ONEOK INC (OKE) Stock Fundamental Analysis
NYSE:OKE - New York Stock Exchange, Inc. - US6826801036 - Common Stock - Currency: USD
Overall OKE gets a fundamental rating of 4 out of 10. We evaluated OKE against 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 is not valued too expensively and it also shows a decent growth rate. Finally 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.
Each year in the past 5 years OKE has been profitable.
In the past 5 years OKE always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 4.79%, OKE is in line with its industry, outperforming 58.85% of the companies in the same industry.
Looking at the Return On Equity, with a value of 14.16%, OKE is in the better half of the industry, outperforming 70.33% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 7.03%, OKE is in the better half of the industry, outperforming 63.64% 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 23.52%.
| 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 in line with its industry peers.
OKE's Profit Margin has improved in the last couple of years.
The Operating Margin of OKE (19.59%) is comparable to the rest of the industry.
In the last couple of years the Operating Margin of OKE has grown nicely.
OKE has a Gross Margin of 33.68%. This is comparable to the rest of the industry: OKE outperforms 44.50% of its industry peers.
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), OKE is destroying value.
OKE has about the same amout of shares outstanding than it did 1 year ago.
Compared to 5 years ago, OKE has more shares outstanding
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.
With a Altman-Z score value of 1.35, OKE perfoms like the industry average, outperforming 51.67% of the companies in the same industry.
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.
With a Debt to FCF ratio value of 11.26, OKE perfoms like the industry average, outperforming 50.24% 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.
The Debt to Equity ratio of OKE (1.41) is worse than 72.73% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.41 | ||
| Debt/FCF | 11.26 | ||
| Altman-Z | 1.35 |
ROIC/WACC0.85
WACC8.27%
2.3 Liquidity
A Current Ratio of 0.59 indicates that OKE may have some problems paying its short term obligations.
OKE has a worse Current ratio (0.59) than 82.30% of its industry peers.
A Quick Ratio of 0.46 indicates that OKE may have some problems paying its short term obligations.
The Quick ratio of OKE (0.46) is worse than 86.12% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.59 | ||
| Quick Ratio | 0.46 |
3. Growth
3.1 Past
OKE shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 11.76%, which is quite good.
The Earnings Per Share has been growing by 10.99% on average over the past years. This is quite good.
Looking at the last year, OKE shows a very strong growth in Revenue. 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 9.78% on average over the next years. This is quite good.
Based on estimates for the next years, OKE will show a small growth in Revenue. The Revenue will grow by 7.53% on average per year.
EPS Next Y5.92%
EPS Next 2Y11.29%
EPS Next 3Y10.18%
EPS Next 5Y9.78%
Revenue Next Year43.15%
Revenue Next 2Y22.75%
Revenue Next 3Y17.77%
Revenue Next 5Y7.53%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same 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
OKE is valuated correctly with a Price/Earnings ratio of 14.41.
OKE's Price/Earnings is on the same level as the industry average.
OKE is valuated rather cheaply when we compare the Price/Earnings ratio to 26.87, which is the current average of the S&P500 Index.
OKE is valuated reasonably with a Price/Forward Earnings ratio of 11.55.
Compared to the rest of the industry, the Price/Forward Earnings ratio of OKE is on the same level as its industry peers.
The average S&P500 Price/Forward Earnings ratio is at 35.34. OKE is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.41 | ||
| Fwd PE | 11.55 |
4.2 Price Multiples
60.77% of the companies in the same industry are cheaper than OKE, based on the Enterprise Value to EBITDA ratio.
OKE's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.02 | ||
| EV/EBITDA | 11.3 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of OKE may justify a higher PE ratio.
PEG (NY)2.44
PEG (5Y)1.31
EPS Next 2Y11.29%
EPS Next 3Y10.18%
5. Dividend
5.1 Amount
OKE has a Yearly Dividend Yield of 5.51%, which is a nice return.
Compared to an average industry Dividend Yield of 6.29, 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 | 5.51% |
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
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 2Y11.29%
EPS Next 3Y10.18%
73.93
-0.87 (-1.16%)
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 Change2.01%
Market Cap46.18B
Analysts78.33
Price Target104.71 (41.63%)
Short Float %1.66%
Short Ratio2.83
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.51% |
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)-3.64%
PT rev (3m)-4.53%
EPS NQ rev (1m)-1.07%
EPS NQ rev (3m)-1.26%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.73%
Revenue NQ rev (1m)9.33%
Revenue NQ rev (3m)25.95%
Revenue NY rev (1m)9.43%
Revenue NY rev (3m)9.09%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.41 | ||
| Fwd PE | 11.55 | ||
| P/S | 1.65 | ||
| P/FCF | 16.02 | ||
| P/OCF | 8.73 | ||
| P/B | 2.12 | ||
| P/tB | 4.29 | ||
| EV/EBITDA | 11.3 |
EPS(TTM)5.13
EY6.94%
EPS(NY)6.4
Fwd EY8.66%
FCF(TTM)4.62
FCFY6.24%
OCF(TTM)8.47
OCFY11.46%
SpS44.75
BVpS34.95
TBVpS17.23
PEG (NY)2.44
PEG (5Y)1.31
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
WACC8.27%
ROIC/WACC0.85
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 Y5.92%
EPS Next 2Y11.29%
EPS Next 3Y10.18%
EPS Next 5Y9.78%
Revenue 1Y (TTM)46.36%
Revenue growth 3Y9.47%
Revenue growth 5Y16.38%
Sales Q2Q%61.16%
Revenue Next Year43.15%
Revenue Next 2Y22.75%
Revenue Next 3Y17.77%
Revenue Next 5Y7.53%
EBIT growth 1Y28%
EBIT growth 3Y24.95%
EBIT growth 5Y21.43%
EBIT Next Year61.08%
EBIT Next 3Y21.92%
EBIT Next 5Y14.88%
FCF growth 1Y19.5%
FCF growth 3Y15.73%
FCF growth 5YN/A
OCF growth 1Y44.98%
OCF growth 3Y24.28%
OCF growth 5Y20.22%