OGE ENERGY CORP (OGE) Stock Fundamental Analysis
NYSE:OGE - US6708371033 - Common Stock
45.27 USD
+0.16 (+0.35%)
45.27 USD
0 (0%)
Overall OGE gets a fundamental rating of 4 out of 10. We evaluated OGE against 47 industry peers in the Electric Utilities industry. While OGE is still in line with the averages on profitability rating, there are concerns on its financial health. While showing a medium growth rate, OGE is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
In the past year OGE was profitable.
OGE had a positive operating cash flow in the past year.
Of the past 5 years OGE 4 years were profitable.
Of the past 5 years OGE 4 years had a positive operating cash flow.
1.2 Ratios
With a decent Return On Assets value of 3.48%, OGE is doing good in the industry, outperforming 74.47% of the companies in the same industry.
OGE has a Return On Equity (10.57%) which is comparable to the rest of the industry.
OGE has a better Return On Invested Capital (5.27%) than 74.47% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for OGE is in line with the industry average of 5.03%.
The 3 year average ROIC (4.95%) for OGE is below the current ROIC(5.27%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.48% | ||
| ROE | 10.57% | ||
| ROIC | 5.27% |
ROA(3y)3.93%
ROA(5y)3.2%
ROE(3y)11.28%
ROE(5y)9.45%
ROIC(3y)4.95%
ROIC(5y)4.65%
1.3 Margins
Looking at the Profit Margin, with a value of 15.26%, OGE is in the better half of the industry, outperforming 76.60% of the companies in the same industry.
OGE's Profit Margin has declined in the last couple of years.
The Operating Margin of OGE (25.36%) is better than 70.21% of its industry peers.
In the last couple of years the Operating Margin of OGE has grown nicely.
OGE has a Gross Margin (61.58%) which is comparable to the rest of the industry.
In the last couple of years the Gross Margin of OGE has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 25.36% | ||
| PM (TTM) | 15.26% | ||
| GM | 61.58% |
OM growth 3Y18.79%
OM growth 5Y2.01%
PM growth 3Y-9.84%
PM growth 5Y-5.31%
GM growth 3Y15.25%
GM growth 5Y-0.25%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so OGE is destroying value.
The number of shares outstanding for OGE has been increased compared to 1 year ago.
Compared to 5 years ago, OGE has more shares outstanding
The debt/assets ratio for OGE is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.32, we must say that OGE is in the distress zone and has some risk of bankruptcy.
OGE's Altman-Z score of 1.32 is fine compared to the rest of the industry. OGE outperforms 76.60% of its industry peers.
A Debt/Equity ratio of 1.27 is on the high side and indicates that OGE has dependencies on debt financing.
OGE's Debt to Equity ratio of 1.27 is in line compared to the rest of the industry. OGE outperforms 59.57% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.27 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.32 |
ROIC/WACC0.73
WACC7.19%
2.3 Liquidity
A Current Ratio of 0.78 indicates that OGE may have some problems paying its short term obligations.
The Current ratio of OGE (0.78) is comparable to the rest of the industry.
OGE has a Quick Ratio of 0.78. This is a bad value and indicates that OGE is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.48, OGE is not doing good in the industry: 72.34% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.78 | ||
| Quick Ratio | 0.48 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 19.12% over the past year.
OGE shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 0.18% yearly.
Looking at the last year, OGE shows a quite strong growth in Revenue. The Revenue has grown by 16.01% in the last year.
OGE shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.99% yearly.
EPS 1Y (TTM)19.12%
EPS 3Y-2.32%
EPS 5Y0.18%
EPS Q2Q%3.92%
Revenue 1Y (TTM)16.01%
Revenue growth 3Y-6.51%
Revenue growth 5Y5.99%
Sales Q2Q%11.92%
3.2 Future
Based on estimates for the next years, OGE will show a small growth in Earnings Per Share. The EPS will grow by 6.31% on average per year.
The Revenue is expected to grow by 4.82% on average over the next years.
EPS Next Y5.1%
EPS Next 2Y5.78%
EPS Next 3Y5.98%
EPS Next 5Y6.31%
Revenue Next Year11.01%
Revenue Next 2Y7.62%
Revenue Next 3Y6.3%
Revenue Next 5Y4.82%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
OGE is valuated rather expensively with a Price/Earnings ratio of 18.63.
The rest of the industry has a similar Price/Earnings ratio as OGE.
OGE's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.14.
With a Price/Forward Earnings ratio of 18.48, OGE is valued on the expensive side.
OGE's Price/Forward Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.80, OGE is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.63 | ||
| Fwd PE | 18.48 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as OGE.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 10.56 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of OGE may justify a higher PE ratio.
PEG (NY)3.65
PEG (5Y)101.44
EPS Next 2Y5.78%
EPS Next 3Y5.98%
5. Dividend
5.1 Amount
OGE has a Yearly Dividend Yield of 3.75%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.53, OGE pays a bit more dividend than its industry peers.
OGE's Dividend Yield is rather good when compared to the S&P500 average which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.75% |
5.2 History
The dividend of OGE has a limited annual growth rate of 2.43%.
OGE has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)2.43%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
OGE pays out 69.30% of its income as dividend. This is not a sustainable payout ratio.
The dividend of OGE is growing, but earnings are growing more, so the dividend growth is sustainable.
DP69.3%
EPS Next 2Y5.78%
EPS Next 3Y5.98%
45.27
+0.16 (+0.35%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)
Earnings (Next)
Inst Owners74.8%
Inst Owner Change-0.41%
Ins Owners0.44%
Ins Owner Change-1.03%
Market Cap9.12B
Analysts73.33
Price Target46.53 (2.78%)
Short Float %2.68%
Short Ratio4.88
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.75% |
Yearly Dividend1.69
Dividend Growth(5Y)2.43%
DP69.3%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)12.25%
Min EPS beat(2)0.88%
Max EPS beat(2)23.62%
EPS beat(4)3
Avg EPS beat(4)5.33%
Min EPS beat(4)-4.03%
Max EPS beat(4)23.62%
EPS beat(8)6
Avg EPS beat(8)3.74%
EPS beat(12)9
Avg EPS beat(12)89.53%
EPS beat(16)12
Avg EPS beat(16)96.59%
Revenue beat(2)2
Avg Revenue beat(2)3.9%
Min Revenue beat(2)1.98%
Max Revenue beat(2)5.82%
Revenue beat(4)3
Avg Revenue beat(4)1.69%
Min Revenue beat(4)-1.34%
Max Revenue beat(4)5.82%
Revenue beat(8)3
Avg Revenue beat(8)-11.3%
Revenue beat(12)4
Avg Revenue beat(12)-6.22%
Revenue beat(16)5
Avg Revenue beat(16)-3.65%
PT rev (1m)-0.34%
PT rev (3m)1.58%
EPS NQ rev (1m)-1.21%
EPS NQ rev (3m)-2.63%
EPS NY rev (1m)0.21%
EPS NY rev (3m)0.01%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)4.08%
Revenue NY rev (1m)-0.9%
Revenue NY rev (3m)-0.5%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.63 | ||
| Fwd PE | 18.48 | ||
| P/S | 2.84 | ||
| P/FCF | N/A | ||
| P/OCF | 10.97 | ||
| P/B | 1.96 | ||
| P/tB | 1.96 | ||
| EV/EBITDA | 10.56 |
EPS(TTM)2.43
EY5.37%
EPS(NY)2.45
Fwd EY5.41%
FCF(TTM)-1.16
FCFYN/A
OCF(TTM)4.13
OCFY9.12%
SpS15.96
BVpS23.06
TBVpS23.06
PEG (NY)3.65
PEG (5Y)101.44
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.48% | ||
| ROE | 10.57% | ||
| ROCE | 6.35% | ||
| ROIC | 5.27% | ||
| ROICexc | 5.27% | ||
| ROICexgc | 5.27% | ||
| OM | 25.36% | ||
| PM (TTM) | 15.26% | ||
| GM | 61.58% | ||
| FCFM | N/A |
ROA(3y)3.93%
ROA(5y)3.2%
ROE(3y)11.28%
ROE(5y)9.45%
ROIC(3y)4.95%
ROIC(5y)4.65%
ROICexc(3y)4.96%
ROICexc(5y)4.65%
ROICexgc(3y)4.96%
ROICexgc(5y)4.65%
ROCE(3y)5.87%
ROCE(5y)5.51%
ROICexcg growth 3Y8.26%
ROICexcg growth 5Y3.63%
ROICexc growth 3Y8.26%
ROICexc growth 5Y3.63%
OM growth 3Y18.79%
OM growth 5Y2.01%
PM growth 3Y-9.84%
PM growth 5Y-5.31%
GM growth 3Y15.25%
GM growth 5Y-0.25%
F-Score6
Asset Turnover0.23
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.27 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 4.31 | ||
| Cap/Depr | 192.46% | ||
| Cap/Sales | 33.09% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 60.76% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.78 | ||
| Quick Ratio | 0.48 | ||
| Altman-Z | 1.32 |
F-Score6
WACC7.19%
ROIC/WACC0.73
Cap/Depr(3y)220.93%
Cap/Depr(5y)203.23%
Cap/Sales(3y)37.24%
Cap/Sales(5y)32.74%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)19.12%
EPS 3Y-2.32%
EPS 5Y0.18%
EPS Q2Q%3.92%
EPS Next Y5.1%
EPS Next 2Y5.78%
EPS Next 3Y5.98%
EPS Next 5Y6.31%
Revenue 1Y (TTM)16.01%
Revenue growth 3Y-6.51%
Revenue growth 5Y5.99%
Sales Q2Q%11.92%
Revenue Next Year11.01%
Revenue Next 2Y7.62%
Revenue Next 3Y6.3%
Revenue Next 5Y4.82%
EBIT growth 1Y20.39%
EBIT growth 3Y11.05%
EBIT growth 5Y8.13%
EBIT Next Year88.43%
EBIT Next 3Y28.77%
EBIT Next 5Y19.29%
FCF growth 1Y-309.26%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-35.66%
OCF growth 3YN/A
OCF growth 5Y3.59%