Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.
Atmos EnergyATO -0.58%83 Return-on-Tangible-Asset is 7.95% as of Mar. 2026, which is 89% above its 10-year median of 4.21. GuruFocus rates ATO with a GF Score™ of 83/100 and a GF Value™ of $155.87 (Modestly Overvalued). The stock has 7 warning signs investors should review. Among 510 Utilities - Regulated companies, Atmos Energy ranks better than 67.45% on this metric.
Return-on-Tangible-Asset is calculated as Net Income divided by its average total tangible assets. Total tangible assets equals to Total Assets minus Intangible Assets. Atmos Energy's annualizedNet Income for the quarter that ended in Mar. 2026 was $2,328 Mil. Atmos Energy's average total tangible assets for the quarter that ended in Mar. 2026 was $29,286 Mil. Therefore, Atmos Energy's annualized Return-on-Tangible-Asset for the quarter that ended in Mar. 2026 was 7.95%.
The historical rank and industry rank for Atmos Energy's Return-on-Tangible-Asset or its related term are showing as below:
ATO'
s Return-on-Tangible-Asset Range Over the Past 10 Years
Min: 3.84 Med: 4.21 Max: 5.7
Current: 4.84
During the past 13 years, Atmos Energy's highest Return-on-Tangible-Asset was 5.70%. The lowest was 3.84%. And the median was 4.21%.
ATO's Return-on-Tangible-Asset is ranked better than 67.45% of 510
companies
in the Utilities - Regulated industry
Industry Median: 3.305
vs ATO: 4.84
Atmos Energy (NYSE:ATO) Return-on-Tangible-Asset Explanation
Return-on-Tangible-Asset measures the rate of return on the average total tangible assets (total assets minus intangible assets). Tangible means physical in nature. Intangible Assets are assets that are not physical in nature, and typically "derive their value from legal or intellectual rights." Return-on-Tangible-Asset measures a firm's efficiency at generating profits from its tangible assets. It shows how well a company uses what it has to generate earnings. Return-on-Tangible-Assets can vary drastically across industries. Therefore, Return-on-Tangible-Asset should not be used to compare companies in different industries.
Be Aware
Like ROE and ROA, Return-on-Tangible-Asset is calculated with only 12 months data. Fluctuations in the companys earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. Return-on-Tangible-Asset can be affected by events such as stock buyback or issuance, and by a companys tax rate and its interest payment. Return-on-Tangible-Asset may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).
Many analysts argue the higher return the better. Buffett states that really high Return-on-Tangible-Asset may indicate vulnerability in the durability of the competitive advantage.
Atmos Energy Return-on-Tangible-Asset Related Terms
Atmos Energy Return-on-Tangible-Asset Historical Data
* Premium members only.
The historical data trend for Atmos Energy's Return-on-Tangible-Asset 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: Return-on-Tangible-Asset Comparison
For the Utilities - Regulated Gas subindustry, Atmos Energy's Return-on-Tangible-Asset, along with its competitors' market caps and Return-on-Tangible-Asset 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 Return-on-Tangible-Asset vs Utilities - Regulated Industry
For the Utilities - Regulated industry and Utilities sector, Atmos Energy's Return-on-Tangible-Asset distribution charts can be found below:
* The bar in red indicates where Atmos Energy's Return-on-Tangible-Asset 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.
In the calculation of annual Return-on-Tangible-Asset, the net income of the last fiscal year and the average total tangible assets over the fiscal year are used. In calculating the quarterly data,
the Net Income data used here is four times the quarterly (Mar. 2026) net income data.
What does a Return-on-Tangible-Asset of 7.95% mean?
Atmos Energy (ATO) has a Return-on-Tangible-Asset of 7.95% as of Mar. 2026. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on Atmos Energy and its competitors. This is 89% above median its historical median of 4.21. Over the past decade, Atmos Energy's Return-on-Tangible-Asset has ranged from 3.84 to 5.70. According to the industry distribution chart, Atmos Energy ranks #166 out of 510 companies in the Utilities - Regulated industry, placing it in the top 32.5%.
Is Atmos Energy's Return-on-Tangible-Asset too high?
Atmos Energy's current Return-on-Tangible-Asset of 7.95% is 89% above median its 10-year median of 4.21. Over the past 10 years, this metric has ranged from a low of 3.84 to a high of 5.70. The Utilities - Regulated industry median Return-on-Tangible-Asset is 3.31. Atmos Energy's value of 7.95% is 140.5% above this industry median. Based on the distribution chart, Atmos Energy ranks #166 out of 510 companies in the Utilities - Regulated industry, which is above the industry midpoint. Overall, Atmos Energy has a GF Score™ of 83/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Atmos Energy's Return-on-Tangible-Asset compare to NI and UGI?
According to the Utilities - Regulated industry distribution chart, Atmos Energy ranks #166 out of 510 companies for Return-on-Tangible-Asset. This puts Atmos Energy in the upper half of its industry. The industry median Return-on-Tangible-Asset is 3.31. Atmos Energy's value of 7.95% is 140.5% above this benchmark. Historically, Atmos Energy's own Return-on-Tangible-Asset has ranged from 3.84 to 5.70 over the past decade. While the company's 10-year median is 4.21 vs. the industry median of 3.31, 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 Return-on-Tangible-Asset for an Utilities - Regulated company?
The median Return-on-Tangible-Asset among Utilities - Regulated companies is 3.31, based on 510 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Asset significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Asset should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Atmos Energy's current Return-on-Tangible-Asset of 7.95% is 140.5% 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 Return-on-Tangible-Asset mean?
A high Return-on-Tangible-Asset can signal that a stock is expensive relative to its fundamentals. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on Atmos Energy and its competitors. For the Utilities - Regulated industry, the median Return-on-Tangible-Asset is 3.31 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Atmos Energy's current Return-on-Tangible-Asset is 7.95%, which is 89% above median its own 10-year median of 4.21. 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 $155.87, compared to a current price of $178.45 — trading 14.5% above its estimated fair value. The current Return-on-Tangible-Asset is 7.95%, which is 89% above median its 10-year median of 4.21 and 140.5% above the Utilities - Regulated industry median of 3.31. Atmos Energy's overall GF Score™ is 83/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Asset calculated?
Return-on-Tangible-Asset is calculated from a company's financial statements. For Atmos Energy (ATO), the current Return-on-Tangible-Asset is 7.95% 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 $178.45 is trading 14.5% above its estimated GF Value™ of $155.87.
GuruFocus considers Atmos Energy to be Modestly Overvalued.
Key valuation signals for ATO:
Return-on-Tangible-Asset: 7.95% (89% above median its 10-year median of 4.21)
GF Value™: $155.87 vs. price of $178.45 (14.5% above fair value)
Industry Position: 140.5% above the Utilities - Regulated median (#166 of 510)
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.
83GF Score
Get the complete analysis for ATO
Return-on-Tangible-Asset is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
ATO has been successfully added to your 
