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. While OKE is still in line with the averages on profitability rating, there are concerns on its financial health. 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
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
Looking at the Return On Assets, with a value of 5.48%, OKE is in line with its industry, outperforming 50.98% of the companies in the same industry.
OKE has a Return On Equity of 16.57%. This is in the better half of the industry: OKE outperforms 66.18% of its industry peers.
OKE has a Return On Invested Capital (7.32%) which is comparable to the rest of the industry.
OKE had an Average Return On Invested Capital over the past 3 years of 9.09%. This is significantly below the industry average of 29.03%.
| 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
The Profit Margin of OKE (14.04%) is comparable to the rest of the industry.
In the last couple of years the Profit Margin of OKE has grown nicely.
With a Operating Margin value of 22.85%, OKE perfoms like the industry average, outperforming 49.51% of the companies in the same industry.
In the last couple of years the Operating Margin of OKE has grown nicely.
Looking at the Gross Margin, with a value of 39.22%, OKE is in line with its industry, outperforming 46.08% of the companies in the same industry.
OKE's Gross Margin has improved in the last couple of years.
| 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
OKE has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for OKE has been increased compared to 1 year ago.
OKE has more shares outstanding than it did 5 years ago.
OKE has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.74, we must say that OKE is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of 1.74, OKE perfoms like the industry average, outperforming 52.94% of the companies in the same industry.
The Debt to FCF ratio of OKE is 10.33, which is on the high side as it means it would take OKE, 10.33 years of fcf income to pay off all of its debts.
With a Debt to FCF ratio value of 10.33, OKE perfoms like the industry average, outperforming 44.61% of the companies in the same industry.
A Debt/Equity ratio of 1.59 is on the high side and indicates that OKE has dependencies on debt financing.
With a Debt to Equity ratio value of 1.59, OKE is not doing good in the industry: 81.37% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.59 | ||
| Debt/FCF | 10.33 | ||
| Altman-Z | 1.74 |
ROIC/WACC0.94
WACC7.78%
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.
OKE has a Current ratio of 0.81. This is in the lower half of the industry: OKE underperforms 71.08% of its industry peers.
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 78.92% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.81 | ||
| Quick Ratio | 0.59 |
3. Growth
3.1 Past
OKE shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 14.08%, which is quite good.
OKE shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 9.14% yearly.
Looking at the last year, OKE shows a quite strong growth in Revenue. The Revenue has grown by 14.07% in the last year.
OKE shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.02% yearly.
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
OKE is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 12.27% yearly.
Based on estimates for the next years, OKE will show a quite strong growth in Revenue. The Revenue will grow by 15.44% on average per year.
EPS Next Y20.35%
EPS Next 2Y19.1%
EPS Next 3Y15.66%
EPS Next 5Y12.27%
Revenue Next Year11.47%
Revenue Next 2Y17.72%
Revenue Next 3Y14.41%
Revenue Next 5Y15.44%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 21.07, which indicates a rather expensive current valuation of OKE.
Based on the Price/Earnings ratio, OKE is valued a bit more expensive than the industry average as 65.69% of the companies are valued more cheaply.
Compared to an average S&P500 Price/Earnings ratio of 27.55, OKE is valued a bit cheaper.
Based on the Price/Forward Earnings ratio of 16.55, the valuation of OKE can be described as correct.
OKE's Price/Forward Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 24.00, OKE is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.07 | ||
| Fwd PE | 16.55 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, OKE is valued a bit more expensive than 74.02% 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 | 21.61 | ||
| EV/EBITDA | 15.47 |
4.3 Compensation for Growth
OKE's 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 15.66% in the coming years.
PEG (NY)1.04
PEG (5Y)2.3
EPS Next 2Y19.1%
EPS Next 3Y15.66%
5. Dividend
5.1 Amount
OKE has a Yearly Dividend Yield of 4.05%, which is a nice return.
Compared to an average industry Dividend Yield of 7.14, OKE has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.36, OKE pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.05% |
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 Years2
Div Non Decr Years34
5.3 Sustainability
81.81% of the earnings are spent on dividend by OKE. This is not a sustainable payout ratio.
OKE's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP81.81%
EPS Next 2Y19.1%
EPS Next 3Y15.66%
ONEOK INC
NYSE:OKE (12/27/2024, 1:51:00 PM)
100.7
-0.55 (-0.54%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners70.36%
Inst Owner Change2.33%
Ins Owners0.16%
Ins Owner Change0.39%
Market Cap58.83B
Analysts75.24
Price Target112.16 (11.38%)
Short Float %2.64%
Short Ratio5.21
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.05% |
Dividend Growth(5Y)1.38%
DP81.81%
Div Incr Years2
Div Non Decr Years34
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)2.22%
Min EPS beat(2)-4.81%
Max EPS beat(2)9.25%
EPS beat(4)1
Avg EPS beat(4)-1.17%
Min EPS beat(4)-6.77%
Max EPS beat(4)9.25%
EPS beat(8)3
Avg EPS beat(8)-7.31%
EPS beat(12)5
Avg EPS beat(12)-4.58%
EPS beat(16)8
Avg EPS beat(16)-2.69%
Revenue beat(2)0
Avg Revenue beat(2)-19.86%
Min Revenue beat(2)-20.33%
Max Revenue beat(2)-19.39%
Revenue beat(4)0
Avg Revenue beat(4)-19.24%
Min Revenue beat(4)-23.05%
Max Revenue beat(4)-14.18%
Revenue beat(8)0
Avg Revenue beat(8)-19.86%
Revenue beat(12)3
Avg Revenue beat(12)-9.76%
Revenue beat(16)6
Avg Revenue beat(16)-4.62%
PT rev (1m)13.56%
PT rev (3m)23.44%
EPS NQ rev (1m)-1.12%
EPS NQ rev (3m)8.06%
EPS NY rev (1m)0.65%
EPS NY rev (3m)-0.06%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.91%
Revenue NY rev (1m)-6.69%
Revenue NY rev (3m)-4.75%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.07 | ||
| Fwd PE | 16.55 | ||
| P/S | 2.95 | ||
| P/FCF | 21.61 | ||
| P/OCF | 12.3 | ||
| P/B | 3.48 | ||
| P/tB | 5.63 | ||
| EV/EBITDA | 15.47 |
EPS(TTM)4.78
EY4.75%
EPS(NY)6.09
Fwd EY6.04%
FCF(TTM)4.66
FCFY4.63%
OCF(TTM)8.19
OCFY8.13%
SpS34.12
BVpS28.9
TBVpS17.9
PEG (NY)1.04
PEG (5Y)2.3
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.48% | ||
| ROE | 16.57% | ||
| ROCE | 9.59% | ||
| ROIC | 7.32% | ||
| ROICexc | 7.41% | ||
| ROICexgc | 8.58% | ||
| OM | 22.85% | ||
| PM (TTM) | 14.04% | ||
| GM | 39.22% | ||
| FCFM | 13.66% |
ROA(3y)6.47%
ROA(5y)5.58%
ROE(3y)22.51%
ROE(5y)19.64%
ROIC(3y)9.09%
ROIC(5y)8.29%
ROICexc(3y)9.16%
ROICexc(5y)8.38%
ROICexgc(3y)9.9%
ROICexgc(5y)8.95%
ROCE(3y)11.91%
ROCE(5y)10.89%
ROICexcg growth 3Y8.71%
ROICexcg growth 5Y0.42%
ROICexc growth 3Y4.06%
ROICexc growth 5Y-1.69%
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%
F-Score4
Asset Turnover0.39
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.59 | ||
| Debt/FCF | 10.33 | ||
| Debt/EBITDA | 4.8 | ||
| Cap/Depr | 196.38% | ||
| Cap/Sales | 10.34% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 85.37% | ||
| Profit Quality | 97.28% | ||
| Current Ratio | 0.81 | ||
| Quick Ratio | 0.59 | ||
| Altman-Z | 1.74 |
F-Score4
WACC7.78%
ROIC/WACC0.94
Cap/Depr(3y)170.49%
Cap/Depr(5y)339.69%
Cap/Sales(3y)6.2%
Cap/Sales(5y)16.43%
Profit Quality(3y)109.58%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)14.08%
EPS 3Y19.09%
EPS 5Y9.14%
EPS Q2Q%19.19%
EPS Next Y20.35%
EPS Next 2Y19.1%
EPS Next 3Y15.66%
EPS Next 5Y12.27%
Revenue 1Y (TTM)14.07%
Revenue growth 3Y27.43%
Revenue growth 5Y7.02%
Sales Q2Q%19.91%
Revenue Next Year11.47%
Revenue Next 2Y17.72%
Revenue Next 3Y14.41%
Revenue Next 5Y15.44%
EBIT growth 1Y21.3%
EBIT growth 3Y29.08%
EBIT growth 5Y18.19%
EBIT Next Year57.75%
EBIT Next 3Y28.75%
EBIT Next 5Y18.87%
FCF growth 1Y48.96%
FCF growth 3YN/A
FCF growth 5Y128.67%
OCF growth 1Y63.84%
OCF growth 3Y32.53%
OCF growth 5Y15.12%