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. While OGS is still in line with the averages on profitability rating, there are concerns on its financial health. While showing a medium growth rate, OGS is valued expensive at the moment.
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.
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 (2.96%) which is in line with its industry peers.
The Return On Equity of OGS (7.78%) is worse than 64.29% of its industry peers.
OGS has a worse Return On Invested Capital (4.70%) than 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 6.38%.
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
The Profit Margin of OGS (10.63%) is comparable to the rest of the industry.
In the last couple of years the Profit Margin of OGS has remained more or less at the same level.
The Operating Margin of OGS (18.72%) is comparable to the rest of the industry.
OGS's Operating Margin has been stable in the last couple of years.
OGS's Gross Margin of 59.07% 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 | 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.
Compared to 5 years ago, OGS has more shares outstanding
The debt/assets ratio for OGS is higher compared to a year ago.
2.2 Solvency
OGS has an Altman-Z score of 1.03. 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 (1.03) which is comparable to the rest of the 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 better Debt to Equity ratio (1.02) than 64.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.02 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.03 |
ROIC/WACC0.68
WACC6.92%
2.3 Liquidity
OGS has a Current Ratio of 0.52. 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 0.52, OGS is not doing good in the industry: 64.29% of the companies in the same industry are doing better.
OGS has a Quick Ratio of 0.52. This is a bad value and indicates that OGS is not financially healthy enough and could expect problems in meeting 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%.
OGS shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 2.18% yearly.
Looking at the last year, OGS shows a quite strong growth in Revenue. The Revenue has grown by 13.43% 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)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 6.64% yearly.
OGS is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.51% yearly.
EPS Next Y10.92%
EPS Next 2Y7.6%
EPS Next 3Y6.16%
EPS Next 5Y6.64%
Revenue Next Year6.88%
Revenue Next 2Y5.45%
Revenue Next 3Y2.26%
Revenue Next 5Y2.51%
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 18.05, OGS is valued on the expensive side.
Based on the Price/Earnings ratio, OGS is valued a bit more expensive than the industry average as 64.29% of the companies are valued more cheaply.
OGS is valuated rather cheaply when we compare the Price/Earnings ratio to 26.84, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 16.71 indicates a correct valuation of OGS.
Based on the Price/Forward Earnings ratio, OGS is valued a bit more expensive than the industry average as 64.29% of the companies are valued more cheaply.
OGS's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 35.29.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.05 | ||
| Fwd PE | 16.71 |
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 | 9.28 |
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)1.65
PEG (5Y)8.27
EPS Next 2Y7.6%
EPS Next 3Y6.16%
5. Dividend
5.1 Amount
OGS has a Yearly Dividend Yield of 3.51%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.93, OGS has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.36, OGS pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.51% |
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.
The dividend of OGS is growing, but earnings are growing more, so the dividend growth is sustainable.
DP62.6%
EPS Next 2Y7.6%
EPS Next 3Y6.16%
75.64
-0.62 (-0.81%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryGas Utilities
Earnings (Last)
Earnings (Next)
Inst Owners94.56%
Inst Owner Change3.1%
Ins Owners0.89%
Ins Owner Change2.27%
Market Cap4.53B
Analysts73.33
Price Target79.05 (4.51%)
Short Float %8.61%
Short Ratio8.91
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.51% |
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)0.36%
PT rev (3m)2.35%
EPS NQ rev (1m)9.12%
EPS NQ rev (3m)14.69%
EPS NY rev (1m)0%
EPS NY rev (3m)0.39%
Revenue NQ rev (1m)-0.15%
Revenue NQ rev (3m)31.01%
Revenue NY rev (1m)0.04%
Revenue NY rev (3m)-0.69%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.05 | ||
| Fwd PE | 16.71 | ||
| P/S | 1.95 | ||
| P/FCF | N/A | ||
| P/OCF | 8 | ||
| P/B | 1.42 | ||
| P/tB | 1.63 | ||
| EV/EBITDA | 9.28 |
EPS(TTM)4.19
EY5.54%
EPS(NY)4.53
Fwd EY5.98%
FCF(TTM)-2.36
FCFYN/A
OCF(TTM)9.45
OCFY12.49%
SpS38.88
BVpS53.13
TBVpS46.34
PEG (NY)1.65
PEG (5Y)8.27
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%
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 Turnover0.28
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 | 1.03 |
F-Score6
WACC6.92%
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 Y10.92%
EPS Next 2Y7.6%
EPS Next 3Y6.16%
EPS Next 5Y6.64%
Revenue 1Y (TTM)13.43%
Revenue growth 3Y4.83%
Revenue growth 5Y4.74%
Sales Q2Q%19.65%
Revenue Next Year6.88%
Revenue Next 2Y5.45%
Revenue Next 3Y2.26%
Revenue Next 5Y2.51%
EBIT growth 1Y14.88%
EBIT growth 3Y8.75%
EBIT growth 5Y6.21%
EBIT Next Year86.77%
EBIT Next 3Y28.19%
EBIT Next 5Y18.57%
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%