ONEOK INC (OKE) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:OKE - US6826801036 - Common Stock
72.85 USD
-0.39 (-0.53%)
72.85 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. There are concerns on the financial health of OKE while its profitability can be described as average. OKE has a correct valuation and a medium growth rate. Finally 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.
OKE had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of OKE (5.01%) is better than 66.67% of its industry peers.
OKE has a better Return On Equity (15.12%) than 78.57% of its industry peers.
The Return On Invested Capital of OKE (7.36%) is better than 67.62% 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 21.09%.
| 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 58.57% of the companies in the same industry.
In the last couple of years the Profit Margin of OKE has grown nicely.
The Operating Margin of OKE (18.71%) is comparable to the rest of the industry.
OKE's Operating Margin has improved in the last couple of years.
With a Gross Margin value of 31.97%, OKE perfoms like the industry average, outperforming 43.33% of the companies in the same industry.
In the last couple of years the Gross Margin of OKE has grown nicely.
| 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so OKE is still 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 1.42. This is a bad value and indicates that OKE is not financially healthy and even has some risk of bankruptcy.
OKE's Altman-Z score of 1.42 is in line compared to the rest of the industry. OKE outperforms 54.76% of its industry peers.
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.
OKE has a Debt to FCF ratio (11.55) which is comparable to the rest of the industry.
OKE has a Debt/Equity ratio of 1.45. This is a high value indicating a heavy dependency on external financing.
OKE has a Debt to Equity ratio of 1.45. This is in the lower half of the industry: OKE underperforms 74.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.45 | ||
| Debt/FCF | 11.55 | ||
| Altman-Z | 1.42 |
ROIC/WACC0.94
WACC7.83%
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 60.48% 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.
OKE has a worse Quick ratio (0.75) than 62.86% of its industry peers.
| 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.
The Earnings Per Share has been growing by 10.99% on average over the past years. This is quite good.
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
The Earnings Per Share is expected to grow by 7.74% on average over the next years.
Based on estimates for the next years, OKE will show a quite strong growth in Revenue. The Revenue will grow by 9.99% on average per year.
EPS Next Y6.16%
EPS Next 2Y7.93%
EPS Next 3Y8.07%
EPS Next 5Y7.74%
Revenue Next Year54.34%
Revenue Next 2Y29.4%
Revenue Next 3Y21.25%
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 13.39, which indicates a correct valuation of OKE.
Compared to the rest of the industry, the Price/Earnings ratio of OKE is on the same level as its industry peers.
OKE's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.57.
A Price/Forward Earnings ratio of 12.10 indicates a correct valuation of OKE.
Compared to the rest of the industry, the Price/Forward Earnings ratio of OKE indicates a somewhat cheap valuation: OKE is cheaper than 61.43% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of OKE to the average of the S&P500 Index (24.04), we can say OKE is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.39 | ||
| Fwd PE | 12.1 |
4.2 Price Multiples
OKE's Enterprise Value to EBITDA is on the same level as the industry average.
Based on the Price/Free Cash Flow ratio, OKE is valued a bit cheaper than the industry average as 60.48% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.7 | ||
| EV/EBITDA | 10.62 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of OKE may justify a higher PE ratio.
PEG (NY)2.17
PEG (5Y)1.22
EPS Next 2Y7.93%
EPS Next 3Y8.07%
5. Dividend
5.1 Amount
OKE has a Yearly Dividend Yield of 5.63%, which is a nice return.
Compared to an average industry Dividend Yield of 3.96, OKE pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.00, OKE pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.63% |
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 2Y7.93%
EPS Next 3Y8.07%
72.85
-0.39 (-0.53%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners75%
Inst Owner Change1.36%
Ins Owners0.16%
Ins Owner Change0.07%
Market Cap45.84B
Revenue(TTM)31.56B
Net Income(TTM)3.34B
Analysts79.2
Price Target90.42 (24.12%)
Short Float %2.82%
Short Ratio4.29
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.63% |
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)-0.25%
PT rev (3m)-7.92%
EPS NQ rev (1m)0.21%
EPS NQ rev (3m)-1.81%
EPS NY rev (1m)1.41%
EPS NY rev (3m)0.43%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)8.73%
Revenue NY rev (1m)0.47%
Revenue NY rev (3m)2.3%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.39 | ||
| Fwd PE | 12.1 | ||
| P/S | 1.45 | ||
| P/FCF | 15.7 | ||
| P/OCF | 8.09 | ||
| P/B | 2.08 | ||
| P/tB | 4.15 | ||
| EV/EBITDA | 10.62 |
EPS(TTM)5.44
EY7.47%
EPS(NY)6.02
Fwd EY8.27%
FCF(TTM)4.64
FCFY6.37%
OCF(TTM)9
OCFY12.36%
SpS50.16
BVpS35.09
TBVpS17.54
PEG (NY)2.17
PEG (5Y)1.22
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 | 1.42 |
F-Score6
WACC7.83%
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 Y6.16%
EPS Next 2Y7.93%
EPS Next 3Y8.07%
EPS Next 5Y7.74%
Revenue 1Y (TTM)58.35%
Revenue growth 3Y9.47%
Revenue growth 5Y16.38%
Sales Q2Q%71.89%
Revenue Next Year54.34%
Revenue Next 2Y29.4%
Revenue Next 3Y21.25%
Revenue Next 5Y9.99%
EBIT growth 1Y29.68%
EBIT growth 3Y24.95%
EBIT growth 5Y21.43%
EBIT Next Year50.82%
EBIT Next 3Y18.64%
EBIT Next 5Y12.34%
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 6.16% 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%.