OGE ENERGY CORP (OGE) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:OGE - US6708371033 - Common Stock
43.51 USD
-0.35 (-0.8%)
43.51 USD
0 (0%)
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. While showing a medium growth rate, OGE is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
- In the past year OGE was profitable.
- OGE had a positive operating cash flow in the past year.
- OGE had positive earnings in 4 of the past 5 years.
- Of the past 5 years OGE 4 years had a positive operating cash flow.
1.2 Ratios
- OGE's Return On Assets of 3.53% is fine compared to the rest of the industry. OGE outperforms 78.26% of its industry peers.
- Looking at the Return On Equity, with a value of 10.49%, OGE is in line with its industry, outperforming 54.35% of the companies in the same industry.
- OGE's Return On Invested Capital of 5.41% is amongst the best of the industry. OGE outperforms 84.78% of its industry peers.
- 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 4.58%.
- 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 has a Profit Margin of 15.28%. This is in the better half of the industry: OGE outperforms 60.87% of its industry peers.
- OGE's Profit Margin has declined in the last couple of years.
- 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.
- OGE's Operating Margin has improved in the last couple of years.
- OGE has a Gross Margin (61.34%) which 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 | 25.6% | ||
| 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.
- OGE has more shares outstanding than it did 1 year ago.
- OGE has more shares outstanding than it did 5 years ago.
- The debt/assets ratio for OGE is higher compared to a year ago.
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.
- With an excellent Altman-Z score value of 1.34, OGE belongs to the best 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.
- 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
WACC7.19%
2.3 Liquidity
- OGE has a Current 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's Current ratio of 0.80 is in line compared to the rest of the industry. OGE outperforms 54.35% of its industry peers.
- A Quick Ratio of 0.52 indicates that OGE may have some problems paying 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.
- 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
- 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.
- 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
- 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.
4. Valuation
4.1 Price/Earnings Ratio
- OGE is valuated rather expensively with a Price/Earnings ratio of 17.54.
- OGE's Price/Earnings is on the same level as the industry average.
- Compared to an average S&P500 Price/Earnings ratio of 28.60, OGE is valued a bit cheaper.
- The Price/Forward Earnings ratio is 17.73, which indicates a rather expensive current valuation of OGE.
- 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 (25.83), we can say OGE is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.54 | ||
| Fwd PE | 17.73 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, OGE is valued a bit cheaper than the industry average as 63.04% of the companies are valued more expensively.
| 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.
- The decent profitability rating of OGE may justify a higher PE ratio.
PEG (NY)3.09
PEG (5Y)95.53
EPS Next 2Y5.86%
EPS Next 3Y6.1%
5. Dividend
5.1 Amount
- OGE has a Yearly Dividend Yield of 3.94%. Purely for dividend investing, there may be better candidates out there.
- 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 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
- 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%
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%.