ONEOK INC (OKE) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:OKE - US6826801036 - Common Stock
74.89 USD
+1.79 (+2.45%)
75.21 USD
+0.32 (+0.43%)
OKE gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 209 industry peers in the Oil, Gas & Consumable Fuels industry. There are concerns on the financial health of OKE while its profitability can be described as average. 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.
OKE had a positive operating cash flow in the past year.
OKE had positive earnings in each of the past 5 years.
OKE had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
OKE has a Return On Assets of 5.01%. This is in the better half of the industry: OKE outperforms 66.51% of its industry peers.
OKE's Return On Equity of 15.12% is fine compared to the rest of the industry. OKE outperforms 77.03% of its industry peers.
The Return On Invested Capital of OKE (7.36%) is better than 66.51% 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 21.47%.
| 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
Looking at the Profit Margin, with a value of 10.58%, OKE is in line with its industry, outperforming 58.37% of the companies in the same industry.
OKE's Profit Margin has improved in the last couple of years.
OKE has a Operating Margin (18.71%) which is comparable to the rest of the industry.
OKE's Operating Margin has improved in the last couple of years.
OKE's Gross Margin of 31.97% is in line compared 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
OKE has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is 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
OKE has an Altman-Z score of 1.43. 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 (1.43) which is in line with its industry peers.
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.
The Debt to FCF ratio of OKE (11.55) is comparable to the rest of the 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: 75.12% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.45 | ||
| Debt/FCF | 11.55 | ||
| Altman-Z | 1.43 |
ROIC/WACC0.94
WACC7.86%
2.3 Liquidity
A Current Ratio of 0.90 indicates that OKE may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.90, OKE is doing worse than 60.77% of the companies in the same industry.
OKE has a Quick 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.
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.
Measured over the past years, OKE shows a quite strong growth in Earnings Per Share. The EPS has been growing by 10.99% on average per year.
Looking at the last year, OKE shows a very strong growth in Revenue. The Revenue has grown by 58.35%.
OKE shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 16.38% yearly.
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.
OKE is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 9.99% yearly.
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 13.77, which indicates a correct valuation of OKE.
OKE's Price/Earnings is on the same level as the industry average.
The average S&P500 Price/Earnings ratio is at 26.37. OKE is valued slightly cheaper when compared to this.
With a Price/Forward Earnings ratio of 12.45, OKE is valued correctly.
OKE's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. OKE is cheaper than 62.20% of the companies in the same industry.
OKE is valuated cheaply when we compare the Price/Forward Earnings ratio to 36.20, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.77 | ||
| Fwd PE | 12.45 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as OKE.
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 | 16.14 | ||
| EV/EBITDA | 10.8 |
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)2.94
PEG (5Y)1.25
EPS Next 2Y7.87%
EPS Next 3Y8.23%
5. Dividend
5.1 Amount
OKE has a Yearly Dividend Yield of 5.76%, which is a nice return.
OKE's Dividend Yield is a higher than the industry average which is at 5.93.
OKE's Dividend Yield is rather good when compared to the S&P500 average which is at 2.32.
| 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
OKE pays out 75.29% 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.
DP75.29%
EPS Next 2Y7.87%
EPS Next 3Y8.23%
74.89
+1.79 (+2.45%)
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 Cap47.12B
Revenue(TTM)31.56B
Net Income(TTM)3.34B
Analysts76
Price Target90.64 (21.03%)
Short Float %2.45%
Short Ratio3.69
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 | 13.77 | ||
| Fwd PE | 12.45 | ||
| P/S | 1.49 | ||
| P/FCF | 16.14 | ||
| P/OCF | 8.32 | ||
| P/B | 2.13 | ||
| P/tB | 4.27 | ||
| EV/EBITDA | 10.8 |
EPS(TTM)5.44
EY7.26%
EPS(NY)6.02
Fwd EY8.03%
FCF(TTM)4.64
FCFY6.2%
OCF(TTM)9
OCFY12.02%
SpS50.16
BVpS35.09
TBVpS17.54
PEG (NY)2.94
PEG (5Y)1.25
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 | 1.43 |
F-Score6
WACC7.86%
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%.