ONE GAS INC (OGS) Stock Fundamental Analysis
USA - NYSE:OGS - US68235P1084 - Common Stock
81.5 USD
+1.31 (+1.63%)
81.5 USD
0 (0%)
Taking everything into account, OGS scores 3 out of 10 in our fundamental rating. 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. OGS is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
OGS had positive earnings in the past year.
OGS had a positive operating cash flow in the past year.
In the past 5 years OGS has always been profitable.
OGS had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
The Return On Assets of OGS (2.96%) is comparable to the rest of the industry.
Looking at the Return On Equity, with a value of 7.78%, OGS is doing worse than 64.29% of the companies in the same industry.
OGS has a worse Return On Invested Capital (4.70%) than 64.29% of its industry peers.
OGS had an Average Return On Invested Capital over the past 3 years of 4.53%. This is in line with the industry average of 6.32%.
The last Return On Invested Capital (4.70%) for OGS is above the 3 year average (4.53%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.96% | ||
| ROE | 7.78% | ||
| ROIC | 4.7% |
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 10.63%. This is comparable to the rest of the industry: OGS outperforms 57.14% of its industry peers.
In the last couple of years the Profit Margin of OGS has remained more or less at the same level.
OGS has a Operating Margin (18.72%) which is in line with its industry peers.
OGS's Operating Margin has been stable in the last couple of years.
OGS has a Gross Margin (59.07%) which is comparable to the rest of the industry.
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 | 18.72% | ||
| PM (TTM) | 10.63% | ||
| GM | 59.07% |
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), OGS is destroying value.
The number of shares outstanding for OGS has been increased compared to 1 year ago.
The number of shares outstanding for OGS has been increased compared to 5 years ago.
OGS has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.07, we must say that OGS is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.07, OGS is in line with its industry, outperforming 50.00% of the companies in the same industry.
A Debt/Equity ratio of 1.02 is on the high side and indicates that OGS has dependencies on debt financing.
OGS has a Debt to Equity ratio of 1.02. This is in the better half of the industry: OGS outperforms 64.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.02 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.07 |
ROIC/WACC0.68
WACC6.87%
2.3 Liquidity
A Current Ratio of 0.52 indicates that OGS may have some problems paying its short term obligations.
The Current ratio of OGS (0.52) is worse than 64.29% of its industry peers.
A Quick Ratio of 0.35 indicates that OGS may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.35, OGS is doing worse than 85.71% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.52 | ||
| Quick Ratio | 0.35 |
3. Growth
3.1 Past
OGS shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 6.08%.
The Earnings Per Share has been growing slightly by 2.18% on average over the past years.
Looking at the last year, OGS shows a quite strong growth in Revenue. The Revenue has grown by 13.43% in the last year.
The Revenue has been growing slightly by 4.74% on average over the past years.
EPS 1Y (TTM)6.08%
EPS 3Y0.52%
EPS 5Y2.18%
EPS Q2Q%10.42%
Revenue 1Y (TTM)13.43%
Revenue growth 3Y4.83%
Revenue growth 5Y4.74%
Sales Q2Q%19.65%
3.2 Future
OGS is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.14% yearly.
OGS is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.58% yearly.
EPS Next Y12.05%
EPS Next 2Y8.83%
EPS Next 3Y7.59%
EPS Next 5Y7.14%
Revenue Next Year6.88%
Revenue Next 2Y5.59%
Revenue Next 3Y2.32%
Revenue Next 5Y2.58%
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
With a Price/Earnings ratio of 19.45, OGS is valued on the expensive side.
OGS's Price/Earnings ratio is in line with the industry average.
OGS's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.51.
A Price/Forward Earnings ratio of 17.60 indicates a rather expensive valuation of OGS.
OGS's Price/Forward Earnings ratio is in line with the industry average.
OGS's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.53.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.45 | ||
| Fwd PE | 17.6 |
4.2 Price Multiples
OGS's Enterprise Value to EBITDA is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 9.66 |
4.3 Compensation for Growth
OGS's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
PEG (NY)1.61
PEG (5Y)8.91
EPS Next 2Y8.83%
EPS Next 3Y7.59%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.32%, OGS has a reasonable but not impressive dividend return.
OGS's Dividend Yield is comparable with the industry average which is at 3.87.
Compared to an average S&P500 Dividend Yield of 2.38, OGS pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.32% |
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 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
62.60% of the earnings are spent on dividend by OGS. This is not a sustainable payout ratio.
OGS's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP62.6%
EPS Next 2Y8.83%
EPS Next 3Y7.59%
81.5
+1.31 (+1.63%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryGas Utilities
Earnings (Last)
Earnings (Next)
Inst Owners98.03%
Inst Owner Change-0.31%
Ins Owners0.89%
Ins Owner Change0.67%
Market Cap4.89B
Revenue(TTM)2.33B
Net Income(TTM)247.74M
Analysts74.55
Price Target82.4 (1.1%)
Short Float %7.64%
Short Ratio11.37
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.32% |
Yearly Dividend2.57
Dividend Growth(5Y)5.12%
DP62.6%
Div Incr Years10
Div Non Decr Years10
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)2.55%
Min EPS beat(2)-0.72%
Max EPS beat(2)5.81%
EPS beat(4)1
Avg EPS beat(4)-2.16%
Min EPS beat(4)-13.24%
Max EPS beat(4)5.81%
EPS beat(8)2
Avg EPS beat(8)-0.97%
EPS beat(12)4
Avg EPS beat(12)-0.68%
EPS beat(16)4
Avg EPS beat(16)-1.11%
Revenue beat(2)0
Avg Revenue beat(2)-11%
Min Revenue beat(2)-21.08%
Max Revenue beat(2)-0.92%
Revenue beat(4)0
Avg Revenue beat(4)-15.85%
Min Revenue beat(4)-35.86%
Max Revenue beat(4)-0.92%
Revenue beat(8)0
Avg Revenue beat(8)-17.82%
Revenue beat(12)3
Avg Revenue beat(12)1.63%
Revenue beat(16)7
Avg Revenue beat(16)7.36%
PT rev (1m)5.31%
PT rev (3m)3.9%
EPS NQ rev (1m)0.48%
EPS NQ rev (3m)-15.59%
EPS NY rev (1m)0.31%
EPS NY rev (3m)1.02%
Revenue NQ rev (1m)-0.09%
Revenue NQ rev (3m)-0.2%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.45 | ||
| Fwd PE | 17.6 | ||
| P/S | 2.1 | ||
| P/FCF | N/A | ||
| P/OCF | 8.64 | ||
| P/B | 1.54 | ||
| P/tB | 1.76 | ||
| EV/EBITDA | 9.66 |
EPS(TTM)4.19
EY5.14%
EPS(NY)4.63
Fwd EY5.68%
FCF(TTM)-2.36
FCFYN/A
OCF(TTM)9.44
OCFY11.58%
SpS38.83
BVpS53.07
TBVpS46.29
PEG (NY)1.61
PEG (5Y)8.91
Graham Number70.73
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.96% | ||
| ROE | 7.78% | ||
| ROCE | 6.18% | ||
| ROIC | 4.7% | ||
| ROICexc | 4.72% | ||
| ROICexgc | 4.97% | ||
| OM | 18.72% | ||
| PM (TTM) | 10.63% | ||
| GM | 59.07% | ||
| 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%
ROICexgc growth 3Y10.43%
ROICexgc 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 Turnover0.28
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.02 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 4.36 | ||
| Cap/Depr | 229.38% | ||
| Cap/Sales | 30.38% | ||
| Interest Coverage | 2.93 | ||
| Cash Conversion | 76.04% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.52 | ||
| Quick Ratio | 0.35 | ||
| Altman-Z | 1.07 |
F-Score6
WACC6.87%
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)6.08%
EPS 3Y0.52%
EPS 5Y2.18%
EPS Q2Q%10.42%
EPS Next Y12.05%
EPS Next 2Y8.83%
EPS Next 3Y7.59%
EPS Next 5Y7.14%
Revenue 1Y (TTM)13.43%
Revenue growth 3Y4.83%
Revenue growth 5Y4.74%
Sales Q2Q%19.65%
Revenue Next Year6.88%
Revenue Next 2Y5.59%
Revenue Next 3Y2.32%
Revenue Next 5Y2.58%
EBIT growth 1Y14.88%
EBIT growth 3Y8.75%
EBIT growth 5Y6.21%
EBIT Next Year86.96%
EBIT Next 3Y28.83%
EBIT Next 5Y19.04%
FCF growth 1Y-110.47%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-72.14%
OCF growth 3YN/A
OCF growth 5Y3.49%
ONE GAS INC / OGS FAQ
What is the fundamental rating for OGS stock?
ChartMill assigns a fundamental rating of 3 / 10 to OGS.
What is the valuation status of ONE GAS INC (OGS) stock?
ChartMill assigns a valuation rating of 2 / 10 to ONE GAS INC (OGS). This can be considered as Overvalued.
What is the profitability of OGS stock?
ONE GAS INC (OGS) has a profitability rating of 4 / 10.
What is the valuation of ONE GAS INC based on its PE and PB ratios?
The Price/Earnings (PE) ratio for ONE GAS INC (OGS) is 19.45 and the Price/Book (PB) ratio is 1.54.
What is the expected EPS growth for ONE GAS INC (OGS) stock?
The Earnings per Share (EPS) of ONE GAS INC (OGS) is expected to grow by 12.05% in the next year.