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 86 industry peers in the Gas Utilities industry. While OGS is still in line with the averages on profitability rating, there are concerns on its financial health. OGS is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
OGS had positive earnings in the past year.
In the past year OGS had a positive cash flow from operations.
In the past 5 years OGS has always been profitable.
Of the past 5 years OGS 4 years had a positive operating cash flow.
1.2 Ratios
OGS has a Return On Assets (2.92%) which is in line with its industry peers.
Looking at the Return On Equity, with a value of 7.63%, OGS is in line with its industry, outperforming 42.86% of the companies in the same industry.
OGS has a worse Return On Invested Capital (4.72%) than 71.43% of its industry peers.
The Average Return On Invested Capital over the past 3 years for OGS is significantly below the industry average of 12.61%.
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.
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 (19.19%) which is in line with its industry peers.
In the last couple of years the Operating Margin of OGS has remained more or less at the same level.
OGS has a Gross Margin (59.84%) which is in line with 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.
Compared to 1 year ago, OGS has more shares outstanding
OGS has more shares outstanding than it did 5 years ago.
OGS has a worse debt/assets ratio than last year.
2.2 Solvency
OGS has an Altman-Z score of 1.02. This is a bad value and indicates that OGS is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.02, OGS is in line with its industry, outperforming 50.00% of the companies in the same industry.
A Debt/Equity ratio of 1.00 indicates that OGS is somewhat dependend on debt financing.
The Debt to Equity ratio of OGS (1.00) is better than 64.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.02 |
ROIC/WACC0.58
WACC8.2%
2.3 Liquidity
OGS has a Current Ratio of 0.59. 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 Current ratio (0.59) which is in line with its industry peers.
OGS has a Quick Ratio of 0.59. This is a bad value and indicates that OGS is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of OGS (0.47) is worse than 71.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.59 | ||
| Quick Ratio | 0.47 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 2.22% over the past 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.
OGS shows a small growth in Revenue. In the last year, the Revenue has grown by 7.74%.
The Revenue has been growing slightly by 4.74% on average over the past years.
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 6.19% on average per year.
OGS is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.80% yearly.
EPS Next Y10.48%
EPS Next 2Y7.53%
EPS Next 3Y6.26%
EPS Next 5Y6.19%
Revenue Next Year5.64%
Revenue Next 2Y4.9%
Revenue Next 3Y1.75%
Revenue Next 5Y1.8%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
With a Price/Earnings ratio of 17.34, OGS is valued on the expensive side.
Based on the Price/Earnings ratio, OGS is valued a bit more expensive than 64.29% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.57, OGS is valued a bit cheaper.
A Price/Forward Earnings ratio of 15.88 indicates a correct valuation of OGS.
Compared to the rest of the industry, the Price/Forward Earnings ratio of OGS indicates a slightly more expensive valuation: OGS is more expensive than 64.29% of the companies listed in the same industry.
OGS's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.34 | ||
| Fwd PE | 15.88 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, OGS is valued a bit cheaper than 71.43% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 9.08 |
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)1.65
PEG (5Y)7.95
EPS Next 2Y7.53%
EPS Next 3Y6.26%
5. Dividend
5.1 Amount
OGS has a Yearly Dividend Yield of 3.62%.
OGS's Dividend Yield is comparable with the industry average which is at 2.01.
OGS's Dividend Yield is rather good when compared to the S&P500 average which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.62% |
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 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
62.68% of the earnings are spent on dividend by OGS. This is not a sustainable payout ratio.
The dividend of OGS is growing, but earnings are growing more, so the dividend growth is sustainable.
DP62.68%
EPS Next 2Y7.53%
EPS Next 3Y6.26%
71.79
+0.04 (+0.06%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryGas Utilities
Earnings (Last)
Earnings (Next)
Inst Owners94.91%
Inst Owner Change1.71%
Ins Owners1.02%
Ins Owner Change2.29%
Market Cap4.30B
Analysts72.31
Price Target78.54 (9.4%)
Short Float %8.98%
Short Ratio7.95
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.62% |
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)1.69%
PT rev (3m)4.29%
EPS NQ rev (1m)-0.52%
EPS NQ rev (3m)-0.39%
EPS NY rev (1m)0%
EPS NY rev (3m)0.61%
Revenue NQ rev (1m)-0.44%
Revenue NQ rev (3m)24.71%
Revenue NY rev (1m)-1.85%
Revenue NY rev (3m)-3.26%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.34 | ||
| Fwd PE | 15.88 | ||
| P/S | 1.9 | ||
| P/FCF | N/A | ||
| P/OCF | 8 | ||
| P/B | 1.35 | ||
| P/tB | 1.55 | ||
| EV/EBITDA | 9.08 |
EPS(TTM)4.14
EY5.77%
EPS(NY)4.52
Fwd EY6.3%
FCF(TTM)-2.76
FCFYN/A
OCF(TTM)8.97
OCFY12.5%
SpS37.72
BVpS53.15
TBVpS46.2
PEG (NY)1.65
PEG (5Y)7.95
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 | 1.02 |
F-Score6
WACC8.2%
ROIC/WACC0.58
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 Y10.48%
EPS Next 2Y7.53%
EPS Next 3Y6.26%
EPS Next 5Y6.19%
Revenue 1Y (TTM)7.74%
Revenue growth 3Y4.83%
Revenue growth 5Y4.74%
Sales Q2Q%23.32%
Revenue Next Year5.64%
Revenue Next 2Y4.9%
Revenue Next 3Y1.75%
Revenue Next 5Y1.8%
EBIT growth 1Y15.9%
EBIT growth 3Y8.75%
EBIT growth 5Y6.21%
EBIT Next Year84.95%
EBIT Next 3Y27.78%
EBIT Next 5Y18.1%
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%