OGE gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 46 industry peers in the Electric Utilities industry. While OGE is still in line with the averages on profitability rating, there are concerns on its financial health. While showing a medium growth rate, OGE is valued expensive at the moment.

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1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

1. Profitability

1.1 Basic Checks

OGE had positive earnings in the past year.
In the past year OGE had a positive cash flow from operations.
Of the past 5 years OGE 4 years were profitable.
Of the past 5 years OGE 4 years had a positive operating cash flow.

1.2 Ratios

The Return On Assets of OGE (3.53%) is better than 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.
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 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.
The Operating Margin of OGE (25.60%) is better than 69.57% of its industry peers.
OGE's Operating Margin has improved in the last couple of years.
OGE's Gross Margin of 61.34% is in line compared to the rest of the industry. OGE outperforms 50.00% of its industry peers.
OGE's Gross Margin has been stable in the last couple of years.

		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

With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), OGE is destroying value.
Compared to 1 year ago, OGE has more shares outstanding
Compared to 5 years ago, OGE has more shares outstanding
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.
OGE has a Altman-Z score of 1.34. This is amongst the best in the industry. OGE outperforms 80.43% of its industry peers.
A Debt/Equity ratio of 1.22 is on the high side and indicates that OGE has dependencies on debt financing.
The Debt to Equity ratio of OGE (1.22) is better than 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.
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.
The Quick ratio of OGE (0.52) is worse than 76.09% of its industry peers.

		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

The Earnings Per Share has grown by an impressive 28.50% over the past year.
Measured over the past 5 years, OGE shows a small growth in Earnings Per Share. The EPS has been growing by 0.18% on average per year.
OGE shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 18.03%.
OGE shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.99% yearly.

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.
OGE is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.49% yearly.

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

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.

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4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 17.53, 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 28.39. OGE is valued slightly cheaper when compared to this.
OGE is valuated rather expensively with a Price/Forward Earnings ratio of 17.72.
OGE's Price/Forward Earnings ratio is in line with the industry average.
The average S&P500 Price/Forward Earnings ratio is at 25.72. OGE is valued slightly cheaper when compared to this.

		Industry Rank	Sector Rank
PE	17.53
Fwd PE	17.72

4.2 Price Multiples

OGE's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. OGE is 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)3.08

PEG (5Y)95.46

EPS Next 2Y5.86%

EPS Next 3Y6.1%

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5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 3.94%, OGE has a reasonable but not impressive dividend return.
OGE's Dividend Yield is rather good when compared to the industry average which is at 2.90. OGE pays more dividend than 80.43% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 1.82, OGE pays a better dividend.

		Industry Rank	Sector Rank
Dividend Yield	3.94%

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.
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%.