OGE gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 46 industry peers in the Electric Utilities industry. There are concerns on the financial health of OGE while its profitability can be described as average. OGE is quite expensive at the moment. It does show a decent growth rate.

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1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

1. Profitability

1.1 Basic Checks

In the past year OGE was profitable.
OGE had a positive operating cash flow in the past year.
Of the past 5 years OGE 4 years were profitable.
OGE had a positive operating cash flow in 4 of the past 5 years.

1.2 Ratios

Looking at the Return On Assets, with a value of 3.53%, OGE is in the better half of the industry, outperforming 78.26% of the companies in the same industry.
OGE has a Return On Equity of 10.49%. This is comparable to the rest of the industry: OGE outperforms 54.35% of its industry peers.
With an excellent Return On Invested Capital value of 5.41%, OGE belongs to the best of the industry, outperforming 84.78% of the companies in the same industry.
OGE had an Average Return On Invested Capital over the past 3 years of 4.95%. This is in line with the industry average of 4.57%.
The last Return On Invested Capital (5.41%) for OGE is above the 3 year average (4.95%), which is a sign of increasing profitability.

		Industry Rank	Sector Rank
ROA	3.53%
ROE	10.49%
ROIC	5.41%

ROA(3y)3.93%

ROA(5y)3.2%

ROE(3y)11.28%

ROE(5y)9.45%

ROIC(3y)4.95%

ROIC(5y)4.65%

1.3 Margins

OGE's Profit Margin of 15.28% is fine compared to the rest of the industry. OGE outperforms 60.87% of its industry peers.
In the last couple of years the Profit Margin of OGE has declined.
With a decent Operating Margin value of 25.60%, OGE is doing good in the industry, outperforming 69.57% of the companies in the same industry.
In the last couple of years the Operating Margin of OGE has grown nicely.
OGE has a Gross Margin (61.34%) which is in line with its industry peers.
In the last couple of years the Gross Margin of OGE has remained more or less at the same level.

		Industry Rank	Sector Rank
OM	25.6%
PM (TTM)	15.28%
GM	61.34%

OM growth 3Y18.79%

OM growth 5Y2.01%

PM growth 3Y-9.84%

PM growth 5Y-5.31%

GM growth 3Y15.25%

GM growth 5Y-0.25%

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

OGE has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
OGE has more shares outstanding than it did 1 year ago.
OGE has more shares outstanding than it did 5 years ago.
OGE has a worse debt/assets ratio than last year.

2.2 Solvency

Based on the Altman-Z score of 1.34, we must say that OGE is in the distress zone and has some risk of bankruptcy.
OGE's Altman-Z score of 1.34 is amongst the best of the industry. OGE outperforms 80.43% of its industry peers.
OGE has a Debt/Equity ratio of 1.22. This is a high value indicating a heavy dependency on external financing.
OGE has a Debt to Equity ratio of 1.22. This is in the better half of the industry: OGE outperforms 69.57% of its industry peers.

		Industry Rank	Sector Rank
Debt/Equity	1.22
Debt/FCF	N/A
Altman-Z	1.34

ROIC/WACC0.75

WACC7.2%

2.3 Liquidity

A Current Ratio of 0.80 indicates that OGE may have some problems paying its short term obligations.
OGE has a Current ratio (0.80) which is comparable to the rest of the industry.
A Quick Ratio of 0.52 indicates that OGE may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.52, OGE is doing worse than 76.09% of the companies in the same industry.

		Industry Rank	Sector Rank
Current Ratio	0.8
Quick Ratio	0.52

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WACC

Debt/Equity

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Altman-Z score

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3. Growth

3.1 Past

OGE shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 28.50%, which is quite impressive.
OGE shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 0.18% yearly.
Looking at the last year, OGE shows a quite strong growth in Revenue. The Revenue has grown by 18.03% in the last year.
The Revenue has been growing slightly by 5.99% on average over the past years.

EPS 1Y (TTM)28.5%

EPS 3Y-2.32%

EPS 5Y0.18%

EPS Q2Q%4.59%

Revenue 1Y (TTM)18.03%

Revenue growth 3Y-6.51%

Revenue growth 5Y5.99%

Sales Q2Q%8.25%

3.2 Future

OGE is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.73% yearly.
The Revenue is expected to grow by 5.49% on average over the next years.

EPS Next Y5.68%

EPS Next 2Y5.86%

EPS Next 3Y6.1%

EPS Next 5Y6.73%

Revenue Next Year10.05%

Revenue Next 2Y7.29%

Revenue Next 3Y6.11%

Revenue Next 5Y5.49%

3.3 Evolution

The EPS growth rate is accelerating: in the next years the growth will be better 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 stable.

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4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 17.61, which indicates a rather expensive current valuation of OGE.
OGE's Price/Earnings is on the same level as the industry average.
The average S&P500 Price/Earnings ratio is at 28.30. OGE is valued slightly cheaper when compared to this.
Based on the Price/Forward Earnings ratio of 17.80, the valuation of OGE can be described as rather expensive.
OGE's Price/Forward Earnings ratio is in line with the industry average.
When comparing the Price/Forward Earnings ratio of OGE to the average of the S&P500 Index (25.57), we can say OGE is valued slightly cheaper.

		Industry Rank	Sector Rank
PE	17.61
Fwd PE	17.8

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, OGE is valued a bit cheaper than 63.04% of the companies in the same industry.

		Industry Rank	Sector Rank
P/FCF	N/A
EV/EBITDA	10.39

4.3 Compensation for Growth

The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates OGE does not grow enough to justify the current Price/Earnings ratio.
OGE has a very decent profitability rating, which may justify a higher PE ratio.

PEG (NY)3.1

PEG (5Y)95.9

EPS Next 2Y5.86%

EPS Next 3Y6.1%

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5. Dividend

5.1 Amount

OGE has a Yearly Dividend Yield of 3.91%.
Compared to an average industry Dividend Yield of 2.89, OGE pays a better dividend. On top of this OGE pays more dividend than 80.43% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 1.83, OGE pays a better dividend.

		Industry Rank	Sector Rank
Dividend Yield	3.91%

5.2 History

The dividend of OGE has a limited annual growth rate of 2.43%.
OGE has been paying a dividend for at least 10 years, so it has a reliable track record.

Dividend Growth(5Y)2.43%

Div Incr Years0

Div Non Decr Years0

5.3 Sustainability

67.72% of the earnings are spent on dividend by OGE. This is not a sustainable payout ratio.
The dividend of OGE is growing, but earnings are growing more, so the dividend growth is sustainable.

DP67.72%

EPS Next 2Y5.86%

EPS Next 3Y6.1%

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OGE ENERGY CORP / OGE FAQ

Can you provide the ChartMill fundamental rating for OGE ENERGY CORP?

ChartMill assigns a fundamental rating of 4 / 10 to OGE.

What is the valuation status for OGE stock?

ChartMill assigns a valuation rating of 3 / 10 to OGE ENERGY CORP (OGE). This can be considered as Overvalued.

Can you provide the profitability details for OGE ENERGY CORP?

OGE ENERGY CORP (OGE) has a profitability rating of 6 / 10.

What is the financial health of OGE ENERGY CORP (OGE) stock?

The financial health rating of OGE ENERGY CORP (OGE) is 1 / 10.

Is the dividend of OGE ENERGY CORP sustainable?

The dividend rating of OGE ENERGY CORP (OGE) is 6 / 10 and the dividend payout ratio is 67.72%.