ONE GAS INC (OGS) Stock Fundamental Analysis
NYSE:OGS - New York Stock Exchange, Inc. - US68235P1084 - Common Stock - Currency: USD
We assign a fundamental rating of 3 out of 10 to OGS. OGS was compared to 14 industry peers in the Gas Utilities industry. OGS has a medium profitability rating, but doesn't score so well on its financial health evaluation. While showing a medium growth rate, OGS is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
In the past year OGS was profitable.
OGS had a positive operating cash flow in the past year.
Each year in the past 5 years OGS has been profitable.
OGS had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
OGS has a Return On Assets (2.92%) which is in line with its industry peers.
OGS has a Return On Equity (7.63%) which is in line with its industry peers.
OGS's Return On Invested Capital of 4.72% is on the low side compared to the rest of the industry. OGS is outperformed by 71.43% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for OGS is in line with the industry average of 6.29%.
The 3 year average ROIC (4.53%) for OGS is below the current ROIC(4.72%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.92% | ||
| ROE | 7.63% | ||
| ROIC | 4.72% |
ROA(3y)2.82%
ROA(5y)2.84%
ROE(3y)8.04%
ROE(5y)8.34%
ROIC(3y)4.53%
ROIC(5y)4.31%
1.3 Margins
With a decent Profit Margin value of 10.75%, OGS is doing good in the industry, outperforming 71.43% of the companies in the same industry.
OGS's Profit Margin has been stable in the last couple of years.
With a Operating Margin value of 19.19%, OGS perfoms like the industry average, outperforming 42.86% of the companies in the same industry.
OGS's Operating Margin has been stable in the last couple of years.
OGS's Gross Margin of 59.84% is in line compared to the rest of the industry. OGS outperforms 42.86% of its industry peers.
In the last couple of years the Gross Margin of OGS has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 19.19% | ||
| PM (TTM) | 10.75% | ||
| GM | 59.84% |
OM growth 3Y3.74%
OM growth 5Y1.4%
PM growth 3Y-2.14%
PM growth 5Y-1.09%
GM growth 3Y3.11%
GM growth 5Y1.42%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so OGS is destroying value.
The number of shares outstanding for OGS has been increased compared to 1 year ago.
OGS has more shares outstanding than it did 5 years ago.
The debt/assets ratio for OGS is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.03, we must say that OGS is in the distress zone and has some risk of bankruptcy.
OGS has a Altman-Z score (1.03) which is comparable to the rest of the industry.
A Debt/Equity ratio of 1.00 indicates that OGS is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 1.00, OGS is in the better half of the industry, outperforming 64.29% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.03 |
ROIC/WACC0.68
WACC6.95%
2.3 Liquidity
A Current Ratio of 0.59 indicates that OGS may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.59, OGS is in line with its industry, outperforming 42.86% of the companies in the same industry.
A Quick Ratio of 0.47 indicates that OGS may have some problems paying its short term obligations.
OGS has a Quick ratio of 0.47. This is in the lower half of the industry: OGS underperforms 71.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.59 | ||
| Quick Ratio | 0.47 |
3. Growth
3.1 Past
OGS shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 2.22%.
Measured over the past 5 years, OGS shows a small growth in Earnings Per Share. The EPS has been growing by 2.18% on average per year.
OGS shows a small growth in Revenue. In the last year, the Revenue has grown by 7.74%.
OGS shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.74% yearly.
EPS 1Y (TTM)2.22%
EPS 3Y0.52%
EPS 5Y2.18%
EPS Q2Q%13.14%
Revenue 1Y (TTM)7.74%
Revenue growth 3Y4.83%
Revenue growth 5Y4.74%
Sales Q2Q%23.32%
3.2 Future
Based on estimates for the next years, OGS will show a small growth in Earnings Per Share. The EPS will grow by 6.16% on average per year.
The Revenue is expected to grow by 2.61% on average over the next years.
EPS Next Y10.92%
EPS Next 2Y7.6%
EPS Next 3Y6.16%
EPS Next 5Y6.16%
Revenue Next Year6.84%
Revenue Next 2Y5.41%
Revenue Next 3Y2.26%
Revenue Next 5Y2.61%
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 decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 17.81, the valuation of OGS can be described as rather expensive.
The rest of the industry has a similar Price/Earnings ratio as OGS.
OGS's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.48.
Based on the Price/Forward Earnings ratio of 16.29, the valuation of OGS can be described as correct.
OGS's Price/Forward Earnings ratio is in line with the industry average.
When comparing the Price/Forward Earnings ratio of OGS to the average of the S&P500 Index (36.52), we can say OGS is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.81 | ||
| Fwd PE | 16.29 |
4.2 Price Multiples
64.29% of the companies in the same industry are more expensive than OGS, based on the Enterprise Value to EBITDA ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 9.2 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
PEG (NY)1.63
PEG (5Y)8.16
EPS Next 2Y7.6%
EPS Next 3Y6.16%
5. Dividend
5.1 Amount
OGS has a Yearly Dividend Yield of 3.64%. Purely for dividend investing, there may be better candidates out there.
OGS's Dividend Yield is comparable with the industry average which is at 3.95.
Compared to an average S&P500 Dividend Yield of 2.34, OGS pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.64% |
5.2 History
The dividend of OGS has a limited annual growth rate of 5.12%.
OGS has paid a dividend for at least 10 years, which is a reliable track record.
OGS has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)5.12%
Div Incr Years10
Div Non Decr Years10
5.3 Sustainability
OGS pays out 62.68% of its income as dividend. This is not a sustainable payout ratio.
OGS's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP62.68%
EPS Next 2Y7.6%
EPS Next 3Y6.16%
NYSE:OGS (7/18/2025, 11:56:07 AM)
73.72
+0.58 (+0.79%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryGas Utilities
Earnings (Last)
Earnings (Next)
Inst Owners94.91%
Inst Owner Change0%
Ins Owners1.02%
Ins Owner Change2.27%
Market Cap4.42B
Analysts73.33
Price Target78.77 (6.85%)
Short Float %9.18%
Short Ratio8
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.64% |
Yearly Dividend2.57
Dividend Growth(5Y)5.12%
DP62.68%
Div Incr Years10
Div Non Decr Years10
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)2.66%
Min EPS beat(2)-0.49%
Max EPS beat(2)5.81%
EPS beat(4)1
Avg EPS beat(4)-2.57%
Min EPS beat(4)-13.24%
Max EPS beat(4)5.81%
EPS beat(8)2
Avg EPS beat(8)-1.11%
EPS beat(12)4
Avg EPS beat(12)-0.66%
EPS beat(16)5
Avg EPS beat(16)-0.54%
Revenue beat(2)0
Avg Revenue beat(2)-18.39%
Min Revenue beat(2)-35.86%
Max Revenue beat(2)-0.92%
Revenue beat(4)0
Avg Revenue beat(4)-11.37%
Min Revenue beat(4)-35.86%
Max Revenue beat(4)-0.92%
Revenue beat(8)0
Avg Revenue beat(8)-15.31%
Revenue beat(12)4
Avg Revenue beat(12)5.83%
Revenue beat(16)8
Avg Revenue beat(16)9.42%
PT rev (1m)0.29%
PT rev (3m)3.81%
EPS NQ rev (1m)-0.22%
EPS NQ rev (3m)-10.85%
EPS NY rev (1m)0.39%
EPS NY rev (3m)1.03%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.44%
Revenue NY rev (1m)1.14%
Revenue NY rev (3m)-0.77%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.81 | ||
| Fwd PE | 16.29 | ||
| P/S | 1.95 | ||
| P/FCF | N/A | ||
| P/OCF | 8.22 | ||
| P/B | 1.39 | ||
| P/tB | 1.6 | ||
| EV/EBITDA | 9.2 |
EPS(TTM)4.14
EY5.62%
EPS(NY)4.53
Fwd EY6.14%
FCF(TTM)-2.76
FCFYN/A
OCF(TTM)8.97
OCFY12.17%
SpS37.72
BVpS53.15
TBVpS46.2
PEG (NY)1.63
PEG (5Y)8.16
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.92% | ||
| ROE | 7.63% | ||
| ROCE | 6.15% | ||
| ROIC | 4.72% | ||
| ROICexc | 4.73% | ||
| ROICexgc | 4.99% | ||
| OM | 19.19% | ||
| PM (TTM) | 10.75% | ||
| GM | 59.84% | ||
| FCFM | N/A |
ROA(3y)2.82%
ROA(5y)2.84%
ROE(3y)8.04%
ROE(5y)8.34%
ROIC(3y)4.53%
ROIC(5y)4.31%
ROICexc(3y)4.55%
ROICexc(5y)4.32%
ROICexgc(3y)4.86%
ROICexgc(5y)4.55%
ROCE(3y)5.68%
ROCE(5y)5.4%
ROICexcg growth 3Y10.43%
ROICexcg growth 5Y-1.12%
ROICexc growth 3Y9.13%
ROICexc growth 5Y-1.63%
OM growth 3Y3.74%
OM growth 5Y1.4%
PM growth 3Y-2.14%
PM growth 5Y-1.09%
GM growth 3Y3.11%
GM growth 5Y1.42%
F-Score6
Asset Turnover0.27
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 4.33 | ||
| Cap/Depr | 232.92% | ||
| Cap/Sales | 31.1% | ||
| Interest Coverage | 3.02 | ||
| Cash Conversion | 73.09% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.59 | ||
| Quick Ratio | 0.47 | ||
| Altman-Z | 1.03 |
F-Score6
WACC6.95%
ROIC/WACC0.68
Cap/Depr(3y)247.32%
Cap/Depr(5y)244.56%
Cap/Sales(3y)28.5%
Cap/Sales(5y)28.73%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)2.22%
EPS 3Y0.52%
EPS 5Y2.18%
EPS Q2Q%13.14%
EPS Next Y10.92%
EPS Next 2Y7.6%
EPS Next 3Y6.16%
EPS Next 5Y6.16%
Revenue 1Y (TTM)7.74%
Revenue growth 3Y4.83%
Revenue growth 5Y4.74%
Sales Q2Q%23.32%
Revenue Next Year6.84%
Revenue Next 2Y5.41%
Revenue Next 3Y2.26%
Revenue Next 5Y2.61%
EBIT growth 1Y15.9%
EBIT growth 3Y8.75%
EBIT growth 5Y6.21%
EBIT Next Year84.95%
EBIT Next 3Y27.78%
EBIT Next 5Y19.7%
FCF growth 1Y-112.87%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-72.18%
OCF growth 3YN/A
OCF growth 5Y3.49%