ONEOK INC (OKE) Stock Fundamental Analysis
USA - NYSE:OKE - US6826801036 - Common Stock
70.49 USD
+1.05 (+1.51%)
70.3326 USD
-0.16 (-0.22%)
Overall OKE gets a fundamental rating of 5 out of 10. We evaluated OKE against 210 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 is not valued too expensively and it also shows a decent 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
With a decent Return On Assets value of 5.01%, OKE is doing good in the industry, outperforming 65.24% of the companies in the same industry.
Looking at the Return On Equity, with a value of 15.12%, OKE is in the better half of the industry, outperforming 75.71% of the companies in the same industry.
The Return On Invested Capital of OKE (7.36%) is better than 66.67% 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 21.85%.
| 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 (10.58%) which is in line with 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 (31.97%) which is comparable to the rest of the industry.
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), OKE is creating some value.
Compared to 1 year ago, OKE has about the same amount of shares outstanding.
OKE has more shares outstanding than it did 5 years ago.
OKE has a worse debt/assets ratio than last year.
2.2 Solvency
OKE has an Altman-Z score of 1.39. This is a bad value and indicates that OKE is not financially healthy and even has some risk of bankruptcy.
With a Altman-Z score value of 1.39, OKE perfoms like the industry average, outperforming 53.81% of the companies in the same industry.
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.
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.
Looking at the Debt to Equity ratio, with a value of 1.45, OKE is doing worse than 74.76% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.45 | ||
| Debt/FCF | 11.55 | ||
| Altman-Z | 1.39 |
ROIC/WACC0.97
WACC7.58%
2.3 Liquidity
OKE has a Current 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.
OKE has a Current ratio of 0.90. This is in the lower half of the industry: OKE underperforms 60.95% of its industry peers.
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.
The Quick ratio of OKE (0.75) is worse than 61.90% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.9 | ||
| Quick Ratio | 0.75 |
3. Growth
3.1 Past
OKE shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 13.81%, which is quite good.
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%.
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)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.
The Revenue is expected to grow by 9.99% on average over the next years. This is quite good.
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
OKE is valuated correctly with a Price/Earnings ratio of 12.96.
Compared to the rest of the industry, the Price/Earnings ratio of OKE indicates a somewhat cheap valuation: OKE is cheaper than 62.38% of the companies listed in the same industry.
OKE is valuated rather cheaply when we compare the Price/Earnings ratio to 25.89, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 11.72, the valuation of OKE can be described as very reasonable.
Based on the Price/Forward Earnings ratio, OKE is valued a bit cheaper than the industry average as 66.19% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of OKE to the average of the S&P500 Index (34.59), we can say OKE is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.96 | ||
| Fwd PE | 11.72 |
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 a bit cheaper when compared to the industry. OKE is cheaper than 62.86% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.2 | ||
| EV/EBITDA | 10.34 |
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.
OKE has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)2.77
PEG (5Y)1.18
EPS Next 2Y7.87%
EPS Next 3Y8.23%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 6.08%, OKE is a good candidate for dividend investing.
OKE's Dividend Yield is a higher than the industry average which is at 5.89.
Compared to an average S&P500 Dividend Yield of 2.36, OKE pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.08% |
5.2 History
The dividend of OKE has a limited annual growth rate of 2.34%.
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)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%
70.49
+1.05 (+1.51%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners74.97%
Inst Owner Change-0.37%
Ins Owners0.16%
Ins Owner Change0.31%
Market Cap44.39B
Revenue(TTM)31.56B
Net Income(TTM)3.34B
Analysts76
Price Target93.27 (32.32%)
Short Float %2.18%
Short Ratio3.84
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.08% |
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)-4.48%
PT rev (3m)-10.92%
EPS NQ rev (1m)-1.67%
EPS NQ rev (3m)-2.18%
EPS NY rev (1m)-0.97%
EPS NY rev (3m)-1.16%
Revenue NQ rev (1m)8.23%
Revenue NQ rev (3m)15.28%
Revenue NY rev (1m)1.35%
Revenue NY rev (3m)7.31%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.96 | ||
| Fwd PE | 11.72 | ||
| P/S | 1.41 | ||
| P/FCF | 15.2 | ||
| P/OCF | 7.84 | ||
| P/B | 2.01 | ||
| P/tB | 4.02 | ||
| EV/EBITDA | 10.34 |
EPS(TTM)5.44
EY7.72%
EPS(NY)6.02
Fwd EY8.53%
FCF(TTM)4.64
FCFY6.58%
OCF(TTM)8.99
OCFY12.76%
SpS50.12
BVpS35.06
TBVpS17.53
PEG (NY)2.77
PEG (5Y)1.18
Graham Number65.51
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 | 1.39 |
F-Score6
WACC7.58%
ROIC/WACC0.97
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 5 / 10 to OKE.
Can you provide the valuation status for ONEOK INC?
ChartMill assigns a valuation rating of 5 / 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%.