ONE GAS INC (OGS) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:OGS - US68235P1084 - Common Stock
77.23 USD
-0.26 (-0.34%)
77.23 USD
0 (0%)
OGS gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 14 industry peers in the Gas Utilities industry. OGS has a medium profitability rating, but doesn't score so well on its financial health evaluation. OGS 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 OGS was profitable.
- OGS had a positive operating cash flow in the past year.
- OGS had positive earnings in each of the past 5 years.
- Of the past 5 years OGS 4 years had a positive operating cash flow.
1.2 Ratios
- OGS has a Return On Assets of 3.00%. This is in the lower half of the industry: OGS underperforms 64.29% of its industry peers.
- OGS's Return On Equity of 8.01% is on the low side compared to the rest of the industry. OGS is outperformed by 64.29% of its industry peers.
- The Return On Invested Capital of OGS (4.84%) is comparable to the rest of the industry.
- The Average Return On Invested Capital over the past 3 years for OGS is in line with the industry average of 6.27%.
- 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 (10.76%) which is comparable to the rest of the industry.
- In the last couple of years the Profit Margin of OGS has remained more or less at the same level.
- OGS has a Operating Margin (18.66%) which is in line with its industry peers.
- OGS's Operating Margin has been stable in the last couple of years.
- The Gross Margin of OGS (59.02%) is comparable to the rest of the industry.
- 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
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), OGS is destroying value.
- The number of shares outstanding for OGS has been increased compared to 1 year ago.
- The number of shares outstanding for OGS has been increased compared to 5 years ago.
- OGS has a worse debt/assets ratio than last year.
2.2 Solvency
- Based on the Altman-Z score of 1.01, we must say that OGS is in the distress zone and has some risk of bankruptcy.
- OGS's Altman-Z score of 1.01 is in line compared to the rest of the industry. OGS outperforms 42.86% of its industry peers.
- OGS has a Debt/Equity ratio of 0.98. This is a neutral value indicating OGS is somewhat dependend on debt financing.
- With a decent Debt to Equity ratio value of 0.98, OGS is doing good in the industry, outperforming 64.29% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.98 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.01 |
ROIC/WACC0.7
WACC6.89%
2.3 Liquidity
- A Current Ratio of 0.47 indicates that OGS may have some problems paying its short term obligations.
- OGS has a worse Current ratio (0.47) than 71.43% of its industry peers.
- A Quick Ratio of 0.26 indicates that OGS may have some problems paying its short term obligations.
- OGS has a worse Quick ratio (0.26) than 85.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.47 | ||
| Quick Ratio | 0.26 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an nice 11.72% over the past year.
- The Earnings Per Share has been growing slightly by 2.18% on average over the past years.
- 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
- OGS is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.85% yearly.
- The Revenue is expected to grow by 2.46% on average over the next years.
EPS Next Y13.06%
EPS Next 2Y10.32%
EPS Next 3Y8.35%
EPS Next 5Y7.85%
Revenue Next Year6.8%
Revenue Next 2Y5.68%
Revenue Next 3Y3.02%
Revenue Next 5Y2.46%
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
- OGS is valuated rather expensively with a Price/Earnings ratio of 18.00.
- Compared to the rest of the industry, the Price/Earnings ratio of OGS is on the same level as its industry peers.
- Compared to an average S&P500 Price/Earnings ratio of 27.21, OGS is valued a bit cheaper.
- With a Price/Forward Earnings ratio of 16.23, OGS is valued correctly.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of OGS is on the same level as its industry peers.
- When comparing the Price/Forward Earnings ratio of OGS to the average of the S&P500 Index (25.98), we can say OGS is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18 | ||
| Fwd PE | 16.23 |
4.2 Price Multiples
- The rest of the industry has a similar Enterprise Value to EBITDA ratio as OGS.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 9.61 |
4.3 Compensation for Growth
- OGS's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
PEG (NY)1.38
PEG (5Y)8.25
EPS Next 2Y10.32%
EPS Next 3Y8.35%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 3.51%, OGS has a reasonable but not impressive dividend return.
- OGS's Dividend Yield is comparable with the industry average which is at 3.96.
- Compared to an average S&P500 Dividend Yield of 1.81, OGS pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.51% |
5.2 History
- The dividend of OGS has a limited annual growth rate of 5.12%.
- OGS has been paying a dividend for at least 10 years, so it has a reliable track record.
- OGS has not decreased their dividend for at least 10 years, which is a reliable track record.
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.
- OGS's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP61.93%
EPS Next 2Y10.32%
EPS Next 3Y8.35%
ONE GAS INC / OGS FAQ
What is the fundamental rating for OGS stock?
ChartMill assigns a fundamental rating of 3 / 10 to OGS.
Can you provide the valuation status for ONE GAS INC?
ChartMill assigns a valuation rating of 3 / 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.
Can you provide the PE and PB ratios for OGS stock?
The Price/Earnings (PE) ratio for ONE GAS INC (OGS) is 18 and the Price/Book (PB) ratio is 1.46.
Can you provide the expected EPS growth for OGS stock?
The Earnings per Share (EPS) of ONE GAS INC (OGS) is expected to grow by 13.06% in the next year.