ONEOK INC (OKE) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:OKE - US6826801036 - Common Stock
72.82 USD
+1.31 (+1.83%)
72.8 USD
-0.02 (-0.03%)
Overall OKE gets a fundamental rating of 4 out of 10. We evaluated OKE against 210 industry peers in the Oil, Gas & Consumable Fuels industry. While OKE is still in line with the averages on profitability rating, there are concerns on its financial health. OKE is not valued too expensively and it also shows a decent growth rate. Finally OKE also has an excellent dividend rating.
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.
Each year in the past 5 years OKE has been profitable.
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 5.01%, OKE is in the better half of the industry, outperforming 65.71% of the companies in the same industry.
Looking at the Return On Equity, with a value of 15.12%, OKE is in the better half of the industry, outperforming 76.19% of the companies in the same industry.
OKE's Return On Invested Capital of 7.36% is fine compared to the rest of the industry. OKE outperforms 65.71% of its industry peers.
The Average Return On Invested Capital over the past 3 years for OKE is significantly below the industry average of 21.41%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.01% | ||
| ROE | 15.12% | ||
| ROIC | 7.36% |
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 (10.58%) which is in line with its industry peers.
OKE's Profit Margin has improved in the last couple of years.
OKE's Operating Margin of 18.71% is in line compared to the rest of the industry. OKE outperforms 54.76% of its industry peers.
In the last couple of years the Operating Margin of OKE has grown nicely.
OKE has a Gross Margin (31.97%) which 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 | 18.71% | ||
| PM (TTM) | 10.58% | ||
| GM | 31.97% |
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) just above the Cost of Capital (WACC), OKE is creating some value.
OKE has about the same amout of shares outstanding than it did 1 year ago.
OKE has more shares outstanding than it did 5 years ago.
The debt/assets ratio for OKE is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.41, we must say that OKE is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of OKE (1.41) is comparable to the rest of the industry.
OKE has a debt to FCF ratio of 11.55. This is a negative value and a sign of low solvency as OKE would need 11.55 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 11.55, OKE is in line with its industry, outperforming 52.38% of the companies in the same industry.
A Debt/Equity ratio of 1.45 is on the high side and indicates that OKE has dependencies on debt financing.
With a Debt to Equity ratio value of 1.45, OKE is not doing good in the industry: 75.24% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.45 | ||
| Debt/FCF | 11.55 | ||
| Altman-Z | 1.41 |
ROIC/WACC0.94
WACC7.84%
2.3 Liquidity
OKE has a Current Ratio of 0.90. 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's Current ratio of 0.90 is on the low side compared to the rest of the industry. OKE is outperformed by 60.48% of its industry peers.
A Quick Ratio of 0.75 indicates that OKE may have some problems paying its short term obligations.
OKE has a Quick ratio of 0.75. This is in the lower half of the industry: OKE underperforms 61.90% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.9 | ||
| Quick Ratio | 0.75 |
3. Growth
3.1 Past
OKE shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 13.81%, which is quite good.
The Earnings Per Share has been growing by 10.99% on average over the past years. This is quite good.
The Revenue has grown by 58.35% in the past year. This is a very strong growth!
The Revenue has been growing by 16.38% on average over the past years. This is quite good.
EPS 1Y (TTM)13.81%
EPS 3Y15.45%
EPS 5Y10.99%
EPS Q2Q%26.27%
Revenue 1Y (TTM)58.35%
Revenue growth 3Y9.47%
Revenue growth 5Y16.38%
Sales Q2Q%71.89%
3.2 Future
Based on estimates for the next years, OKE will show a small growth in Earnings Per Share. The EPS will grow by 7.74% on average per year.
The Revenue is expected to grow by 9.99% on average over the next years. This is quite good.
EPS Next Y4.69%
EPS Next 2Y7.87%
EPS Next 3Y8.23%
EPS Next 5Y7.74%
Revenue Next Year53.61%
Revenue Next 2Y28.5%
Revenue Next 3Y20.14%
Revenue Next 5Y9.99%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less 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
The Price/Earnings ratio is 13.39, which indicates a correct valuation of OKE.
60.95% of the companies in the same industry are more expensive than OKE, based on the Price/Earnings ratio.
OKE is valuated rather cheaply when we compare the Price/Earnings ratio to 26.31, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 12.11, which indicates a correct valuation of OKE.
OKE's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. OKE is cheaper than 64.76% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 36.59, OKE is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.39 | ||
| Fwd PE | 12.11 |
4.2 Price Multiples
OKE's Enterprise Value to EBITDA is on the same level as the industry average.
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 | 15.71 | ||
| EV/EBITDA | 10.51 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of OKE may justify a higher PE ratio.
PEG (NY)2.86
PEG (5Y)1.22
EPS Next 2Y7.87%
EPS Next 3Y8.23%
5. Dividend
5.1 Amount
OKE has a Yearly Dividend Yield of 5.91%, which is a nice return.
Compared to an average industry Dividend Yield of 5.90, OKE pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.40, OKE pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.91% |
5.2 History
The dividend of OKE has a limited annual growth rate of 2.34%.
OKE has been paying a dividend for at least 10 years, so it has 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
OKE pays out 75.29% of its income as dividend. This is not a sustainable payout ratio.
OKE's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP75.29%
EPS Next 2Y7.87%
EPS Next 3Y8.23%
72.82
+1.31 (+1.83%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners74.97%
Inst Owner Change1.31%
Ins Owners0.16%
Ins Owner Change0.07%
Market Cap45.86B
Revenue(TTM)31.56B
Net Income(TTM)3.34B
Analysts76
Price Target90.64 (24.47%)
Short Float %2.57%
Short Ratio4.07
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.91% |
Yearly Dividend3.97
Dividend Growth(5Y)2.34%
DP75.29%
Div Incr Years2
Div Non Decr Years34
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.71%
Min EPS beat(2)-0.48%
Max EPS beat(2)1.9%
EPS beat(4)2
Avg EPS beat(4)-2.96%
Min EPS beat(4)-17.53%
Max EPS beat(4)4.26%
EPS beat(8)3
Avg EPS beat(8)-2.07%
EPS beat(12)5
Avg EPS beat(12)-5.86%
EPS beat(16)7
Avg EPS beat(16)-4.17%
Revenue beat(2)2
Avg Revenue beat(2)0.9%
Min Revenue beat(2)0.22%
Max Revenue beat(2)1.57%
Revenue beat(4)4
Avg Revenue beat(4)2.03%
Min Revenue beat(4)0.22%
Max Revenue beat(4)3.39%
Revenue beat(8)4
Avg Revenue beat(8)-8.6%
Revenue beat(12)4
Avg Revenue beat(12)-12.56%
Revenue beat(16)7
Avg Revenue beat(16)-6.81%
PT rev (1m)-7.17%
PT rev (3m)-9.65%
EPS NQ rev (1m)-1.53%
EPS NQ rev (3m)-2.75%
EPS NY rev (1m)-0.77%
EPS NY rev (3m)-1.72%
Revenue NQ rev (1m)11.17%
Revenue NQ rev (3m)6.47%
Revenue NY rev (1m)1.24%
Revenue NY rev (3m)4.32%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.39 | ||
| Fwd PE | 12.11 | ||
| P/S | 1.45 | ||
| P/FCF | 15.71 | ||
| P/OCF | 8.1 | ||
| P/B | 2.08 | ||
| P/tB | 4.15 | ||
| EV/EBITDA | 10.51 |
EPS(TTM)5.44
EY7.47%
EPS(NY)6.02
Fwd EY8.26%
FCF(TTM)4.64
FCFY6.37%
OCF(TTM)8.99
OCFY12.35%
SpS50.12
BVpS35.06
TBVpS17.53
PEG (NY)2.86
PEG (5Y)1.22
Graham Number65.51
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.01% | ||
| ROE | 15.12% | ||
| ROCE | 9.7% | ||
| ROIC | 7.36% | ||
| ROICexc | 7.51% | ||
| ROICexgc | 9.21% | ||
| OM | 18.71% | ||
| PM (TTM) | 10.58% | ||
| GM | 31.97% | ||
| FCFM | 9.25% |
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%
ROICexgc growth 3Y-7.08%
ROICexgc 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-Score6
Asset Turnover0.47
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.45 | ||
| Debt/FCF | 11.55 | ||
| Debt/EBITDA | 4.34 | ||
| Cap/Depr | 186.67% | ||
| Cap/Sales | 8.69% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 76.78% | ||
| Profit Quality | 87.45% | ||
| Current Ratio | 0.9 | ||
| Quick Ratio | 0.75 | ||
| Altman-Z | 1.41 |
F-Score6
WACC7.84%
ROIC/WACC0.94
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)13.81%
EPS 3Y15.45%
EPS 5Y10.99%
EPS Q2Q%26.27%
EPS Next Y4.69%
EPS Next 2Y7.87%
EPS Next 3Y8.23%
EPS Next 5Y7.74%
Revenue 1Y (TTM)58.35%
Revenue growth 3Y9.47%
Revenue growth 5Y16.38%
Sales Q2Q%71.89%
Revenue Next Year53.61%
Revenue Next 2Y28.5%
Revenue Next 3Y20.14%
Revenue Next 5Y9.99%
EBIT growth 1Y29.68%
EBIT growth 3Y24.95%
EBIT growth 5Y21.43%
EBIT Next Year60.99%
EBIT Next 3Y21.53%
EBIT Next 5Y13.75%
FCF growth 1Y10.38%
FCF growth 3Y15.73%
FCF growth 5YN/A
OCF growth 1Y43.27%
OCF growth 3Y24.28%
OCF growth 5Y20.22%
ONEOK INC / OKE FAQ
What is the ChartMill fundamental rating of ONEOK INC (OKE) stock?
ChartMill assigns a fundamental rating of 4 / 10 to OKE.
Can you provide the valuation status for ONEOK INC?
ChartMill assigns a valuation rating of 4 / 10 to ONEOK INC (OKE). This can be considered as Fairly Valued.
Can you provide the profitability details for ONEOK INC?
ONEOK INC (OKE) has a profitability rating of 6 / 10.
Can you provide the expected EPS growth for OKE stock?
The Earnings per Share (EPS) of ONEOK INC (OKE) is expected to grow by 4.69% in the next year.
Is the dividend of ONEOK INC sustainable?
The dividend rating of ONEOK INC (OKE) is 8 / 10 and the dividend payout ratio is 75.29%.