ONE GAS INC (OGS) Stock Fundamental Analysis
USA - NYSE:OGS - US68235P1084 - Common Stock
81.77 USD
-0.27 (-0.33%)
81.77 USD
0 (0%)
We assign a fundamental rating of 3 out of 10 to OGS. OGS was compared to 14 industry peers in the Gas Utilities industry. There are concerns on the financial health of OGS while its profitability can be described as average. While showing a medium growth rate, OGS is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
OGS had positive earnings in the past year.
In the past year OGS had a positive cash flow from operations.
In the past 5 years OGS has always been profitable.
Of the past 5 years OGS 4 years had a positive operating cash flow.
1.2 Ratios
OGS has a worse Return On Assets (3.00%) than 64.29% of its industry peers.
OGS has a Return On Equity of 8.01%. This is in the lower half of the industry: OGS underperforms 64.29% of its industry peers.
OGS's Return On Invested Capital of 4.84% is in line compared to the rest of the industry. OGS outperforms 42.86% of its industry peers.
OGS had an Average Return On Invested Capital over the past 3 years of 4.53%. This is below the industry average of 8.93%.
The 3 year average ROIC (4.53%) for OGS is below the current ROIC(4.84%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3% | ||
| ROE | 8.01% | ||
| ROIC | 4.84% |
ROA(3y)2.82%
ROA(5y)2.84%
ROE(3y)8.04%
ROE(5y)8.34%
ROIC(3y)4.53%
ROIC(5y)4.31%
1.3 Margins
OGS has a Profit Margin of 10.76%. This is comparable to the rest of the industry: OGS outperforms 50.00% of its industry peers.
OGS's Profit Margin has been stable in the last couple of years.
The Operating Margin of OGS (18.66%) is comparable to the rest of the industry.
OGS's Operating Margin has been stable in the last couple of years.
OGS has a Gross Margin (59.02%) which is in line with its industry peers.
In the last couple of years the Gross Margin of OGS has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 18.66% | ||
| PM (TTM) | 10.76% | ||
| GM | 59.02% |
OM growth 3Y3.74%
OM growth 5Y1.4%
PM growth 3Y-2.14%
PM growth 5Y-1.09%
GM growth 3Y3.11%
GM growth 5Y1.42%
2. Health
2.1 Basic Checks
OGS 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, OGS has more shares outstanding
OGS has more shares outstanding than it did 5 years ago.
The debt/assets ratio for OGS is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.04, we must say that OGS is in the distress zone and has some risk of bankruptcy.
OGS's Altman-Z score of 1.04 is in line compared to the rest of the industry. OGS outperforms 42.86% of its industry peers.
A Debt/Equity ratio of 0.98 indicates that OGS is somewhat dependend on debt financing.
OGS's Debt to Equity ratio of 0.98 is fine compared to the rest of the industry. OGS outperforms 64.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.98 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.04 |
ROIC/WACC0.7
WACC6.89%
2.3 Liquidity
OGS has a Current Ratio of 0.47. This is a bad value and indicates that OGS is not financially healthy enough and could expect problems in meeting its short term obligations.
OGS's Current ratio of 0.47 is on the low side compared to the rest of the industry. OGS is outperformed by 64.29% of its industry peers.
A Quick Ratio of 0.26 indicates that OGS may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.26, OGS is doing worse than 85.71% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.47 | ||
| Quick Ratio | 0.26 |
3. Growth
3.1 Past
OGS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 11.72%, which is quite good.
Measured over the past 5 years, OGS shows a small growth in Earnings Per Share. The EPS has been growing by 2.18% on average per year.
The Revenue has grown by 15.06% in the past year. This is quite good.
OGS shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.74% yearly.
EPS 1Y (TTM)11.72%
EPS 3Y0.52%
EPS 5Y2.18%
EPS Q2Q%29.41%
Revenue 1Y (TTM)15.06%
Revenue growth 3Y4.83%
Revenue growth 5Y4.74%
Sales Q2Q%11.38%
3.2 Future
Based on estimates for the next years, OGS will show a small growth in Earnings Per Share. The EPS will grow by 7.22% on average per year.
The Revenue is expected to grow by 1.19% on average over the next years.
EPS Next Y12.18%
EPS Next 2Y9.06%
EPS Next 3Y7.63%
EPS Next 5Y7.22%
Revenue Next Year6.92%
Revenue Next 2Y5.61%
Revenue Next 3Y2.31%
Revenue Next 5Y1.19%
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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 19.06, the valuation of OGS can be described as rather expensive.
The rest of the industry has a similar Price/Earnings ratio as OGS.
The average S&P500 Price/Earnings ratio is at 26.34. OGS is valued slightly cheaper when compared to this.
The Price/Forward Earnings ratio is 17.58, which indicates a rather expensive current valuation of OGS.
The rest of the industry has a similar Price/Forward Earnings ratio as OGS.
The average S&P500 Price/Forward Earnings ratio is at 34.43. OGS is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.06 | ||
| Fwd PE | 17.58 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of OGS is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 9.97 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
PEG (NY)1.56
PEG (5Y)8.74
EPS Next 2Y9.06%
EPS Next 3Y7.63%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.27%, OGS has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.84, OGS has a dividend in line with its industry peers.
OGS's Dividend Yield is a higher than the S&P500 average which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.27% |
5.2 History
The dividend of OGS has a limited annual growth rate of 5.12%.
OGS has paid a dividend for at least 10 years, which is a reliable track record.
OGS has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)5.12%
Div Incr Years10
Div Non Decr Years10
5.3 Sustainability
OGS pays out 61.93% of its income as dividend. This is not a sustainable payout ratio.
The dividend of OGS is growing, but earnings are growing more, so the dividend growth is sustainable.
DP61.93%
EPS Next 2Y9.06%
EPS Next 3Y7.63%
81.77
-0.27 (-0.33%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryGas Utilities
Earnings (Last)
Earnings (Next)
Inst Owners98.03%
Inst Owner Change-0.39%
Ins Owners0.89%
Ins Owner Change0.67%
Market Cap4.91B
Revenue(TTM)2.37B
Net Income(TTM)254.94M
Analysts74.55
Price Target82.4 (0.77%)
Short Float %7.64%
Short Ratio11.37
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.27% |
Yearly Dividend2.57
Dividend Growth(5Y)5.12%
DP61.93%
Div Incr Years10
Div Non Decr Years10
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)2.13%
Min EPS beat(2)-0.72%
Max EPS beat(2)4.97%
EPS beat(4)2
Avg EPS beat(4)2.39%
Min EPS beat(4)-0.72%
Max EPS beat(4)5.81%
EPS beat(8)2
Avg EPS beat(8)-1.05%
EPS beat(12)4
Avg EPS beat(12)-0.52%
EPS beat(16)5
Avg EPS beat(16)-0.68%
Revenue beat(2)0
Avg Revenue beat(2)-23.72%
Min Revenue beat(2)-26.36%
Max Revenue beat(2)-21.08%
Revenue beat(4)0
Avg Revenue beat(4)-21.05%
Min Revenue beat(4)-35.86%
Max Revenue beat(4)-0.92%
Revenue beat(8)0
Avg Revenue beat(8)-17.67%
Revenue beat(12)2
Avg Revenue beat(12)-2.82%
Revenue beat(16)6
Avg Revenue beat(16)5.11%
PT rev (1m)3.86%
PT rev (3m)4.24%
EPS NQ rev (1m)0.48%
EPS NQ rev (3m)-15.59%
EPS NY rev (1m)0.43%
EPS NY rev (3m)1.14%
Revenue NQ rev (1m)-0.09%
Revenue NQ rev (3m)-0.2%
Revenue NY rev (1m)0.04%
Revenue NY rev (3m)0.04%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.06 | ||
| Fwd PE | 17.58 | ||
| P/S | 2.07 | ||
| P/FCF | N/A | ||
| P/OCF | 8.2 | ||
| P/B | 1.54 | ||
| P/tB | 1.76 | ||
| EV/EBITDA | 9.97 |
EPS(TTM)4.29
EY5.25%
EPS(NY)4.65
Fwd EY5.69%
FCF(TTM)-2.01
FCFYN/A
OCF(TTM)9.97
OCFY12.2%
SpS39.48
BVpS53.04
TBVpS46.38
PEG (NY)1.56
PEG (5Y)8.74
Graham Number71.55
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3% | ||
| ROE | 8.01% | ||
| ROCE | 6.27% | ||
| ROIC | 4.84% | ||
| ROICexc | 4.84% | ||
| ROICexgc | 5.1% | ||
| OM | 18.66% | ||
| PM (TTM) | 10.76% | ||
| GM | 59.02% | ||
| FCFM | N/A |
ROA(3y)2.82%
ROA(5y)2.84%
ROE(3y)8.04%
ROE(5y)8.34%
ROIC(3y)4.53%
ROIC(5y)4.31%
ROICexc(3y)4.55%
ROICexc(5y)4.32%
ROICexgc(3y)4.86%
ROICexgc(5y)4.55%
ROCE(3y)5.68%
ROCE(5y)5.4%
ROICexgc growth 3Y10.43%
ROICexgc growth 5Y-1.12%
ROICexc growth 3Y9.13%
ROICexc growth 5Y-1.63%
OM growth 3Y3.74%
OM growth 5Y1.4%
PM growth 3Y-2.14%
PM growth 5Y-1.09%
GM growth 3Y3.11%
GM growth 5Y1.42%
F-Score6
Asset Turnover0.28
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.98 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 4.13 | ||
| Cap/Depr | 229.42% | ||
| Cap/Sales | 30.35% | ||
| Interest Coverage | 3.11 | ||
| Cash Conversion | 79.22% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.47 | ||
| Quick Ratio | 0.26 | ||
| Altman-Z | 1.04 |
F-Score6
WACC6.89%
ROIC/WACC0.7
Cap/Depr(3y)247.32%
Cap/Depr(5y)244.56%
Cap/Sales(3y)28.5%
Cap/Sales(5y)28.73%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)11.72%
EPS 3Y0.52%
EPS 5Y2.18%
EPS Q2Q%29.41%
EPS Next Y12.18%
EPS Next 2Y9.06%
EPS Next 3Y7.63%
EPS Next 5Y7.22%
Revenue 1Y (TTM)15.06%
Revenue growth 3Y4.83%
Revenue growth 5Y4.74%
Sales Q2Q%11.38%
Revenue Next Year6.92%
Revenue Next 2Y5.61%
Revenue Next 3Y2.31%
Revenue Next 5Y1.19%
EBIT growth 1Y15.76%
EBIT growth 3Y8.75%
EBIT growth 5Y6.21%
EBIT Next Year86.96%
EBIT Next 3Y28.83%
EBIT Next 5Y19.04%
FCF growth 1Y-170.83%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-30.21%
OCF growth 3YN/A
OCF growth 5Y3.49%
ONE GAS INC / OGS FAQ
What is the fundamental rating for OGS stock?
ChartMill assigns a fundamental rating of 3 / 10 to OGS.
What is the valuation status of ONE GAS INC (OGS) stock?
ChartMill assigns a valuation rating of 2 / 10 to ONE GAS INC (OGS). This can be considered as Overvalued.
What is the profitability of OGS stock?
ONE GAS INC (OGS) has a profitability rating of 4 / 10.
What is the valuation of ONE GAS INC based on its PE and PB ratios?
The Price/Earnings (PE) ratio for ONE GAS INC (OGS) is 19.06 and the Price/Book (PB) ratio is 1.54.
What is the expected EPS growth for ONE GAS INC (OGS) stock?
The Earnings per Share (EPS) of ONE GAS INC (OGS) is expected to grow by 12.18% in the next year.