ONE GAS INC (OGS)
US68235P1084 - Common Stock
We assign a fundamental rating of 2 out of 10 to OGS. OGS was compared to 13 industry peers in the Gas Utilities industry. Both the profitability and financial health of OGS have multiple concerns. OGS is valued expensive and it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year OGS was profitable.
In the past year OGS had a positive cash flow from operations.
In the past 5 years OGS has always been profitable.
OGS had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
The Return On Assets of OGS (2.84%) is worse than 69.23% of its industry peers.
OGS has a worse Return On Equity (7.87%) than 61.54% of its industry peers.
Looking at the Return On Invested Capital, with a value of 4.30%, OGS is doing worse than 69.23% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for OGS is below the industry average of 6.26%.
The 3 year average ROIC (4.12%) for OGS is below the current ROIC(4.30%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.84% | ||
| ROE | 7.87% | ||
| ROIC | 4.3% |
ROA(3y)2.76%
ROA(5y)2.96%
ROE(3y)8.57%
ROE(5y)8.66%
ROIC(3y)4.12%
ROIC(5y)4.3%
1.3 Margins
OGS has a Profit Margin of 10.83%. This is comparable to the rest of the industry: OGS outperforms 53.85% of its industry peers.
OGS's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 18.48%, OGS is in line with its industry, outperforming 53.85% of the companies in the same industry.
OGS's Operating Margin has declined in the last couple of years.
OGS's Gross Margin of 61.38% is in line compared to the rest of the industry. OGS outperforms 53.85% of its industry peers.
OGS's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 18.48% | ||
| PM (TTM) | 10.83% | ||
| GM | 61.38% |
OM growth 3Y-7.07%
OM growth 5Y-2.05%
PM growth 3Y-8.76%
PM growth 5Y-1.55%
GM growth 3Y-7.01%
GM growth 5Y-1.5%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so 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.
The debt/assets ratio for OGS has been reduced compared to a year ago.
2.2 Solvency
OGS has an Altman-Z score of 0.91. This is a bad value and indicates that OGS is not financially healthy and even has some risk of bankruptcy.
OGS has a Altman-Z score (0.91) which is in line with its industry peers.
A Debt/Equity ratio of 1.12 is on the high side and indicates that OGS has dependencies on debt financing.
The Debt to Equity ratio of OGS (1.12) is better than 69.23% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.12 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.91 |
ROIC/WACC0.72
WACC5.98%
2.3 Liquidity
A Current Ratio of 0.41 indicates that OGS may have some problems paying its short term obligations.
OGS has a worse Current ratio (0.41) than 84.62% of its industry peers.
A Quick Ratio of 0.26 indicates that OGS may have some problems paying its short term obligations.
OGS's Quick ratio of 0.26 is on the low side compared to the rest of the industry. OGS is outperformed by 92.31% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.41 | ||
| Quick Ratio | 0.26 |
3. Growth
3.1 Past
The earnings per share for OGS have decreased by -3.42% in the last year.
Measured over the past 5 years, OGS shows a small growth in Earnings Per Share. The EPS has been growing by 4.90% on average per year.
The Revenue for OGS has decreased by -21.23% in the past year. This is quite bad
The Revenue has been growing slightly by 7.74% on average over the past years.
EPS 1Y (TTM)-3.42%
EPS 3Y4%
EPS 5Y4.9%
EPS Q2Q%-17.24%
Revenue 1Y (TTM)-21.23%
Revenue growth 3Y15.73%
Revenue growth 5Y7.74%
Sales Q2Q%-11.05%
3.2 Future
The Earnings Per Share is expected to grow by 4.30% on average over the next years.
The Revenue is expected to grow by 2.13% on average over the next years.
EPS Next Y-5.68%
EPS Next 2Y1.14%
EPS Next 3Y3.62%
EPS Next 5Y4.3%
Revenue Next Year-8.6%
Revenue Next 2Y-0.6%
Revenue Next 3Y1.21%
Revenue Next 5Y2.13%
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 stable.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 17.71, the valuation of OGS can be described as rather expensive.
Based on the Price/Earnings ratio, OGS is valued a bit more expensive than 61.54% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 30.20. OGS is valued slightly cheaper when compared to this.
OGS is valuated correctly with a Price/Forward Earnings ratio of 16.52.
Compared to the rest of the industry, the Price/Forward Earnings ratio of OGS is on the same level as its industry peers.
OGS is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 23.28, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.71 | ||
| Fwd PE | 16.52 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of OGS indicates a somewhat cheap valuation: OGS is cheaper than 61.54% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 9.16 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)3.62
EPS Next 2Y1.14%
EPS Next 3Y3.62%
5. Dividend
5.1 Amount
OGS has a Yearly Dividend Yield of 3.70%. Purely for dividend investing, there may be better candidates out there.
OGS's Dividend Yield is slightly below the industry average, which is at 4.29.
OGS's Dividend Yield is rather good when compared to the S&P500 average which is at 2.26.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.7% |
5.2 History
The dividend of OGS is nicely growing with an annual growth rate of 6.95%!
OGS has been paying a dividend for at least 10 years, so it has a reliable track record.
OGS has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.
Dividend Growth(5Y)6.95%
Div Incr Years9
Div Non Decr Years9
5.3 Sustainability
OGS pays out 65.96% of its income as dividend. This is not a sustainable payout ratio.
OGS's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP65.96%
EPS Next 2Y1.14%
EPS Next 3Y3.62%
ONE GAS INC
NYSE:OGS (11/4/2024, 8:27:48 PM)
After market: 69.97 0 (0%)69.97
-0.07 (-0.1%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryGas Utilities
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap3.96B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.7% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.71 | ||
| Fwd PE | 16.52 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)3.62
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.84% | ||
| ROE | 7.87% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 18.48% | ||
| PM (TTM) | 10.83% | ||
| GM | 61.38% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.26
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.12 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.41 | ||
| Quick Ratio | 0.26 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)-3.42%
EPS 3Y4%
EPS 5Y
EPS Q2Q%
EPS Next Y-5.68%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-21.23%
Revenue growth 3Y15.73%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y