Atmos EnergyATO +0.88%85 Operating Margin % is 38.97% as of Mar. 2026, which is 46% above its 10-year median of 26.61. GuruFocus rates ATO with a GF Score™ of 85/100 and a GF Value™ of $155.79 (Modestly Overvalued). The stock has 4 warning signs investors should review. Among 499 Utilities - Regulated companies, Atmos Energy ranks better than 90.98% on this metric.
Operating Margin % is calculated as Operating Income divided by its Revenue. Atmos Energy's Operating Income for the
three
months ended in Mar. 2026 was $765 Mil. Atmos Energy's Revenue for the
three
months ended in Mar. 2026 was $1,962 Mil. Therefore, Atmos Energy's Operating Margin % for the quarter that ended in Mar. 2026 was 38.97%.
Good Sign:
Atmos Energy Corp operating margin is expanding. Margin expansion is usually a good sign.
The historical rank and industry rank for Atmos Energy's Operating Margin % or its related term are showing as below:
ATO'
s Operating Margin % Range Over the Past 10 Years
Min: 21.92 Med: 26.61 Max: 35.87
Current: 35.87
ATO's Operating Margin % is ranked better than 90.98% of 499
companies
in the Utilities - Regulated industry
Industry Median: 14.97
vs ATO: 35.87
Atmos Energy's 5-Year Average Operating Margin % Growth Rate was 4.00% per year.
Atmos Energy's Operating Income for the
three
months ended in Mar. 2026 was $765 Mil.
Its Operating Income for the trailing twelve months (TTM) ended in Mar. 2026 was $1,751 Mil.
Atmos Energy (NYSE:ATO) Operating Margin % Explanation
Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.
Be Aware
Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).
If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.
For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokias Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).
Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.
Atmos Energy Operating Margin % Related Terms
Atmos Energy Operating Margin % Historical Data
* Premium members only.
The historical data trend for Atmos Energy's Operating 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.
ATO vs NI, UGI, SWX: Operating Margin % Comparison
For the Utilities - Regulated Gas subindustry, Atmos Energy's Operating Margin %, along with its competitors' market caps and Operating 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 Operating Margin % vs Utilities - Regulated Industry
For the Utilities - Regulated industry and Utilities sector, Atmos Energy's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Atmos Energy's Operating Margin % falls into.
Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.
Atmos Energy's Operating Margin % for the fiscal year that ended in Sep. 2025 is calculated as
* 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.
Atmos Energy (ATO) has a Operating Margin % of 38.97% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Atmos Energy and its competitors. This is 46% above median its historical median of 26.61. Over the past decade, Atmos Energy's Operating Margin % has ranged from 21.92 to 35.87. According to the industry distribution chart, Atmos Energy ranks #45 out of 499 companies in the Utilities - Regulated industry, placing it in the top 9%.
Is Atmos Energy's Operating Margin % too high?
Atmos Energy's current Operating Margin % of 38.97% is 46% above median its 10-year median of 26.61. Over the past 10 years, this metric has ranged from a low of 21.92 to a high of 35.87. The Utilities - Regulated industry median Operating Margin % is 14.97. Atmos Energy's value of 38.97% is 160.3% above this industry median. Based on the distribution chart, Atmos Energy ranks #45 out of 499 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 Operating Margin % compare to NI and UGI?
According to the Utilities - Regulated industry distribution chart, Atmos Energy ranks #45 out of 499 companies for Operating Margin %. This places Atmos Energy in the top 9% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 14.97. Atmos Energy's value of 38.97% is 160.3% above this benchmark. Historically, Atmos Energy's own Operating Margin % has ranged from 21.92 to 35.87 over the past decade. While the company's 10-year median is 26.61 vs. the industry median of 14.97, 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 Operating Margin % for an Utilities - Regulated company?
The median Operating Margin % among Utilities - Regulated companies is 14.97, based on 499 companies in the industry. Companies in the top quartile (top 25%) have a Operating Margin % significantly above this median, while those in the bottom quartile fall well below. However, Operating Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Atmos Energy's current Operating Margin % of 38.97% is 160.3% 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 Operating Margin % mean?
A high Operating Margin % can signal that a stock is expensive relative to its fundamentals. Operating margin is the ratio of total operating income to net sales. View historical data on Atmos Energy and its competitors. For the Utilities - Regulated industry, the median Operating Margin % is 14.97 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Atmos Energy's current Operating Margin % is 38.97%, which is 46% above median its own 10-year median of 26.61. 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 $155.79, compared to a current price of $172.59 — trading 10.8% above its estimated fair value. The current Operating Margin % is 38.97%, which is 46% above median its 10-year median of 26.61 and 160.3% above the Utilities - Regulated industry median of 14.97. Atmos Energy's overall GF Score™ is 85/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Operating Margin % calculated?
Operating Margin % is calculated from a company's financial statements. For Atmos Energy (ATO), the current Operating Margin % is 38.97% 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 $172.59 is trading 10.8% above its estimated GF Value™ of $155.79.
GuruFocus considers Atmos Energy to be Modestly Overvalued.
Key valuation signals for ATO:
Operating Margin %: 38.97% (46% above median its 10-year median of 26.61)
GF Value™: $155.79 vs. price of $172.59 (10.8% above fair value)
Industry Position: 160.3% above the Utilities - Regulated median (#45 of 499)
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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