ONE GAS INC (OGS) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:OGS - US68235P1084 - Common Stock
78.3 USD
+0.58 (+0.75%)
78.3 USD
0 (0%)
We assign a fundamental rating of 3 out of 10 to OGS. 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.
1. Profitability
1.1 Basic Checks
In the past year OGS was profitable.
OGS had a positive operating cash flow in the past year.
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
The Return On Assets of OGS (3.00%) is worse than 64.29% of its industry peers.
With a Return On Equity value of 8.01%, OGS is not doing good in the industry: 64.29% of the companies in the same industry are doing better.
OGS has a Return On Invested Capital (4.84%) which is comparable to the rest of the industry.
The Average Return On Invested Capital over the past 3 years for OGS is in line with the industry average of 6.28%.
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.
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.
The number of shares outstanding for OGS has been increased compared to 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 1.01. 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 of 1.01. This is comparable to the rest of the industry: OGS outperforms 42.86% of its industry peers.
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 | 1.01 |
ROIC/WACC0.7
WACC6.87%
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.
Looking at the Current ratio, with a value of 0.47, OGS is doing worse than 71.43% of the companies in the same industry.
A Quick Ratio of 0.26 indicates that OGS may have some problems paying its short term obligations.
With a Quick ratio value of 0.26, OGS is not doing good in the industry: 85.71% of the companies in the same industry are doing better.
| 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.
OGS shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 15.06%.
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 7.57% on average per year.
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
The Price/Earnings ratio is 18.25, which indicates a rather expensive current valuation of OGS.
OGS's Price/Earnings is on the same level as the industry average.
OGS is valuated rather cheaply when we compare the Price/Earnings ratio to 26.59, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 16.76, the valuation of OGS can be described as correct.
OGS's Price/Forward Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 24.03, OGS is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.25 | ||
| Fwd PE | 16.76 |
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 | 9.65 |
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)1.43
PEG (5Y)8.37
EPS Next 2Y9.32%
EPS Next 3Y7.84%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.40%, OGS has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.80, OGS has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 1.87, OGS pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.4% |
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 2Y9.32%
EPS Next 3Y7.84%
78.3
+0.58 (+0.75%)
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 Cap4.70B
Revenue(TTM)2.37B
Net Income(TTM)254.94M
Analysts76.36
Price TargetN/A
Short Float %7.89%
Short Ratio10.72
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.4% |
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)1.02%
EPS NQ rev (3m)2.09%
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 | 18.25 | ||
| Fwd PE | 16.76 | ||
| P/S | 1.98 | ||
| P/FCF | N/A | ||
| P/OCF | 7.85 | ||
| P/B | 1.48 | ||
| P/tB | 1.69 | ||
| EV/EBITDA | 9.65 |
EPS(TTM)4.29
EY5.48%
EPS(NY)4.67
Fwd EY5.97%
FCF(TTM)-2.01
FCFYN/A
OCF(TTM)9.97
OCFY12.74%
SpS39.48
BVpS53.04
TBVpS46.38
PEG (NY)1.43
PEG (5Y)8.37
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
WACC6.87%
ROIC/WACC0.7
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 18.25 and the Price/Book (PB) ratio is 1.48.
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.