ONE GAS INC (OGS) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:OGS - US68235P1084 - Common Stock
78.84 USD
+0.22 (+0.28%)
78.84 USD
0 (0%)
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. While showing a medium growth rate, OGS is valued expensive at the moment.
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.
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 has a worse Return On Assets (3.00%) than 64.29% of its industry peers.
Looking at the Return On Equity, with a value of 8.01%, OGS is doing worse than 64.29% of the companies in the same industry.
OGS has a Return On Invested Capital (4.84%) which is comparable to the rest of the industry.
Measured over the past 3 years, the Average Return On Invested Capital for OGS is in line with the industry average of 6.28%.
The last Return On Invested Capital (4.84%) for OGS is above the 3 year average (4.53%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3% | ||
| ROE | 8.01% | ||
| ROIC | 4.84% |
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's Profit Margin of 10.76% is in line compared to the rest of the industry. OGS outperforms 57.14% of its industry peers.
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 18.66%, OGS perfoms like the industry average, outperforming 42.86% of the companies in the same industry.
OGS's Operating Margin has been stable in the last couple of years.
OGS has a Gross Margin of 59.02%. This is comparable to the rest of the industry: OGS outperforms 42.86% of its industry peers.
OGS's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 18.66% | ||
| PM (TTM) | 10.76% | ||
| GM | 59.02% |
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
OGS has an Altman-Z score of 1.01. This is a bad value and indicates that OGS is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of OGS (1.01) is comparable to the rest of the industry.
A Debt/Equity ratio of 0.98 indicates that OGS is somewhat dependend on debt financing.
OGS has a Debt to Equity ratio of 0.98. This is in the better half of the industry: OGS outperforms 64.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.98 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.01 |
ROIC/WACC0.71
WACC6.86%
2.3 Liquidity
A Current Ratio of 0.47 indicates that OGS may have some problems paying its short term obligations.
OGS has a worse Current ratio (0.47) than 71.43% 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 85.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.47 | ||
| Quick Ratio | 0.26 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 11.72% over the past year.
The Earnings Per Share has been growing slightly by 2.18% on average over the past years.
Looking at the last year, OGS shows a quite strong growth in Revenue. The Revenue has grown by 15.06% in the last year.
The Revenue has been growing slightly by 4.74% on average over the past years.
EPS 1Y (TTM)11.72%
EPS 3Y0.52%
EPS 5Y2.18%
EPS Q2Q%29.41%
Revenue 1Y (TTM)15.06%
Revenue growth 3Y4.83%
Revenue growth 5Y4.74%
Sales Q2Q%11.38%
3.2 Future
OGS is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.57% yearly.
The Revenue is expected to grow by 2.58% on average over the next years.
EPS Next Y12.74%
EPS Next 2Y9.32%
EPS Next 3Y7.84%
EPS Next 5Y7.57%
Revenue Next Year6.76%
Revenue Next 2Y5.55%
Revenue Next 3Y2.91%
Revenue Next 5Y2.58%
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.
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 18.38 indicates a rather expensive valuation of OGS.
The rest of the industry has a similar Price/Earnings ratio as OGS.
OGS's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.26.
The Price/Forward Earnings ratio is 16.87, which indicates a correct valuation of OGS.
The rest of the industry has a similar Price/Forward Earnings ratio as OGS.
OGS is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 23.68, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.38 | ||
| Fwd PE | 16.87 |
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 | 9.72 |
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)1.44
PEG (5Y)8.42
EPS Next 2Y9.32%
EPS Next 3Y7.84%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.48%, OGS has a reasonable but not impressive dividend return.
OGS's Dividend Yield is comparable with the industry average which is at 3.84.
OGS's Dividend Yield is rather good when compared to the S&P500 average which is at 1.87.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.48% |
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 their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)5.12%
Div Incr Years10
Div Non Decr Years10
5.3 Sustainability
OGS pays out 61.93% 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.
DP61.93%
EPS Next 2Y9.32%
EPS Next 3Y7.84%
78.84
+0.22 (+0.28%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryGas Utilities
Earnings (Last)
Earnings (Next)
Inst Owners97.01%
Inst Owner Change-1.14%
Ins Owners0.44%
Ins Owner Change-0.28%
Market Cap4.73B
Revenue(TTM)2.37B
Net Income(TTM)254.94M
Analysts76.36
Price Target87.79 (11.35%)
Short Float %7.89%
Short Ratio10.72
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.48% |
Yearly Dividend2.57
Dividend Growth(5Y)5.12%
DP61.93%
Div Incr Years10
Div Non Decr Years10
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)2.13%
Min EPS beat(2)-0.72%
Max EPS beat(2)4.97%
EPS beat(4)2
Avg EPS beat(4)2.39%
Min EPS beat(4)-0.72%
Max EPS beat(4)5.81%
EPS beat(8)2
Avg EPS beat(8)-1.05%
EPS beat(12)4
Avg EPS beat(12)-0.52%
EPS beat(16)5
Avg EPS beat(16)-0.68%
Revenue beat(2)0
Avg Revenue beat(2)-23.72%
Min Revenue beat(2)-26.36%
Max Revenue beat(2)-21.08%
Revenue beat(4)0
Avg Revenue beat(4)-21.05%
Min Revenue beat(4)-35.86%
Max Revenue beat(4)-0.92%
Revenue beat(8)0
Avg Revenue beat(8)-17.67%
Revenue beat(12)2
Avg Revenue beat(12)-2.82%
Revenue beat(16)6
Avg Revenue beat(16)5.11%
PT rev (1m)6.54%
PT rev (3m)12.2%
EPS NQ rev (1m)1.01%
EPS NQ rev (3m)2.08%
EPS NY rev (1m)0.5%
EPS NY rev (3m)0.93%
Revenue NQ rev (1m)-22.3%
Revenue NQ rev (3m)-13.06%
Revenue NY rev (1m)-0.16%
Revenue NY rev (3m)0.12%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.38 | ||
| Fwd PE | 16.87 | ||
| P/S | 2 | ||
| P/FCF | N/A | ||
| P/OCF | 7.9 | ||
| P/B | 1.49 | ||
| P/tB | 1.7 | ||
| EV/EBITDA | 9.72 |
EPS(TTM)4.29
EY5.44%
EPS(NY)4.67
Fwd EY5.93%
FCF(TTM)-2.01
FCFYN/A
OCF(TTM)9.97
OCFY12.65%
SpS39.48
BVpS53.04
TBVpS46.38
PEG (NY)1.44
PEG (5Y)8.42
Graham Number71.55
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3% | ||
| ROE | 8.01% | ||
| ROCE | 6.27% | ||
| ROIC | 4.84% | ||
| ROICexc | 4.84% | ||
| ROICexgc | 5.1% | ||
| OM | 18.66% | ||
| PM (TTM) | 10.76% | ||
| GM | 59.02% | ||
| 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 | 0.98 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 4.13 | ||
| Cap/Depr | 229.42% | ||
| Cap/Sales | 30.35% | ||
| Interest Coverage | 3.11 | ||
| Cash Conversion | 79.22% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.47 | ||
| Quick Ratio | 0.26 | ||
| Altman-Z | 1.01 |
F-Score6
WACC6.86%
ROIC/WACC0.71
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)11.72%
EPS 3Y0.52%
EPS 5Y2.18%
EPS Q2Q%29.41%
EPS Next Y12.74%
EPS Next 2Y9.32%
EPS Next 3Y7.84%
EPS Next 5Y7.57%
Revenue 1Y (TTM)15.06%
Revenue growth 3Y4.83%
Revenue growth 5Y4.74%
Sales Q2Q%11.38%
Revenue Next Year6.76%
Revenue Next 2Y5.55%
Revenue Next 3Y2.91%
Revenue Next 5Y2.58%
EBIT growth 1Y15.76%
EBIT growth 3Y8.75%
EBIT growth 5Y6.21%
EBIT Next Year86.52%
EBIT Next 3Y28.16%
EBIT Next 5Y19.04%
FCF growth 1Y-170.83%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-30.21%
OCF growth 3YN/A
OCF growth 5Y3.49%
ONE GAS INC / OGS FAQ
What is the fundamental rating for OGS stock?
ChartMill assigns a fundamental rating of 3 / 10 to OGS.
What is the valuation status of ONE GAS INC (OGS) stock?
ChartMill assigns a valuation rating of 2 / 10 to ONE GAS INC (OGS). This can be considered as Overvalued.
What is the profitability of OGS stock?
ONE GAS INC (OGS) has a profitability rating of 4 / 10.
What is the valuation of ONE GAS INC based on its PE and PB ratios?
The Price/Earnings (PE) ratio for ONE GAS INC (OGS) is 18.38 and the Price/Book (PB) ratio is 1.49.
What is the expected EPS growth for ONE GAS INC (OGS) stock?
The Earnings per Share (EPS) of ONE GAS INC (OGS) is expected to grow by 12.74% in the next year.