ONEOK INC (OKE)
US6826801036 - Common Stock
Taking everything into account, OKE scores 4 out of 10 in our fundamental rating. OKE was compared to 205 industry peers in the Oil, Gas & Consumable Fuels industry. OKE has a medium profitability rating, but doesn't score so well on its financial health evaluation. OKE has a decent growth rate and is not valued too expensively. 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.
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 has a Return On Assets of 5.48%. This is comparable to the rest of the industry: OKE outperforms 51.96% of its industry peers.
OKE has a better Return On Equity (16.57%) than 62.75% of its industry peers.
OKE has a Return On Invested Capital (7.32%) which is in line with its industry peers.
The Average Return On Invested Capital over the past 3 years for OKE is significantly below the industry average of 22.76%.
| Industry Rank | Sector 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%
1.3 Margins
OKE has a Profit Margin (14.04%) which is in line with its industry peers.
OKE's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 22.85%, OKE is in line with its industry, outperforming 50.49% of the companies in the same industry.
In the last couple of years the Operating Margin of OKE has grown nicely.
OKE has a Gross Margin (39.22%) which is comparable to the rest of the industry.
In the last couple of years the Gross Margin of OKE has grown nicely.
| Industry Rank | Sector 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%
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 more 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 has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.66, we must say that OKE is in the distress zone and has some risk of bankruptcy.
OKE has a Altman-Z score of 1.66. This is comparable to the rest of the industry: OKE outperforms 52.45% of its industry peers.
OKE has a debt to FCF ratio of 10.33. This is a negative value and a sign of low solvency as OKE would need 10.33 years to pay back of all of its debts.
OKE has a Debt to FCF ratio (10.33) which is in line with its industry peers.
A Debt/Equity ratio of 1.59 is on the high side and indicates that OKE has dependencies on debt financing.
The Debt to Equity ratio of OKE (1.59) is worse than 81.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.59 | ||
| Debt/FCF | 10.33 | ||
| Altman-Z | 1.66 |
ROIC/WACC0.97
WACC7.52%
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.
With a Current ratio value of 0.81, OKE is not doing good in the industry: 72.06% of the companies in the same industry are doing better.
OKE has a Quick 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.
The Quick ratio of OKE (0.59) is worse than 78.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.81 | ||
| Quick Ratio | 0.59 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 14.08% 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 9.14% yearly.
OKE shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 14.07%.
The Revenue has been growing slightly by 7.02% on average over the past years.
EPS 1Y (TTM)14.08%
EPS 3Y19.09%
EPS 5Y9.14%
EPS Q2Q%19.19%
Revenue 1Y (TTM)14.07%
Revenue growth 3Y27.43%
Revenue growth 5Y7.02%
Sales Q2Q%19.91%
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 9.98% on average per year.
The Revenue is expected to grow by 4.14% on average over the next years.
EPS Next Y18.05%
EPS Next 2Y19.94%
EPS Next 3Y16.55%
EPS Next 5Y9.98%
Revenue Next Year20.9%
Revenue Next 2Y21.63%
Revenue Next 3Y16.94%
Revenue Next 5Y4.14%
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
The Price/Earnings ratio is 20.01, which indicates a rather expensive current valuation of OKE.
Based on the Price/Earnings ratio, OKE is valued a bit more expensive than 63.24% of the companies in the same industry.
OKE is valuated rather cheaply when we compare the Price/Earnings ratio to 30.20, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 15.50 indicates a correct valuation of OKE.
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 23.28, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.01 | ||
| Fwd PE | 15.5 |
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 74.51% of the companies in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as OKE.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.52 | ||
| EV/EBITDA | 14.65 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of OKE may justify a higher PE ratio.
A more expensive valuation may be justified as OKE's earnings are expected to grow with 16.55% in the coming years.
PEG (NY)1.11
PEG (5Y)2.19
EPS Next 2Y19.94%
EPS Next 3Y16.55%
5. Dividend
5.1 Amount
OKE has a Yearly Dividend Yield of 4.24%, which is a nice return.
OKE's Dividend Yield is a higher than the industry average which is at 6.80.
OKE's Dividend Yield is rather good when compared to the S&P500 average which is at 2.26.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.24% |
5.2 History
The dividend of OKE has a limited annual growth rate of 1.38%.
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)1.38%
Div Incr Years1
Div Non Decr Years33
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 2Y19.94%
EPS Next 3Y16.55%
ONEOK INC
NYSE:OKE (11/4/2024, 8:27:53 PM)
After market: 95.64 0 (0%)95.64
+2.28 (+2.44%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap55.87B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.24% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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EPS NY rev (3m)
Revenue NQ rev (1m)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.01 | ||
| Fwd PE | 15.5 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)1.11
PEG (5Y)2.19
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.48% | ||
| ROE | 16.57% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 22.85% | ||
| PM (TTM) | 14.04% | ||
| GM | 39.22% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.39
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.59 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.81 | ||
| Quick Ratio | 0.59 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)14.08%
EPS 3Y19.09%
EPS 5Y
EPS Q2Q%
EPS Next Y18.05%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)14.07%
Revenue growth 3Y27.43%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y