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ONEOK INC (OKE) Stock Fundamental Analysis

NYSE:OKE - New York Stock Exchange, Inc. - US6826801036 - Common Stock - Currency: USD

81.27  -0.89 (-1.08%)

Fundamental Rating

4

Taking everything into account, OKE scores 4 out of 10 in our fundamental rating. OKE was compared to 212 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 is valied quite expensively at the moment, while it does show a decent growth rate. Finally OKE also has an excellent dividend rating.


Dividend Valuation Growth Profitability Health

6

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.
OKE had a positive operating cash flow in each of the past 5 years.
OKE Yearly Net Income VS EBIT VS OCF VS FCFOKE Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 2B 4B

1.2 Ratios

OKE has a Return On Assets (4.74%) which is in line with its industry peers.
The Return On Equity of OKE (17.81%) is better than 74.53% of its industry peers.
OKE has a Return On Invested Capital (6.46%) which is comparable to the rest of the industry.
The Average Return On Invested Capital over the past 3 years for OKE is significantly below the industry average of 25.75%.
Industry RankSector Rank
ROA 4.74%
ROE 17.81%
ROIC 6.46%
ROA(3y)5.93%
ROA(5y)5.36%
ROE(3y)20.15%
ROE(5y)19.1%
ROIC(3y)7.98%
ROIC(5y)8.09%
OKE Yearly ROA, ROE, ROICOKE Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 50 100 150

1.3 Margins

With a decent Profit Margin value of 13.98%, OKE is doing good in the industry, outperforming 60.38% of the companies in the same industry.
In the last couple of years the Profit Margin of OKE has grown nicely.
OKE has a Operating Margin of 23.30%. This is comparable to the rest of the industry: OKE outperforms 55.19% of its industry peers.
In the last couple of years the Operating Margin of OKE has grown nicely.
The Gross Margin of OKE (38.65%) is comparable to the rest of the industry.
OKE's Gross Margin has improved in the last couple of years.
Industry RankSector Rank
OM 23.3%
PM (TTM) 13.98%
GM 38.65%
OM growth 3Y14.14%
OM growth 5Y4.34%
PM growth 3Y15.56%
PM growth 5Y2.16%
GM growth 3Y14.28%
GM growth 5Y3.08%
OKE Yearly Profit, Operating, Gross MarginsOKE Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 10 20 30 40

1

2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), OKE is destroying 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.
OKE Yearly Shares OutstandingOKE Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 100M 200M 300M 400M 500M
OKE Yearly Total Debt VS Total AssetsOKE Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 20B 40B 60B

2.2 Solvency

Based on the Altman-Z score of 1.28, we must say that OKE is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of 1.28, OKE perfoms like the industry average, outperforming 51.42% of the companies in the same industry.
The Debt to FCF ratio of OKE is 11.19, which is on the high side as it means it would take OKE, 11.19 years of fcf income to pay off all of its debts.
With a Debt to FCF ratio value of 11.19, OKE perfoms like the industry average, outperforming 49.06% of the companies in the same industry.
A Debt/Equity ratio of 1.82 is on the high side and indicates that OKE has dependencies on debt financing.
OKE has a Debt to Equity ratio of 1.82. This is amonst the worse of the industry: OKE underperforms 80.19% of its industry peers.
Industry RankSector Rank
Debt/Equity 1.82
Debt/FCF 11.19
Altman-Z 1.28
ROIC/WACC0.68
WACC9.56%
OKE Yearly LT Debt VS Equity VS FCFOKE Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 10B 20B 30B

2.3 Liquidity

A Current Ratio of 0.90 indicates that OKE may have some problems paying its short term obligations.
OKE's Current ratio of 0.90 is on the low side compared to the rest of the industry. OKE is outperformed by 65.57% of its industry peers.
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.
OKE has a worse Quick ratio (0.74) than 64.15% of its industry peers.
Industry RankSector Rank
Current Ratio 0.9
Quick Ratio 0.74
OKE Yearly Current Assets VS Current LiabilitesOKE Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 1B 2B 3B 4B

6

3. Growth

3.1 Past

The Earnings Per Share has grown by an nice 19.07% 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.
OKE shows a strong growth in Revenue. In the last year, the Revenue has grown by 22.75%.
Measured over the past years, OKE shows a quite strong growth in Revenue. The Revenue has been growing by 16.38% on average per year.
EPS 1Y (TTM)19.07%
EPS 3Y15.45%
EPS 5Y10.99%
EPS Q2Q%-4.59%
Revenue 1Y (TTM)22.75%
Revenue growth 3Y9.47%
Revenue growth 5Y16.38%
Sales Q2Q%68.23%

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 9.63% yearly.
Based on estimates for the next years, OKE will show a small growth in Revenue. The Revenue will grow by 7.70% on average per year.
EPS Next Y7.51%
EPS Next 2Y10.98%
EPS Next 3Y10.09%
EPS Next 5Y9.63%
Revenue Next Year32.69%
Revenue Next 2Y19.74%
Revenue Next 3Y15.97%
Revenue Next 5Y7.7%

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 stable.
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.
OKE Yearly Revenue VS EstimatesOKE Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 10B 20B 30B
OKE Yearly EPS VS EstimatesOKE Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2 4 6 8

3

4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 15.87, the valuation of OKE can be described as correct.
OKE's Price/Earnings is on the same level as the industry average.
OKE's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 28.88.
With a Price/Forward Earnings ratio of 12.76, OKE is valued correctly.
OKE's Price/Forward Earnings ratio is in line with the industry average.
OKE is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 21.20, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 15.87
Fwd PE 12.76
OKE Price Earnings VS Forward Price EarningsOKE Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, OKE is valued a bit more expensive than the industry average as 65.09% of the companies are valued more cheaply.
OKE's Price/Free Cash Flow ratio is in line with the industry average.
Industry RankSector Rank
P/FCF 17.71
EV/EBITDA 13.36
OKE Per share dataOKE EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 10 20 30

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)2.11
PEG (5Y)1.44
EPS Next 2Y10.98%
EPS Next 3Y10.09%

7

5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 4.69%, OKE is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 7.31, OKE has a dividend in line with its industry peers.
OKE's Dividend Yield is rather good when compared to the S&P500 average which is at 2.45.
Industry RankSector Rank
Dividend Yield 4.69%

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 their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)2.34%
Div Incr Years2
Div Non Decr Years34
OKE Yearly Dividends per shareOKE Yearly Dividends per shareYearly Dividends per share 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1 2 3

5.3 Sustainability

OKE pays out 76.24% 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.
DP76.24%
EPS Next 2Y10.98%
EPS Next 3Y10.09%
OKE Yearly Income VS Free CF VS DividendOKE Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 1B -1B 2B 3B
OKE Dividend Payout.OKE Dividend Payout, showing the Payout Ratio.OKE Dividend Payout.PayoutRetained Earnings

ONEOK INC

NYSE:OKE (5/1/2025, 12:46:05 PM)

81.27

-0.89 (-1.08%)

Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)04-29 2025-04-29/amc
Earnings (Next)08-04 2025-08-04/amc
Inst Owners66.73%
Inst Owner Change0.53%
Ins Owners0.15%
Ins Owner Change1.81%
Market Cap50.76B
Analysts79.17
Price Target112.65 (38.61%)
Short Float %1.85%
Short Ratio2.75
Dividend
Industry RankSector Rank
Dividend Yield 4.69%
Yearly Dividend3.97
Dividend Growth(5Y)2.34%
DP76.24%
Div Incr Years2
Div Non Decr Years34
Ex-Date02-03 2025-02-03 (1.03)
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.28%
Min EPS beat(2)-4.81%
Max EPS beat(2)4.26%
EPS beat(4)2
Avg EPS beat(4)0.48%
Min EPS beat(4)-6.77%
Max EPS beat(4)9.25%
EPS beat(8)3
Avg EPS beat(8)-7.35%
EPS beat(12)6
Avg EPS beat(12)-3.81%
EPS beat(16)9
Avg EPS beat(16)-2.01%
Revenue beat(2)1
Avg Revenue beat(2)-8.22%
Min Revenue beat(2)-19.39%
Max Revenue beat(2)2.94%
Revenue beat(4)1
Avg Revenue beat(4)-14.96%
Min Revenue beat(4)-23.05%
Max Revenue beat(4)2.94%
Revenue beat(8)1
Avg Revenue beat(8)-17.39%
Revenue beat(12)3
Avg Revenue beat(12)-11.49%
Revenue beat(16)7
Avg Revenue beat(16)-4.29%
PT rev (1m)-1.94%
PT rev (3m)-2.29%
EPS NQ rev (1m)-2.65%
EPS NQ rev (3m)-17.34%
EPS NY rev (1m)-0.44%
EPS NY rev (3m)-8.66%
Revenue NQ rev (1m)-0.08%
Revenue NQ rev (3m)21.67%
Revenue NY rev (1m)1.53%
Revenue NY rev (3m)7.99%
Valuation
Industry RankSector Rank
PE 15.87
Fwd PE 12.76
P/S 2.34
P/FCF 17.71
P/OCF 10.39
P/B 2.98
P/tB 8.6
EV/EBITDA 13.36
EPS(TTM)5.12
EY6.3%
EPS(NY)6.37
Fwd EY7.83%
FCF(TTM)4.59
FCFY5.65%
OCF(TTM)7.83
OCFY9.63%
SpS34.74
BVpS27.27
TBVpS9.46
PEG (NY)2.11
PEG (5Y)1.44
Profitability
Industry RankSector Rank
ROA 4.74%
ROE 17.81%
ROCE 8.52%
ROIC 6.46%
ROICexc 6.54%
ROICexgc 8.08%
OM 23.3%
PM (TTM) 13.98%
GM 38.65%
FCFM 13.21%
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-Score5
Asset Turnover0.34
Health
Industry RankSector Rank
Debt/Equity 1.82
Debt/FCF 11.19
Debt/EBITDA 5.01
Cap/Depr 178.22%
Cap/Sales 9.31%
Interest Coverage 3.9
Cash Conversion 78.98%
Profit Quality 94.5%
Current Ratio 0.9
Quick Ratio 0.74
Altman-Z 1.28
F-Score5
WACC9.56%
ROIC/WACC0.68
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)19.07%
EPS 3Y15.45%
EPS 5Y10.99%
EPS Q2Q%-4.59%
EPS Next Y7.51%
EPS Next 2Y10.98%
EPS Next 3Y10.09%
EPS Next 5Y9.63%
Revenue 1Y (TTM)22.75%
Revenue growth 3Y9.47%
Revenue growth 5Y16.38%
Sales Q2Q%68.23%
Revenue Next Year32.69%
Revenue Next 2Y19.74%
Revenue Next 3Y15.97%
Revenue Next 5Y7.7%
EBIT growth 1Y19.79%
EBIT growth 3Y24.95%
EBIT growth 5Y21.43%
EBIT Next Year64.69%
EBIT Next 3Y22.84%
EBIT Next 5Y15.18%
FCF growth 1Y1.45%
FCF growth 3Y15.73%
FCF growth 5YN/A
OCF growth 1Y10.56%
OCF growth 3Y24.28%
OCF growth 5Y20.22%