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. While OGS is still in line with the averages on profitability rating, there are concerns on its financial health. 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.
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's Return On Assets of 2.64% is in line compared to the rest of the industry. OGS outperforms 42.86% of its industry peers.
OGS has a Return On Equity (7.18%) which is comparable to the rest of the industry.
The Return On Invested Capital of OGS (4.33%) is worse than 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 7.78%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.64% | ||
| ROE | 7.18% | ||
| ROIC | 4.33% |
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 10.70%. 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's Operating Margin of 19.15% is in line compared to the rest of the industry. OGS outperforms 50.00% of its industry peers.
In the last couple of years the Operating Margin of OGS has remained more or less at the same level.
Looking at the Gross Margin, with a value of 62.64%, OGS is in line with its industry, outperforming 57.14% of the companies in the same 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 | 19.15% | ||
| PM (TTM) | 10.7% | ||
| GM | 62.64% |
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.
OGS has more shares outstanding than it did 5 years ago.
OGS has a worse debt/assets ratio than last year.
2.2 Solvency
OGS has an Altman-Z score of 0.97. 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 (0.97) which is comparable to the rest of the industry.
A Debt/Equity ratio of 1.06 is on the high side and indicates that OGS has dependencies on debt financing.
OGS has a better Debt to Equity ratio (1.06) than 64.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.06 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.97 |
ROIC/WACC0.63
WACC6.89%
2.3 Liquidity
OGS has a Current Ratio of 0.64. 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 Current ratio, with a value of 0.64, OGS is in line with its industry, outperforming 42.86% of the companies in the same industry.
OGS has a Quick Ratio of 0.64. 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 0.46, OGS is in line with its industry, outperforming 42.86% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.64 | ||
| Quick Ratio | 0.46 |
3. Growth
3.1 Past
The earnings per share for OGS have decreased by -5.56% in the last year.
OGS shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 2.18% yearly.
Looking at the last year, OGS shows a very negative growth in Revenue. The Revenue has decreased by -12.16% in the last year.
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)-5.56%
EPS 3Y0.52%
EPS 5Y2.18%
EPS Q2Q%5.51%
Revenue 1Y (TTM)-12.16%
Revenue growth 3Y4.83%
Revenue growth 5Y4.74%
Sales Q2Q%4.09%
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 6.17% on average per year.
The Revenue is expected to grow by 2.81% on average over the next years.
EPS Next Y9.81%
EPS Next 2Y7.44%
EPS Next 3Y6.74%
EPS Next 5Y6.17%
Revenue Next Year9.2%
Revenue Next 2Y1.91%
Revenue Next 3Y4.9%
Revenue Next 5Y2.81%
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 19.09, OGS is valued on the expensive side.
Compared to the rest of the industry, the Price/Earnings ratio of OGS indicates a slightly more expensive valuation: OGS is more expensive than 64.29% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 29.35. OGS is valued slightly cheaper when compared to this.
The Price/Forward Earnings ratio is 17.38, which indicates a rather expensive current valuation of OGS.
OGS's Price/Forward Earnings is on the same level as the industry average.
OGS is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.10, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.09 | ||
| Fwd PE | 17.38 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of OGS is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 9.81 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
PEG (NY)1.94
PEG (5Y)8.75
EPS Next 2Y7.44%
EPS Next 3Y6.74%
5. Dividend
5.1 Amount
OGS has a Yearly Dividend Yield of 3.69%.
Compared to an average industry Dividend Yield of 3.93, OGS has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.33, OGS pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.69% |
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 67.07% 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.
DP67.07%
EPS Next 2Y7.44%
EPS Next 3Y6.74%
74.63
+1.98 (+2.73%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryGas Utilities
Earnings (Last)
Earnings (Next)
Inst Owners97.21%
Inst Owner Change0.31%
Ins Owners0.9%
Ins Owner Change1.73%
Market Cap4.47B
Analysts69.23
Price Target75.31 (0.91%)
Short Float %4.09%
Short Ratio5.2
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.69% |
Yearly Dividend2.57
Dividend Growth(5Y)5.12%
DP67.07%
Div Incr Years10
Div Non Decr Years10
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-6.86%
Min EPS beat(2)-13.24%
Max EPS beat(2)-0.49%
EPS beat(4)0
Avg EPS beat(4)-4.41%
Min EPS beat(4)-13.24%
Max EPS beat(4)-0.49%
EPS beat(8)1
Avg EPS beat(8)-2.06%
EPS beat(12)3
Avg EPS beat(12)-1.65%
EPS beat(16)4
Avg EPS beat(16)-1.02%
Revenue beat(2)0
Avg Revenue beat(2)-20.7%
Min Revenue beat(2)-35.86%
Max Revenue beat(2)-5.54%
Revenue beat(4)0
Avg Revenue beat(4)-18.2%
Min Revenue beat(4)-35.86%
Max Revenue beat(4)-3.16%
Revenue beat(8)1
Avg Revenue beat(8)-9.2%
Revenue beat(12)5
Avg Revenue beat(12)9.37%
Revenue beat(16)9
Avg Revenue beat(16)9.88%
PT rev (1m)-0.6%
PT rev (3m)1.14%
EPS NQ rev (1m)-0.34%
EPS NQ rev (3m)0.94%
EPS NY rev (1m)-0.14%
EPS NY rev (3m)2.5%
Revenue NQ rev (1m)-0.26%
Revenue NQ rev (3m)-3.26%
Revenue NY rev (1m)2.53%
Revenue NY rev (3m)4.57%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.09 | ||
| Fwd PE | 17.38 | ||
| P/S | 2.14 | ||
| P/FCF | N/A | ||
| P/OCF | 12.13 | ||
| P/B | 1.44 | ||
| P/tB | 1.67 | ||
| EV/EBITDA | 9.81 |
EPS(TTM)3.91
EY5.24%
EPS(NY)4.29
Fwd EY5.75%
FCF(TTM)-5.59
FCFYN/A
OCF(TTM)6.15
OCFY8.24%
SpS34.8
BVpS51.85
TBVpS44.77
PEG (NY)1.94
PEG (5Y)8.75
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.64% | ||
| ROE | 7.18% | ||
| ROCE | 5.73% | ||
| ROIC | 4.33% | ||
| ROICexc | 4.36% | ||
| ROICexgc | 4.61% | ||
| OM | 19.15% | ||
| PM (TTM) | 10.7% | ||
| GM | 62.64% | ||
| 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-Score5
Asset Turnover0.25
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.06 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 4.74 | ||
| Cap/Depr | 237% | ||
| Cap/Sales | 33.75% | ||
| Interest Coverage | 2.68 | ||
| Cash Conversion | 52.95% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.64 | ||
| Quick Ratio | 0.46 | ||
| Altman-Z | 0.97 |
F-Score5
WACC6.89%
ROIC/WACC0.63
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)-5.56%
EPS 3Y0.52%
EPS 5Y2.18%
EPS Q2Q%5.51%
EPS Next Y9.81%
EPS Next 2Y7.44%
EPS Next 3Y6.74%
EPS Next 5Y6.17%
Revenue 1Y (TTM)-12.16%
Revenue growth 3Y4.83%
Revenue growth 5Y4.74%
Sales Q2Q%4.09%
Revenue Next Year9.2%
Revenue Next 2Y1.91%
Revenue Next 3Y4.9%
Revenue Next 5Y2.81%
EBIT growth 1Y5.7%
EBIT growth 3Y8.75%
EBIT growth 5Y6.21%
EBIT Next Year84.44%
EBIT Next 3Y29.94%
EBIT Next 5Y18.47%
FCF growth 1Y-222.67%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-60.79%
OCF growth 3YN/A
OCF growth 5Y3.49%