ONE GAS INC (OGS) Stock Fundamental Analysis
NYSE:OGS - New York Stock Exchange, Inc. - US68235P1084 - Common Stock - Currency: USD
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 does not seem to be growing, but still is valued expensively.
1. Profitability
1.1 Basic Checks
In the past year OGS was profitable.
OGS had a positive operating cash flow in the past year.
Each year in the past 5 years OGS has been profitable.
OGS had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
OGS has a Return On Assets (2.69%) which is comparable to the rest of the industry.
OGS has a Return On Equity (7.70%) which is in line with its industry peers.
OGS has a Return On Invested Capital of 4.21%. This is in the lower half of the industry: OGS underperforms 71.43% of its industry peers.
The Average Return On Invested Capital over the past 3 years for OGS is below the industry average of 7.81%.
The last Return On Invested Capital (4.21%) for OGS is above the 3 year average (4.12%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.69% | ||
| ROE | 7.7% | ||
| ROIC | 4.21% |
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 10.52%. This is in the better half of the industry: OGS outperforms 71.43% of its industry peers.
OGS's Profit Margin has declined in the last couple of years.
OGS has a Operating Margin (18.55%) which is comparable to the rest of the industry.
OGS's Operating Margin has declined in the last couple of years.
The Gross Margin of OGS (62.01%) is comparable to the rest of the industry.
OGS's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 18.55% | ||
| PM (TTM) | 10.52% | ||
| GM | 62.01% |
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.
OGS has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, OGS has more shares outstanding
Compared to 1 year ago, OGS has an improved debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 0.90, we must say that OGS is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of 0.90, OGS perfoms like the industry average, outperforming 42.86% of the companies in the same industry.
A Debt/Equity ratio of 1.19 is on the high side and indicates that OGS has dependencies on debt financing.
With a decent Debt to Equity ratio value of 1.19, OGS is doing good in the industry, outperforming 64.29% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.19 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.9 |
ROIC/WACC0.69
WACC6.09%
2.3 Liquidity
OGS has a Current Ratio of 0.50. 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 0.50 is on the low side compared to the rest of the industry. OGS is outperformed by 64.29% of its industry peers.
OGS has a Quick Ratio of 0.50. This is a bad value and indicates that OGS is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.30, OGS is doing worse than 78.57% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.5 | ||
| Quick Ratio | 0.3 |
3. Growth
3.1 Past
The earnings per share for OGS have decreased by -6.34% in the last year.
OGS shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 4.90% yearly.
OGS shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -20.33%.
Measured over the past years, OGS shows a small growth in Revenue. The Revenue has been growing by 7.74% on average per year.
EPS 1Y (TTM)-6.34%
EPS 3Y4%
EPS 5Y4.9%
EPS Q2Q%-24.44%
Revenue 1Y (TTM)-20.33%
Revenue growth 3Y15.73%
Revenue growth 5Y7.74%
Sales Q2Q%1.36%
3.2 Future
OGS is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 4.01% yearly.
The Revenue is expected to grow by 1.42% on average over the next years.
EPS Next Y-5.06%
EPS Next 2Y1.91%
EPS Next 3Y2.97%
EPS Next 5Y4.01%
Revenue Next Year-2.93%
Revenue Next 2Y2.16%
Revenue Next 3Y0.88%
Revenue Next 5Y1.42%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
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
A Price/Earnings ratio of 18.49 indicates a rather expensive valuation of OGS.
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 28.58, OGS is valued a bit cheaper.
The Price/Forward Earnings ratio is 16.51, which indicates a correct valuation of OGS.
OGS's Price/Forward Earnings is on the same level as the industry average.
When comparing the Price/Forward Earnings ratio of OGS to the average of the S&P500 Index (95.03), we can say OGS is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.49 | ||
| Fwd PE | 16.51 |
4.2 Price Multiples
OGS's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. OGS is cheaper than 64.29% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 9.44 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)3.78
EPS Next 2Y1.91%
EPS Next 3Y2.97%
5. Dividend
5.1 Amount
OGS has a Yearly Dividend Yield of 3.80%.
Compared to an average industry Dividend Yield of 3.89, OGS has a dividend in line with its industry peers.
OGS's Dividend Yield is rather good when compared to the S&P500 average which is at 2.28.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.8% |
5.2 History
On average, the dividend of OGS grows each year by 6.95%, which is quite nice.
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)6.95%
Div Incr Years10
Div Non Decr Years10
5.3 Sustainability
OGS pays out 68.41% of its income as dividend. This is not a sustainable payout ratio.
The dividend of OGS is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP68.41%
EPS Next 2Y1.91%
EPS Next 3Y2.97%
ONE GAS INC
NYSE:OGS (2/5/2025, 8:18:31 PM)
After market: 71 0 (0%)71
+0.74 (+1.05%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryGas Utilities
Earnings (Last)
Earnings (Next)
Inst Owners95.54%
Inst Owner Change-0.4%
Ins Owners0.9%
Ins Owner Change0%
Market Cap4.02B
Analysts69.23
Price Target75.76 (6.7%)
Short Float %4.58%
Short Ratio6.14
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.8% |
Yearly Dividend2.58
Dividend Growth(5Y)6.95%
DP68.41%
Div Incr Years10
Div Non Decr Years10
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-7.79%
Min EPS beat(2)-13.24%
Max EPS beat(2)-2.35%
EPS beat(4)0
Avg EPS beat(4)-4.5%
Min EPS beat(4)-13.24%
Max EPS beat(4)-0.86%
EPS beat(8)2
Avg EPS beat(8)-1.97%
EPS beat(12)3
Avg EPS beat(12)-1.7%
EPS beat(16)5
Avg EPS beat(16)-0.9%
Revenue beat(2)0
Avg Revenue beat(2)-4.35%
Min Revenue beat(2)-5.54%
Max Revenue beat(2)-3.16%
Revenue beat(4)0
Avg Revenue beat(4)-14.29%
Min Revenue beat(4)-28.26%
Max Revenue beat(4)-3.16%
Revenue beat(8)2
Avg Revenue beat(8)6.29%
Revenue beat(12)6
Avg Revenue beat(12)13.83%
Revenue beat(16)10
Avg Revenue beat(16)12.13%
PT rev (1m)0.75%
PT rev (3m)4.41%
EPS NQ rev (1m)-0.82%
EPS NQ rev (3m)12.42%
EPS NY rev (1m)0.04%
EPS NY rev (3m)0.66%
Revenue NQ rev (1m)44.65%
Revenue NQ rev (3m)43.73%
Revenue NY rev (1m)-0.08%
Revenue NY rev (3m)6.2%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.49 | ||
| Fwd PE | 16.51 | ||
| P/S | 1.95 | ||
| P/FCF | N/A | ||
| P/OCF | 9.99 | ||
| P/B | 1.43 | ||
| P/tB | 1.69 | ||
| EV/EBITDA | 9.44 |
EPS(TTM)3.84
EY5.41%
EPS(NY)4.3
Fwd EY6.06%
FCF(TTM)-5.24
FCFYN/A
OCF(TTM)7.11
OCFY10.01%
SpS36.34
BVpS49.64
TBVpS42.04
PEG (NY)N/A
PEG (5Y)3.78
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.69% | ||
| ROE | 7.7% | ||
| ROCE | 5.74% | ||
| ROIC | 4.21% | ||
| ROICexc | 4.22% | ||
| ROICexgc | 4.48% | ||
| OM | 18.55% | ||
| PM (TTM) | 10.52% | ||
| GM | 62.01% | ||
| FCFM | N/A |
ROA(3y)2.76%
ROA(5y)2.96%
ROE(3y)8.57%
ROE(5y)8.66%
ROIC(3y)4.12%
ROIC(5y)4.3%
ROICexc(3y)4.13%
ROICexc(5y)4.31%
ROICexgc(3y)4.38%
ROICexgc(5y)4.51%
ROCE(3y)5.16%
ROCE(5y)5.48%
ROICexcg growth 3Y4.89%
ROICexcg growth 5Y1.61%
ROICexc growth 3Y3.32%
ROICexc growth 5Y0.76%
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%
F-Score5
Asset Turnover0.26
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.19 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 4.94 | ||
| Cap/Depr | 238.17% | ||
| Cap/Sales | 34% | ||
| Interest Coverage | 3.39 | ||
| Cash Conversion | 59.61% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.5 | ||
| Quick Ratio | 0.3 | ||
| Altman-Z | 0.9 |
F-Score5
WACC6.09%
ROIC/WACC0.69
Cap/Depr(3y)247.99%
Cap/Depr(5y)243.42%
Cap/Sales(3y)26.38%
Cap/Sales(5y)27.03%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-6.34%
EPS 3Y4%
EPS 5Y4.9%
EPS Q2Q%-24.44%
EPS Next Y-5.06%
EPS Next 2Y1.91%
EPS Next 3Y2.97%
EPS Next 5Y4.01%
Revenue 1Y (TTM)-20.33%
Revenue growth 3Y15.73%
Revenue growth 5Y7.74%
Sales Q2Q%1.36%
Revenue Next Year-2.93%
Revenue Next 2Y2.16%
Revenue Next 3Y0.88%
Revenue Next 5Y1.42%
EBIT growth 1Y2.1%
EBIT growth 3Y7.55%
EBIT growth 5Y5.54%
EBIT Next Year81.16%
EBIT Next 3Y28.87%
EBIT Next 5Y18.66%
FCF growth 1Y-129.11%
FCF growth 3YN/A
FCF growth 5Y30.11%
OCF growth 1Y-74.52%
OCF growth 3Y37.11%
OCF growth 5Y14.97%