ONEOK INC (OKE) Stock Fundamental Analysis
USA - NYSE:OKE - US6826801036 - Common Stock
72.86 USD
+0.28 (+0.39%)
72.86 USD
0 (0%)
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 has a correct valuation and a medium growth rate. 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.
In the past 5 years OKE has always 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 4.79%, OKE is in the better half of the industry, outperforming 61.90% of the companies in the same industry.
With a decent Return On Equity value of 14.16%, OKE is doing good in the industry, outperforming 71.43% of the companies in the same industry.
OKE's Return On Invested Capital of 7.03% is fine compared to the rest of the industry. OKE outperforms 61.90% of its industry peers.
OKE had an Average Return On Invested Capital over the past 3 years of 7.98%. This is significantly below the industry average of 21.76%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.79% | ||
| ROE | 14.16% | ||
| ROIC | 7.03% |
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
Looking at the Profit Margin, with a value of 11.06%, OKE is in line with its industry, outperforming 58.10% of the companies in the same industry.
OKE's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 19.59%, OKE is in line with its industry, outperforming 54.76% of the companies in the same industry.
In the last couple of years the Operating Margin of OKE has grown nicely.
OKE's Gross Margin of 33.68% is in line compared to the rest of the industry. OKE outperforms 44.76% of its industry peers.
In the last couple of years the Gross Margin of OKE has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 19.59% | ||
| PM (TTM) | 11.06% | ||
| GM | 33.68% |
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
OKE has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for OKE remains at a similar level compared to 1 year ago.
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
Based on the Altman-Z score of 1.34, we must say that OKE is in the distress zone and has some risk of bankruptcy.
OKE's Altman-Z score of 1.34 is in line compared to the rest of the industry. OKE outperforms 51.43% of its industry peers.
The Debt to FCF ratio of OKE is 11.26, which is on the high side as it means it would take OKE, 11.26 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 11.26, OKE is in line with its industry, outperforming 51.43% of the companies in the same industry.
A Debt/Equity ratio of 1.41 is on the high side and indicates that OKE has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 1.41, OKE is doing worse than 72.86% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.41 | ||
| Debt/FCF | 11.26 | ||
| Altman-Z | 1.34 |
ROIC/WACC0.89
WACC7.87%
2.3 Liquidity
A Current Ratio of 0.59 indicates that OKE may have some problems paying its short term obligations.
OKE has a worse Current ratio (0.59) than 83.33% of its industry peers.
OKE has a Quick Ratio of 0.59. 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 Quick ratio of 0.46 is on the low side compared to the rest of the industry. OKE is outperformed by 86.19% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.59 | ||
| Quick Ratio | 0.46 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 11.76% 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 46.36%.
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)11.76%
EPS 3Y15.45%
EPS 5Y10.99%
EPS Q2Q%0.75%
Revenue 1Y (TTM)46.36%
Revenue growth 3Y9.47%
Revenue growth 5Y16.38%
Sales Q2Q%61.16%
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 8.68% on average per year.
OKE is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 9.13% yearly.
EPS Next Y6.51%
EPS Next 2Y10.45%
EPS Next 3Y9.87%
EPS Next 5Y8.68%
Revenue Next Year50.87%
Revenue Next 2Y25.18%
Revenue Next 3Y18.92%
Revenue Next 5Y9.13%
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.
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 14.20, the valuation of OKE can be described as correct.
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 27.20, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 11.55, which indicates a very decent valuation of OKE.
62.86% of the companies in the same industry are more expensive than OKE, based on the Price/Forward Earnings ratio.
OKE is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.70, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.2 | ||
| Fwd PE | 11.55 |
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 ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.92 | ||
| EV/EBITDA | 11.23 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
OKE has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)2.18
PEG (5Y)1.29
EPS Next 2Y10.45%
EPS Next 3Y9.87%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.62%, OKE is a good candidate for dividend investing.
OKE's Dividend Yield is a higher than the industry average which is at 6.18.
Compared to an average S&P500 Dividend Yield of 2.38, OKE pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.62% |
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 79.04% 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.
DP79.04%
EPS Next 2Y10.45%
EPS Next 3Y9.87%
72.86
+0.28 (+0.39%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners75.08%
Inst Owner Change-1.43%
Ins Owners0.17%
Ins Owner Change0.24%
Market Cap45.88B
Analysts78.33
Price Target98.19 (34.77%)
Short Float %2.22%
Short Ratio4.06
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.62% |
Yearly Dividend3.97
Dividend Growth(5Y)2.34%
DP79.04%
Div Incr Years2
Div Non Decr Years34
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-9%
Min EPS beat(2)-17.53%
Max EPS beat(2)-0.48%
EPS beat(4)1
Avg EPS beat(4)-4.64%
Min EPS beat(4)-17.53%
Max EPS beat(4)4.26%
EPS beat(8)2
Avg EPS beat(8)-3.1%
EPS beat(12)5
Avg EPS beat(12)-5.49%
EPS beat(16)7
Avg EPS beat(16)-3.91%
Revenue beat(2)2
Avg Revenue beat(2)2.48%
Min Revenue beat(2)1.57%
Max Revenue beat(2)3.39%
Revenue beat(4)3
Avg Revenue beat(4)-2.87%
Min Revenue beat(4)-19.39%
Max Revenue beat(4)3.39%
Revenue beat(8)3
Avg Revenue beat(8)-12.13%
Revenue beat(12)3
Avg Revenue beat(12)-12.94%
Revenue beat(16)7
Avg Revenue beat(16)-5.53%
PT rev (1m)-6.23%
PT rev (3m)-10.32%
EPS NQ rev (1m)-0.37%
EPS NQ rev (3m)-0.82%
EPS NY rev (1m)0.56%
EPS NY rev (3m)-0.17%
Revenue NQ rev (1m)-2.22%
Revenue NQ rev (3m)6.12%
Revenue NY rev (1m)5.39%
Revenue NY rev (3m)14.97%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.2 | ||
| Fwd PE | 11.55 | ||
| P/S | 1.64 | ||
| P/FCF | 15.92 | ||
| P/OCF | 8.67 | ||
| P/B | 2.1 | ||
| P/tB | 4.26 | ||
| EV/EBITDA | 11.23 |
EPS(TTM)5.13
EY7.04%
EPS(NY)6.31
Fwd EY8.66%
FCF(TTM)4.58
FCFY6.28%
OCF(TTM)8.4
OCFY11.53%
SpS44.39
BVpS34.66
TBVpS17.09
PEG (NY)2.18
PEG (5Y)1.29
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.79% | ||
| ROE | 14.16% | ||
| ROCE | 9.46% | ||
| ROIC | 7.03% | ||
| ROICexc | 7.05% | ||
| ROICexgc | 8.67% | ||
| OM | 19.59% | ||
| PM (TTM) | 11.06% | ||
| GM | 33.68% | ||
| FCFM | 10.31% |
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-Score4
Asset Turnover0.43
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.41 | ||
| Debt/FCF | 11.26 | ||
| Debt/EBITDA | 4.51 | ||
| Cap/Depr | 176.28% | ||
| Cap/Sales | 8.61% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 77.32% | ||
| Profit Quality | 93.24% | ||
| Current Ratio | 0.59 | ||
| Quick Ratio | 0.46 | ||
| Altman-Z | 1.34 |
F-Score4
WACC7.87%
ROIC/WACC0.89
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)11.76%
EPS 3Y15.45%
EPS 5Y10.99%
EPS Q2Q%0.75%
EPS Next Y6.51%
EPS Next 2Y10.45%
EPS Next 3Y9.87%
EPS Next 5Y8.68%
Revenue 1Y (TTM)46.36%
Revenue growth 3Y9.47%
Revenue growth 5Y16.38%
Sales Q2Q%61.16%
Revenue Next Year50.87%
Revenue Next 2Y25.18%
Revenue Next 3Y18.92%
Revenue Next 5Y9.13%
EBIT growth 1Y28%
EBIT growth 3Y24.95%
EBIT growth 5Y21.43%
EBIT Next Year61.08%
EBIT Next 3Y21.92%
EBIT Next 5Y14.27%
FCF growth 1Y19.5%
FCF growth 3Y15.73%
FCF growth 5YN/A
OCF growth 1Y44.98%
OCF growth 3Y24.28%
OCF growth 5Y20.22%