ONE GAS INC (OGS) Stock Fundamental Analysis
NYSE:OGS - New York Stock Exchange, Inc. - US68235P1084 - Common Stock - Currency: USD
OGS gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 14 industry peers in the Gas Utilities industry. There are concerns on the financial health of OGS while its profitability can be described as average. OGS does not seem to be growing, but still is valued expensively.
1. Profitability
1.1 Basic Checks
In the past year OGS was profitable.
OGS had a positive operating cash flow in the past year.
OGS had positive earnings in each of the past 5 years.
Of the past 5 years OGS 4 years had a positive operating cash flow.
1.2 Ratios
OGS has a Return On Assets (2.64%) which is in line with its industry peers.
The Return On Equity of OGS (7.18%) is comparable to the rest of the industry.
With a Return On Invested Capital value of 4.33%, OGS is not doing good in the industry: 71.43% of the companies in the same industry are doing better.
The Average Return On Invested Capital over the past 3 years for OGS is in line with the industry average of 6.35%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.64% | ||
| ROE | 7.18% | ||
| ROIC | 4.33% |
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
OGS has a Profit Margin of 10.70%. This is in the better half of the industry: OGS outperforms 71.43% of its industry peers.
OGS's Profit Margin has been stable in the last couple of years.
OGS's Operating Margin of 19.15% is in line compared to the rest of the industry. OGS outperforms 50.00% of its industry peers.
In the last couple of years the Operating Margin of OGS has remained more or less at the same level.
The Gross Margin of OGS (62.64%) is comparable to the rest of the industry.
OGS's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 19.15% | ||
| PM (TTM) | 10.7% | ||
| GM | 62.64% |
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.
OGS has more shares outstanding than it did 1 year ago.
The number of shares outstanding for OGS has been increased compared to 5 years ago.
The debt/assets ratio for OGS is higher compared to a year ago.
2.2 Solvency
OGS has an Altman-Z score of 0.99. This is a bad value and indicates that OGS is not financially healthy and even has some risk of bankruptcy.
OGS has a Altman-Z score (0.99) which is in line with its industry peers.
A Debt/Equity ratio of 1.06 is on the high side and indicates that OGS has dependencies on debt financing.
OGS has a better Debt to Equity ratio (1.06) than 64.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.06 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.99 |
ROIC/WACC0.62
WACC6.96%
2.3 Liquidity
OGS has a Current Ratio of 0.64. This is a bad value and indicates that OGS is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Current ratio value of 0.64, OGS perfoms like the industry average, outperforming 42.86% of the companies in the same industry.
OGS has a Quick Ratio of 0.64. This is a bad value and indicates that OGS is not financially healthy enough and could expect problems in meeting its short term obligations.
OGS has a Quick ratio of 0.46. This is in the lower half of the industry: OGS underperforms 64.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.64 | ||
| Quick Ratio | 0.46 |
3. Growth
3.1 Past
The earnings per share for OGS have decreased by -5.56% in the last year.
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.
Looking at the last year, OGS shows a very negative growth in Revenue. The Revenue has decreased by -12.16% in the last year.
Measured over the past years, OGS shows a small growth in Revenue. The Revenue has been growing by 4.74% on average per year.
EPS 1Y (TTM)-5.56%
EPS 3Y0.52%
EPS 5Y2.18%
EPS Q2Q%5.51%
Revenue 1Y (TTM)-12.16%
Revenue growth 3Y4.83%
Revenue growth 5Y4.74%
Sales Q2Q%4.09%
3.2 Future
The Earnings Per Share is expected to grow by 6.19% on average over the next years.
OGS is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.80% yearly.
EPS Next Y10.03%
EPS Next 2Y7.47%
EPS Next 3Y6.16%
EPS Next 5Y6.19%
Revenue Next Year7.63%
Revenue Next 2Y5.84%
Revenue Next 3Y3.07%
Revenue Next 5Y2.8%
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.
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
With a Price/Earnings ratio of 20.06, OGS is valued on the expensive side.
64.29% of the companies in the same industry are cheaper than OGS, based on the Price/Earnings ratio.
OGS's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 28.18.
A Price/Forward Earnings ratio of 18.23 indicates a rather expensive valuation of OGS.
The rest of the industry has a similar Price/Forward Earnings ratio as OGS.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.81, OGS is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.06 | ||
| Fwd PE | 18.23 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of OGS is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 10.14 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
PEG (NY)2
PEG (5Y)9.19
EPS Next 2Y7.47%
EPS Next 3Y6.16%
5. Dividend
5.1 Amount
OGS has a Yearly Dividend Yield of 3.44%.
OGS's Dividend Yield is comparable with the industry average which is at 3.91.
Compared to an average S&P500 Dividend Yield of 2.45, OGS pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.44% |
5.2 History
The dividend of OGS has a limited annual growth rate of 5.12%.
OGS has been paying a dividend for at least 10 years, so it has a reliable track record.
OGS has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)5.12%
Div Incr Years10
Div Non Decr Years10
5.3 Sustainability
OGS pays out 67.07% of its income as dividend. This is not a sustainable payout ratio.
The dividend of OGS is growing, but earnings are growing more, so the dividend growth is sustainable.
DP67.07%
EPS Next 2Y7.47%
EPS Next 3Y6.16%
78.44
+0.57 (+0.73%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryGas Utilities
Earnings (Last)
Earnings (Next)
Inst Owners97.21%
Inst Owner Change0.02%
Ins Owners0.9%
Ins Owner Change1.62%
Market Cap4.70B
Analysts72.31
Price Target77.24 (-1.53%)
Short Float %4.71%
Short Ratio5.74
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.44% |
Yearly Dividend2.57
Dividend Growth(5Y)5.12%
DP67.07%
Div Incr Years10
Div Non Decr Years10
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-6.86%
Min EPS beat(2)-13.24%
Max EPS beat(2)-0.49%
EPS beat(4)0
Avg EPS beat(4)-4.41%
Min EPS beat(4)-13.24%
Max EPS beat(4)-0.49%
EPS beat(8)1
Avg EPS beat(8)-2.06%
EPS beat(12)3
Avg EPS beat(12)-1.65%
EPS beat(16)4
Avg EPS beat(16)-1.02%
Revenue beat(2)0
Avg Revenue beat(2)-20.7%
Min Revenue beat(2)-35.86%
Max Revenue beat(2)-5.54%
Revenue beat(4)0
Avg Revenue beat(4)-18.2%
Min Revenue beat(4)-35.86%
Max Revenue beat(4)-3.16%
Revenue beat(8)1
Avg Revenue beat(8)-9.2%
Revenue beat(12)5
Avg Revenue beat(12)9.37%
Revenue beat(16)9
Avg Revenue beat(16)9.88%
PT rev (1m)2.56%
PT rev (3m)1.94%
EPS NQ rev (1m)0.15%
EPS NQ rev (3m)-0.07%
EPS NY rev (1m)0.23%
EPS NY rev (3m)0.06%
Revenue NQ rev (1m)12.89%
Revenue NQ rev (3m)14.87%
Revenue NY rev (1m)-1.26%
Revenue NY rev (3m)-1.41%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.06 | ||
| Fwd PE | 18.23 | ||
| P/S | 2.26 | ||
| P/FCF | N/A | ||
| P/OCF | 12.76 | ||
| P/B | 1.51 | ||
| P/tB | 1.75 | ||
| EV/EBITDA | 10.14 |
EPS(TTM)3.91
EY4.98%
EPS(NY)4.3
Fwd EY5.48%
FCF(TTM)-5.59
FCFYN/A
OCF(TTM)6.15
OCFY7.84%
SpS34.77
BVpS51.8
TBVpS44.73
PEG (NY)2
PEG (5Y)9.19
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.64% | ||
| ROE | 7.18% | ||
| ROCE | 5.73% | ||
| ROIC | 4.33% | ||
| ROICexc | 4.36% | ||
| ROICexgc | 4.61% | ||
| OM | 19.15% | ||
| PM (TTM) | 10.7% | ||
| GM | 62.64% | ||
| 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-Score5
Asset Turnover0.25
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.06 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 4.74 | ||
| Cap/Depr | 237% | ||
| Cap/Sales | 33.75% | ||
| Interest Coverage | 2.68 | ||
| Cash Conversion | 52.95% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.64 | ||
| Quick Ratio | 0.46 | ||
| Altman-Z | 0.99 |
F-Score5
WACC6.96%
ROIC/WACC0.62
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)-5.56%
EPS 3Y0.52%
EPS 5Y2.18%
EPS Q2Q%5.51%
EPS Next Y10.03%
EPS Next 2Y7.47%
EPS Next 3Y6.16%
EPS Next 5Y6.19%
Revenue 1Y (TTM)-12.16%
Revenue growth 3Y4.83%
Revenue growth 5Y4.74%
Sales Q2Q%4.09%
Revenue Next Year7.63%
Revenue Next 2Y5.84%
Revenue Next 3Y3.07%
Revenue Next 5Y2.8%
EBIT growth 1Y5.7%
EBIT growth 3Y8.75%
EBIT growth 5Y6.21%
EBIT Next Year85.34%
EBIT Next 3Y28.85%
EBIT Next 5Y18.47%
FCF growth 1Y-222.67%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-60.79%
OCF growth 3YN/A
OCF growth 5Y3.49%