ONEOK INC (OKE) Stock Fundamental Analysis
USA - NYSE:OKE - US6826801036 - Common Stock
73.05 USD
-0.25 (-0.34%)
73.2 USD
+0.15 (+0.21%)
Overall OKE gets a fundamental rating of 4 out of 10. We evaluated OKE against 210 industry peers in the Oil, Gas & Consumable Fuels industry. OKE has a medium profitability rating, but doesn't score so well on its financial health evaluation. OKE has a decent growth rate and is not valued too expensively. OKE also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year OKE was profitable.
OKE had a positive operating cash flow in the past year.
In the past 5 years OKE has always been profitable.
OKE had a positive operating cash flow in each of the past 5 years.
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 61.43% of the companies in the same industry.
OKE has a Return On Equity of 14.16%. This is in the better half of the industry: OKE outperforms 71.43% of its industry peers.
OKE has a better Return On Invested Capital (7.03%) than 61.90% 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 21.91%.
| 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 (11.06%) which is comparable to the rest of the industry.
OKE's Profit Margin has improved in the last couple of years.
With a Operating Margin value of 19.59%, OKE perfoms like the industry average, outperforming 54.76% of the companies in the same industry.
In the last couple of years the Operating Margin of OKE has grown nicely.
With a Gross Margin value of 33.68%, OKE perfoms like the industry average, outperforming 44.76% of the companies in the same industry.
In the last couple of years the Gross Margin of OKE has grown nicely.
| 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 below the Cost of Capital (WACC), so OKE is destroying value.
OKE has about the same amout of shares outstanding than it did 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 1.35. This is a bad value and indicates that OKE is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.35, OKE is in line with its industry, outperforming 51.90% of the companies in the same 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.
With a Debt to FCF ratio value of 11.26, OKE perfoms like the industry average, outperforming 51.90% of the companies in the same industry.
OKE has a Debt/Equity ratio of 1.41. This is a high value indicating a heavy dependency on external financing.
OKE's Debt to Equity ratio of 1.41 is on the low side compared to the rest of the industry. OKE is outperformed by 72.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.41 | ||
| Debt/FCF | 11.26 | ||
| Altman-Z | 1.35 |
ROIC/WACC0.87
WACC8.1%
2.3 Liquidity
OKE has a Current 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 has a Current ratio of 0.59. This is amonst the worse of the industry: OKE underperforms 83.33% of its industry peers.
A Quick Ratio of 0.46 indicates that OKE may have some problems paying 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 86.19% 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.
Measured over the past years, OKE shows a quite strong growth in Earnings Per Share. The EPS has been growing by 10.99% on average per year.
The Revenue has grown by 46.36% in the past year. This is a very strong growth!
The Revenue has been growing by 16.38% on average over the past years. This is quite good.
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
OKE is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.68% yearly.
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 Y6.51%
EPS Next 2Y10.45%
EPS Next 3Y9.87%
EPS Next 5Y8.68%
Revenue Next Year47.25%
Revenue Next 2Y23%
Revenue Next 3Y17.98%
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
The Price/Earnings ratio is 14.24, which indicates a correct valuation of OKE.
The rest of the industry has a similar Price/Earnings ratio as OKE.
OKE is valuated rather cheaply when we compare the Price/Earnings ratio to 27.30, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 11.58, the valuation of OKE can be described as reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of OKE indicates a somewhat cheap valuation: OKE is cheaper than 60.95% of the companies listed in the same industry.
OKE is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.73, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.24 | ||
| Fwd PE | 11.58 |
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 is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.96 | ||
| EV/EBITDA | 11.3 |
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.
OKE has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)2.19
PEG (5Y)1.3
EPS Next 2Y10.45%
EPS Next 3Y9.87%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.54%, OKE is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 6.00, OKE pays a bit more dividend than its industry peers.
OKE's Dividend Yield is rather good when compared to the S&P500 average which is at 2.45.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.54% |
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
OKE pays out 79.04% of its income as dividend. 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 2Y10.45%
EPS Next 3Y9.87%
73.05
-0.25 (-0.34%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners75.08%
Inst Owner Change-1.43%
Ins Owners0.17%
Ins Owner Change0.24%
Market Cap46.00B
Analysts78.33
Price Target98.71 (35.13%)
Short Float %2.09%
Short Ratio3.78
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.54% |
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)-5.73%
PT rev (3m)-9.85%
EPS NQ rev (1m)0.4%
EPS NQ rev (3m)-1.63%
EPS NY rev (1m)0.56%
EPS NY rev (3m)-0.17%
Revenue NQ rev (1m)-1.13%
Revenue NQ rev (3m)23.16%
Revenue NY rev (1m)2.86%
Revenue NY rev (3m)12.22%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.24 | ||
| Fwd PE | 11.58 | ||
| P/S | 1.65 | ||
| P/FCF | 15.96 | ||
| P/OCF | 8.69 | ||
| P/B | 2.11 | ||
| P/tB | 4.27 | ||
| EV/EBITDA | 11.3 |
EPS(TTM)5.13
EY7.02%
EPS(NY)6.31
Fwd EY8.63%
FCF(TTM)4.58
FCFY6.27%
OCF(TTM)8.4
OCFY11.5%
SpS44.39
BVpS34.66
TBVpS17.09
PEG (NY)2.19
PEG (5Y)1.3
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 | 1.35 |
F-Score4
WACC8.1%
ROIC/WACC0.87
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 Y6.51%
EPS Next 2Y10.45%
EPS Next 3Y9.87%
EPS Next 5Y8.68%
Revenue 1Y (TTM)46.36%
Revenue growth 3Y9.47%
Revenue growth 5Y16.38%
Sales Q2Q%61.16%
Revenue Next Year47.25%
Revenue Next 2Y23%
Revenue Next 3Y17.98%
Revenue Next 5Y9.13%
EBIT growth 1Y28%
EBIT growth 3Y24.95%
EBIT growth 5Y21.43%
EBIT Next Year61.08%
EBIT Next 3Y21.92%
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%