Taking everything into account, OGS scores 3 out of 10 in our fundamental rating. OGS was compared to 14 industry peers in the Gas Utilities industry. OGS has a medium profitability rating, but doesn't score so well on its financial health evaluation. While showing a medium growth rate, OGS is valued expensive at the moment.

Quickly go to:

1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

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.
In the past 5 years OGS has always been profitable.
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.
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 in line with its industry peers.
The Average Return On Invested Capital over the past 3 years for OGS 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 has a Profit Margin (10.76%) which 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.
OGS has a Operating Margin (18.66%) which is in line with its industry peers.
In the last couple of years the Operating Margin of OGS has remained more or less at the same level.
OGS's Gross Margin of 59.02% is in line compared 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%

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

OGS has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it 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.
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 0.98. This is a neutral value indicating OGS is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.98, OGS is in the better half of 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	1.02

ROIC/WACC0.7

WACC6.94%

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's Current ratio of 0.47 is on the low side compared to the rest of the industry. OGS is outperformed by 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

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WACC

Debt/Equity

How to determine the health of a company

Altman-Z score

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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

Based on estimates for the next years, OGS will show a small growth in Earnings Per Share. The EPS will grow by 7.85% on average per year.
Based on estimates for the next years, OGS will show a small growth in Revenue. The Revenue will grow by 2.46% on average per year.

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

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.

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4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 18.55, the valuation of OGS can be described as rather expensive.
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 28.32.
With a Price/Forward Earnings ratio of 16.72, OGS is valued correctly.
OGS's Price/Forward Earnings is on the same level as the industry average.
When comparing the Price/Forward Earnings ratio of OGS to the average of the S&P500 Index (25.57), we can say OGS is valued slightly cheaper.

		Industry Rank	Sector Rank
PE	18.55
Fwd PE	16.72

4.2 Price Multiples

The rest of the industry has a similar Enterprise Value to EBITDA ratio as OGS.

		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)1.42

PEG (5Y)8.5

EPS Next 2Y10.32%

EPS Next 3Y8.35%

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5. Dividend

5.1 Amount

OGS has a Yearly Dividend Yield of 3.44%.
OGS's Dividend Yield is comparable with the industry average which is at 3.89.
OGS's Dividend Yield is rather good when compared to the S&P500 average which is at 1.83.

		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 paid a dividend for at least 10 years, which is 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 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 2Y10.32%

EPS Next 3Y8.35%

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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 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.

Can you provide the PE and PB ratios for OGS stock?

The Price/Earnings (PE) ratio for ONE GAS INC (OGS) is 18.55 and the Price/Book (PB) ratio is 1.5.

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.