ONEOK INC (OKE) Stock Fundamental Analysis
USA - NYSE:OKE - US6826801036 - Common Stock
68.61 USD
-1.15 (-1.65%)
69.18 USD
+0.57 (+0.83%)
Taking everything into account, OKE scores 5 out of 10 in our fundamental rating. OKE was compared to 209 industry peers in the Oil, Gas & Consumable Fuels industry. There are concerns on the financial health of OKE while its profitability can be described as average. OKE has a correct valuation and a medium growth rate. Finally OKE also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
OKE had positive earnings in the past year.
In the past year OKE had a positive cash flow from operations.
Each year in the past 5 years OKE has been profitable.
OKE had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
OKE has a better Return On Assets (4.79%) than 62.68% of its industry peers.
Looking at the Return On Equity, with a value of 14.16%, OKE is in the better half of the industry, outperforming 72.73% of the companies in the same industry.
OKE's Return On Invested Capital of 7.03% is fine compared to the rest of the industry. OKE outperforms 62.68% of its industry peers.
The Average Return On Invested Capital over the past 3 years for OKE is significantly below the industry average of 21.70%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.79% | ||
| ROE | 14.16% | ||
| ROIC | 7.03% |
ROA(3y)5.93%
ROA(5y)5.36%
ROE(3y)20.15%
ROE(5y)19.1%
ROIC(3y)7.98%
ROIC(5y)8.09%
1.3 Margins
OKE's Profit Margin of 11.06% is in line compared to the rest of the industry. OKE outperforms 58.85% of its industry peers.
OKE's Profit Margin has improved in the last couple of years.
OKE has a Operating Margin of 19.59%. This is comparable to the rest of the industry: OKE outperforms 54.55% of its industry peers.
OKE's Operating Margin has improved in the last couple of years.
OKE has a Gross Margin (33.68%) which is in line with its industry peers.
OKE's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 19.59% | ||
| PM (TTM) | 11.06% | ||
| GM | 33.68% |
OM growth 3Y14.14%
OM growth 5Y4.34%
PM growth 3Y15.56%
PM growth 5Y2.16%
GM growth 3Y14.28%
GM growth 5Y3.08%
2. Health
2.1 Basic Checks
OKE has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for OKE remains at a similar level compared to 1 year ago.
The number of shares outstanding for OKE has been increased compared to 5 years ago.
Compared to 1 year ago, OKE has a worse debt to assets ratio.
2.2 Solvency
OKE has an Altman-Z score of 1.31. This is a bad value and indicates that OKE is not financially healthy and even has some risk of bankruptcy.
OKE has a Altman-Z score of 1.31. This is comparable to the rest of the industry: OKE outperforms 50.24% of its industry peers.
OKE has a debt to FCF ratio of 11.26. This is a negative value and a sign of low solvency as OKE would need 11.26 years to pay back of all of its debts.
OKE has a Debt to FCF ratio of 11.26. This is comparable to the rest of the industry: OKE outperforms 51.20% of its industry peers.
A Debt/Equity ratio of 1.41 is on the high side and indicates that OKE has dependencies on debt financing.
With a Debt to Equity ratio value of 1.41, OKE is not doing good in the industry: 74.64% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.41 | ||
| Debt/FCF | 11.26 | ||
| Altman-Z | 1.31 |
ROIC/WACC0.91
WACC7.71%
2.3 Liquidity
A Current Ratio of 0.59 indicates that OKE may have some problems paying its short term obligations.
OKE's Current ratio of 0.59 is on the low side compared to the rest of the industry. OKE is outperformed by 83.25% of its industry peers.
OKE has a Quick Ratio of 0.59. This is a bad value and indicates that OKE is not financially healthy enough and could expect problems in meeting its short term obligations.
OKE's Quick ratio of 0.46 is on the low side compared to the rest of the industry. OKE is outperformed by 86.60% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.59 | ||
| Quick Ratio | 0.46 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 11.76% over the past year.
The Earnings Per Share has been growing by 10.99% on average over the past years. This is quite good.
The Revenue has grown by 46.36% in the past year. This is a very strong growth!
OKE shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 16.38% yearly.
EPS 1Y (TTM)11.76%
EPS 3Y15.45%
EPS 5Y10.99%
EPS Q2Q%0.75%
Revenue 1Y (TTM)46.36%
Revenue growth 3Y9.47%
Revenue growth 5Y16.38%
Sales Q2Q%61.16%
3.2 Future
Based on estimates for the next years, OKE will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.68% on average per year.
OKE is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 9.13% yearly.
EPS Next Y5.5%
EPS Next 2Y8.94%
EPS Next 3Y8.72%
EPS Next 5Y8.68%
Revenue Next Year51.72%
Revenue Next 2Y23.35%
Revenue Next 3Y18.59%
Revenue Next 5Y9.13%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less 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
Based on the Price/Earnings ratio of 13.37, the valuation of OKE can be described as correct.
Compared to the rest of the industry, the Price/Earnings ratio of OKE is on the same level as its industry peers.
The average S&P500 Price/Earnings ratio is at 26.89. OKE is valued rather cheaply when compared to this.
The Price/Forward Earnings ratio is 11.18, which indicates a very decent valuation of OKE.
64.59% of the companies in the same industry are more expensive than OKE, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.99, OKE is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.37 | ||
| Fwd PE | 11.18 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of OKE is on the same level as its industry peers.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of OKE indicates a somewhat cheap valuation: OKE is cheaper than 61.24% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.99 | ||
| EV/EBITDA | 10.87 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
OKE has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)2.43
PEG (5Y)1.22
EPS Next 2Y8.94%
EPS Next 3Y8.72%
5. Dividend
5.1 Amount
OKE has a Yearly Dividend Yield of 5.91%, which is a nice return.
Compared to an average industry Dividend Yield of 6.15, OKE pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.31, OKE pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.91% |
5.2 History
The dividend of OKE has a limited annual growth rate of 2.34%.
OKE has paid a dividend for at least 10 years, which is a reliable track record.
OKE has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)2.34%
Div Incr Years2
Div Non Decr Years34
5.3 Sustainability
OKE pays out 79.04% of its income as dividend. This is not a sustainable payout ratio.
The dividend of OKE is growing, but earnings are growing more, so the dividend growth is sustainable.
DP79.04%
EPS Next 2Y8.94%
EPS Next 3Y8.72%
68.61
-1.15 (-1.65%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners74.97%
Inst Owner Change-0.06%
Ins Owners0.16%
Ins Owner Change0.24%
Market Cap43.21B
Revenue(TTM)27.95B
Net Income(TTM)3.09B
Analysts76
Price Target97.65 (42.33%)
Short Float %2.25%
Short Ratio3.95
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.91% |
Yearly Dividend3.97
Dividend Growth(5Y)2.34%
DP79.04%
Div Incr Years2
Div Non Decr Years34
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-9%
Min EPS beat(2)-17.53%
Max EPS beat(2)-0.48%
EPS beat(4)1
Avg EPS beat(4)-4.64%
Min EPS beat(4)-17.53%
Max EPS beat(4)4.26%
EPS beat(8)2
Avg EPS beat(8)-3.1%
EPS beat(12)5
Avg EPS beat(12)-5.49%
EPS beat(16)7
Avg EPS beat(16)-3.91%
Revenue beat(2)2
Avg Revenue beat(2)2.48%
Min Revenue beat(2)1.57%
Max Revenue beat(2)3.39%
Revenue beat(4)3
Avg Revenue beat(4)-2.87%
Min Revenue beat(4)-19.39%
Max Revenue beat(4)3.39%
Revenue beat(8)3
Avg Revenue beat(8)-12.13%
Revenue beat(12)3
Avg Revenue beat(12)-12.94%
Revenue beat(16)7
Avg Revenue beat(16)-5.53%
PT rev (1m)-0.55%
PT rev (3m)-8.28%
EPS NQ rev (1m)-1.26%
EPS NQ rev (3m)-2.22%
EPS NY rev (1m)-0.2%
EPS NY rev (3m)-0.39%
Revenue NQ rev (1m)-0.68%
Revenue NQ rev (3m)-1.81%
Revenue NY rev (1m)0.57%
Revenue NY rev (3m)15.98%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.37 | ||
| Fwd PE | 11.18 | ||
| P/S | 1.55 | ||
| P/FCF | 14.99 | ||
| P/OCF | 8.17 | ||
| P/B | 1.98 | ||
| P/tB | 4.01 | ||
| EV/EBITDA | 10.87 |
EPS(TTM)5.13
EY7.48%
EPS(NY)6.14
Fwd EY8.94%
FCF(TTM)4.58
FCFY6.67%
OCF(TTM)8.4
OCFY12.25%
SpS44.39
BVpS34.66
TBVpS17.09
PEG (NY)2.43
PEG (5Y)1.22
Graham Number63.25
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.79% | ||
| ROE | 14.16% | ||
| ROCE | 9.46% | ||
| ROIC | 7.03% | ||
| ROICexc | 7.05% | ||
| ROICexgc | 8.67% | ||
| OM | 19.59% | ||
| PM (TTM) | 11.06% | ||
| GM | 33.68% | ||
| FCFM | 10.31% |
ROA(3y)5.93%
ROA(5y)5.36%
ROE(3y)20.15%
ROE(5y)19.1%
ROIC(3y)7.98%
ROIC(5y)8.09%
ROICexc(3y)8.06%
ROICexc(5y)8.19%
ROICexgc(3y)9.18%
ROICexgc(5y)8.99%
ROCE(3y)10.52%
ROCE(5y)10.66%
ROICexgc growth 3Y-7.08%
ROICexgc growth 5Y1.14%
ROICexc growth 3Y-12.27%
ROICexc growth 5Y-2.07%
OM growth 3Y14.14%
OM growth 5Y4.34%
PM growth 3Y15.56%
PM growth 5Y2.16%
GM growth 3Y14.28%
GM growth 5Y3.08%
F-Score4
Asset Turnover0.43
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.41 | ||
| Debt/FCF | 11.26 | ||
| Debt/EBITDA | 4.51 | ||
| Cap/Depr | 176.28% | ||
| Cap/Sales | 8.61% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 77.32% | ||
| Profit Quality | 93.24% | ||
| Current Ratio | 0.59 | ||
| Quick Ratio | 0.46 | ||
| Altman-Z | 1.31 |
F-Score4
WACC7.71%
ROIC/WACC0.91
Cap/Depr(3y)192.54%
Cap/Depr(5y)213.81%
Cap/Sales(3y)7.9%
Cap/Sales(5y)10.72%
Profit Quality(3y)99.94%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)11.76%
EPS 3Y15.45%
EPS 5Y10.99%
EPS Q2Q%0.75%
EPS Next Y5.5%
EPS Next 2Y8.94%
EPS Next 3Y8.72%
EPS Next 5Y8.68%
Revenue 1Y (TTM)46.36%
Revenue growth 3Y9.47%
Revenue growth 5Y16.38%
Sales Q2Q%61.16%
Revenue Next Year51.72%
Revenue Next 2Y23.35%
Revenue Next 3Y18.59%
Revenue Next 5Y9.13%
EBIT growth 1Y28%
EBIT growth 3Y24.95%
EBIT growth 5Y21.43%
EBIT Next Year60.99%
EBIT Next 3Y21.53%
EBIT Next 5Y14.27%
FCF growth 1Y19.5%
FCF growth 3Y15.73%
FCF growth 5YN/A
OCF growth 1Y44.98%
OCF growth 3Y24.28%
OCF growth 5Y20.22%
ONEOK INC / OKE FAQ
What is the ChartMill fundamental rating of ONEOK INC (OKE) stock?
ChartMill assigns a fundamental rating of 5 / 10 to OKE.
Can you provide the valuation status for ONEOK INC?
ChartMill assigns a valuation rating of 5 / 10 to ONEOK INC (OKE). This can be considered as Fairly Valued.
Can you provide the profitability details for ONEOK INC?
ONEOK INC (OKE) has a profitability rating of 6 / 10.
Can you provide the expected EPS growth for OKE stock?
The Earnings per Share (EPS) of ONEOK INC (OKE) is expected to grow by 5.5% in the next year.
Is the dividend of ONEOK INC sustainable?
The dividend rating of ONEOK INC (OKE) is 8 / 10 and the dividend payout ratio is 79.04%.