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 211 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. 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.
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
OKE has a Return On Assets (4.72%) which is comparable to the rest of the industry.
OKE has a Return On Equity of 14.19%. This is in the better half of the industry: OKE outperforms 69.19% of its industry peers.
OKE has a Return On Invested Capital (6.84%) which is in line with its industry peers.
The Average Return On Invested Capital over the past 3 years for OKE is significantly below the industry average of 23.70%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.72% | ||
| ROE | 14.19% | ||
| ROIC | 6.84% |
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
The Profit Margin of OKE (12.14%) is better than 61.61% of its industry peers.
OKE's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 21.05%, OKE is in line with its industry, outperforming 53.08% of the companies in the same industry.
OKE's Operating Margin has improved in the last couple of years.
OKE has a Gross Margin (35.62%) which is comparable to the rest of the industry.
In the last couple of years the Gross Margin of OKE has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 21.05% | ||
| PM (TTM) | 12.14% | ||
| GM | 35.62% |
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.
Compared to 1 year ago, OKE has about the same amount of shares outstanding.
The number of shares outstanding for OKE has been increased compared to 5 years ago.
OKE has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.37, we must say that OKE is in the distress zone and has some risk of bankruptcy.
OKE has a Altman-Z score (1.37) which is comparable to the rest of the industry.
OKE has a debt to FCF ratio of 10.48. This is a negative value and a sign of low solvency as OKE would need 10.48 years to pay back of all of its debts.
OKE has a Debt to FCF ratio (10.48) which is in line with its industry peers.
A Debt/Equity ratio of 1.40 is on the high side and indicates that OKE has dependencies on debt financing.
OKE's Debt to Equity ratio of 1.40 is on the low side compared to the rest of the industry. OKE is outperformed by 73.46% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.4 | ||
| Debt/FCF | 10.48 | ||
| Altman-Z | 1.37 |
ROIC/WACC0.85
WACC8.01%
2.3 Liquidity
OKE has a Current Ratio of 0.67. 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's Current ratio of 0.67 is on the low side compared to the rest of the industry. OKE is outperformed by 78.20% of its industry peers.
A Quick Ratio of 0.52 indicates that OKE may have some problems paying its short term obligations.
OKE has a worse Quick ratio (0.52) than 81.52% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.67 | ||
| Quick Ratio | 0.52 |
3. Growth
3.1 Past
OKE shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 19.07%, which is quite good.
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.
Looking at the last year, OKE shows a very strong growth in Revenue. The Revenue has grown by 39.15%.
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)39.15%
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 9.44% yearly.
OKE is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.53% yearly.
EPS Next Y6.69%
EPS Next 2Y11.21%
EPS Next 3Y10.07%
EPS Next 5Y9.44%
Revenue Next Year31.22%
Revenue Next 2Y15.81%
Revenue Next 3Y13.69%
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.
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
The Price/Earnings ratio is 16.04, which indicates a correct valuation of OKE.
OKE's Price/Earnings ratio is in line with the industry average.
When comparing the Price/Earnings ratio of OKE to the average of the S&P500 Index (27.45), we can say OKE is valued slightly cheaper.
OKE is valuated correctly with a Price/Forward Earnings ratio of 12.85.
OKE's Price/Forward Earnings is on the same level as the industry average.
OKE's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 21.90.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.04 | ||
| Fwd PE | 12.85 |
4.2 Price Multiples
OKE's Enterprise Value to EBITDA is on the same level as the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of OKE indicates a somewhat cheap valuation: OKE is cheaper than 62.09% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.78 | ||
| EV/EBITDA | 12.74 |
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)2.4
PEG (5Y)1.46
EPS Next 2Y11.21%
EPS Next 3Y10.07%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.07%, OKE is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 6.66, OKE pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.42, OKE pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.07% |
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 78.46% of its income as dividend. This is not a sustainable payout ratio.
The dividend of OKE is growing, but earnings are growing more, so the dividend growth is sustainable.
DP78.46%
EPS Next 2Y11.21%
EPS Next 3Y10.07%
82.14
0 (0%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners74.83%
Inst Owner Change9.14%
Ins Owners0.17%
Ins Owner Change2.11%
Market Cap51.31B
Analysts79.13
Price Target108.66 (32.29%)
Short Float %1.69%
Short Ratio2.7
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.07% |
Yearly Dividend3.97
Dividend Growth(5Y)2.34%
DP78.46%
Div Incr Years2
Div Non Decr Years34
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-6.64%
Min EPS beat(2)-17.53%
Max EPS beat(2)4.26%
EPS beat(4)2
Avg EPS beat(4)-2.21%
Min EPS beat(4)-17.53%
Max EPS beat(4)9.25%
EPS beat(8)3
Avg EPS beat(8)-2.89%
EPS beat(12)6
Avg EPS beat(12)-5.01%
EPS beat(16)8
Avg EPS beat(16)-3.76%
Revenue beat(2)2
Avg Revenue beat(2)3.17%
Min Revenue beat(2)2.94%
Max Revenue beat(2)3.39%
Revenue beat(4)2
Avg Revenue beat(4)-8.35%
Min Revenue beat(4)-20.33%
Max Revenue beat(4)3.39%
Revenue beat(8)2
Avg Revenue beat(8)-14.93%
Revenue beat(12)3
Avg Revenue beat(12)-11.86%
Revenue beat(16)7
Avg Revenue beat(16)-4.94%
PT rev (1m)-0.93%
PT rev (3m)-4.3%
EPS NQ rev (1m)1.43%
EPS NQ rev (3m)1.69%
EPS NY rev (1m)0%
EPS NY rev (3m)-1.2%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-6.23%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.4%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.04 | ||
| Fwd PE | 12.85 | ||
| P/S | 2.06 | ||
| P/FCF | 16.78 | ||
| P/OCF | 9.87 | ||
| P/B | 2.4 | ||
| P/tB | 5 | ||
| EV/EBITDA | 12.74 |
EPS(TTM)5.12
EY6.23%
EPS(NY)6.39
Fwd EY7.78%
FCF(TTM)4.9
FCFY5.96%
OCF(TTM)8.32
OCFY10.13%
SpS39.96
BVpS34.2
TBVpS16.44
PEG (NY)2.4
PEG (5Y)1.46
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.72% | ||
| ROE | 14.19% | ||
| ROCE | 9.04% | ||
| ROIC | 6.84% | ||
| ROICexc | 6.86% | ||
| ROICexgc | 8.47% | ||
| OM | 21.05% | ||
| PM (TTM) | 12.14% | ||
| GM | 35.62% | ||
| FCFM | 12.25% |
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%
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-Score3
Asset Turnover0.39
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.4 | ||
| Debt/FCF | 10.48 | ||
| Debt/EBITDA | 4.6 | ||
| Cap/Depr | 169.68% | ||
| Cap/Sales | 8.57% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 79.78% | ||
| Profit Quality | 100.89% | ||
| Current Ratio | 0.67 | ||
| Quick Ratio | 0.52 | ||
| Altman-Z | 1.37 |
F-Score3
WACC8.01%
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)19.07%
EPS 3Y15.45%
EPS 5Y10.99%
EPS Q2Q%-4.59%
EPS Next Y6.69%
EPS Next 2Y11.21%
EPS Next 3Y10.07%
EPS Next 5Y9.44%
Revenue 1Y (TTM)39.15%
Revenue growth 3Y9.47%
Revenue growth 5Y16.38%
Sales Q2Q%68.23%
Revenue Next Year31.22%
Revenue Next 2Y15.81%
Revenue Next 3Y13.69%
Revenue Next 5Y7.53%
EBIT growth 1Y38.71%
EBIT growth 3Y24.95%
EBIT growth 5Y21.43%
EBIT Next Year62.27%
EBIT Next 3Y22.09%
EBIT Next 5Y15%
FCF growth 1Y25.81%
FCF growth 3Y15.73%
FCF growth 5YN/A
OCF growth 1Y41.78%
OCF growth 3Y24.28%
OCF growth 5Y20.22%