ONEOK INC (OKE) Stock Fundamental Analysis
USA - NYSE:OKE - US6826801036 - Common Stock
72.47 USD
-0.51 (-0.7%)
72.6 USD
+0.13 (+0.18%)
We assign a fundamental rating of 4 out of 10 to OKE. OKE was compared to 211 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.
In the past 5 years OKE has always been profitable.
Each year in the past 5 years OKE had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 4.79%, OKE is in the better half of the industry, outperforming 62.09% of the companies in the same industry.
OKE's Return On Equity of 14.16% is fine compared to the rest of the industry. OKE outperforms 72.04% of its industry peers.
With a decent Return On Invested Capital value of 7.03%, OKE is doing good in the industry, outperforming 62.09% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for OKE is significantly below the industry average of 21.71%.
| 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 has a Profit Margin of 11.06%. This is comparable to the rest of the industry: OKE outperforms 58.77% of its industry peers.
In the last couple of years the Profit Margin of OKE has grown nicely.
The Operating Margin of OKE (19.59%) is comparable to the rest of the industry.
OKE's Operating Margin has improved in the last couple of years.
The Gross Margin of OKE (33.68%) 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 | 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so OKE is still creating some value.
Compared to 1 year ago, OKE has about the same amount of shares outstanding.
The number of shares outstanding for OKE has been increased compared to 5 years ago.
OKE has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.34, we must say that OKE is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of OKE (1.34) is comparable to the rest of the industry.
The Debt to FCF ratio of OKE is 11.26, which is on the high side as it means it would take OKE, 11.26 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 11.26, OKE is in line with its industry, outperforming 51.66% of the companies in the same industry.
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: 73.46% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.41 | ||
| Debt/FCF | 11.26 | ||
| Altman-Z | 1.34 |
ROIC/WACC0.89
WACC7.9%
2.3 Liquidity
A Current Ratio of 0.59 indicates that OKE may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.59, OKE is doing worse than 83.41% of the companies in the same industry.
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 86.26% 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.
OKE shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 10.99% yearly.
OKE shows a strong growth in Revenue. In the last year, the Revenue has grown by 46.36%.
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
The Earnings Per Share is expected to grow by 8.68% on average over the next years. This is quite good.
The Revenue is expected to grow by 9.13% on average over the next years. This is quite good.
EPS Next Y5.71%
EPS Next 2Y9.34%
EPS Next 3Y9.11%
EPS Next 5Y8.68%
Revenue Next Year50.87%
Revenue Next 2Y25.18%
Revenue Next 3Y18.92%
Revenue Next 5Y9.13%
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 decreasing.
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
The Price/Earnings ratio is 14.13, which indicates a correct valuation of OKE.
OKE's Price/Earnings ratio is in line with the industry average.
The average S&P500 Price/Earnings ratio is at 27.86. OKE is valued slightly cheaper when compared to this.
With a Price/Forward Earnings ratio of 11.72, the valuation of OKE can be described as very reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of OKE is on the same level as its industry peers.
OKE is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 23.29, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.13 | ||
| Fwd PE | 11.72 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as OKE.
OKE's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. OKE is cheaper than 61.14% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.83 | ||
| EV/EBITDA | 11.22 |
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)2.47
PEG (5Y)1.29
EPS Next 2Y9.34%
EPS Next 3Y9.11%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.59%, OKE is a good candidate for dividend investing.
OKE's Dividend Yield is a higher than the industry average which is at 5.98.
Compared to an average S&P500 Dividend Yield of 2.41, OKE pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.59% |
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 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
79.04% 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.
DP79.04%
EPS Next 2Y9.34%
EPS Next 3Y9.11%
72.47
-0.51 (-0.7%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners74.97%
Inst Owner Change-1.44%
Ins Owners0.16%
Ins Owner Change0.24%
Market Cap45.64B
Analysts78.33
Price Target98.19 (35.49%)
Short Float %2.11%
Short Ratio3.69
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.59% |
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)-2.13%
PT rev (3m)-9.64%
EPS NQ rev (1m)-0.05%
EPS NQ rev (3m)-0.82%
EPS NY rev (1m)-0.76%
EPS NY rev (3m)-0.92%
Revenue NQ rev (1m)-2.22%
Revenue NQ rev (3m)6.12%
Revenue NY rev (1m)2.46%
Revenue NY rev (3m)14.97%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.13 | ||
| Fwd PE | 11.72 | ||
| P/S | 1.63 | ||
| P/FCF | 15.83 | ||
| P/OCF | 8.63 | ||
| P/B | 2.09 | ||
| P/tB | 4.24 | ||
| EV/EBITDA | 11.22 |
EPS(TTM)5.13
EY7.08%
EPS(NY)6.18
Fwd EY8.53%
FCF(TTM)4.58
FCFY6.32%
OCF(TTM)8.4
OCFY11.59%
SpS44.39
BVpS34.66
TBVpS17.09
PEG (NY)2.47
PEG (5Y)1.29
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%
ROICexcg growth 3Y-7.08%
ROICexcg 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 | 1.34 |
F-Score4
WACC7.9%
ROIC/WACC0.89
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 Y5.71%
EPS Next 2Y9.34%
EPS Next 3Y9.11%
EPS Next 5Y8.68%
Revenue 1Y (TTM)46.36%
Revenue growth 3Y9.47%
Revenue growth 5Y16.38%
Sales Q2Q%61.16%
Revenue Next Year50.87%
Revenue Next 2Y25.18%
Revenue Next 3Y18.92%
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%