ONEOK INC (OKE) Stock Fundamental Analysis
NYSE:OKE - New York Stock Exchange, Inc. - US6826801036 - Common Stock - Currency: USD
We assign a fundamental rating of 4 out of 10 to OKE. OKE was compared to 212 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 valied quite expensively at the moment, while it does show 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.
OKE had a positive operating cash flow in the past year.
OKE had positive earnings in each of the past 5 years.
In the past 5 years OKE always reported a positive cash flow from operatings.
1.2 Ratios
OKE has a Return On Assets (4.74%) which is comparable to the rest of the industry.
OKE has a Return On Equity of 17.81%. This is in the better half of the industry: OKE outperforms 74.53% of its industry peers.
With a Return On Invested Capital value of 6.46%, OKE perfoms like the industry average, outperforming 51.42% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for OKE is significantly below the industry average of 27.42%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.74% | ||
| ROE | 17.81% | ||
| ROIC | 6.46% |
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
With a Profit Margin value of 13.98%, OKE perfoms like the industry average, outperforming 59.91% of the companies in the same industry.
In the last couple of years the Profit Margin of OKE has grown nicely.
Looking at the Operating Margin, with a value of 23.30%, OKE is in line with its industry, outperforming 55.66% of the companies in the same industry.
OKE's Operating Margin has improved in the last couple of years.
OKE's Gross Margin of 38.65% is in line compared to the rest of the industry. OKE outperforms 45.75% of its industry peers.
OKE's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 23.3% | ||
| PM (TTM) | 13.98% | ||
| GM | 38.65% |
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 below the Cost of Capital (WACC), which means it is destroying value.
OKE has about the same amout of shares outstanding than it did 1 year ago.
The number of shares outstanding for OKE has been increased compared to 5 years ago.
Compared to 1 year ago, OKE has a worse debt to assets ratio.
2.2 Solvency
OKE has an Altman-Z score of 1.31. 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 1.31. This is comparable to the rest of the industry: OKE outperforms 51.89% of its industry peers.
OKE has a debt to FCF ratio of 11.19. This is a negative value and a sign of low solvency as OKE would need 11.19 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 11.19, OKE is in line with its industry, outperforming 49.06% of the companies in the same industry.
OKE has a Debt/Equity ratio of 1.82. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 1.82, OKE is not doing good in the industry: 80.19% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.82 | ||
| Debt/FCF | 11.19 | ||
| Altman-Z | 1.31 |
ROIC/WACC0.67
WACC9.63%
2.3 Liquidity
A Current Ratio of 0.90 indicates that OKE may have some problems paying its short term obligations.
With a Current ratio value of 0.90, OKE is not doing good in the industry: 66.51% of the companies in the same industry are doing better.
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's Quick ratio of 0.74 is on the low side compared to the rest of the industry. OKE is outperformed by 63.21% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.9 | ||
| Quick Ratio | 0.74 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 20.51% over the past year.
The Earnings Per Share has been growing by 10.99% on average over the past years. This is quite good.
OKE shows a strong growth in Revenue. In the last year, the Revenue has grown by 22.75%.
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)20.51%
EPS 3Y15.45%
EPS 5Y10.99%
EPS Q2Q%33.05%
Revenue 1Y (TTM)22.75%
Revenue growth 3Y9.47%
Revenue growth 5Y16.38%
Sales Q2Q%33.72%
3.2 Future
The Earnings Per Share is expected to grow by 9.63% on average over the next years. This is quite good.
The Revenue is expected to grow by 7.70% on average over the next years.
EPS Next Y7.99%
EPS Next 2Y11.33%
EPS Next 3Y10.34%
EPS Next 5Y9.63%
Revenue Next Year32.69%
Revenue Next 2Y19.74%
Revenue Next 3Y15.97%
Revenue Next 5Y7.7%
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
A Price/Earnings ratio of 16.68 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.
When comparing the Price/Earnings ratio of OKE to the average of the S&P500 Index (28.29), we can say OKE is valued slightly cheaper.
A Price/Forward Earnings ratio of 15.45 indicates a correct valuation of OKE.
Compared to the rest of the industry, the Price/Forward Earnings ratio of OKE is on the same level as its industry peers.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.08, OKE is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.68 | ||
| Fwd PE | 15.45 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, OKE is valued a bit more expensive than 65.09% of the companies in the same industry.
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 | 18.79 | ||
| EV/EBITDA | 13.77 |
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)2.09
PEG (5Y)1.52
EPS Next 2Y11.33%
EPS Next 3Y10.34%
5. Dividend
5.1 Amount
OKE has a Yearly Dividend Yield of 5.07%, which is a nice return.
In the last 3 months the price of OKE has falen by -20.86%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
Compared to an average industry Dividend Yield of 7.82, OKE pays a bit more dividend than its industry peers.
OKE's Dividend Yield is rather good when compared to the S&P500 average which is at 2.57.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.07% |
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 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 76.24% 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.
DP76.24%
EPS Next 2Y11.33%
EPS Next 3Y10.34%
86.23
+1.43 (+1.69%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners66.73%
Inst Owner Change0%
Ins Owners0.15%
Ins Owner Change1.81%
Market Cap53.86B
Analysts79.17
Price Target114.39 (32.66%)
Short Float %1.83%
Short Ratio2.78
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.07% |
Yearly Dividend3.97
Dividend Growth(5Y)2.34%
DP76.24%
Div Incr Years2
Div Non Decr Years34
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.28%
Min EPS beat(2)-4.81%
Max EPS beat(2)4.26%
EPS beat(4)2
Avg EPS beat(4)0.48%
Min EPS beat(4)-6.77%
Max EPS beat(4)9.25%
EPS beat(8)3
Avg EPS beat(8)-7.35%
EPS beat(12)6
Avg EPS beat(12)-3.81%
EPS beat(16)9
Avg EPS beat(16)-2.01%
Revenue beat(2)1
Avg Revenue beat(2)-8.22%
Min Revenue beat(2)-19.39%
Max Revenue beat(2)2.94%
Revenue beat(4)1
Avg Revenue beat(4)-14.96%
Min Revenue beat(4)-23.05%
Max Revenue beat(4)2.94%
Revenue beat(8)1
Avg Revenue beat(8)-17.39%
Revenue beat(12)3
Avg Revenue beat(12)-11.49%
Revenue beat(16)7
Avg Revenue beat(16)-4.29%
PT rev (1m)-0.43%
PT rev (3m)-0.78%
EPS NQ rev (1m)-4.12%
EPS NQ rev (3m)-17.04%
EPS NY rev (1m)-7.04%
EPS NY rev (3m)-8.25%
Revenue NQ rev (1m)-0.08%
Revenue NQ rev (3m)21.67%
Revenue NY rev (1m)1.53%
Revenue NY rev (3m)7.15%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.68 | ||
| Fwd PE | 15.45 | ||
| P/S | 2.48 | ||
| P/FCF | 18.79 | ||
| P/OCF | 11.02 | ||
| P/B | 3.16 | ||
| P/tB | 9.12 | ||
| EV/EBITDA | 13.77 |
EPS(TTM)5.17
EY6%
EPS(NY)5.58
Fwd EY6.47%
FCF(TTM)4.59
FCFY5.32%
OCF(TTM)7.83
OCFY9.08%
SpS34.74
BVpS27.27
TBVpS9.46
PEG (NY)2.09
PEG (5Y)1.52
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.74% | ||
| ROE | 17.81% | ||
| ROCE | 8.52% | ||
| ROIC | 6.46% | ||
| ROICexc | 6.54% | ||
| ROICexgc | 8.08% | ||
| OM | 23.3% | ||
| PM (TTM) | 13.98% | ||
| GM | 38.65% | ||
| FCFM | 13.21% |
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%
ROICexcg growth 3Y-7.08%
ROICexcg 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-Score5
Asset Turnover0.34
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.82 | ||
| Debt/FCF | 11.19 | ||
| Debt/EBITDA | 5.01 | ||
| Cap/Depr | 178.22% | ||
| Cap/Sales | 9.31% | ||
| Interest Coverage | 3.9 | ||
| Cash Conversion | 78.98% | ||
| Profit Quality | 94.5% | ||
| Current Ratio | 0.9 | ||
| Quick Ratio | 0.74 | ||
| Altman-Z | 1.31 |
F-Score5
WACC9.63%
ROIC/WACC0.67
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)20.51%
EPS 3Y15.45%
EPS 5Y10.99%
EPS Q2Q%33.05%
EPS Next Y7.99%
EPS Next 2Y11.33%
EPS Next 3Y10.34%
EPS Next 5Y9.63%
Revenue 1Y (TTM)22.75%
Revenue growth 3Y9.47%
Revenue growth 5Y16.38%
Sales Q2Q%33.72%
Revenue Next Year32.69%
Revenue Next 2Y19.74%
Revenue Next 3Y15.97%
Revenue Next 5Y7.7%
EBIT growth 1Y19.79%
EBIT growth 3Y24.95%
EBIT growth 5Y21.43%
EBIT Next Year64.69%
EBIT Next 3Y22.84%
EBIT Next 5Y15.18%
FCF growth 1Y1.45%
FCF growth 3Y15.73%
FCF growth 5YN/A
OCF growth 1Y10.56%
OCF growth 3Y24.28%
OCF growth 5Y20.22%