OGE ENERGY CORP (OGE)
US6708371033 - Common Stock
We assign a fundamental rating of 4 out of 10 to OGE. OGE was compared to 45 industry peers in the Electric Utilities industry. There are concerns on the financial health of OGE while its profitability can be described as average. OGE does not seem to be growing, but still is valued expensively. OGE also has an excellent dividend rating.
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
OGE has a Return On Assets of 3.07%. This is in the better half of the industry: OGE outperforms 64.44% of its industry peers.
OGE has a Return On Equity (8.93%) which is comparable to the rest of the industry.
OGE's Return On Invested Capital of 4.56% is fine compared to the rest of the industry. OGE outperforms 71.11% of its industry peers.
OGE had an Average Return On Invested Capital over the past 3 years of 4.58%. This is in line with the industry average of 5.04%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.07% | ||
| ROE | 8.93% | ||
| ROIC | 4.56% |
ROA(3y)4.8%
ROA(5y)3.35%
ROE(3y)14.17%
ROE(5y)9.64%
ROIC(3y)4.58%
ROIC(5y)4.47%
1.3 Margins
With a decent Profit Margin value of 14.63%, OGE is doing good in the industry, outperforming 73.33% of the companies in the same industry.
In the last couple of years the Profit Margin of OGE has declined.
OGE's Operating Margin of 23.87% is fine compared to the rest of the industry. OGE outperforms 77.78% of its industry peers.
OGE's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 65.24%, OGE is in line with its industry, outperforming 57.78% of the companies in the same industry.
In the last couple of years the Gross Margin of OGE has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 23.87% | ||
| PM (TTM) | 14.63% | ||
| GM | 65.24% |
OM growth 3Y-0.4%
OM growth 5Y2.43%
PM growth 3YN/A
PM growth 5Y-3.62%
GM growth 3Y-1.81%
GM growth 5Y1.66%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so OGE is destroying value.
Compared to 1 year ago, OGE has about the same amount of shares outstanding.
The number of shares outstanding for OGE remains at a similar level compared to 5 years ago.
Compared to 1 year ago, OGE has a worse debt to assets ratio.
2.2 Solvency
OGE has an Altman-Z score of 1.19. This is a bad value and indicates that OGE is not financially healthy and even has some risk of bankruptcy.
OGE has a Altman-Z score of 1.19. This is in the better half of the industry: OGE outperforms 73.33% of its industry peers.
The Debt to FCF ratio of OGE is 105.31, which is on the high side as it means it would take OGE, 105.31 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 105.31, OGE is in the better half of the industry, outperforming 68.89% of the companies in the same industry.
A Debt/Equity ratio of 1.13 is on the high side and indicates that OGE has dependencies on debt financing.
OGE has a Debt to Equity ratio (1.13) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.13 | ||
| Debt/FCF | 105.31 | ||
| Altman-Z | 1.19 |
ROIC/WACC0.66
WACC6.96%
2.3 Liquidity
A Current Ratio of 0.51 indicates that OGE may have some problems paying its short term obligations.
The Current ratio of OGE (0.51) is worse than 93.33% of its industry peers.
OGE has a Quick Ratio of 0.51. This is a bad value and indicates that OGE is not financially healthy enough and could expect problems in meeting its short term obligations.
OGE's Quick ratio of 0.23 is on the low side compared to the rest of the industry. OGE is outperformed by 97.78% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.51 | ||
| Quick Ratio | 0.23 |
3. Growth
3.1 Past
The earnings per share for OGE have decreased by -6.64% in the last year.
The Earnings Per Share has been decreasing by -0.38% on average over the past years.
OGE shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -18.83%.
The Revenue has been growing slightly by 3.33% on average over the past years.
EPS 1Y (TTM)-6.64%
EPS 3Y-12.41%
EPS 5Y-0.38%
EPS growth Q2Q-52.63%
Revenue 1Y (TTM)-18.83%
Revenue growth 3Y8.01%
Revenue growth 5Y3.33%
Revenue growth Q2Q7.11%
3.2 Future
The Earnings Per Share is expected to grow by 5.46% on average over the next years.
Based on estimates for the next years, OGE will show a small growth in Revenue. The Revenue will grow by 0.33% on average per year.
EPS Next Y3.88%
EPS Next 2Y5.17%
EPS Next 3Y5.38%
EPS Next 5Y5.46%
Revenue Next Year-11.13%
Revenue Next 2Y-4.24%
Revenue Next 3Y-2.54%
Revenue Next 5Y0.33%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 18.76, the valuation of OGE can be described as rather expensive.
71.11% of the companies in the same industry are cheaper than OGE, based on the Price/Earnings ratio.
OGE's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 28.60.
With a Price/Forward Earnings ratio of 16.14, OGE is valued correctly.
Based on the Price/Forward Earnings ratio, OGE is valued a bit more expensive than the industry average as 64.44% of the companies are valued more cheaply.
OGE is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 20.15, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.76 | ||
| Fwd PE | 16.14 |
4.2 Price Multiples
OGE's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. OGE is cheaper than 62.22% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, OGE is valued a bit cheaper than the industry average as 68.89% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 153.15 | ||
| EV/EBITDA | 10.11 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
OGE has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)4.84
PEG (5Y)N/A
EPS Next 2Y5.17%
EPS Next 3Y5.38%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.54%, OGE is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 3.88, OGE pays a better dividend. On top of this OGE pays more dividend than 86.67% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.32, OGE pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.54% |
5.2 History
The dividend of OGE has a limited annual growth rate of 4.10%.
OGE has been paying a dividend for at least 10 years, so it has a reliable track record.
OGE has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)4.1%
Div Incr Years17
Div Non Decr Years18
5.3 Sustainability
84.49% of the earnings are spent on dividend by OGE. This is not a sustainable payout ratio.
The dividend of OGE is growing, but earnings are growing more, so the dividend growth is sustainable.
DP84.49%
EPS Next 2Y5.17%
EPS Next 3Y5.38%
OGE ENERGY CORP
NYSE:OGE (5/17/2024, 7:17:39 PM)
After market: 36.96 0 (0%)36.96
+0.13 (+0.35%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap7.41B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.54% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
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Min EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
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Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.76 | ||
| Fwd PE | 16.14 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)4.84
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.07% | ||
| ROE | 8.93% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 23.87% | ||
| PM (TTM) | 14.63% | ||
| GM | 65.24% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.21
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.13 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.51 | ||
| Quick Ratio | 0.23 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-6.64%
EPS 3Y-12.41%
EPS 5Y
EPS growth Q2Q
EPS Next Y3.88%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-18.83%
Revenue growth 3Y8.01%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y