ONEOK INC (OKE) Stock Fundamental Analysis
NYSE:OKE - New York Stock Exchange, Inc. - US6826801036 - Common Stock - Currency: USD
Overall OKE gets a fundamental rating of 4 out of 10. We evaluated OKE against 211 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 has a decent growth rate and is not valued too expensively. Finally OKE also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year OKE was profitable.
OKE had a positive operating cash flow in the past year.
In the past 5 years OKE has always been profitable.
Each year in the past 5 years OKE had a positive operating cash flow.
1.2 Ratios
OKE has a Return On Assets (4.72%) which is in line with its industry peers.
Looking at the Return On Equity, with a value of 14.19%, OKE is in the better half of the industry, outperforming 69.19% of the companies in the same industry.
The Return On Invested Capital of OKE (6.84%) is comparable to the rest of the industry.
OKE had an Average Return On Invested Capital over the past 3 years of 7.98%. This is significantly below the industry average of 23.70%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.72% | ||
| ROE | 14.19% | ||
| ROIC | 6.84% |
ROA(3y)5.93%
ROA(5y)5.36%
ROE(3y)20.15%
ROE(5y)19.1%
ROIC(3y)7.98%
ROIC(5y)8.09%
1.3 Margins
OKE has a Profit Margin of 12.14%. This is in the better half of the industry: OKE outperforms 61.61% of its industry peers.
OKE's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 21.05%, OKE is in line with its industry, outperforming 53.08% of the companies in the same industry.
OKE's Operating Margin has improved in the last couple of years.
OKE has a Gross Margin of 35.62%. This is comparable to the rest of the industry: OKE outperforms 46.45% of its industry peers.
OKE's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 21.05% | ||
| PM (TTM) | 12.14% | ||
| GM | 35.62% |
OM growth 3Y14.14%
OM growth 5Y4.34%
PM growth 3Y15.56%
PM growth 5Y2.16%
GM growth 3Y14.28%
GM growth 5Y3.08%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), OKE is destroying value.
Compared to 1 year ago, OKE has about the same amount of shares outstanding.
The number of shares outstanding for OKE has been increased compared to 5 years ago.
Compared to 1 year ago, OKE has a worse debt to assets ratio.
2.2 Solvency
OKE has an Altman-Z score of 1.37. This is a bad value and indicates that OKE is not financially healthy and even has some risk of bankruptcy.
OKE's Altman-Z score of 1.37 is in line compared to the rest of the industry. OKE outperforms 53.55% of its industry peers.
OKE has a debt to FCF ratio of 10.48. This is a negative value and a sign of low solvency as OKE would need 10.48 years to pay back of all of its debts.
The Debt to FCF ratio of OKE (10.48) is comparable to the rest of the industry.
A Debt/Equity ratio of 1.40 is on the high side and indicates that OKE has dependencies on debt financing.
With a Debt to Equity ratio value of 1.40, OKE is not doing good in the industry: 73.46% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.4 | ||
| Debt/FCF | 10.48 | ||
| Altman-Z | 1.37 |
ROIC/WACC0.8
WACC8.56%
2.3 Liquidity
OKE has a Current Ratio of 0.67. This is a bad value and indicates that OKE is not financially healthy enough and could expect problems in meeting its short term obligations.
OKE has a Current ratio of 0.67. This is in the lower half of the industry: OKE underperforms 78.20% of its industry peers.
OKE has a Quick Ratio of 0.67. This is a bad value and indicates that OKE is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.52, OKE is doing worse than 81.52% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.67 | ||
| Quick Ratio | 0.52 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 19.07% over the past year.
Measured over the past years, OKE shows a quite strong growth in Earnings Per Share. The EPS has been growing by 10.99% on average per year.
OKE shows a strong growth in Revenue. In the last year, the Revenue has grown by 39.15%.
Measured over the past years, OKE shows a quite strong growth in Revenue. The Revenue has been growing by 16.38% on average per year.
EPS 1Y (TTM)19.07%
EPS 3Y15.45%
EPS 5Y10.99%
EPS Q2Q%-4.59%
Revenue 1Y (TTM)39.15%
Revenue growth 3Y9.47%
Revenue growth 5Y16.38%
Sales Q2Q%68.23%
3.2 Future
Based on estimates for the next years, OKE will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.44% on average per year.
OKE is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.53% yearly.
EPS Next Y6.69%
EPS Next 2Y11.21%
EPS Next 3Y10.07%
EPS Next 5Y9.44%
Revenue Next Year31.22%
Revenue Next 2Y15.81%
Revenue Next 3Y13.69%
Revenue Next 5Y7.53%
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
OKE is valuated correctly with a Price/Earnings ratio of 16.04.
OKE's Price/Earnings is on the same level as the industry average.
OKE is valuated rather cheaply when we compare the Price/Earnings ratio to 27.45, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 12.85, the valuation of OKE can be described as correct.
OKE's Price/Forward Earnings ratio is in line with the industry average.
OKE is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 21.90, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.04 | ||
| Fwd PE | 12.85 |
4.2 Price Multiples
OKE's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. OKE is more expensive than 60.19% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, OKE is valued a bit cheaper than the industry average as 62.09% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.78 | ||
| EV/EBITDA | 12.74 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates OKE does not grow enough to justify the current Price/Earnings ratio.
OKE has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)2.4
PEG (5Y)1.46
EPS Next 2Y11.21%
EPS Next 3Y10.07%
5. Dividend
5.1 Amount
OKE has a Yearly Dividend Yield of 5.02%, which is a nice return.
OKE's Dividend Yield is a higher than the industry average which is at 6.51.
OKE's Dividend Yield is rather good when compared to the S&P500 average which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.02% |
5.2 History
The dividend of OKE has a limited annual growth rate of 2.34%.
OKE has paid a dividend for at least 10 years, which is a reliable track record.
OKE has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)2.34%
Div Incr Years2
Div Non Decr Years34
5.3 Sustainability
78.46% of the earnings are spent on dividend by OKE. This is not a sustainable payout ratio.
OKE's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP78.46%
EPS Next 2Y11.21%
EPS Next 3Y10.07%
82.14
0 (0%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners74.83%
Inst Owner Change9.14%
Ins Owners0.17%
Ins Owner Change2.11%
Market Cap51.31B
Analysts79.13
Price Target108.66 (32.29%)
Short Float %1.69%
Short Ratio2.7
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.02% |
Yearly Dividend3.97
Dividend Growth(5Y)2.34%
DP78.46%
Div Incr Years2
Div Non Decr Years34
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-6.64%
Min EPS beat(2)-17.53%
Max EPS beat(2)4.26%
EPS beat(4)2
Avg EPS beat(4)-2.21%
Min EPS beat(4)-17.53%
Max EPS beat(4)9.25%
EPS beat(8)3
Avg EPS beat(8)-2.89%
EPS beat(12)6
Avg EPS beat(12)-5.01%
EPS beat(16)8
Avg EPS beat(16)-3.76%
Revenue beat(2)2
Avg Revenue beat(2)3.17%
Min Revenue beat(2)2.94%
Max Revenue beat(2)3.39%
Revenue beat(4)2
Avg Revenue beat(4)-8.35%
Min Revenue beat(4)-20.33%
Max Revenue beat(4)3.39%
Revenue beat(8)2
Avg Revenue beat(8)-14.93%
Revenue beat(12)3
Avg Revenue beat(12)-11.86%
Revenue beat(16)7
Avg Revenue beat(16)-4.94%
PT rev (1m)-0.93%
PT rev (3m)-4.3%
EPS NQ rev (1m)1.43%
EPS NQ rev (3m)1.69%
EPS NY rev (1m)0%
EPS NY rev (3m)-1.2%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-6.23%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.4%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.04 | ||
| Fwd PE | 12.85 | ||
| P/S | 2.06 | ||
| P/FCF | 16.78 | ||
| P/OCF | 9.87 | ||
| P/B | 2.4 | ||
| P/tB | 5 | ||
| EV/EBITDA | 12.74 |
EPS(TTM)5.12
EY6.23%
EPS(NY)6.39
Fwd EY7.78%
FCF(TTM)4.9
FCFY5.96%
OCF(TTM)8.32
OCFY10.13%
SpS39.96
BVpS34.2
TBVpS16.44
PEG (NY)2.4
PEG (5Y)1.46
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.72% | ||
| ROE | 14.19% | ||
| ROCE | 9.04% | ||
| ROIC | 6.84% | ||
| ROICexc | 6.86% | ||
| ROICexgc | 8.47% | ||
| OM | 21.05% | ||
| PM (TTM) | 12.14% | ||
| GM | 35.62% | ||
| FCFM | 12.25% |
ROA(3y)5.93%
ROA(5y)5.36%
ROE(3y)20.15%
ROE(5y)19.1%
ROIC(3y)7.98%
ROIC(5y)8.09%
ROICexc(3y)8.06%
ROICexc(5y)8.19%
ROICexgc(3y)9.18%
ROICexgc(5y)8.99%
ROCE(3y)10.52%
ROCE(5y)10.66%
ROICexcg growth 3Y-7.08%
ROICexcg growth 5Y1.14%
ROICexc growth 3Y-12.27%
ROICexc growth 5Y-2.07%
OM growth 3Y14.14%
OM growth 5Y4.34%
PM growth 3Y15.56%
PM growth 5Y2.16%
GM growth 3Y14.28%
GM growth 5Y3.08%
F-Score3
Asset Turnover0.39
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.4 | ||
| Debt/FCF | 10.48 | ||
| Debt/EBITDA | 4.6 | ||
| Cap/Depr | 169.68% | ||
| Cap/Sales | 8.57% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 79.78% | ||
| Profit Quality | 100.89% | ||
| Current Ratio | 0.67 | ||
| Quick Ratio | 0.52 | ||
| Altman-Z | 1.37 |
F-Score3
WACC8.56%
ROIC/WACC0.8
Cap/Depr(3y)192.54%
Cap/Depr(5y)213.81%
Cap/Sales(3y)7.9%
Cap/Sales(5y)10.72%
Profit Quality(3y)99.94%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)19.07%
EPS 3Y15.45%
EPS 5Y10.99%
EPS Q2Q%-4.59%
EPS Next Y6.69%
EPS Next 2Y11.21%
EPS Next 3Y10.07%
EPS Next 5Y9.44%
Revenue 1Y (TTM)39.15%
Revenue growth 3Y9.47%
Revenue growth 5Y16.38%
Sales Q2Q%68.23%
Revenue Next Year31.22%
Revenue Next 2Y15.81%
Revenue Next 3Y13.69%
Revenue Next 5Y7.53%
EBIT growth 1Y38.71%
EBIT growth 3Y24.95%
EBIT growth 5Y21.43%
EBIT Next Year62.27%
EBIT Next 3Y22.09%
EBIT Next 5Y15%
FCF growth 1Y25.81%
FCF growth 3Y15.73%
FCF growth 5YN/A
OCF growth 1Y41.78%
OCF growth 3Y24.28%
OCF growth 5Y20.22%