ONE GAS INC (OGS)
US68235P1084 - Common Stock
We assign a fundamental rating of 2 out of 10 to OGS. OGS was compared to 13 industry peers in the Gas Utilities industry. OGS has a bad profitability rating. Also its financial health evaluation is rather negative. OGS is valued expensive and it does not seem to be growing.
1. Profitability
1.1 Basic Checks
OGS had positive earnings in the past year.
OGS had a positive operating cash flow in the past year.
Each year in the past 5 years OGS has been profitable.
Of the past 5 years OGS 4 years had a positive operating cash flow.
1.2 Ratios
OGS's Return On Assets of 2.69% is on the low side compared to the rest of the industry. OGS is outperformed by 69.23% of its industry peers.
With a Return On Equity value of 7.70%, OGS is not doing good in the industry: 69.23% of the companies in the same industry are doing better.
With a Return On Invested Capital value of 4.21%, OGS is not doing good in the industry: 69.23% of the companies in the same industry are doing better.
OGS had an Average Return On Invested Capital over the past 3 years of 4.12%. This is below the industry average of 6.27%.
The last Return On Invested Capital (4.21%) for OGS is above the 3 year average (4.12%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.69% | ||
| ROE | 7.7% | ||
| ROIC | 4.21% |
ROA(3y)2.76%
ROA(5y)2.96%
ROE(3y)8.57%
ROE(5y)8.66%
ROIC(3y)4.12%
ROIC(5y)4.3%
1.3 Margins
The Profit Margin of OGS (10.52%) is comparable to the rest of the industry.
OGS's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 18.55%, OGS is in line with its industry, outperforming 53.85% of the companies in the same industry.
In the last couple of years the Operating Margin of OGS has declined.
With a Gross Margin value of 62.01%, OGS perfoms like the industry average, outperforming 53.85% of the companies in the same industry.
OGS's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 18.55% | ||
| PM (TTM) | 10.52% | ||
| GM | 62.01% |
OM growth 3Y-7.07%
OM growth 5Y-2.05%
PM growth 3Y-8.76%
PM growth 5Y-1.55%
GM growth 3Y-7.01%
GM growth 5Y-1.5%
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.
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.
Compared to 1 year ago, OGS has an improved debt to assets ratio.
2.2 Solvency
OGS has an Altman-Z score of 0.94. 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 (0.94) is comparable to the rest of the industry.
A Debt/Equity ratio of 1.19 is on the high side and indicates that OGS has dependencies on debt financing.
The Debt to Equity ratio of OGS (1.19) is better than 69.23% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.19 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.94 |
ROIC/WACC0.68
WACC6.16%
2.3 Liquidity
A Current Ratio of 0.50 indicates that OGS may have some problems paying its short term obligations.
OGS has a Current ratio of 0.50. This is in the lower half of the industry: OGS underperforms 76.92% of its industry peers.
OGS has a Quick Ratio of 0.50. 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 (0.30) is worse than 92.31% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.5 | ||
| Quick Ratio | 0.3 |
3. Growth
3.1 Past
The earnings per share for OGS have decreased by -6.34% in the last year.
The Earnings Per Share has been growing slightly by 4.90% on average over the past years.
Looking at the last year, OGS shows a very negative growth in Revenue. The Revenue has decreased by -20.33% in the last year.
OGS shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.74% yearly.
EPS 1Y (TTM)-6.34%
EPS 3Y4%
EPS 5Y4.9%
EPS Q2Q%-24.44%
Revenue 1Y (TTM)-20.33%
Revenue growth 3Y15.73%
Revenue growth 5Y7.74%
Sales Q2Q%1.36%
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 4.30% on average per year.
The Revenue is expected to grow by 2.13% on average over the next years.
EPS Next Y-5%
EPS Next 2Y1.12%
EPS Next 3Y3.66%
EPS Next 5Y4.3%
Revenue Next Year-8.96%
Revenue Next 2Y-0.72%
Revenue Next 3Y1.12%
Revenue Next 5Y2.13%
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 stable.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 20.02, the valuation of OGS can be described as rather expensive.
The rest of the industry has a similar Price/Earnings ratio as OGS.
The average S&P500 Price/Earnings ratio is at 28.96. OGS is valued slightly cheaper when compared to this.
The Price/Forward Earnings ratio is 18.16, which indicates a rather expensive current valuation of OGS.
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 23.82, OGS is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.02 | ||
| Fwd PE | 18.16 |
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 | 9.92 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)4.09
EPS Next 2Y1.12%
EPS Next 3Y3.66%
5. Dividend
5.1 Amount
OGS has a Yearly Dividend Yield of 3.56%.
OGS's Dividend Yield is slightly below the industry average, which is at 4.22.
Compared to an average S&P500 Dividend Yield of 2.23, OGS pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.56% |
5.2 History
On average, the dividend of OGS grows each year by 6.95%, which is quite nice.
OGS has paid a dividend for at least 10 years, which is a reliable track record.
OGS has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.
Dividend Growth(5Y)6.95%
Div Incr Years9
Div Non Decr Years9
5.3 Sustainability
OGS pays out 68.41% of its income as dividend. This is not a sustainable payout ratio.
The dividend of OGS is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP68.41%
EPS Next 2Y1.12%
EPS Next 3Y3.66%
ONE GAS INC
NYSE:OGS (11/21/2024, 8:04:00 PM)
After market: 76.88 0 (0%)76.88
+0.84 (+1.1%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryGas Utilities
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap4.36B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.56% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.02 | ||
| Fwd PE | 18.16 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)4.09
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.69% | ||
| ROE | 7.7% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 18.55% | ||
| PM (TTM) | 10.52% | ||
| GM | 62.01% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.26
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.19 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.5 | ||
| Quick Ratio | 0.3 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)-6.34%
EPS 3Y4%
EPS 5Y
EPS Q2Q%
EPS Next Y-5%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-20.33%
Revenue growth 3Y15.73%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y