ONE GAS INC (OGS)
US68235P1084 - Common Stock
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 does not seem to be growing, but still is valued expensively.
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.
OGS had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
The Return On Assets of OGS (2.94%) is comparable to the rest of the industry.
The Return On Equity of OGS (8.05%) is comparable to the rest of the industry.
The Return On Invested Capital of OGS (4.29%) is worse than 71.43% of its industry peers.
The Average Return On Invested Capital over the past 3 years for OGS is in line with the industry average of 5.43%.
The last Return On Invested Capital (4.29%) for OGS is above the 3 year average (4.12%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.94% | ||
| ROE | 8.05% | ||
| ROIC | 4.29% |
ROA(3y)2.76%
ROA(5y)2.96%
ROE(3y)8.57%
ROE(5y)8.66%
ROIC(3y)4.12%
ROIC(5y)4.3%
1.3 Margins
Looking at the Profit Margin, with a value of 10.86%, OGS is in line with its industry, outperforming 57.14% of the companies in the same industry.
In the last couple of years the Profit Margin of OGS has declined.
The Operating Margin of OGS (17.83%) is comparable to the rest of the industry.
In the last couple of years the Operating Margin of OGS has declined.
OGS has a Gross Margin (59.41%) 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 | 17.83% | ||
| PM (TTM) | 10.86% | ||
| GM | 59.41% |
OM growth 3Y-7.07%
OM growth 5Y-2.05%
PM growth 3Y-8.76%
PM growth 5Y-1.55%
GM growth 3Y-7.01%
GM growth 5Y-1.5%
2. Health
2.1 Basic Checks
OGS has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it 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.
Compared to 1 year ago, OGS has an improved debt to assets ratio.
2.2 Solvency
OGS has an Altman-Z score of 0.90. 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 0.90, OGS is in line with its industry, outperforming 42.86% of the companies in the same industry.
A Debt/Equity ratio of 1.10 is on the high side and indicates that OGS has dependencies on debt financing.
OGS has a better Debt to Equity ratio (1.10) than 71.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.1 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.9 |
ROIC/WACC0.73
WACC5.85%
2.3 Liquidity
A Current Ratio of 0.47 indicates that OGS may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.47, OGS is doing worse than 85.71% of the companies in the same industry.
A Quick Ratio of 0.34 indicates that OGS may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.34, OGS is doing worse than 92.86% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.47 | ||
| Quick Ratio | 0.34 |
3. Growth
3.1 Past
OGS shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -1.22%.
Measured over the past 5 years, OGS shows a small growth in Earnings Per Share. The EPS has been growing by 4.90% on average per year.
OGS shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -20.49%.
Measured over the past years, OGS shows a small growth in Revenue. The Revenue has been growing by 7.74% on average per year.
EPS 1Y (TTM)-1.22%
EPS 3Y4%
EPS 5Y4.9%
EPS growth Q2Q-4.89%
Revenue 1Y (TTM)-20.49%
Revenue growth 3Y15.73%
Revenue growth 5Y7.74%
Revenue growth Q2Q-26.53%
3.2 Future
OGS is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 4.30% yearly.
Based on estimates for the next years, OGS will show a small growth in Revenue. The Revenue will grow by 2.13% on average per year.
EPS Next Y-5.63%
EPS Next 2Y0.5%
EPS Next 3Y3.92%
EPS Next 5Y4.3%
Revenue Next Year0.04%
Revenue Next 2Y2.91%
Revenue Next 3Y3.16%
Revenue Next 5Y2.13%
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 stable.
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 15.78, OGS is valued correctly.
OGS's Price/Earnings ratio is a bit cheaper when compared to the industry. OGS is cheaper than 64.29% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 28.67, OGS is valued a bit cheaper.
OGS is valuated correctly with a Price/Forward Earnings ratio of 15.28.
OGS's Price/Forward Earnings is on the same level as the industry average.
The average S&P500 Price/Forward Earnings ratio is at 20.15. OGS is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.78 | ||
| Fwd PE | 15.28 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of OGS indicates a somewhat cheap valuation: OGS is cheaper than 71.43% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 8.75 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)3.22
EPS Next 2Y0.5%
EPS Next 3Y3.92%
5. Dividend
5.1 Amount
OGS has a Yearly Dividend Yield of 4.07%, which is a nice return.
Compared to an average industry Dividend Yield of 4.54, OGS has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.32, OGS pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.07% |
5.2 History
On average, the dividend of OGS grows each year by 6.95%, which is quite nice.
OGS has paid a dividend for at least 10 years, which is a reliable track record.
OGS has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.
Dividend Growth(5Y)6.95%
Div Incr Years9
Div Non Decr Years9
5.3 Sustainability
OGS pays out 63.80% of its income as dividend. This is not a sustainable payout ratio.
OGS's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP63.8%
EPS Next 2Y0.5%
EPS Next 3Y3.92%
ONE GAS INC
NYSE:OGS (5/20/2024, 7:04:00 PM)
After market: 63.9 0 (0%)63.9
+0.18 (+0.28%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryGas Utilities
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap3.61B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.07% |
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)
Avg EPS beat(4)
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)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
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 | 15.78 | ||
| Fwd PE | 15.28 | ||
| 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)N/A
PEG (5Y)3.22
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.94% | ||
| ROE | 8.05% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 17.83% | ||
| PM (TTM) | 10.86% | ||
| GM | 59.41% | ||
| 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 Turnover0.27
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.1 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.47 | ||
| Quick Ratio | 0.34 | ||
| 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)-1.22%
EPS 3Y4%
EPS 5Y
EPS growth Q2Q
EPS Next Y-5.63%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-20.49%
Revenue growth 3Y15.73%
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