ONEOK INC (OKE)
US6826801036 - Common Stock
We assign a fundamental rating of 4 out of 10 to OKE. OKE was compared to 214 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. While showing a medium growth rate, OKE is valued expensive at the moment. 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.
OKE had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
OKE has a Return On Assets (6.00%) which is in line with its industry peers.
OKE's Return On Equity of 16.12% is in line compared to the rest of the industry. OKE outperforms 51.40% of its industry peers.
OKE's Return On Invested Capital of 7.89% is in line compared to the rest of the industry. OKE outperforms 46.26% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for OKE is significantly below the industry average of 44.58%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6% | ||
| ROE | 16.12% | ||
| ROIC | 7.89% |
ROA(3y)6.47%
ROA(5y)5.58%
ROE(3y)22.51%
ROE(5y)19.64%
ROIC(3y)9.09%
ROIC(5y)8.29%
1.3 Margins
The Profit Margin of OKE (15.04%) is comparable to the rest of the industry.
OKE's Profit Margin has improved in the last couple of years.
OKE has a Operating Margin (23.87%) which 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 (32.52%) which is in line with its industry peers.
In the last couple of years the Gross Margin of OKE has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 23.87% | ||
| PM (TTM) | 15.04% | ||
| GM | 32.52% |
OM growth 3Y1.29%
OM growth 5Y10.44%
PM growth 3Y28.03%
PM growth 5Y10.47%
GM growth 3Y-6.81%
GM growth 5Y5.25%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), OKE is creating some value.
Compared to 1 year ago, OKE has more shares outstanding
OKE has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, OKE has an improved debt to assets ratio.
2.2 Solvency
OKE has an Altman-Z score of 1.73. 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 1.73, OKE is in line with its industry, outperforming 51.87% of the companies in the same industry.
OKE has a debt to FCF ratio of 7.67. This is a slightly negative value and a sign of low solvency as OKE would need 7.67 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 7.67, OKE is in line with its industry, outperforming 48.60% of the companies in the same industry.
OKE has a Debt/Equity ratio of 1.29. This is a high value indicating a heavy dependency on external financing.
OKE has a worse Debt to Equity ratio (1.29) than 76.64% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.29 | ||
| Debt/FCF | 7.67 | ||
| Altman-Z | 1.73 |
ROIC/WACC1.05
WACC7.49%
2.3 Liquidity
A Current Ratio of 0.90 indicates that OKE may have some problems paying its short term obligations.
With a Current ratio value of 0.90, OKE is not doing good in the industry: 68.69% of the companies in the same industry are doing better.
OKE has a Quick 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.
Looking at the Quick ratio, with a value of 0.66, OKE is doing worse than 78.50% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.9 | ||
| Quick Ratio | 0.66 |
3. Growth
3.1 Past
OKE shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 10.00%, which is quite good.
The Earnings Per Share has been growing by 9.14% on average over the past years. This is quite good.
The Revenue for OKE has decreased by -21.04% in the past year. This is quite bad
OKE shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.02% yearly.
EPS 1Y (TTM)10%
EPS 3Y19.09%
EPS 5Y9.14%
EPS growth Q2Q9.26%
Revenue 1Y (TTM)-21.04%
Revenue growth 3Y27.43%
Revenue growth 5Y7.02%
Revenue growth Q2Q4.03%
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 10.82% on average per year.
Based on estimates for the next years, OKE will show a small growth in Revenue. The Revenue will grow by 7.88% on average per year.
EPS Next Y17.28%
EPS Next 2Y14.03%
EPS Next 3Y11.7%
EPS Next 5Y10.82%
Revenue Next Year33.56%
Revenue Next 2Y16.12%
Revenue Next 3Y12.45%
Revenue Next 5Y7.88%
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.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 17.93, the valuation of OKE can be described as rather expensive.
71.50% of the companies in the same industry are cheaper than OKE, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 24.67, OKE is valued a bit cheaper.
The Price/Forward Earnings ratio is 15.29, which indicates a correct valuation of OKE.
OKE's Price/Forward Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.02, OKE is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.93 | ||
| Fwd PE | 15.29 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, OKE is valued a bit more expensive than 74.30% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of OKE is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.89 | ||
| EV/EBITDA | 13.53 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
PEG (NY)1.04
PEG (5Y)1.96
EPS Next 2Y14.03%
EPS Next 3Y11.7%
5. Dividend
5.1 Amount
OKE has a Yearly Dividend Yield of 4.86%, which is a nice return.
Compared to an average industry Dividend Yield of 5.73, 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 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.86% |
5.2 History
The dividend of OKE has a limited annual growth rate of 1.38%.
OKE has been paying a dividend for at least 10 years, so it has a reliable track record.
OKE has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)1.38%
Div Incr Years1
Div Non Decr Years19
5.3 Sustainability
69.19% of the earnings are spent on dividend by OKE. This is not a sustainable payout ratio.
The dividend of OKE is growing, but earnings are growing more, so the dividend growth is sustainable.
DP69.19%
EPS Next 2Y14.03%
EPS Next 3Y11.7%
ONEOK INC
NYSE:OKE (5/1/2024, 3:20:39 PM)
After market: 76.92 0 (0%)76.92
-2.2 (-2.78%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap44.89B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.86% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
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EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.93 | ||
| Fwd PE | 15.29 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)1.04
PEG (5Y)1.96
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6% | ||
| ROE | 16.12% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 23.87% | ||
| PM (TTM) | 15.04% | ||
| GM | 32.52% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.4
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.29 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.9 | ||
| Quick Ratio | 0.66 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)10%
EPS 3Y19.09%
EPS 5Y
EPS growth Q2Q
EPS Next Y17.28%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-21.04%
Revenue growth 3Y27.43%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y