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ONEOK INC (OKE) Stock Fundamental Analysis

NYSE:OKE - New York Stock Exchange, Inc. - US6826801036 - Common Stock - Currency: USD

95.76  -0.01 (-0.01%)

After market: 95.76 0 (0%)

Fundamental Rating

4

We assign a fundamental rating of 4 out of 10 to OKE. OKE was compared to 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 quite expensive at the moment. It does show a decent growth rate. OKE also has an excellent dividend rating.


Dividend Valuation Growth Profitability Health

5

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.
Of the past 5 years OKE 4 years were profitable.
OKE had a positive operating cash flow in 4 of the past 5 years.
OKE Yearly Net Income VS EBIT VS OCF VS FCFOKE Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 2B 4B

1.2 Ratios

OKE has a Return On Assets (5.48%) which is comparable to the rest of the industry.
OKE has a better Return On Equity (16.57%) than 66.01% of its industry peers.
With a Return On Invested Capital value of 7.32%, OKE perfoms like the industry average, outperforming 51.72% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for OKE is significantly below the industry average of 28.61%.
Industry RankSector 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%
OKE Yearly ROA, ROE, ROICOKE Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 50 100 150

1.3 Margins

OKE has a Profit Margin (14.04%) which is in line with its industry peers.
In the last couple of years the Profit Margin of OKE has grown nicely.
With a Operating Margin value of 22.85%, OKE perfoms like the industry average, outperforming 49.75% 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 39.22% is in line compared to the rest of the industry. OKE outperforms 45.32% of its industry peers.
OKE's Gross Margin has improved in the last couple of years.
Industry RankSector 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%
OKE Yearly Profit, Operating, Gross MarginsOKE Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 10 20 30 40

1

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.
There is no outstanding debt for OKE. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
OKE Yearly Shares OutstandingOKE Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 100M 200M 300M 400M 500M
OKE Yearly Total Debt VS Total AssetsOKE Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 10B 20B 30B 40B

2.2 Solvency

OKE has an Altman-Z score of 1.79. This is a bad value and indicates that OKE is not financially healthy and even has some risk of bankruptcy.
OKE has a Altman-Z score of 1.79. This is comparable to the rest of the industry: OKE outperforms 56.16% 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.
Looking at the Debt to FCF ratio, with a value of 10.33, OKE is in line with its industry, outperforming 44.34% of the companies in the same industry.
OKE has a Debt/Equity ratio of 1.59. This is a high value indicating a heavy dependency on external financing.
OKE has a Debt to Equity ratio of 1.59. This is amonst the worse of the industry: OKE underperforms 81.28% of its industry peers.
Industry RankSector Rank
Debt/Equity 1.59
Debt/FCF 10.33
Altman-Z 1.79
ROIC/WACC0.92
WACC7.94%
OKE Yearly LT Debt VS Equity VS FCFOKE Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 5B 10B 15B 20B

2.3 Liquidity

OKE has a Current Ratio of 0.81. 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 worse Current ratio (0.81) than 71.92% of its industry peers.
A Quick Ratio of 0.59 indicates that OKE may have some problems paying its short term obligations.
OKE's Quick ratio of 0.59 is on the low side compared to the rest of the industry. OKE is outperformed by 79.80% of its industry peers.
Industry RankSector Rank
Current Ratio 0.81
Quick Ratio 0.59
OKE Yearly Current Assets VS Current LiabilitesOKE Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 1B 2B 3B

4

3. Growth

3.1 Past

OKE shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 20.51%, which is quite impressive.
OKE shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 10.99% yearly.
EPS 1Y (TTM)20.51%
EPS 3Y15.45%
EPS 5Y10.99%
EPS Q2Q%33.05%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%33.72%

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 9.72% on average per year.
The Revenue is expected to grow by 16.55% on average over the next years. This is quite good.
EPS Next Y16.16%
EPS Next 2Y12.81%
EPS Next 3Y12.3%
EPS Next 5Y9.72%
Revenue Next Year25.56%
Revenue Next 2Y16.35%
Revenue Next 3Y16.41%
Revenue Next 5Y16.55%

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.
OKE Yearly Revenue VS EstimatesOKE Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 10B 20B 30B
OKE Yearly EPS VS EstimatesOKE Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2 4 6 8

3

4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 18.52 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 60.59% of the companies in the same industry.
OKE's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 29.36.
With a Price/Forward Earnings ratio of 15.95, OKE is valued correctly.
Compared to the rest of the industry, the Price/Forward Earnings ratio of OKE is on the same level as its industry peers.
The average S&P500 Price/Forward Earnings ratio is at 22.65. OKE is valued slightly cheaper when compared to this.
Industry RankSector Rank
PE 18.52
Fwd PE 15.95
OKE Price Earnings VS Forward Price EarningsOKE Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

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 71.43% of the companies in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as OKE.
Industry RankSector Rank
P/FCF 22.77
EV/EBITDA 15.98
OKE Per share dataOKE EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 10 20 30

4.3 Compensation for Growth

The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
A more expensive valuation may be justified as OKE's earnings are expected to grow with 12.30% in the coming years.
PEG (NY)1.15
PEG (5Y)1.69
EPS Next 2Y12.81%
EPS Next 3Y12.3%

8

5. Dividend

5.1 Amount

OKE has a Yearly Dividend Yield of 4.30%, which is a nice return.
OKE's Dividend Yield is a higher than the industry average which is at 6.69.
OKE's Dividend Yield is rather good when compared to the S&P500 average which is at 2.27.
Industry RankSector Rank
Dividend Yield 4.3%

5.2 History

The dividend of OKE has a limited annual growth rate of 1.38%.
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)1.38%
Div Incr Years2
Div Non Decr Years34
OKE Yearly Dividends per shareOKE Yearly Dividends per shareYearly Dividends per share 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1 2 3

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 2Y12.81%
EPS Next 3Y12.3%
OKE Yearly Income VS Free CF VS DividendOKE Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 1B -1B 2B
OKE Dividend Payout.OKE Dividend Payout, showing the Payout Ratio.OKE Dividend Payout.PayoutRetained Earnings

ONEOK INC

NYSE:OKE (2/26/2025, 8:04:00 PM)

After market: 95.76 0 (0%)

95.76

-0.01 (-0.01%)

Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)02-24 2025-02-24/amc
Earnings (Next)04-28 2025-04-28/amc
Inst Owners66.73%
Inst Owner Change-88.01%
Ins Owners0.15%
Ins Owner Change-0.06%
Market Cap62.01B
Analysts74.55
Price Target116.03 (21.17%)
Short Float %3.54%
Short Ratio6.47
Dividend
Industry RankSector Rank
Dividend Yield 4.3%
Yearly Dividend3.57
Dividend Growth(5Y)1.38%
DP81.81%
Div Incr Years2
Div Non Decr Years34
Ex-Date02-03 2025-02-03 (1.03)
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)2.22%
Min EPS beat(2)-4.81%
Max EPS beat(2)9.25%
EPS beat(4)1
Avg EPS beat(4)-1.17%
Min EPS beat(4)-6.77%
Max EPS beat(4)9.25%
EPS beat(8)3
Avg EPS beat(8)-7.31%
EPS beat(12)5
Avg EPS beat(12)-4.58%
EPS beat(16)8
Avg EPS beat(16)-2.69%
Revenue beat(2)0
Avg Revenue beat(2)-19.86%
Min Revenue beat(2)-20.33%
Max Revenue beat(2)-19.39%
Revenue beat(4)0
Avg Revenue beat(4)-19.24%
Min Revenue beat(4)-23.05%
Max Revenue beat(4)-14.18%
Revenue beat(8)0
Avg Revenue beat(8)-19.86%
Revenue beat(12)3
Avg Revenue beat(12)-9.76%
Revenue beat(16)6
Avg Revenue beat(16)-4.62%
PT rev (1m)0.64%
PT rev (3m)8.51%
EPS NQ rev (1m)0.52%
EPS NQ rev (3m)-0.61%
EPS NY rev (1m)-0.54%
EPS NY rev (3m)0.11%
Revenue NQ rev (1m)-1.92%
Revenue NQ rev (3m)-1.92%
Revenue NY rev (1m)-0.14%
Revenue NY rev (3m)-7.01%
Valuation
Industry RankSector Rank
PE 18.52
Fwd PE 15.95
P/S 3.11
P/FCF 22.77
P/OCF 12.96
P/B 3.67
P/tB 5.93
EV/EBITDA 15.98
EPS(TTM)5.17
EY5.4%
EPS(NY)6.01
Fwd EY6.27%
FCF(TTM)4.21
FCFY4.39%
OCF(TTM)7.39
OCFY7.72%
SpS30.78
BVpS26.08
TBVpS16.15
PEG (NY)1.15
PEG (5Y)1.69
Profitability
Industry RankSector Rank
ROA 5.48%
ROE 16.57%
ROCE 9.59%
ROIC 7.32%
ROICexc 7.41%
ROICexgc 8.58%
OM 22.85%
PM (TTM) 14.04%
GM 39.22%
FCFM 13.66%
ROA(3y)6.47%
ROA(5y)5.58%
ROE(3y)22.51%
ROE(5y)19.64%
ROIC(3y)9.09%
ROIC(5y)8.29%
ROICexc(3y)9.16%
ROICexc(5y)8.38%
ROICexgc(3y)9.9%
ROICexgc(5y)8.95%
ROCE(3y)11.91%
ROCE(5y)10.89%
ROICexcg growth 3Y8.71%
ROICexcg growth 5Y0.42%
ROICexc growth 3Y4.06%
ROICexc growth 5Y-1.69%
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%
F-Score4
Asset Turnover0.39
Health
Industry RankSector Rank
Debt/Equity 1.59
Debt/FCF 10.33
Debt/EBITDA 4.8
Cap/Depr 196.38%
Cap/Sales 10.34%
Interest Coverage 250
Cash Conversion 85.37%
Profit Quality 97.28%
Current Ratio 0.81
Quick Ratio 0.59
Altman-Z 1.79
F-Score4
WACC7.94%
ROIC/WACC0.92
Cap/Depr(3y)170.49%
Cap/Depr(5y)339.69%
Cap/Sales(3y)6.2%
Cap/Sales(5y)16.43%
Profit Quality(3y)109.58%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)20.51%
EPS 3Y15.45%
EPS 5Y10.99%
EPS Q2Q%33.05%
EPS Next Y16.16%
EPS Next 2Y12.81%
EPS Next 3Y12.3%
EPS Next 5Y9.72%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%33.72%
Revenue Next Year25.56%
Revenue Next 2Y16.35%
Revenue Next 3Y16.41%
Revenue Next 5Y16.55%
EBIT growth 1Y21.3%
EBIT growth 3Y29.08%
EBIT growth 5Y18.19%
EBIT Next Year57.7%
EBIT Next 3Y28.64%
EBIT Next 5Y18.87%
FCF growth 1Y48.96%
FCF growth 3YN/A
FCF growth 5Y128.67%
OCF growth 1Y63.84%
OCF growth 3Y32.53%
OCF growth 5Y15.12%