ONEOK INC (OKE)
US6826801036 - Common Stock
We assign a fundamental rating of 4 out of 10 to OKE. OKE was compared to 206 industry peers in the Oil, Gas & Consumable Fuels industry. There are concerns on the financial health of OKE while its profitability can be described as average. OKE is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
OKE had positive earnings in the past year.
In the past year OKE had a positive cash flow from operations.
OKE had positive earnings in each of the past 5 years.
In the past 5 years OKE always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 5.48%, OKE is in line with its industry, outperforming 50.49% of the companies in the same industry.
OKE has a Return On Equity of 16.57%. This is in the better half of the industry: OKE outperforms 65.20% of its industry peers.
OKE's Return On Invested Capital of 7.32% is in line compared to the rest of the industry. OKE outperforms 50.49% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for OKE is significantly below the industry average of 29.25%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.48% | ||
| ROE | 16.57% | ||
| ROIC | 7.32% |
ROA(3y)6.47%
ROA(5y)5.58%
ROE(3y)22.51%
ROE(5y)19.64%
ROIC(3y)9.09%
ROIC(5y)8.29%
1.3 Margins
Looking at the Profit Margin, with a value of 14.04%, OKE is in line with its industry, outperforming 51.47% of the companies in the same industry.
OKE's Profit Margin has improved in the last couple of years.
OKE's Operating Margin of 22.85% is in line compared to the rest of the industry. OKE outperforms 49.02% of its industry peers.
OKE's Operating Margin has improved in the last couple of years.
The Gross Margin of OKE (39.22%) is comparable to the rest of the industry.
OKE's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 22.85% | ||
| PM (TTM) | 14.04% | ||
| GM | 39.22% |
OM growth 3Y1.29%
OM growth 5Y10.44%
PM growth 3Y28.03%
PM growth 5Y10.47%
GM growth 3Y-6.81%
GM growth 5Y5.25%
2. Health
2.1 Basic Checks
OKE has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
Compared to 1 year ago, OKE has more shares outstanding
The number of shares outstanding for OKE has been increased compared to 5 years ago.
OKE has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 1.90 indicates that OKE is not a great score, but indicates only limited risk for bankruptcy at the moment.
OKE has a Altman-Z score of 1.90. This is comparable to the rest of the industry: OKE outperforms 55.88% of its industry peers.
The Debt to FCF ratio of OKE is 10.33, which is on the high side as it means it would take OKE, 10.33 years of fcf income to pay off all of its debts.
OKE has a Debt to FCF ratio of 10.33. This is comparable to the rest of the industry: OKE outperforms 43.63% of its industry peers.
OKE has a Debt/Equity ratio of 1.59. This is a high value indicating a heavy dependency on external financing.
OKE's Debt to Equity ratio of 1.59 is on the low side compared to the rest of the industry. OKE is outperformed by 81.37% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.59 | ||
| Debt/FCF | 10.33 | ||
| Altman-Z | 1.9 |
ROIC/WACC0.94
WACC7.77%
2.3 Liquidity
A Current Ratio of 0.81 indicates that OKE may have some problems paying its short term obligations.
With a Current ratio value of 0.81, OKE is not doing good in the industry: 71.08% of the companies in the same industry are doing better.
A Quick Ratio of 0.59 indicates that OKE may have some problems paying its short term obligations.
With a Quick ratio value of 0.59, OKE is not doing good in the industry: 80.39% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.81 | ||
| Quick Ratio | 0.59 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 14.08% over the past year.
The Earnings Per Share has been growing by 9.14% on average over the past years. This is quite good.
Looking at the last year, OKE shows a quite strong growth in Revenue. The Revenue has grown by 14.07% in the last year.
Measured over the past years, OKE shows a small growth in Revenue. The Revenue has been growing by 7.02% on average per year.
EPS 1Y (TTM)14.08%
EPS 3Y19.09%
EPS 5Y9.14%
EPS Q2Q%19.19%
Revenue 1Y (TTM)14.07%
Revenue growth 3Y27.43%
Revenue growth 5Y7.02%
Sales Q2Q%19.91%
3.2 Future
The Earnings Per Share is expected to grow by 9.98% on average over the next years. This is quite good.
OKE is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.14% yearly.
EPS Next Y19.57%
EPS Next 2Y18.54%
EPS Next 3Y15.19%
EPS Next 5Y9.98%
Revenue Next Year19.46%
Revenue Next 2Y21.05%
Revenue Next 3Y16.94%
Revenue Next 5Y4.14%
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.
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
A Price/Earnings ratio of 24.49 indicates a rather expensive valuation of OKE.
OKE's Price/Earnings ratio is a bit more expensive when compared to the industry. OKE is more expensive than 66.67% of the companies in the same industry.
When comparing the Price/Earnings ratio of OKE to the average of the S&P500 Index (29.29), we can say OKE is valued inline with the index average.
The Price/Forward Earnings ratio is 19.42, which indicates a rather expensive current valuation of OKE.
60.29% of the companies in the same industry are cheaper than OKE, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 24.01. OKE is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.49 | ||
| Fwd PE | 19.42 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, OKE is valued a bit more expensive than 74.51% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of OKE is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 25.11 | ||
| EV/EBITDA | 17.12 |
4.3 Compensation for Growth
OKE's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
OKE has a very decent profitability rating, which may justify a higher PE ratio.
OKE's earnings are expected to grow with 15.19% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.25
PEG (5Y)2.68
EPS Next 2Y18.54%
EPS Next 3Y15.19%
5. Dividend
5.1 Amount
OKE has a Yearly Dividend Yield of 3.39%. Purely for dividend investing, there may be better candidates out there.
OKE's Dividend Yield is comparable with the industry average which is at 6.59.
Compared to an average S&P500 Dividend Yield of 2.19, OKE pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.39% |
5.2 History
The dividend of OKE has a limited annual growth rate of 1.38%.
OKE has paid a dividend for at least 10 years, which is a reliable track record.
OKE has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)1.38%
Div Incr Years1
Div Non Decr Years33
5.3 Sustainability
OKE pays out 81.81% of its income as dividend. This is not a sustainable payout ratio.
The dividend of OKE is growing, but earnings are growing more, so the dividend growth is sustainable.
DP81.81%
EPS Next 2Y18.54%
EPS Next 3Y15.19%
ONEOK INC
NYSE:OKE (11/22/2024, 8:04:00 PM)
After market: 117.05 0 (0%)117.05
+0.3 (+0.26%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap68.38B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.39% |
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)
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EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
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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)
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Min Revenue beat(4)
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Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
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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 | 24.49 | ||
| Fwd PE | 19.42 | ||
| 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)1.25
PEG (5Y)2.68
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.48% | ||
| ROE | 16.57% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 22.85% | ||
| PM (TTM) | 14.04% | ||
| GM | 39.22% | ||
| 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 Turnover0.39
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.59 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.81 | ||
| Quick Ratio | 0.59 | ||
| 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)14.08%
EPS 3Y19.09%
EPS 5Y
EPS Q2Q%
EPS Next Y19.57%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)14.07%
Revenue growth 3Y27.43%
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