OGE ENERGY CORP (OGE) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:OGE - US6708371033 - Common Stock
42.69 USD
-0.49 (-1.13%)
42.69 USD
0 (0%)
Overall OGE gets a fundamental rating of 4 out of 10. We evaluated OGE against 46 industry peers in the Electric Utilities industry. OGE has a medium profitability rating, but doesn't score so well on its financial health evaluation. OGE is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
- OGE had positive earnings in the past year.
- OGE had a positive operating cash flow in the past year.
- OGE had positive earnings in 4 of the past 5 years.
- OGE had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
- OGE has a Return On Assets of 3.53%. This is in the better half of the industry: OGE outperforms 78.26% of its industry peers.
- OGE's Return On Equity of 10.49% is in line compared 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.
- Measured over the past 3 years, the Average Return On Invested Capital for OGE is in line with the industry average of 4.58%.
- The 3 year average ROIC (4.95%) for OGE is below the current ROIC(5.41%), indicating increased profibility in the last year.
| 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 has a better Profit Margin (15.28%) than 60.87% of its industry peers.
- In the last couple of years the Profit Margin of OGE has declined.
- Looking at the Operating Margin, with a value of 25.60%, OGE is in the better half of 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 of 61.34%. This is comparable to the rest of the industry: OGE outperforms 50.00% of 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%
2. Health
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so OGE is destroying value.
- Compared to 1 year ago, OGE has more shares outstanding
- The number of shares outstanding for OGE has been increased compared to 5 years ago.
- Compared to 1 year ago, OGE has a worse debt to assets ratio.
2.2 Solvency
- OGE has an Altman-Z score of 1.34. This is a bad value and indicates that OGE is not financially healthy and even has some risk of bankruptcy.
- Looking at the Altman-Z score, with a value of 1.34, OGE belongs to the top of the industry, outperforming 80.43% of the companies in the same industry.
- 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
WACC7.18%
2.3 Liquidity
- A Current Ratio of 0.80 indicates that OGE may have some problems paying its short term obligations.
- The Current ratio of OGE (0.80) is comparable to the rest of the industry.
- OGE has a Quick Ratio of 0.80. This is a bad value and indicates that OGE is not financially healthy enough and could expect problems in meeting its short term obligations.
- OGE has a Quick ratio of 0.52. This is in the lower half of the industry: OGE underperforms 76.09% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.8 | ||
| Quick Ratio | 0.52 |
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.
- The Earnings Per Share has been growing slightly by 0.18% on average over the past years.
- The Revenue has grown by 18.03% in the past year. This is quite good.
- Measured over the past years, OGE shows a small growth in Revenue. The Revenue has been growing by 5.99% on average per year.
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
- Based on estimates for the next years, OGE will show a small growth in Earnings Per Share. The EPS will grow by 6.73% on average per year.
- The Revenue is expected to grow by 5.49% on average over the next years.
EPS Next Y5.35%
EPS Next 2Y5.86%
EPS Next 3Y6.08%
EPS Next 5Y6.73%
Revenue Next Year10.05%
Revenue Next 2Y7.3%
Revenue Next 3Y6.08%
Revenue Next 5Y5.49%
3.3 Evolution
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
- 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.
4. Valuation
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 17.21 indicates a rather expensive valuation of OGE.
- OGE's Price/Earnings is on the same level as the industry average.
- When comparing the Price/Earnings ratio of OGE to the average of the S&P500 Index (27.21), we can say OGE is valued slightly cheaper.
- With a Price/Forward Earnings ratio of 17.40, OGE is valued on the expensive side.
- OGE's Price/Forward Earnings is on the same level as the industry average.
- The average S&P500 Price/Forward Earnings ratio is at 24.26. OGE is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.21 | ||
| Fwd PE | 17.4 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, OGE is valued a bit cheaper than 60.87% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 10.34 |
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)3.22
PEG (5Y)93.73
EPS Next 2Y5.86%
EPS Next 3Y6.08%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 3.89%, OGE has a reasonable but not impressive dividend return.
- Compared to an average industry Dividend Yield of 2.93, OGE pays a bit more dividend than its industry peers.
- OGE's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.89% |
5.2 History
- The dividend of OGE has a limited annual growth rate of 2.43%.
- OGE has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)2.43%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
- OGE pays out 67.72% of its income as dividend. This is not a sustainable payout ratio.
- OGE's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP67.72%
EPS Next 2Y5.86%
EPS Next 3Y6.08%
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 5 / 10 and the dividend payout ratio is 67.72%.