ONE GAS INC (OGS) Stock Fundamental Analysis
NYSE:OGS - New York Stock Exchange, Inc. - US68235P1084 - Common Stock - Currency: USD
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. 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.
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's Return On Assets of 2.92% is in line compared to the rest of the industry. OGS outperforms 42.86% of its industry peers.
OGS has a Return On Equity of 7.63%. This is comparable to the rest of the industry: OGS outperforms 42.86% of its industry peers.
OGS has a worse Return On Invested Capital (4.72%) than 71.43% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for OGS is in line with the industry average of 6.29%.
The last Return On Invested Capital (4.72%) for OGS is above the 3 year average (4.53%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.92% | ||
| ROE | 7.63% | ||
| ROIC | 4.72% |
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 10.75%. This is in the better half of the industry: OGS outperforms 71.43% of its industry peers.
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 (19.19%) which is in line with its industry peers.
OGS's Operating Margin has been stable in the last couple of years.
With a Gross Margin value of 59.84%, OGS perfoms like the industry average, outperforming 42.86% of the companies in the same industry.
OGS's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 19.19% | ||
| PM (TTM) | 10.75% | ||
| GM | 59.84% |
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.
OGS has more shares outstanding than it did 1 year ago.
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
OGS has an Altman-Z score of 1.02. 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 (1.02) which is comparable to the rest of the industry.
OGS has a Debt/Equity ratio of 1.00. This is a neutral value indicating OGS is somewhat dependend on debt financing.
OGS has a Debt to Equity ratio of 1.00. This is in the better half of the industry: OGS outperforms 64.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.02 |
ROIC/WACC0.58
WACC8.1%
2.3 Liquidity
OGS has a Current Ratio of 0.59. This is a bad value and indicates that OGS is not financially healthy enough and could expect problems in meeting its short term obligations.
The Current ratio of OGS (0.59) is comparable to the rest of the industry.
A Quick Ratio of 0.47 indicates that OGS may have some problems paying its short term obligations.
With a Quick ratio value of 0.47, OGS is not doing good in the industry: 71.43% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.59 | ||
| Quick Ratio | 0.47 |
3. Growth
3.1 Past
OGS shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 2.22%.
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.
OGS shows a small growth in Revenue. In the last year, the Revenue has grown by 7.74%.
Measured over the past years, OGS shows a small growth in Revenue. The Revenue has been growing by 4.74% on average per year.
EPS 1Y (TTM)2.22%
EPS 3Y0.52%
EPS 5Y2.18%
EPS Q2Q%13.14%
Revenue 1Y (TTM)7.74%
Revenue growth 3Y4.83%
Revenue growth 5Y4.74%
Sales Q2Q%23.32%
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 6.16% on average per year.
The Revenue is expected to grow by 2.61% on average over the next years.
EPS Next Y10.74%
EPS Next 2Y7.53%
EPS Next 3Y6.25%
EPS Next 5Y6.16%
Revenue Next Year5.64%
Revenue Next 2Y4.9%
Revenue Next 3Y1.75%
Revenue Next 5Y2.61%
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 accelerating.
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
With a Price/Earnings ratio of 17.57, OGS is valued on the expensive side.
OGS's Price/Earnings ratio is in line with the industry average.
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 16.09, 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.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.70, OGS is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.57 | ||
| Fwd PE | 16.09 |
4.2 Price Multiples
71.43% of the companies in the same industry are more expensive than OGS, based on the Enterprise Value to EBITDA ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 9.09 |
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)1.64
PEG (5Y)8.05
EPS Next 2Y7.53%
EPS Next 3Y6.25%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.71%, OGS has a reasonable but not impressive dividend return.
OGS's Dividend Yield is comparable with the industry average which is at 4.00.
OGS's Dividend Yield is rather good when compared to the S&P500 average which is at 2.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.71% |
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 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
62.68% of the earnings are spent on dividend by OGS. This is not a sustainable payout ratio.
OGS's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP62.68%
EPS Next 2Y7.53%
EPS Next 3Y6.25%
72.75
+0.89 (+1.24%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryGas Utilities
Earnings (Last)
Earnings (Next)
Inst Owners94.91%
Inst Owner Change1.71%
Ins Owners1.02%
Ins Owner Change2.27%
Market Cap4.36B
Analysts72.31
Price Target78.77 (8.27%)
Short Float %8.76%
Short Ratio7.54
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.71% |
Yearly Dividend2.57
Dividend Growth(5Y)5.12%
DP62.68%
Div Incr Years10
Div Non Decr Years10
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)2.66%
Min EPS beat(2)-0.49%
Max EPS beat(2)5.81%
EPS beat(4)1
Avg EPS beat(4)-2.57%
Min EPS beat(4)-13.24%
Max EPS beat(4)5.81%
EPS beat(8)2
Avg EPS beat(8)-1.11%
EPS beat(12)4
Avg EPS beat(12)-0.66%
EPS beat(16)5
Avg EPS beat(16)-0.54%
Revenue beat(2)0
Avg Revenue beat(2)-18.39%
Min Revenue beat(2)-35.86%
Max Revenue beat(2)-0.92%
Revenue beat(4)0
Avg Revenue beat(4)-11.37%
Min Revenue beat(4)-35.86%
Max Revenue beat(4)-0.92%
Revenue beat(8)0
Avg Revenue beat(8)-15.31%
Revenue beat(12)4
Avg Revenue beat(12)5.83%
Revenue beat(16)8
Avg Revenue beat(16)9.42%
PT rev (1m)1.98%
PT rev (3m)4.59%
EPS NQ rev (1m)0%
EPS NQ rev (3m)1.15%
EPS NY rev (1m)0.23%
EPS NY rev (3m)0.87%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)24.71%
Revenue NY rev (1m)-1.85%
Revenue NY rev (3m)-3.26%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.57 | ||
| Fwd PE | 16.09 | ||
| P/S | 1.93 | ||
| P/FCF | N/A | ||
| P/OCF | 8.11 | ||
| P/B | 1.37 | ||
| P/tB | 1.57 | ||
| EV/EBITDA | 9.09 |
EPS(TTM)4.14
EY5.69%
EPS(NY)4.52
Fwd EY6.21%
FCF(TTM)-2.76
FCFYN/A
OCF(TTM)8.97
OCFY12.33%
SpS37.72
BVpS53.15
TBVpS46.2
PEG (NY)1.64
PEG (5Y)8.05
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.92% | ||
| ROE | 7.63% | ||
| ROCE | 6.15% | ||
| ROIC | 4.72% | ||
| ROICexc | 4.73% | ||
| ROICexgc | 4.99% | ||
| OM | 19.19% | ||
| PM (TTM) | 10.75% | ||
| GM | 59.84% | ||
| 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%
ROICexcg growth 3Y10.43%
ROICexcg 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 Turnover0.27
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 4.33 | ||
| Cap/Depr | 232.92% | ||
| Cap/Sales | 31.1% | ||
| Interest Coverage | 3.02 | ||
| Cash Conversion | 73.09% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.59 | ||
| Quick Ratio | 0.47 | ||
| Altman-Z | 1.02 |
F-Score6
WACC8.1%
ROIC/WACC0.58
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)2.22%
EPS 3Y0.52%
EPS 5Y2.18%
EPS Q2Q%13.14%
EPS Next Y10.74%
EPS Next 2Y7.53%
EPS Next 3Y6.25%
EPS Next 5Y6.16%
Revenue 1Y (TTM)7.74%
Revenue growth 3Y4.83%
Revenue growth 5Y4.74%
Sales Q2Q%23.32%
Revenue Next Year5.64%
Revenue Next 2Y4.9%
Revenue Next 3Y1.75%
Revenue Next 5Y2.61%
EBIT growth 1Y15.9%
EBIT growth 3Y8.75%
EBIT growth 5Y6.21%
EBIT Next Year84.95%
EBIT Next 3Y27.78%
EBIT Next 5Y19.7%
FCF growth 1Y-112.87%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-72.18%
OCF growth 3YN/A
OCF growth 5Y3.49%