ONEOK INC (OKE) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:OKE - US6826801036 - Common Stock
73.5 USD
-0.32 (-0.43%)
73.5 USD
0 (0%)
Taking everything into account, OKE scores 4 out of 10 in our fundamental rating. OKE was compared to 209 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
OKE had positive earnings in the past year.
OKE had a positive operating cash flow in the past year.
In the past 5 years OKE has always been profitable.
Each year in the past 5 years OKE had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 5.01%, OKE is in the better half of the industry, outperforming 66.99% of the companies in the same industry.
OKE has a better Return On Equity (15.12%) than 78.47% of its industry peers.
Looking at the Return On Invested Capital, with a value of 7.36%, OKE is in the better half of the industry, outperforming 67.46% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for OKE is significantly below the industry average of 21.27%.
| 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
OKE has a Profit Margin of 10.58%. This is comparable to the rest of the industry: OKE outperforms 58.85% of its industry peers.
OKE's Profit Margin has improved in the last couple of years.
OKE has a Operating Margin (18.71%) which is in line with its industry peers.
In the last couple of years the Operating Margin of OKE has grown nicely.
OKE's Gross Margin of 31.97% is in line compared to the rest of the industry. OKE outperforms 43.54% 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
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 about the same amount of shares outstanding.
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.
2.2 Solvency
Based on the Altman-Z score of 1.42, we must say that OKE is in the distress zone and has some risk of bankruptcy.
OKE has a Altman-Z score (1.42) which is comparable to the rest of the industry.
The Debt to FCF ratio of OKE is 11.55, which is on the high side as it means it would take OKE, 11.55 years of fcf income to pay off all of its debts.
OKE's Debt to FCF ratio of 11.55 is in line compared to the rest of the industry. OKE outperforms 52.63% of its industry peers.
A Debt/Equity ratio of 1.45 is on the high side and indicates that OKE has dependencies on debt financing.
OKE has a Debt to Equity ratio of 1.45. This is in the lower half of the industry: OKE underperforms 73.68% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.45 | ||
| Debt/FCF | 11.55 | ||
| Altman-Z | 1.42 |
ROIC/WACC0.94
WACC7.83%
2.3 Liquidity
OKE has a Current 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.
The Current ratio of OKE (0.90) is worse than 60.29% of its industry peers.
A Quick Ratio of 0.75 indicates that OKE may have some problems paying its short term obligations.
With a Quick ratio value of 0.75, OKE is not doing good in the industry: 62.68% of the companies in the same industry are doing better.
| 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.
OKE shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 10.99% yearly.
The Revenue has grown by 58.35% in the past year. This is a very strong growth!
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
OKE is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.74% yearly.
The Revenue is expected to grow by 9.99% on average over the next years. This is quite good.
EPS Next Y6.16%
EPS Next 2Y7.93%
EPS Next 3Y8.07%
EPS Next 5Y7.74%
Revenue Next Year54.34%
Revenue Next 2Y29.4%
Revenue Next 3Y21.25%
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.
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.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 13.51, 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 26.51.
A Price/Forward Earnings ratio of 12.20 indicates a correct valuation of OKE.
Based on the Price/Forward Earnings ratio, OKE is valued a bit cheaper than 62.20% of the companies in the same industry.
OKE's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 23.13.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.51 | ||
| Fwd PE | 12.2 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as OKE.
OKE's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.84 | ||
| EV/EBITDA | 10.68 |
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)2.19
PEG (5Y)1.23
EPS Next 2Y7.93%
EPS Next 3Y8.07%
5. Dividend
5.1 Amount
OKE has a Yearly Dividend Yield of 5.63%, which is a nice return.
OKE's Dividend Yield is a higher than the industry average which is at 3.93.
OKE's Dividend Yield is rather good when compared to the S&P500 average which is at 2.00.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.63% |
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 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
5.3 Sustainability
OKE pays out 75.29% 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.
DP75.29%
EPS Next 2Y7.93%
EPS Next 3Y8.07%
73.5
-0.32 (-0.43%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners75%
Inst Owner Change1.36%
Ins Owners0.16%
Ins Owner Change0.07%
Market Cap46.25B
Revenue(TTM)31.56B
Net Income(TTM)3.34B
Analysts79.2
Price Target90.42 (23.02%)
Short Float %3.15%
Short Ratio4.69
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.63% |
Yearly Dividend3.97
Dividend Growth(5Y)2.34%
DP75.29%
Div Incr Years2
Div Non Decr Years34
Ex-DateN/A
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)-0.25%
PT rev (3m)-7.92%
EPS NQ rev (1m)0.21%
EPS NQ rev (3m)-1.81%
EPS NY rev (1m)1.41%
EPS NY rev (3m)0.43%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)8.73%
Revenue NY rev (1m)0.47%
Revenue NY rev (3m)2.3%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.51 | ||
| Fwd PE | 12.2 | ||
| P/S | 1.47 | ||
| P/FCF | 15.84 | ||
| P/OCF | 8.17 | ||
| P/B | 2.09 | ||
| P/tB | 4.19 | ||
| EV/EBITDA | 10.68 |
EPS(TTM)5.44
EY7.4%
EPS(NY)6.02
Fwd EY8.19%
FCF(TTM)4.64
FCFY6.31%
OCF(TTM)9
OCFY12.25%
SpS50.16
BVpS35.09
TBVpS17.54
PEG (NY)2.19
PEG (5Y)1.23
Graham Number65.54
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 | 1.42 |
F-Score6
WACC7.83%
ROIC/WACC0.94
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 Y6.16%
EPS Next 2Y7.93%
EPS Next 3Y8.07%
EPS Next 5Y7.74%
Revenue 1Y (TTM)58.35%
Revenue growth 3Y9.47%
Revenue growth 5Y16.38%
Sales Q2Q%71.89%
Revenue Next Year54.34%
Revenue Next 2Y29.4%
Revenue Next 3Y21.25%
Revenue Next 5Y9.99%
EBIT growth 1Y29.68%
EBIT growth 3Y24.95%
EBIT growth 5Y21.43%
EBIT Next Year50.82%
EBIT Next 3Y18.64%
EBIT Next 5Y12.34%
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 4 / 10 to OKE.
What is the valuation status for OKE stock?
ChartMill assigns a valuation rating of 4 / 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 PE and PB ratios for OKE stock?
The Price/Earnings (PE) ratio for ONEOK INC (OKE) is 13.51 and the Price/Book (PB) ratio is 2.09.
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%.