OGE ENERGY CORP (OGE) Stock Fundamental Analysis
NYSE:OGE - New York Stock Exchange, Inc. - US6708371033 - Common Stock - Currency: USD
We assign a fundamental rating of 4 out of 10 to OGE. OGE was compared to 46 industry peers in the Electric Utilities industry. OGE scores excellent on profitability, but there are concerns on its financial health. While showing a medium growth rate, OGE is valued expensive at the moment.
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
OGE has a Return On Assets of 3.22%. This is amongst the best in the industry. OGE outperforms 80.43% of its industry peers.
OGE has a better Return On Equity (9.51%) than 67.39% of its industry peers.
The Return On Invested Capital of OGE (4.97%) is better than 89.13% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for OGE is in line with the industry average of 4.69%.
The 3 year average ROIC (4.95%) for OGE is below the current ROIC(4.97%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.22% | ||
| ROE | 9.51% | ||
| ROIC | 4.97% |
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
Looking at the Profit Margin, with a value of 14.79%, 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 Profit Margin of OGE has declined.
OGE has a Operating Margin of 24.97%. This is in the better half of the industry: OGE outperforms 73.91% of its industry peers.
OGE's Operating Margin has improved in the last couple of years.
OGE has a Gross Margin of 63.94%. This is comparable to the rest of the industry: OGE outperforms 58.70% 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 | 24.97% | ||
| PM (TTM) | 14.79% | ||
| GM | 63.94% |
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
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
The number of shares outstanding for OGE has been increased compared to 5 years ago.
OGE has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.32, we must say that OGE is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.32, OGE belongs to the top of the industry, outperforming 84.78% of the companies in the same industry.
A Debt/Equity ratio of 1.18 is on the high side and indicates that OGE has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 1.18, OGE is in the better half of the industry, outperforming 73.91% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.18 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.32 |
ROIC/WACC0.69
WACC7.22%
2.3 Liquidity
A Current Ratio of 0.73 indicates that OGE may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.73, OGE is in line with its industry, outperforming 58.70% of the companies in the same industry.
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.
OGE has a worse Quick ratio (0.42) than 65.22% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.73 | ||
| Quick Ratio | 0.42 |
3. Growth
3.1 Past
OGE shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 5.80%.
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 11.63%.
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)5.8%
EPS 3Y-2.32%
EPS 5Y0.18%
EPS Q2Q%108.33%
Revenue 1Y (TTM)11.63%
Revenue growth 3Y-6.51%
Revenue growth 5Y5.99%
Sales Q2Q%34.2%
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 6.10% on average per year.
The Revenue is expected to grow by 5.69% on average over the next years.
EPS Next Y5.11%
EPS Next 2Y5.8%
EPS Next 3Y6.15%
EPS Next 5Y6.1%
Revenue Next Year9.77%
Revenue Next 2Y7.27%
Revenue Next 3Y6.2%
Revenue Next 5Y5.69%
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.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 20.48 indicates a rather expensive valuation of OGE.
The rest of the industry has a similar Price/Earnings ratio as OGE.
OGE's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 28.79.
Based on the Price/Forward Earnings ratio of 19.48, the valuation of OGE can be described as rather expensive.
OGE's Price/Forward Earnings is on the same level as the industry average.
OGE's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 21.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.48 | ||
| Fwd PE | 19.48 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, OGE is valued a bit cheaper than 65.22% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 11.02 |
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.
The decent profitability rating of OGE may justify a higher PE ratio.
PEG (NY)4.01
PEG (5Y)111.51
EPS Next 2Y5.8%
EPS Next 3Y6.15%
5. Dividend
5.1 Amount
OGE has a Yearly Dividend Yield of 3.74%.
OGE's Dividend Yield is a higher than the industry average which is at 3.46.
OGE's Dividend Yield is a higher than the S&P500 average which is at 2.51.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.74% |
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.
OGE has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)2.43%
Div Incr Years17
Div Non Decr Years33
5.3 Sustainability
OGE pays out 76.67% 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.
DP76.67%
EPS Next 2Y5.8%
EPS Next 3Y6.15%
44.85
-0.36 (-0.8%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)
Earnings (Next)
Inst Owners74.39%
Inst Owner Change0.28%
Ins Owners0.38%
Ins Owner Change7.96%
Market Cap9.03B
Analysts70
Price Target44.27 (-1.29%)
Short Float %2.35%
Short Ratio3.31
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.74% |
Yearly Dividend1.69
Dividend Growth(5Y)2.43%
DP76.67%
Div Incr Years17
Div Non Decr Years33
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-1.59%
Min EPS beat(2)-4.03%
Max EPS beat(2)0.85%
EPS beat(4)2
Avg EPS beat(4)-3.59%
Min EPS beat(4)-21.37%
Max EPS beat(4)10.17%
EPS beat(8)5
Avg EPS beat(8)2.08%
EPS beat(12)8
Avg EPS beat(12)126.22%
EPS beat(16)12
Avg EPS beat(16)96.79%
Revenue beat(2)1
Avg Revenue beat(2)-0.53%
Min Revenue beat(2)-1.34%
Max Revenue beat(2)0.29%
Revenue beat(4)1
Avg Revenue beat(4)-7.23%
Min Revenue beat(4)-15.22%
Max Revenue beat(4)0.29%
Revenue beat(8)1
Avg Revenue beat(8)-15.34%
Revenue beat(12)3
Avg Revenue beat(12)-3.96%
Revenue beat(16)5
Avg Revenue beat(16)10.83%
PT rev (1m)0.7%
PT rev (3m)5.6%
EPS NQ rev (1m)-2.2%
EPS NQ rev (3m)61.59%
EPS NY rev (1m)0.23%
EPS NY rev (3m)0.61%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)8.27%
Revenue NY rev (1m)-0.72%
Revenue NY rev (3m)5.39%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.48 | ||
| Fwd PE | 19.48 | ||
| P/S | 3.02 | ||
| P/FCF | N/A | ||
| P/OCF | 11.11 | ||
| P/B | 1.95 | ||
| P/tB | 1.95 | ||
| EV/EBITDA | 11.02 |
EPS(TTM)2.19
EY4.88%
EPS(NY)2.3
Fwd EY5.13%
FCF(TTM)-1.38
FCFYN/A
OCF(TTM)4.04
OCFY9%
SpS14.83
BVpS23.05
TBVpS23.05
PEG (NY)4.01
PEG (5Y)111.51
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.22% | ||
| ROE | 9.51% | ||
| ROCE | 5.97% | ||
| ROIC | 4.97% | ||
| ROICexc | 4.97% | ||
| ROICexgc | 4.97% | ||
| OM | 24.97% | ||
| PM (TTM) | 14.79% | ||
| GM | 63.94% | ||
| 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-Score5
Asset Turnover0.22
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.18 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 4.27 | ||
| Cap/Depr | 202.21% | ||
| Cap/Sales | 36.54% | ||
| Interest Coverage | 2.97 | ||
| Cash Conversion | 63.26% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.73 | ||
| Quick Ratio | 0.42 | ||
| Altman-Z | 1.32 |
F-Score5
WACC7.22%
ROIC/WACC0.69
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)5.8%
EPS 3Y-2.32%
EPS 5Y0.18%
EPS Q2Q%108.33%
EPS Next Y5.11%
EPS Next 2Y5.8%
EPS Next 3Y6.15%
EPS Next 5Y6.1%
Revenue 1Y (TTM)11.63%
Revenue growth 3Y-6.51%
Revenue growth 5Y5.99%
Sales Q2Q%34.2%
Revenue Next Year9.77%
Revenue Next 2Y7.27%
Revenue Next 3Y6.2%
Revenue Next 5Y5.69%
EBIT growth 1Y14.63%
EBIT growth 3Y11.05%
EBIT growth 5Y8.13%
EBIT Next Year89.11%
EBIT Next 3Y29.04%
EBIT Next 5Y19.44%
FCF growth 1Y-614.05%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-34.04%
OCF growth 3YN/A
OCF growth 5Y3.59%