ONE GAS INC (OGS) Stock Fundamental Analysis
USA - NYSE:OGS - US68235P1084 - Common Stock
81.94 USD
-1.24 (-1.49%)
81.94 USD
0 (0%)
Overall OGS gets a fundamental rating of 3 out of 10. We evaluated OGS against 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 quite expensive at the moment. It does show a decent growth rate.
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.
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's Return On Assets of 2.96% is in line compared to the rest of the industry. OGS outperforms 50.00% of its industry peers.
With a Return On Equity value of 7.78%, OGS is not doing good in the industry: 64.29% of the companies in the same industry are doing better.
OGS's Return On Invested Capital of 4.70% is on the low side compared to the rest of the industry. OGS is outperformed by 64.29% of its industry peers.
OGS had an Average Return On Invested Capital over the past 3 years of 4.53%. This is in line with the industry average of 6.32%.
The last Return On Invested Capital (4.70%) for OGS is above the 3 year average (4.53%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.96% | ||
| ROE | 7.78% | ||
| ROIC | 4.7% |
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
The Profit Margin of OGS (10.63%) 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.
With a Operating Margin value of 18.72%, OGS perfoms like the industry average, outperforming 42.86% of the companies in the same industry.
In the last couple of years the Operating Margin of OGS has remained more or less at the same level.
OGS has a Gross Margin (59.07%) which 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 | 18.72% | ||
| PM (TTM) | 10.63% | ||
| GM | 59.07% |
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.
Compared to 5 years ago, OGS has more shares outstanding
OGS has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.08, we must say that OGS is in the distress zone and has some risk of bankruptcy.
OGS has a Altman-Z score (1.08) which is in line with its industry peers.
OGS has a Debt/Equity ratio of 1.02. This is a high value indicating a heavy dependency on external financing.
OGS has a Debt to Equity ratio of 1.02. This is in the better half of the industry: OGS outperforms 64.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.02 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.08 |
ROIC/WACC0.69
WACC6.81%
2.3 Liquidity
A Current Ratio of 0.52 indicates that OGS may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.52, OGS is doing worse than 64.29% of the companies in the same industry.
OGS has a Quick Ratio of 0.52. 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 has a worse Quick ratio (0.35) than 85.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.52 | ||
| Quick Ratio | 0.35 |
3. Growth
3.1 Past
OGS shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 6.08%.
OGS shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 2.18% yearly.
The Revenue has grown by 13.43% in the past year. This is quite good.
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)6.08%
EPS 3Y0.52%
EPS 5Y2.18%
EPS Q2Q%10.42%
Revenue 1Y (TTM)13.43%
Revenue growth 3Y4.83%
Revenue growth 5Y4.74%
Sales Q2Q%19.65%
3.2 Future
The Earnings Per Share is expected to grow by 7.14% on average over the next years.
The Revenue is expected to grow by 2.58% on average over the next years.
EPS Next Y11.7%
EPS Next 2Y8.44%
EPS Next 3Y7.41%
EPS Next 5Y7.14%
Revenue Next Year6.88%
Revenue Next 2Y5.59%
Revenue Next 3Y2.32%
Revenue Next 5Y2.58%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better 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
With a Price/Earnings ratio of 19.56, OGS is valued on the expensive side.
The rest of the industry has a similar Price/Earnings ratio as OGS.
The average S&P500 Price/Earnings ratio is at 27.77. OGS is valued slightly cheaper when compared to this.
Based on the Price/Forward Earnings ratio of 17.82, the valuation of OGS can be described as rather expensive.
OGS's Price/Forward Earnings ratio is in line with the industry average.
When comparing the Price/Forward Earnings ratio of OGS to the average of the S&P500 Index (23.23), we can say OGS is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.56 | ||
| Fwd PE | 17.82 |
4.2 Price Multiples
OGS's Enterprise Value to EBITDA is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 9.8 |
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)1.67
PEG (5Y)8.96
EPS Next 2Y8.44%
EPS Next 3Y7.41%
5. Dividend
5.1 Amount
OGS has a Yearly Dividend Yield of 3.30%.
OGS's Dividend Yield is comparable with the industry average which is at 3.84.
Compared to an average S&P500 Dividend Yield of 2.36, OGS pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.3% |
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
OGS pays out 62.60% 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.
DP62.6%
EPS Next 2Y8.44%
EPS Next 3Y7.41%
81.94
-1.24 (-1.49%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryGas Utilities
Earnings (Last)
Earnings (Next)
Inst Owners98.03%
Inst Owner Change-0.02%
Ins Owners0.89%
Ins Owner Change0.67%
Market Cap4.92B
Revenue(TTM)2.33B
Net Income(TTM)247.74M
Analysts74.55
Price Target79.34 (-3.17%)
Short Float %7.85%
Short Ratio10.46
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.3% |
Yearly Dividend2.57
Dividend Growth(5Y)5.12%
DP62.6%
Div Incr Years10
Div Non Decr Years10
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)2.55%
Min EPS beat(2)-0.72%
Max EPS beat(2)5.81%
EPS beat(4)1
Avg EPS beat(4)-2.16%
Min EPS beat(4)-13.24%
Max EPS beat(4)5.81%
EPS beat(8)2
Avg EPS beat(8)-0.97%
EPS beat(12)4
Avg EPS beat(12)-0.68%
EPS beat(16)4
Avg EPS beat(16)-1.11%
Revenue beat(2)0
Avg Revenue beat(2)-11%
Min Revenue beat(2)-21.08%
Max Revenue beat(2)-0.92%
Revenue beat(4)0
Avg Revenue beat(4)-15.85%
Min Revenue beat(4)-35.86%
Max Revenue beat(4)-0.92%
Revenue beat(8)0
Avg Revenue beat(8)-17.82%
Revenue beat(12)3
Avg Revenue beat(12)1.63%
Revenue beat(16)7
Avg Revenue beat(16)7.36%
PT rev (1m)1.4%
PT rev (3m)0.05%
EPS NQ rev (1m)0.61%
EPS NQ rev (3m)-4.69%
EPS NY rev (1m)0%
EPS NY rev (3m)0.71%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.25%
Revenue NY rev (1m)0.23%
Revenue NY rev (3m)0.04%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.56 | ||
| Fwd PE | 17.82 | ||
| P/S | 2.11 | ||
| P/FCF | N/A | ||
| P/OCF | 8.68 | ||
| P/B | 1.54 | ||
| P/tB | 1.77 | ||
| EV/EBITDA | 9.8 |
EPS(TTM)4.19
EY5.11%
EPS(NY)4.6
Fwd EY5.61%
FCF(TTM)-2.36
FCFYN/A
OCF(TTM)9.44
OCFY11.52%
SpS38.83
BVpS53.07
TBVpS46.29
PEG (NY)1.67
PEG (5Y)8.96
Graham Number70.73
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.96% | ||
| ROE | 7.78% | ||
| ROCE | 6.18% | ||
| ROIC | 4.7% | ||
| ROICexc | 4.72% | ||
| ROICexgc | 4.97% | ||
| OM | 18.72% | ||
| PM (TTM) | 10.63% | ||
| GM | 59.07% | ||
| 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 | 1.02 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 4.36 | ||
| Cap/Depr | 229.38% | ||
| Cap/Sales | 30.38% | ||
| Interest Coverage | 2.93 | ||
| Cash Conversion | 76.04% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.52 | ||
| Quick Ratio | 0.35 | ||
| Altman-Z | 1.08 |
F-Score6
WACC6.81%
ROIC/WACC0.69
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)6.08%
EPS 3Y0.52%
EPS 5Y2.18%
EPS Q2Q%10.42%
EPS Next Y11.7%
EPS Next 2Y8.44%
EPS Next 3Y7.41%
EPS Next 5Y7.14%
Revenue 1Y (TTM)13.43%
Revenue growth 3Y4.83%
Revenue growth 5Y4.74%
Sales Q2Q%19.65%
Revenue Next Year6.88%
Revenue Next 2Y5.59%
Revenue Next 3Y2.32%
Revenue Next 5Y2.58%
EBIT growth 1Y14.88%
EBIT growth 3Y8.75%
EBIT growth 5Y6.21%
EBIT Next Year86.96%
EBIT Next 3Y28.83%
EBIT Next 5Y19.04%
FCF growth 1Y-110.47%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-72.14%
OCF growth 3YN/A
OCF growth 5Y3.49%