ONEOK INC (OKE) Stock Fundamental Analysis
USA - NYSE:OKE - US6826801036 - Common Stock
70.49 USD
+1.05 (+1.51%)
70.3326 USD
-0.16 (-0.22%)
OKE gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals 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 correct valuation and a medium growth rate. Finally 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.
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 better Return On Assets (5.01%) than 65.71% of its industry peers.
With a decent Return On Equity value of 15.12%, OKE is doing good in the industry, outperforming 75.71% of the companies in the same industry.
OKE's Return On Invested Capital of 7.36% is fine compared to the rest of the industry. OKE outperforms 66.67% 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 21.72%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.01% | ||
| ROE | 15.12% | ||
| ROIC | 7.36% |
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
With a Profit Margin value of 10.58%, OKE perfoms like the industry average, outperforming 57.62% of the companies in the same industry.
OKE's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 18.71%, OKE is in line with its industry, outperforming 55.24% of the companies in the same industry.
OKE's Operating Margin has improved in the last couple of years.
OKE's Gross Margin of 31.97% is in line compared to the rest of the industry. OKE outperforms 43.33% of its industry peers.
In the last couple of years the Gross Margin of OKE has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 18.71% | ||
| PM (TTM) | 10.58% | ||
| GM | 31.97% |
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
OKE has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for OKE remains at a similar level compared to 1 year ago.
OKE has more shares outstanding than it did 5 years ago.
The debt/assets ratio for OKE is higher compared to a year ago.
2.2 Solvency
OKE has an Altman-Z score of 1.40. 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 1.40, OKE is in line with its industry, outperforming 53.81% of the companies in the same industry.
OKE has a debt to FCF ratio of 11.55. This is a negative value and a sign of low solvency as OKE would need 11.55 years to pay back of all of its debts.
The Debt to FCF ratio of OKE (11.55) is comparable to the rest of the industry.
A Debt/Equity ratio of 1.45 is on the high side and indicates that OKE has dependencies on debt financing.
With a Debt to Equity ratio value of 1.45, OKE is not doing good in the industry: 74.29% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.45 | ||
| Debt/FCF | 11.55 | ||
| Altman-Z | 1.4 |
ROIC/WACC0.97
WACC7.6%
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 60.48% of its industry peers.
A Quick Ratio of 0.75 indicates that OKE may have some problems paying its short term obligations.
OKE's Quick ratio of 0.75 is on the low side compared to the rest of the industry. OKE is outperformed by 62.38% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.9 | ||
| Quick Ratio | 0.75 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 13.81% over the past year.
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 58.35%.
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)13.81%
EPS 3Y15.45%
EPS 5Y10.99%
EPS Q2Q%26.27%
Revenue 1Y (TTM)58.35%
Revenue growth 3Y9.47%
Revenue growth 5Y16.38%
Sales Q2Q%71.89%
3.2 Future
Based on estimates for the next years, OKE will show a small growth in Earnings Per Share. The EPS will grow by 7.74% on average per year.
OKE is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 9.99% yearly.
EPS Next Y4.69%
EPS Next 2Y7.87%
EPS Next 3Y8.23%
EPS Next 5Y7.74%
Revenue Next Year53.61%
Revenue Next 2Y28.5%
Revenue Next 3Y20.14%
Revenue Next 5Y9.99%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 12.96 indicates a correct valuation of OKE.
OKE's Price/Earnings ratio is a bit cheaper when compared to the industry. OKE is cheaper than 62.38% of the companies in the same industry.
OKE is valuated rather cheaply when we compare the Price/Earnings ratio to 25.89, which is the current average of the S&P500 Index.
OKE is valuated reasonably with a Price/Forward Earnings ratio of 11.72.
Based on the Price/Forward Earnings ratio, OKE is valued a bit cheaper than the industry average as 66.19% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 34.59, OKE is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.96 | ||
| Fwd PE | 11.72 |
4.2 Price Multiples
OKE's Enterprise Value to EBITDA is on the same level as the industry average.
OKE's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. OKE is cheaper than 62.86% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.2 | ||
| EV/EBITDA | 10.43 |
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)2.77
PEG (5Y)1.18
EPS Next 2Y7.87%
EPS Next 3Y8.23%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.93%, OKE is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 5.87, OKE pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.44, OKE pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.93% |
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
OKE pays out 75.29% 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.
DP75.29%
EPS Next 2Y7.87%
EPS Next 3Y8.23%
70.49
+1.05 (+1.51%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners74.97%
Inst Owner Change1.32%
Ins Owners0.16%
Ins Owner Change0.45%
Market Cap44.39B
Revenue(TTM)31.56B
Net Income(TTM)3.34B
Analysts76
Price Target93.27 (32.32%)
Short Float %2.18%
Short Ratio3.84
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.93% |
Yearly Dividend3.97
Dividend Growth(5Y)2.34%
DP75.29%
Div Incr Years2
Div Non Decr Years34
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.71%
Min EPS beat(2)-0.48%
Max EPS beat(2)1.9%
EPS beat(4)2
Avg EPS beat(4)-2.96%
Min EPS beat(4)-17.53%
Max EPS beat(4)4.26%
EPS beat(8)3
Avg EPS beat(8)-2.07%
EPS beat(12)5
Avg EPS beat(12)-5.86%
EPS beat(16)7
Avg EPS beat(16)-4.17%
Revenue beat(2)2
Avg Revenue beat(2)0.9%
Min Revenue beat(2)0.22%
Max Revenue beat(2)1.57%
Revenue beat(4)4
Avg Revenue beat(4)2.03%
Min Revenue beat(4)0.22%
Max Revenue beat(4)3.39%
Revenue beat(8)4
Avg Revenue beat(8)-8.6%
Revenue beat(12)4
Avg Revenue beat(12)-12.56%
Revenue beat(16)7
Avg Revenue beat(16)-6.81%
PT rev (1m)-4.48%
PT rev (3m)-10.92%
EPS NQ rev (1m)-1.84%
EPS NQ rev (3m)-3.4%
EPS NY rev (1m)-0.97%
EPS NY rev (3m)-1.16%
Revenue NQ rev (1m)11.17%
Revenue NQ rev (3m)6.47%
Revenue NY rev (1m)1.35%
Revenue NY rev (3m)7.31%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.96 | ||
| Fwd PE | 11.72 | ||
| P/S | 1.41 | ||
| P/FCF | 15.2 | ||
| P/OCF | 7.84 | ||
| P/B | 2.01 | ||
| P/tB | 4.02 | ||
| EV/EBITDA | 10.43 |
EPS(TTM)5.44
EY7.72%
EPS(NY)6.02
Fwd EY8.53%
FCF(TTM)4.64
FCFY6.58%
OCF(TTM)8.99
OCFY12.76%
SpS50.12
BVpS35.06
TBVpS17.53
PEG (NY)2.77
PEG (5Y)1.18
Graham Number65.51
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.01% | ||
| ROE | 15.12% | ||
| ROCE | 9.7% | ||
| ROIC | 7.36% | ||
| ROICexc | 7.51% | ||
| ROICexgc | 9.21% | ||
| OM | 18.71% | ||
| PM (TTM) | 10.58% | ||
| GM | 31.97% | ||
| FCFM | 9.25% |
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%
ROICexgc growth 3Y-7.08%
ROICexgc 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-Score6
Asset Turnover0.47
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.45 | ||
| Debt/FCF | 11.55 | ||
| Debt/EBITDA | 4.34 | ||
| Cap/Depr | 186.67% | ||
| Cap/Sales | 8.69% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 76.78% | ||
| Profit Quality | 87.45% | ||
| Current Ratio | 0.9 | ||
| Quick Ratio | 0.75 | ||
| Altman-Z | 1.4 |
F-Score6
WACC7.6%
ROIC/WACC0.97
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)13.81%
EPS 3Y15.45%
EPS 5Y10.99%
EPS Q2Q%26.27%
EPS Next Y4.69%
EPS Next 2Y7.87%
EPS Next 3Y8.23%
EPS Next 5Y7.74%
Revenue 1Y (TTM)58.35%
Revenue growth 3Y9.47%
Revenue growth 5Y16.38%
Sales Q2Q%71.89%
Revenue Next Year53.61%
Revenue Next 2Y28.5%
Revenue Next 3Y20.14%
Revenue Next 5Y9.99%
EBIT growth 1Y29.68%
EBIT growth 3Y24.95%
EBIT growth 5Y21.43%
EBIT Next Year60.99%
EBIT Next 3Y21.53%
EBIT Next 5Y13.75%
FCF growth 1Y10.38%
FCF growth 3Y15.73%
FCF growth 5YN/A
OCF growth 1Y43.27%
OCF growth 3Y24.28%
OCF growth 5Y20.22%
ONEOK INC / OKE FAQ
What is the ChartMill fundamental rating of ONEOK INC (OKE) stock?
ChartMill assigns a fundamental rating of 5 / 10 to OKE.
Can you provide the valuation status for ONEOK INC?
ChartMill assigns a valuation rating of 5 / 10 to ONEOK INC (OKE). This can be considered as Fairly Valued.
Can you provide the profitability details for ONEOK INC?
ONEOK INC (OKE) has a profitability rating of 6 / 10.
Can you provide the expected EPS growth for OKE stock?
The Earnings per Share (EPS) of ONEOK INC (OKE) is expected to grow by 4.69% in the next year.
Is the dividend of ONEOK INC sustainable?
The dividend rating of ONEOK INC (OKE) is 8 / 10 and the dividend payout ratio is 75.29%.