ONEOK INC (OKE) Stock Fundamental Analysis
USA - NYSE:OKE - US6826801036 - Common Stock
69.59 USD
+0.64 (+0.93%)
69.84 USD
+0.25 (+0.36%)
Overall OKE gets a fundamental rating of 5 out of 10. We evaluated OKE against 211 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 correct valuation and a medium growth rate. OKE also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year OKE was profitable.
In the past year OKE had a positive cash flow from operations.
Each year in the past 5 years OKE has been profitable.
In the past 5 years OKE always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of OKE (4.79%) is better than 62.56% of its industry peers.
Looking at the Return On Equity, with a value of 14.16%, OKE is in the better half of the industry, outperforming 72.51% of the companies in the same industry.
OKE's Return On Invested Capital of 7.03% is fine compared to the rest of the industry. OKE outperforms 62.56% 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 21.53%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.79% | ||
| ROE | 14.16% | ||
| ROIC | 7.03% |
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 (11.06%) which is in line with its industry peers.
In the last couple of years the Profit Margin of OKE has grown nicely.
OKE's Operating Margin of 19.59% is in line compared to the rest of the industry. OKE outperforms 54.50% of its industry peers.
OKE's Operating Margin has improved in the last couple of years.
With a Gross Margin value of 33.68%, OKE perfoms like the industry average, outperforming 45.50% of the companies in the same industry.
OKE's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 19.59% | ||
| PM (TTM) | 11.06% | ||
| GM | 33.68% |
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.
Compared to 5 years ago, OKE has more shares outstanding
OKE has a worse debt/assets ratio than last year.
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 (1.31) which is comparable to the rest of the industry.
OKE has a debt to FCF ratio of 11.26. This is a negative value and a sign of low solvency as OKE would need 11.26 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 11.26, OKE is in line with its industry, outperforming 51.18% of the companies in the same industry.
OKE has a Debt/Equity ratio of 1.41. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 1.41, OKE is not doing good in the industry: 74.41% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.41 | ||
| Debt/FCF | 11.26 | ||
| Altman-Z | 1.31 |
ROIC/WACC0.92
WACC7.65%
2.3 Liquidity
OKE has a Current Ratio of 0.59. This is a bad value and indicates that OKE is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 0.59, OKE is doing worse than 83.89% of the companies in the same industry.
A Quick Ratio of 0.46 indicates that OKE may have some problems paying its short term obligations.
OKE has a worse Quick ratio (0.46) than 86.73% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.59 | ||
| Quick Ratio | 0.46 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 11.76% 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 46.36%.
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)11.76%
EPS 3Y15.45%
EPS 5Y10.99%
EPS Q2Q%0.75%
Revenue 1Y (TTM)46.36%
Revenue growth 3Y9.47%
Revenue growth 5Y16.38%
Sales Q2Q%61.16%
3.2 Future
Based on estimates for the next years, OKE will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.68% on average per year.
Based on estimates for the next years, OKE will show a quite strong growth in Revenue. The Revenue will grow by 9.13% on average per year.
EPS Next Y5.71%
EPS Next 2Y9.34%
EPS Next 3Y9.11%
EPS Next 5Y8.68%
Revenue Next Year51.56%
Revenue Next 2Y23.38%
Revenue Next 3Y18.34%
Revenue Next 5Y9.13%
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 13.57.
Compared to the rest of the industry, the Price/Earnings ratio of OKE is on the same level as its industry peers.
Compared to an average S&P500 Price/Earnings ratio of 27.57, OKE is valued rather cheaply.
The Price/Forward Earnings ratio is 11.26, which indicates a very decent valuation of OKE.
Based on the Price/Forward Earnings ratio, OKE is valued a bit cheaper than 61.14% of the companies in the same industry.
OKE's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 23.09.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.57 | ||
| Fwd PE | 11.26 |
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 60.66% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.2 | ||
| EV/EBITDA | 10.9 |
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)2.38
PEG (5Y)1.23
EPS Next 2Y9.34%
EPS Next 3Y9.11%
5. Dividend
5.1 Amount
OKE has a Yearly Dividend Yield of 6.13%, which is a nice return.
Compared to an average industry Dividend Yield of 6.30, OKE pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.32, OKE pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.13% |
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 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 79.04% of its income as dividend. This is not a sustainable payout ratio.
OKE's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP79.04%
EPS Next 2Y9.34%
EPS Next 3Y9.11%
69.59
+0.64 (+0.93%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners74.97%
Inst Owner Change-0.1%
Ins Owners0.16%
Ins Owner Change0.24%
Market Cap43.82B
Revenue(TTM)27.95B
Net Income(TTM)3.09B
Analysts76
Price Target97.65 (40.32%)
Short Float %2.11%
Short Ratio3.69
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.13% |
Yearly Dividend3.97
Dividend Growth(5Y)2.34%
DP79.04%
Div Incr Years2
Div Non Decr Years34
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-9%
Min EPS beat(2)-17.53%
Max EPS beat(2)-0.48%
EPS beat(4)1
Avg EPS beat(4)-4.64%
Min EPS beat(4)-17.53%
Max EPS beat(4)4.26%
EPS beat(8)2
Avg EPS beat(8)-3.1%
EPS beat(12)5
Avg EPS beat(12)-5.49%
EPS beat(16)7
Avg EPS beat(16)-3.91%
Revenue beat(2)2
Avg Revenue beat(2)2.48%
Min Revenue beat(2)1.57%
Max Revenue beat(2)3.39%
Revenue beat(4)3
Avg Revenue beat(4)-2.87%
Min Revenue beat(4)-19.39%
Max Revenue beat(4)3.39%
Revenue beat(8)3
Avg Revenue beat(8)-12.13%
Revenue beat(12)3
Avg Revenue beat(12)-12.94%
Revenue beat(16)7
Avg Revenue beat(16)-5.53%
PT rev (1m)-0.55%
PT rev (3m)-8.28%
EPS NQ rev (1m)-0.92%
EPS NQ rev (3m)-2.34%
EPS NY rev (1m)-0.76%
EPS NY rev (3m)-0.2%
Revenue NQ rev (1m)-0.68%
Revenue NQ rev (3m)6.18%
Revenue NY rev (1m)0.46%
Revenue NY rev (3m)15.86%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.57 | ||
| Fwd PE | 11.26 | ||
| P/S | 1.57 | ||
| P/FCF | 15.2 | ||
| P/OCF | 8.28 | ||
| P/B | 2.01 | ||
| P/tB | 4.07 | ||
| EV/EBITDA | 10.9 |
EPS(TTM)5.13
EY7.37%
EPS(NY)6.18
Fwd EY8.88%
FCF(TTM)4.58
FCFY6.58%
OCF(TTM)8.4
OCFY12.07%
SpS44.39
BVpS34.66
TBVpS17.09
PEG (NY)2.38
PEG (5Y)1.23
Graham Number63.25
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.79% | ||
| ROE | 14.16% | ||
| ROCE | 9.46% | ||
| ROIC | 7.03% | ||
| ROICexc | 7.05% | ||
| ROICexgc | 8.67% | ||
| OM | 19.59% | ||
| PM (TTM) | 11.06% | ||
| GM | 33.68% | ||
| FCFM | 10.31% |
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-Score4
Asset Turnover0.43
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.41 | ||
| Debt/FCF | 11.26 | ||
| Debt/EBITDA | 4.51 | ||
| Cap/Depr | 176.28% | ||
| Cap/Sales | 8.61% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 77.32% | ||
| Profit Quality | 93.24% | ||
| Current Ratio | 0.59 | ||
| Quick Ratio | 0.46 | ||
| Altman-Z | 1.31 |
F-Score4
WACC7.65%
ROIC/WACC0.92
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)11.76%
EPS 3Y15.45%
EPS 5Y10.99%
EPS Q2Q%0.75%
EPS Next Y5.71%
EPS Next 2Y9.34%
EPS Next 3Y9.11%
EPS Next 5Y8.68%
Revenue 1Y (TTM)46.36%
Revenue growth 3Y9.47%
Revenue growth 5Y16.38%
Sales Q2Q%61.16%
Revenue Next Year51.56%
Revenue Next 2Y23.38%
Revenue Next 3Y18.34%
Revenue Next 5Y9.13%
EBIT growth 1Y28%
EBIT growth 3Y24.95%
EBIT growth 5Y21.43%
EBIT Next Year60.99%
EBIT Next 3Y21.53%
EBIT Next 5Y14.27%
FCF growth 1Y19.5%
FCF growth 3Y15.73%
FCF growth 5YN/A
OCF growth 1Y44.98%
OCF growth 3Y24.28%
OCF growth 5Y20.22%