Atmos Energy's current Gross Margin % of 56.02% is 16% above median its 10-year median of 48.41. Over the past 10 years, this metric has ranged from a low of 43.05 to a high of 60.99. The Utilities - Regulated industry median Gross Margin % is 30.88. Atmos Energy's value of 56.02% is 81.4% above this industry median. Based on the distribution chart, Atmos Energy ranks #62 out of 489 companies in the Utilities - Regulated industry, which is in the top quartile — a strong position relative to peers. Overall, Atmos Energy has a GF Score™ of 85/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Atmos Energy's Gross Margin % compare to NI and UGI?
According to the Utilities - Regulated industry distribution chart, Atmos Energy ranks #62 out of 489 companies for Gross Margin %. This places Atmos Energy in the top 13% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 30.88. Atmos Energy's value of 56.02% is 81.4% above this benchmark. Historically, Atmos Energy's own Gross Margin % has ranged from 43.05 to 60.99 over the past decade. While the company's 10-year median is 48.41 vs. the industry median of 30.88, Atmos Energy has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for an Utilities - Regulated company?
The median Gross Margin % among Utilities - Regulated companies is 30.88, based on 489 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Atmos Energy's current Gross Margin % of 56.02% is 81.4% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Atmos Energy and its competitors. For the Utilities - Regulated industry, the median Gross Margin % is 30.88 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Atmos Energy's current Gross Margin % is 56.02%, which is 16% above median its own 10-year median of 48.41. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Atmos Energy stock overvalued right now?
Based on GuruFocus' analysis, Atmos Energy (ATO) is currently considered Modestly Overvalued. The stock's GF Value™ is $155.92, compared to a current price of $173.67 — trading 11.4% above its estimated fair value. The current Gross Margin % is 56.02%, which is 16% above median its 10-year median of 48.41 and 81.4% above the Utilities - Regulated industry median of 30.88. Atmos Energy's overall GF Score™ is 85/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Atmos Energy (ATO), the current Gross Margin % is 56.02% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Atmos Energy (ATO) Overvalued in 2026?
Based on GuruFocus' analysis, Atmos Energy stock appears to be overvalued.
The current stock price of $173.67 is trading 11.4% above its estimated GF Value™ of $155.92.
GuruFocus considers Atmos Energy to be Modestly Overvalued.
Key valuation signals for ATO:
Gross Margin %: 56.02% (16% above median its 10-year median of 48.41)
GF Value™: $155.92 vs. price of $173.67 (11.4% above fair value)
Industry Position: 81.4% above the Utilities - Regulated median (#62 of 489)
No single metric tells the full story. See the ATO stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Atmos Energy is the largest publicly traded, fully regulated, pure-play natural gas utility in the United States, serving more than 3.3 million customers in Texas, Colorado, Kansas, Kentucky, Louisiana, Mississippi, Tennessee, and Virginia. About two thirds of its earnings come from Texas, where it distributes natural gas in northern Texas and owns an intrastate gas pipeline spanning several key shale gas formations and interconnected with five storage facilities.
85GF Score
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Gross Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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