ONE GAS INC (OGS) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:OGS - US68235P1084 - Common Stock
77.23 USD
-0.26 (-0.34%)
77.23 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. While OGS is still in line with the averages on profitability rating, there are concerns on its financial health. 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.
- OGS had positive earnings in each of the past 5 years.
- OGS had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
- The Return On Assets of OGS (3.00%) is worse than 64.29% of its industry peers.
- The Return On Equity of OGS (8.01%) is worse than 64.29% of its industry peers.
- OGS's Return On Invested Capital of 4.84% is in line compared to the rest of the industry. OGS outperforms 50.00% 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 6.27%.
- The 3 year average ROIC (4.53%) for OGS is below the current ROIC(4.84%), indicating increased profibility in the last year.
| 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.
- OGS's Profit Margin has been stable in the last couple of years.
- OGS has a Operating Margin (18.66%) which is comparable to the rest of the industry.
- OGS's Operating Margin has been stable in the last couple of years.
- With a Gross Margin value of 59.02%, OGS perfoms like the industry average, outperforming 42.86% 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 | 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
- The debt/assets ratio for OGS is higher compared to a year ago.
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.
- OGS has a Debt/Equity ratio of 0.98. This is a neutral value indicating OGS is somewhat dependend on debt financing.
- With a decent Debt to Equity ratio value of 0.98, OGS is doing good in the industry, outperforming 64.29% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.98 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.01 |
ROIC/WACC0.7
WACC6.9%
2.3 Liquidity
- OGS has a Current Ratio of 0.47. 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 Current ratio of 0.47. This is in the lower half of the industry: OGS underperforms 71.43% of its industry peers.
- OGS has a Quick Ratio of 0.47. 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 Quick ratio of OGS (0.26) is worse than 85.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.47 | ||
| Quick Ratio | 0.26 |
3. Growth
3.1 Past
- OGS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 11.72%, which is quite good.
- 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.
- 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 7.85% yearly.
- OGS is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.46% yearly.
EPS Next Y13.06%
EPS Next 2Y10.32%
EPS Next 3Y8.35%
EPS Next 5Y7.85%
Revenue Next Year6.8%
Revenue Next 2Y5.68%
Revenue Next 3Y3.02%
Revenue Next 5Y2.46%
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
- OGS is valuated rather expensively with a Price/Earnings ratio of 18.00.
- OGS's Price/Earnings ratio is in line with the industry average.
- When comparing the Price/Earnings ratio of OGS to the average of the S&P500 Index (27.21), we can say OGS is valued slightly cheaper.
- OGS is valuated correctly with a Price/Forward Earnings ratio of 16.23.
- OGS's Price/Forward Earnings is on the same level as the industry average.
- Compared to an average S&P500 Price/Forward Earnings ratio of 24.26, OGS is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18 | ||
| Fwd PE | 16.23 |
4.2 Price Multiples
- OGS's Enterprise Value to EBITDA ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 9.63 |
4.3 Compensation for Growth
- The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
PEG (NY)1.38
PEG (5Y)8.25
EPS Next 2Y10.32%
EPS Next 3Y8.35%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 3.44%, OGS has a reasonable but not impressive dividend return.
- Compared to an average industry Dividend Yield of 3.79, OGS has a dividend in line with its industry peers.
- Compared to an average S&P500 Dividend Yield of 1.82, OGS pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.44% |
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.
- OGS's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP61.93%
EPS Next 2Y10.32%
EPS Next 3Y8.35%
ONE GAS INC / OGS FAQ
What is the fundamental rating for OGS stock?
ChartMill assigns a fundamental rating of 3 / 10 to OGS.
Can you provide the valuation status for ONE GAS INC?
ChartMill assigns a valuation rating of 3 / 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.
Can you provide the PE and PB ratios for OGS stock?
The Price/Earnings (PE) ratio for ONE GAS INC (OGS) is 18 and the Price/Book (PB) ratio is 1.46.
Can you provide the expected EPS growth for OGS stock?
The Earnings per Share (EPS) of ONE GAS INC (OGS) is expected to grow by 13.06% in the next year.