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 213 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. OKE also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
OKE had positive earnings in the past year.
OKE had a positive operating cash flow in the past year.
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.
1.2 Ratios
OKE has a Return On Assets (4.72%) which is in line with its industry peers.
With a decent Return On Equity value of 14.19%, OKE is doing good in the industry, outperforming 67.14% of the companies in the same industry.
OKE has a Return On Invested Capital (6.84%) which is comparable to the rest of the industry.
OKE had an Average Return On Invested Capital over the past 3 years of 7.98%. This is significantly below the industry average of 25.88%.
| 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 61.03% of its industry peers.
In the last couple of years the Profit Margin of OKE has grown nicely.
OKE has a Operating Margin (21.05%) which is in line with its industry peers.
OKE's Operating Margin has improved in the last couple of years.
With a Gross Margin value of 35.62%, OKE perfoms like the industry average, outperforming 45.54% of the companies in the same industry.
OKE's Gross Margin has improved in the last couple of years.
| 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so OKE is destroying value.
OKE has about the same amout of shares outstanding than it did 1 year ago.
OKE has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, OKE has a worse debt to assets ratio.
2.2 Solvency
OKE has an Altman-Z score of 1.37. This is a bad value and indicates that OKE is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of OKE (1.37) is comparable to the rest of the industry.
The Debt to FCF ratio of OKE is 10.48, which is on the high side as it means it would take OKE, 10.48 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 10.48, OKE is in line with its industry, outperforming 51.64% of the companies in the same industry.
OKE has a Debt/Equity ratio of 1.40. This is a high value indicating a heavy dependency on external 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 74.18% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.4 | ||
| Debt/FCF | 10.48 | ||
| Altman-Z | 1.37 |
ROIC/WACC0.71
WACC9.59%
2.3 Liquidity
A Current Ratio of 0.67 indicates that OKE may have some problems paying its short term obligations.
The Current ratio of OKE (0.67) is worse than 76.53% 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 81.22% 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
Based on estimates for the next years, OKE will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.63% on average per year.
Based on estimates for the next years, OKE will show a small growth in Revenue. The Revenue will grow by 7.70% on average per year.
EPS Next Y6.7%
EPS Next 2Y10.89%
EPS Next 3Y9.9%
EPS Next 5Y9.63%
Revenue Next Year31.22%
Revenue Next 2Y15.81%
Revenue Next 3Y13.69%
Revenue Next 5Y7.7%
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
A Price/Earnings ratio of 15.93 indicates a correct valuation of OKE.
OKE's Price/Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Earnings ratio of 26.03, OKE is valued a bit cheaper.
The Price/Forward Earnings ratio is 12.83, which indicates a correct valuation of OKE.
The rest of the industry has a similar Price/Forward Earnings ratio as OKE.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.94, OKE is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.93 | ||
| Fwd PE | 12.83 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of OKE indicates a slightly more expensive valuation: OKE is more expensive than 61.50% of the companies listed in the same industry.
61.03% of the companies in the same industry are more expensive than OKE, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.66 | ||
| EV/EBITDA | 12.71 |
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)2.38
PEG (5Y)1.45
EPS Next 2Y10.89%
EPS Next 3Y9.9%
5. Dividend
5.1 Amount
OKE has a Yearly Dividend Yield of 4.79%, which is a nice return.
Compared to an average industry Dividend Yield of 7.03, 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 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.79% |
5.2 History
The dividend of OKE has a limited annual growth rate of 2.34%.
OKE has paid a dividend for at least 10 years, which is 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
78.46% 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.
DP78.46%
EPS Next 2Y10.89%
EPS Next 3Y9.9%
NYSE:OKE (5/22/2025, 2:35:04 PM)
81.565
-0.27 (-0.32%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners66.73%
Inst Owner Change8.93%
Ins Owners0.15%
Ins Owner Change1.81%
Market Cap50.95B
Analysts80
Price Target109.68 (34.47%)
Short Float %1.65%
Short Ratio2.43
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.79% |
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)-4.12%
PT rev (3m)-4.64%
EPS NQ rev (1m)1.19%
EPS NQ rev (3m)-9.69%
EPS NY rev (1m)-0.76%
EPS NY rev (3m)-8.15%
Revenue NQ rev (1m)-6.3%
Revenue NQ rev (3m)15.57%
Revenue NY rev (1m)-1.11%
Revenue NY rev (3m)5.28%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.93 | ||
| Fwd PE | 12.83 | ||
| P/S | 2.04 | ||
| P/FCF | 16.66 | ||
| P/OCF | 9.81 | ||
| P/B | 2.38 | ||
| P/tB | 4.96 | ||
| EV/EBITDA | 12.71 |
EPS(TTM)5.12
EY6.28%
EPS(NY)6.36
Fwd EY7.79%
FCF(TTM)4.9
FCFY6%
OCF(TTM)8.32
OCFY10.2%
SpS39.96
BVpS34.2
TBVpS16.44
PEG (NY)2.38
PEG (5Y)1.45
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
WACC9.59%
ROIC/WACC0.71
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 Y6.7%
EPS Next 2Y10.89%
EPS Next 3Y9.9%
EPS Next 5Y9.63%
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 5Y7.7%
EBIT growth 1Y38.71%
EBIT growth 3Y24.95%
EBIT growth 5Y21.43%
EBIT Next Year64.69%
EBIT Next 3Y22.84%
EBIT Next 5Y15.18%
FCF growth 1Y25.81%
FCF growth 3Y15.73%
FCF growth 5YN/A
OCF growth 1Y41.78%
OCF growth 3Y24.28%
OCF growth 5Y20.22%