ONEOK INC (OKE) Stock Fundamental Analysis
USA - NYSE:OKE - US6826801036 - Common Stock
70.49 USD
+1.05 (+1.51%)
70.3326 USD
-0.16 (-0.22%)
Overall OKE gets a fundamental rating of 5 out of 10. We evaluated OKE against 210 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 is not valued too expensively and it also shows a decent growth rate. OKE also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year OKE was profitable.
In the past year OKE had a positive cash flow from operations.
OKE had positive earnings in each of the past 5 years.
In the past 5 years OKE always reported a positive cash flow from operatings.
1.2 Ratios
OKE has a better Return On Assets (5.01%) than 65.24% of its industry peers.
OKE has a Return On Equity of 15.12%. This is in the better half of the industry: OKE outperforms 75.71% of its industry peers.
The Return On Invested Capital of OKE (7.36%) is better than 66.67% of its industry peers.
OKE had an Average Return On Invested Capital over the past 3 years of 7.98%. This is significantly below the industry average of 21.85%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.01% | ||
| ROE | 15.12% | ||
| ROIC | 7.36% |
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 has a Profit Margin (10.58%) which is comparable to the rest of the industry.
In the last couple of years the Profit Margin of OKE has grown nicely.
Looking at the Operating Margin, with a value of 18.71%, OKE is in line with its industry, outperforming 54.76% of the companies in the same industry.
OKE's Operating Margin has improved in the last couple of years.
OKE has a Gross Margin (31.97%) which is comparable to the rest of the industry.
OKE's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 18.71% | ||
| PM (TTM) | 10.58% | ||
| GM | 31.97% |
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 1.39. This is a bad value and indicates that OKE is not financially healthy and even has some risk of bankruptcy.
OKE's Altman-Z score of 1.39 is in line compared to the rest of the industry. OKE outperforms 53.81% of its industry peers.
The Debt to FCF ratio of OKE is 11.55, which is on the high side as it means it would take OKE, 11.55 years of fcf income to pay off all of its debts.
OKE has a Debt to FCF ratio (11.55) which is in line with its industry peers.
A Debt/Equity ratio of 1.45 is on the high side and indicates that OKE has dependencies on debt financing.
OKE's Debt to Equity ratio of 1.45 is on the low side compared to the rest of the industry. OKE is outperformed by 74.76% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.45 | ||
| Debt/FCF | 11.55 | ||
| Altman-Z | 1.39 |
ROIC/WACC0.97
WACC7.6%
2.3 Liquidity
OKE has a Current Ratio of 0.90. 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 has a Current ratio of 0.90. This is in the lower half of the industry: OKE underperforms 60.95% of its industry peers.
A Quick Ratio of 0.75 indicates that OKE may have some problems paying its short term obligations.
OKE has a Quick ratio of 0.75. This is in the lower half of the industry: OKE underperforms 61.90% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.9 | ||
| Quick Ratio | 0.75 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 13.81% over the past year.
OKE shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 10.99% yearly.
The Revenue has grown by 58.35% 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)13.81%
EPS 3Y15.45%
EPS 5Y10.99%
EPS Q2Q%26.27%
Revenue 1Y (TTM)58.35%
Revenue growth 3Y9.47%
Revenue growth 5Y16.38%
Sales Q2Q%71.89%
3.2 Future
Based on estimates for the next years, OKE will show a small growth in Earnings Per Share. The EPS will grow by 7.74% on average per year.
Based on estimates for the next years, OKE will show a quite strong growth in Revenue. The Revenue will grow by 9.99% on average per year.
EPS Next Y4.69%
EPS Next 2Y7.87%
EPS Next 3Y8.23%
EPS Next 5Y7.74%
Revenue Next Year53.61%
Revenue Next 2Y28.5%
Revenue Next 3Y20.14%
Revenue Next 5Y9.99%
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 decreasing.
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
A Price/Earnings ratio of 12.96 indicates a correct valuation of OKE.
OKE's Price/Earnings ratio is a bit cheaper when compared to the industry. OKE is cheaper than 62.38% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 25.89. OKE is valued slightly cheaper when compared to this.
OKE is valuated reasonably with a Price/Forward Earnings ratio of 11.72.
66.19% of the companies in the same industry are more expensive than OKE, based on the Price/Forward Earnings ratio.
OKE's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 34.59.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.96 | ||
| Fwd PE | 11.72 |
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 62.86% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.2 | ||
| EV/EBITDA | 10.34 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates OKE does not grow enough to justify the current Price/Earnings ratio.
The decent profitability rating of OKE may justify a higher PE ratio.
PEG (NY)2.77
PEG (5Y)1.18
EPS Next 2Y7.87%
EPS Next 3Y8.23%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.93%, OKE is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 5.89, OKE pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.36, OKE pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.93% |
5.2 History
The dividend of OKE has a limited annual growth rate of 2.34%.
OKE has been paying a dividend for at least 10 years, so it has a reliable track record.
OKE has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)2.34%
Div Incr Years2
Div Non Decr Years34
5.3 Sustainability
75.29% of the earnings are spent on dividend by OKE. This is not a sustainable payout ratio.
OKE's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP75.29%
EPS Next 2Y7.87%
EPS Next 3Y8.23%
70.49
+1.05 (+1.51%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners74.97%
Inst Owner Change-0.37%
Ins Owners0.16%
Ins Owner Change0.31%
Market Cap44.39B
Revenue(TTM)31.56B
Net Income(TTM)3.34B
Analysts76
Price Target93.27 (32.32%)
Short Float %2.18%
Short Ratio3.84
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.93% |
Yearly Dividend3.97
Dividend Growth(5Y)2.34%
DP75.29%
Div Incr Years2
Div Non Decr Years34
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.71%
Min EPS beat(2)-0.48%
Max EPS beat(2)1.9%
EPS beat(4)2
Avg EPS beat(4)-2.96%
Min EPS beat(4)-17.53%
Max EPS beat(4)4.26%
EPS beat(8)3
Avg EPS beat(8)-2.07%
EPS beat(12)5
Avg EPS beat(12)-5.86%
EPS beat(16)7
Avg EPS beat(16)-4.17%
Revenue beat(2)2
Avg Revenue beat(2)0.9%
Min Revenue beat(2)0.22%
Max Revenue beat(2)1.57%
Revenue beat(4)4
Avg Revenue beat(4)2.03%
Min Revenue beat(4)0.22%
Max Revenue beat(4)3.39%
Revenue beat(8)4
Avg Revenue beat(8)-8.6%
Revenue beat(12)4
Avg Revenue beat(12)-12.56%
Revenue beat(16)7
Avg Revenue beat(16)-6.81%
PT rev (1m)-4.48%
PT rev (3m)-10.92%
EPS NQ rev (1m)-1.67%
EPS NQ rev (3m)-2.18%
EPS NY rev (1m)-0.97%
EPS NY rev (3m)-1.16%
Revenue NQ rev (1m)8.23%
Revenue NQ rev (3m)15.28%
Revenue NY rev (1m)1.35%
Revenue NY rev (3m)7.31%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.96 | ||
| Fwd PE | 11.72 | ||
| P/S | 1.41 | ||
| P/FCF | 15.2 | ||
| P/OCF | 7.84 | ||
| P/B | 2.01 | ||
| P/tB | 4.02 | ||
| EV/EBITDA | 10.34 |
EPS(TTM)5.44
EY7.72%
EPS(NY)6.02
Fwd EY8.53%
FCF(TTM)4.64
FCFY6.58%
OCF(TTM)8.99
OCFY12.76%
SpS50.12
BVpS35.06
TBVpS17.53
PEG (NY)2.77
PEG (5Y)1.18
Graham Number65.51
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.01% | ||
| ROE | 15.12% | ||
| ROCE | 9.7% | ||
| ROIC | 7.36% | ||
| ROICexc | 7.51% | ||
| ROICexgc | 9.21% | ||
| OM | 18.71% | ||
| PM (TTM) | 10.58% | ||
| GM | 31.97% | ||
| FCFM | 9.25% |
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-Score6
Asset Turnover0.47
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.45 | ||
| Debt/FCF | 11.55 | ||
| Debt/EBITDA | 4.34 | ||
| Cap/Depr | 186.67% | ||
| Cap/Sales | 8.69% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 76.78% | ||
| Profit Quality | 87.45% | ||
| Current Ratio | 0.9 | ||
| Quick Ratio | 0.75 | ||
| Altman-Z | 1.39 |
F-Score6
WACC7.6%
ROIC/WACC0.97
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)13.81%
EPS 3Y15.45%
EPS 5Y10.99%
EPS Q2Q%26.27%
EPS Next Y4.69%
EPS Next 2Y7.87%
EPS Next 3Y8.23%
EPS Next 5Y7.74%
Revenue 1Y (TTM)58.35%
Revenue growth 3Y9.47%
Revenue growth 5Y16.38%
Sales Q2Q%71.89%
Revenue Next Year53.61%
Revenue Next 2Y28.5%
Revenue Next 3Y20.14%
Revenue Next 5Y9.99%
EBIT growth 1Y29.68%
EBIT growth 3Y24.95%
EBIT growth 5Y21.43%
EBIT Next Year60.99%
EBIT Next 3Y21.53%
EBIT Next 5Y13.75%
FCF growth 1Y10.38%
FCF growth 3Y15.73%
FCF growth 5YN/A
OCF growth 1Y43.27%
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 4.69% 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 75.29%.