OGE ENERGY CORP (OGE) Stock Fundamental Analysis
NYSE:OGE - New York Stock Exchange, Inc. - US6708371033 - Common Stock - Currency: USD
Taking everything into account, OGE scores 4 out of 10 in our fundamental rating. OGE was compared to 47 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. OGE is valied quite expensively at the moment, while it does show a decent growth rate.
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.
Of the past 5 years OGE 4 years had a positive operating cash flow.
1.2 Ratios
With a decent Return On Assets value of 3.48%, OGE is doing good in the industry, outperforming 72.34% of the companies in the same industry.
Looking at the Return On Equity, with a value of 10.52%, OGE is in the better half of the industry, outperforming 61.70% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 5.22%, OGE is in the better half of the industry, outperforming 72.34% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for OGE is significantly below the industry average of 38.54%.
The 3 year average ROIC (4.95%) for OGE is below the current ROIC(5.22%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.48% | ||
| ROE | 10.52% | ||
| ROIC | 5.22% |
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
The Profit Margin of OGE (15.48%) is better than 65.96% of its industry peers.
OGE's Profit Margin has declined in the last couple of years.
With a decent Operating Margin value of 25.66%, OGE is doing good in the industry, outperforming 70.21% of the companies in the same industry.
OGE's Operating Margin has improved in the last couple of years.
The Gross Margin of OGE (62.75%) is comparable to the rest of the industry.
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 | 25.66% | ||
| PM (TTM) | 15.48% | ||
| GM | 62.75% |
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
OGE has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it 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 1.30. This is a bad value and indicates that OGE is not financially healthy and even has some risk of bankruptcy.
With a decent Altman-Z score value of 1.30, OGE is doing good in the industry, outperforming 76.60% of the companies in the same industry.
OGE has a Debt/Equity ratio of 1.28. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of OGE (1.28) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.28 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.3 |
ROIC/WACC0.72
WACC7.23%
2.3 Liquidity
A Current Ratio of 0.73 indicates that OGE may have some problems paying its short term obligations.
With a Current ratio value of 0.73, OGE is not doing good in the industry: 74.47% of the companies in the same industry are doing better.
OGE has a Quick Ratio of 0.73. This is a bad value and indicates that OGE is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.47, OGE is doing worse than 78.72% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.73 | ||
| Quick Ratio | 0.47 |
3. Growth
3.1 Past
OGE shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 22.34%, which is quite impressive.
The Earnings Per Share has been growing slightly by 0.18% on average over the past years.
OGE shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 15.56%.
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)22.34%
EPS 3Y-2.32%
EPS 5Y0.18%
EPS Q2Q%244.44%
Revenue 1Y (TTM)15.56%
Revenue growth 3Y-6.51%
Revenue growth 5Y5.99%
Sales Q2Q%25.28%
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 6.21% on average per year.
Based on estimates for the next years, OGE will show a small growth in Revenue. The Revenue will grow by 5.31% on average per year.
EPS Next Y5.03%
EPS Next 2Y5.72%
EPS Next 3Y6.07%
EPS Next 5Y6.21%
Revenue Next Year10.77%
Revenue Next 2Y7.72%
Revenue Next 3Y6.57%
Revenue Next 5Y5.31%
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 18.46 indicates a rather expensive valuation of OGE.
Compared to the rest of the industry, the Price/Earnings ratio of OGE is on the same level as its industry peers.
When comparing the Price/Earnings ratio of OGE to the average of the S&P500 Index (27.45), we can say OGE is valued slightly cheaper.
Based on the Price/Forward Earnings ratio of 18.17, the valuation of OGE can be described as rather expensive.
Based on the Price/Forward Earnings ratio, OGE is valued a bit more expensive than 65.96% of the companies in the same industry.
OGE is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 21.90, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.46 | ||
| Fwd PE | 18.17 |
4.2 Price Multiples
OGE's Enterprise Value to EBITDA is on the same level as the industry average.
| 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 an expensive valuation of the company.
OGE has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)3.67
PEG (5Y)100.49
EPS Next 2Y5.72%
EPS Next 3Y6.07%
5. Dividend
5.1 Amount
OGE has a Yearly Dividend Yield of 3.79%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.64, OGE pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.38, OGE pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.79% |
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 69.85% 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.
DP69.85%
EPS Next 2Y5.72%
EPS Next 3Y6.07%
44.48
+0.25 (+0.57%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)
Earnings (Next)
Inst Owners74.75%
Inst Owner Change1.18%
Ins Owners0.44%
Ins Owner Change7.37%
Market Cap8.96B
Analysts73.33
Price Target46.37 (4.25%)
Short Float %2.68%
Short Ratio4.95
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.79% |
Yearly Dividend1.69
Dividend Growth(5Y)2.43%
DP69.85%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)12.23%
Min EPS beat(2)0.85%
Max EPS beat(2)23.62%
EPS beat(4)3
Avg EPS beat(4)7.65%
Min EPS beat(4)-4.03%
Max EPS beat(4)23.62%
EPS beat(8)5
Avg EPS beat(8)3.28%
EPS beat(12)8
Avg EPS beat(12)88.44%
EPS beat(16)12
Avg EPS beat(16)96.9%
Revenue beat(2)2
Avg Revenue beat(2)3.05%
Min Revenue beat(2)0.29%
Max Revenue beat(2)5.82%
Revenue beat(4)2
Avg Revenue beat(4)-1.97%
Min Revenue beat(4)-12.64%
Max Revenue beat(4)5.82%
Revenue beat(8)2
Avg Revenue beat(8)-14.5%
Revenue beat(12)4
Avg Revenue beat(12)0.61%
Revenue beat(16)5
Avg Revenue beat(16)-3.62%
PT rev (1m)1.22%
PT rev (3m)4.75%
EPS NQ rev (1m)-2.14%
EPS NQ rev (3m)4.9%
EPS NY rev (1m)-0.06%
EPS NY rev (3m)-0.06%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.13%
Revenue NY rev (1m)-0.71%
Revenue NY rev (3m)0.19%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.46 | ||
| Fwd PE | 18.17 | ||
| P/S | 2.86 | ||
| P/FCF | N/A | ||
| P/OCF | 12.01 | ||
| P/B | 1.94 | ||
| P/tB | 1.94 | ||
| EV/EBITDA | 10.39 |
EPS(TTM)2.41
EY5.42%
EPS(NY)2.45
Fwd EY5.5%
FCF(TTM)-1.83
FCFYN/A
OCF(TTM)3.7
OCFY8.33%
SpS15.58
BVpS22.93
TBVpS22.93
PEG (NY)3.67
PEG (5Y)100.49
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.48% | ||
| ROE | 10.52% | ||
| ROCE | 6.4% | ||
| ROIC | 5.22% | ||
| ROICexc | 5.23% | ||
| ROICexgc | 5.23% | ||
| OM | 25.66% | ||
| PM (TTM) | 15.48% | ||
| GM | 62.75% | ||
| FCFM | N/A |
ROA(3y)3.93%
ROA(5y)3.2%
ROE(3y)11.28%
ROE(5y)9.45%
ROIC(3y)4.95%
ROIC(5y)4.65%
ROICexc(3y)4.96%
ROICexc(5y)4.65%
ROICexgc(3y)4.96%
ROICexgc(5y)4.65%
ROCE(3y)5.87%
ROCE(5y)5.51%
ROICexcg growth 3Y8.26%
ROICexcg growth 5Y3.63%
ROICexc growth 3Y8.26%
ROICexc growth 5Y3.63%
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%
F-Score6
Asset Turnover0.22
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.28 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 4.35 | ||
| Cap/Depr | 203.31% | ||
| Cap/Sales | 35.5% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 55.14% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.73 | ||
| Quick Ratio | 0.47 | ||
| Altman-Z | 1.3 |
F-Score6
WACC7.23%
ROIC/WACC0.72
Cap/Depr(3y)220.93%
Cap/Depr(5y)203.23%
Cap/Sales(3y)37.24%
Cap/Sales(5y)32.74%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)22.34%
EPS 3Y-2.32%
EPS 5Y0.18%
EPS Q2Q%244.44%
EPS Next Y5.03%
EPS Next 2Y5.72%
EPS Next 3Y6.07%
EPS Next 5Y6.21%
Revenue 1Y (TTM)15.56%
Revenue growth 3Y-6.51%
Revenue growth 5Y5.99%
Sales Q2Q%25.28%
Revenue Next Year10.77%
Revenue Next 2Y7.72%
Revenue Next 3Y6.57%
Revenue Next 5Y5.31%
EBIT growth 1Y24.22%
EBIT growth 3Y11.05%
EBIT growth 5Y8.13%
EBIT Next Year89.51%
EBIT Next 3Y29.04%
EBIT Next 5Y19.56%
FCF growth 1Y-99.03%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-19.99%
OCF growth 3YN/A
OCF growth 5Y3.59%