ONE GAS INC (OGS)
US68235P1084 - Common Stock
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. While OGS is still in line with the averages on profitability rating, there are concerns on its financial health. OGS does not seem to be growing, but still is valued expensively.
1. Profitability
1.1 Basic Checks
In the past year OGS was profitable.
OGS had a positive operating cash flow in the past year.
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
With a Return On Assets value of 2.69%, OGS perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
OGS has a Return On Equity (7.70%) which is in line with its industry peers.
OGS's Return On Invested Capital of 4.21% is on the low side compared to the rest of the industry. OGS is outperformed by 71.43% of its industry peers.
OGS had an Average Return On Invested Capital over the past 3 years of 4.12%. This is below the industry average of 6.26%.
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 better than 71.43% of its industry peers.
OGS's Profit Margin has declined in the last couple of years.
OGS's Operating Margin of 18.55% is in line compared to the rest of the industry. OGS outperforms 50.00% of its industry peers.
In the last couple of years the Operating Margin of OGS has declined.
Looking at the Gross Margin, with a value of 62.01%, OGS is in line with its industry, outperforming 57.14% 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.
The number of shares outstanding for OGS has been increased compared to 1 year ago.
Compared to 5 years ago, OGS has more shares outstanding
OGS has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 0.89, we must say that OGS is in the distress zone and has some risk of bankruptcy.
OGS's Altman-Z score of 0.89 is in line compared to the rest of the industry. OGS outperforms 42.86% of its industry peers.
OGS has a Debt/Equity ratio of 1.19. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 1.19, 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 | 1.19 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.89 |
ROIC/WACC0.69
WACC6.08%
2.3 Liquidity
A Current Ratio of 0.50 indicates that OGS may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.50, OGS is doing worse than 64.29% of the companies in the same industry.
A Quick Ratio of 0.30 indicates that OGS may have some problems paying its short term obligations.
With a Quick ratio value of 0.30, OGS is not doing good in the industry: 78.57% of the companies in the same industry are doing better.
| 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.
Measured over the past 5 years, OGS shows a small growth in Earnings Per Share. The EPS has been growing by 4.90% on average per year.
OGS shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -20.33%.
Measured over the past years, OGS shows a small growth in Revenue. The Revenue has been growing by 7.74% on average per year.
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 4.22% on average per year.
Based on estimates for the next years, OGS will show a small growth in Revenue. The Revenue will grow by 2.77% on average per year.
EPS Next Y-5.1%
EPS Next 2Y1.57%
EPS Next 3Y3.24%
EPS Next 5Y4.22%
Revenue Next Year-2.85%
Revenue Next 2Y2.2%
Revenue Next 3Y0.98%
Revenue Next 5Y2.77%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same 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
Based on the Price/Earnings ratio of 17.59, the valuation of OGS can be described as rather expensive.
The rest of the industry has a similar Price/Earnings ratio as OGS.
When comparing the Price/Earnings ratio of OGS to the average of the S&P500 Index (27.48), we can say OGS is valued slightly cheaper.
A Price/Forward Earnings ratio of 15.81 indicates a correct valuation of OGS.
Compared to the rest of the industry, the Price/Forward Earnings ratio of OGS is on the same level as its industry peers.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.73, OGS is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.59 | ||
| Fwd PE | 15.81 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, OGS is valued a bit cheaper than 64.29% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 9.33 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)3.59
EPS Next 2Y1.57%
EPS Next 3Y3.24%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.86%, OGS has a reasonable but not impressive dividend return.
OGS's Dividend Yield is comparable with the industry average which is at 4.17.
Compared to an average S&P500 Dividend Yield of 2.33, OGS pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.86% |
5.2 History
On average, the dividend of OGS grows each year by 6.95%, which is quite nice.
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)6.95%
Div Incr Years10
Div Non Decr Years10
5.3 Sustainability
68.41% of the earnings are spent on dividend by OGS. This is not a sustainable payout ratio.
OGS's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP68.41%
EPS Next 2Y1.57%
EPS Next 3Y3.24%
ONE GAS INC
NYSE:OGS (1/6/2025, 3:57:07 PM)
67.54
-1.48 (-2.14%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryGas Utilities
Earnings (Last)
Earnings (Next)
Inst Owners95.54%
Inst Owner Change0%
Ins Owners0.9%
Ins Owner Change0.16%
Market Cap3.83B
Analysts69.23
Price Target75.2 (11.34%)
Short Float %6.36%
Short Ratio8.73
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.86% |
Dividend Growth(5Y)6.95%
DP68.41%
Div Incr Years10
Div Non Decr Years10
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-7.79%
Min EPS beat(2)-13.24%
Max EPS beat(2)-2.35%
EPS beat(4)0
Avg EPS beat(4)-4.5%
Min EPS beat(4)-13.24%
Max EPS beat(4)-0.86%
EPS beat(8)2
Avg EPS beat(8)-1.97%
EPS beat(12)3
Avg EPS beat(12)-1.7%
EPS beat(16)5
Avg EPS beat(16)-0.9%
Revenue beat(2)0
Avg Revenue beat(2)-4.35%
Min Revenue beat(2)-5.54%
Max Revenue beat(2)-3.16%
Revenue beat(4)0
Avg Revenue beat(4)-14.29%
Min Revenue beat(4)-28.26%
Max Revenue beat(4)-3.16%
Revenue beat(8)2
Avg Revenue beat(8)6.29%
Revenue beat(12)6
Avg Revenue beat(12)13.83%
Revenue beat(16)10
Avg Revenue beat(16)12.13%
PT rev (1m)0.99%
PT rev (3m)8.3%
EPS NQ rev (1m)0%
EPS NQ rev (3m)13.35%
EPS NY rev (1m)0%
EPS NY rev (3m)1.3%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.64%
Revenue NY rev (1m)5.78%
Revenue NY rev (3m)5.69%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.59 | ||
| Fwd PE | 15.81 | ||
| P/S | 1.86 | ||
| P/FCF | N/A | ||
| P/OCF | 9.5 | ||
| P/B | 1.36 | ||
| P/tB | 1.61 | ||
| EV/EBITDA | 9.33 |
EPS(TTM)3.84
EY5.69%
EPS(NY)4.27
Fwd EY6.32%
FCF(TTM)-5.24
FCFYN/A
OCF(TTM)7.11
OCFY10.53%
SpS36.34
BVpS49.64
TBVpS42.04
PEG (NY)N/A
PEG (5Y)3.59
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.69% | ||
| ROE | 7.7% | ||
| ROCE | 5.74% | ||
| ROIC | 4.21% | ||
| ROICexc | 4.22% | ||
| ROICexgc | 4.48% | ||
| OM | 18.55% | ||
| PM (TTM) | 10.52% | ||
| GM | 62.01% | ||
| FCFM | N/A |
ROA(3y)2.76%
ROA(5y)2.96%
ROE(3y)8.57%
ROE(5y)8.66%
ROIC(3y)4.12%
ROIC(5y)4.3%
ROICexc(3y)4.13%
ROICexc(5y)4.31%
ROICexgc(3y)4.38%
ROICexgc(5y)4.51%
ROCE(3y)5.16%
ROCE(5y)5.48%
ROICexcg growth 3Y4.89%
ROICexcg growth 5Y1.61%
ROICexc growth 3Y3.32%
ROICexc growth 5Y0.76%
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%
F-Score5
Asset Turnover0.26
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.19 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 4.94 | ||
| Cap/Depr | 238.17% | ||
| Cap/Sales | 34% | ||
| Interest Coverage | 3.39 | ||
| Cash Conversion | 59.61% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.5 | ||
| Quick Ratio | 0.3 | ||
| Altman-Z | 0.89 |
F-Score5
WACC6.08%
ROIC/WACC0.69
Cap/Depr(3y)247.99%
Cap/Depr(5y)243.42%
Cap/Sales(3y)26.38%
Cap/Sales(5y)27.03%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-6.34%
EPS 3Y4%
EPS 5Y4.9%
EPS Q2Q%-24.44%
EPS Next Y-5.1%
EPS Next 2Y1.57%
EPS Next 3Y3.24%
EPS Next 5Y4.22%
Revenue 1Y (TTM)-20.33%
Revenue growth 3Y15.73%
Revenue growth 5Y7.74%
Sales Q2Q%1.36%
Revenue Next Year-2.85%
Revenue Next 2Y2.2%
Revenue Next 3Y0.98%
Revenue Next 5Y2.77%
EBIT growth 1Y2.1%
EBIT growth 3Y7.55%
EBIT growth 5Y5.54%
EBIT Next Year81.16%
EBIT Next 3Y28.87%
EBIT Next 5Y20.39%
FCF growth 1Y-129.11%
FCF growth 3YN/A
FCF growth 5Y30.11%
OCF growth 1Y-74.52%
OCF growth 3Y37.11%
OCF growth 5Y14.97%