ONEOK INC (OKE) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:OKE - US6826801036 - Common Stock
73.68 USD
+0.86 (+1.18%)
73.8998 USD
+0.22 (+0.3%)
Overall OKE gets a fundamental rating of 4 out of 10. We evaluated OKE against 209 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 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.
In the past year OKE had a positive cash flow from operations.
Each year in the past 5 years OKE has been profitable.
OKE had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
OKE's Return On Assets of 5.01% is fine compared to the rest of the industry. OKE outperforms 66.51% of its industry peers.
OKE has a Return On Equity of 15.12%. This is in the better half of the industry: OKE outperforms 77.03% of its industry peers.
OKE has a better Return On Invested Capital (7.36%) than 66.51% of its industry peers.
The Average Return On Invested Capital over the past 3 years for OKE is significantly below the industry average of 21.47%.
| 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 of 10.58%. This is comparable to the rest of the industry: OKE outperforms 58.37% of its industry peers.
OKE's Profit Margin has improved in the last couple of years.
OKE has a Operating Margin (18.71%) which is in line with its industry peers.
In the last couple of years the Operating Margin of OKE has grown nicely.
OKE has a Gross Margin of 31.97%. This is comparable to the rest of the industry: OKE outperforms 43.54% of its industry peers.
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so OKE is still creating some 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.
The debt/assets ratio for OKE is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.42, we must say that OKE is in the distress zone and has some risk of bankruptcy.
OKE has a Altman-Z score (1.42) which is in line with its industry peers.
The Debt to FCF ratio of OKE is 11.55, which is on the high side as it means it would take OKE, 11.55 years of fcf income to pay off all of its debts.
OKE's Debt to FCF ratio of 11.55 is in line compared to the rest of the industry. OKE outperforms 52.63% of its industry peers.
A Debt/Equity ratio of 1.45 is on the high side and indicates that OKE has dependencies on debt financing.
OKE has a worse Debt to Equity ratio (1.45) than 75.12% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.45 | ||
| Debt/FCF | 11.55 | ||
| Altman-Z | 1.42 |
ROIC/WACC0.94
WACC7.85%
2.3 Liquidity
A Current Ratio of 0.90 indicates that OKE may have some problems paying its short term obligations.
With a Current ratio value of 0.90, OKE is not doing good in the industry: 60.77% of the companies in the same industry are doing better.
A Quick Ratio of 0.75 indicates that OKE may have some problems paying its short term obligations.
With a Quick ratio value of 0.75, OKE is not doing good in the industry: 62.20% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.9 | ||
| Quick Ratio | 0.75 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 13.81% over the past year.
OKE shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 10.99% yearly.
OKE shows a strong growth in Revenue. In the last year, the Revenue has grown by 58.35%.
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
OKE is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.74% yearly.
Based on estimates for the next years, OKE will show a quite strong growth in Revenue. The Revenue will grow by 9.99% on average per year.
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
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
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
With a Price/Earnings ratio of 13.54, OKE is valued correctly.
Based on the Price/Earnings ratio, OKE is valued a bit cheaper than 60.77% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.11, OKE is valued a bit cheaper.
The Price/Forward Earnings ratio is 12.25, which indicates a correct valuation of OKE.
Based on the Price/Forward Earnings ratio, OKE is valued a bit cheaper than 63.16% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 36.21, OKE is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.54 | ||
| Fwd PE | 12.25 |
4.2 Price Multiples
OKE's Enterprise Value to EBITDA is on the same level as the industry average.
OKE's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.88 | ||
| EV/EBITDA | 10.62 |
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.
The decent profitability rating of OKE may justify a higher PE ratio.
PEG (NY)2.89
PEG (5Y)1.23
EPS Next 2Y7.87%
EPS Next 3Y8.23%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.76%, OKE is a good candidate for dividend investing.
OKE's Dividend Yield is a higher than the industry average which is at 5.96.
Compared to an average S&P500 Dividend Yield of 2.32, OKE pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.76% |
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 its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)2.34%
Div Incr Years2
Div Non Decr Years34
5.3 Sustainability
75.29% of the earnings are spent on dividend by OKE. This is not a sustainable payout ratio.
The dividend of OKE is growing, but earnings are growing more, so the dividend growth is sustainable.
DP75.29%
EPS Next 2Y7.87%
EPS Next 3Y8.23%
73.68
+0.86 (+1.18%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners74.97%
Inst Owner Change1.25%
Ins Owners0.16%
Ins Owner Change0.07%
Market Cap46.36B
Revenue(TTM)31.56B
Net Income(TTM)3.34B
Analysts76
Price Target90.64 (23.02%)
Short Float %2.57%
Short Ratio4.07
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.76% |
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)-2.82%
PT rev (3m)-9.65%
EPS NQ rev (1m)-1.68%
EPS NQ rev (3m)-2.1%
EPS NY rev (1m)-0.77%
EPS NY rev (3m)-1.72%
Revenue NQ rev (1m)4.41%
Revenue NQ rev (3m)6.47%
Revenue NY rev (1m)1.24%
Revenue NY rev (3m)4.32%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.54 | ||
| Fwd PE | 12.25 | ||
| P/S | 1.47 | ||
| P/FCF | 15.88 | ||
| P/OCF | 8.19 | ||
| P/B | 2.1 | ||
| P/tB | 4.2 | ||
| EV/EBITDA | 10.62 |
EPS(TTM)5.44
EY7.38%
EPS(NY)6.02
Fwd EY8.16%
FCF(TTM)4.64
FCFY6.3%
OCF(TTM)9
OCFY12.22%
SpS50.16
BVpS35.09
TBVpS17.54
PEG (NY)2.89
PEG (5Y)1.23
Graham Number65.54
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 | 1.42 |
F-Score6
WACC7.85%
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%.