ONEOK INC (ONK.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:ONK - US6826801036 - Common Stock
66.85 EUR
+1.45 (+2.22%)
We assign a fundamental rating of 4 out of 10 to ONK. ONK was compared to 75 industry peers in the Oil, Gas & Consumable Fuels industry. ONK scores excellent on profitability, but there are concerns on its financial health. ONK has a correct valuation and a medium growth rate. Finally ONK also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
- In the past year ONK was profitable.
- In the past year ONK had a positive cash flow from operations.
- Each year in the past 5 years ONK has been profitable.
- ONK had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- ONK has a better Return On Assets (5.01%) than 70.67% of its industry peers.
- ONK has a Return On Equity of 15.12%. This is amongst the best in the industry. ONK outperforms 81.33% of its industry peers.
- The Return On Invested Capital of ONK (7.36%) is better than 70.67% of its industry peers.
- ONK had an Average Return On Invested Capital over the past 3 years of 7.98%. This is in line with the industry average of 8.82%.
| 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
- ONK's Profit Margin of 10.58% is fine compared to the rest of the industry. ONK outperforms 61.33% of its industry peers.
- ONK's Profit Margin has improved in the last couple of years.
- With a Operating Margin value of 18.71%, ONK perfoms like the industry average, outperforming 57.33% of the companies in the same industry.
- In the last couple of years the Operating Margin of ONK has grown nicely.
- With a Gross Margin value of 31.97%, ONK is not doing good in the industry: 66.67% of the companies in the same industry are doing better.
- In the last couple of years the Gross Margin of ONK 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 ONK is still creating some value.
- Compared to 1 year ago, ONK has about the same amount of shares outstanding.
- Compared to 5 years ago, ONK has more shares outstanding
- Compared to 1 year ago, ONK has a worse debt to assets ratio.
2.2 Solvency
- Based on the Altman-Z score of 1.45, we must say that ONK is in the distress zone and has some risk of bankruptcy.
- ONK has a Altman-Z score of 1.45. This is in the lower half of the industry: ONK underperforms 64.00% of its industry peers.
- ONK has a debt to FCF ratio of 11.55. This is a negative value and a sign of low solvency as ONK would need 11.55 years to pay back of all of its debts.
- Looking at the Debt to FCF ratio, with a value of 11.55, ONK is doing worse than 61.33% of the companies in the same industry.
- A Debt/Equity ratio of 1.45 is on the high side and indicates that ONK has dependencies on debt financing.
- ONK has a worse Debt to Equity ratio (1.45) than 81.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.45 | ||
| Debt/FCF | 11.55 | ||
| Altman-Z | 1.45 |
ROIC/WACC0.95
WACC7.77%
2.3 Liquidity
- A Current Ratio of 0.90 indicates that ONK may have some problems paying its short term obligations.
- ONK has a worse Current ratio (0.90) than 81.33% of its industry peers.
- ONK has a Quick Ratio of 0.90. This is a bad value and indicates that ONK is not financially healthy enough and could expect problems in meeting its short term obligations.
- With a Quick ratio value of 0.75, ONK is not doing good in the industry: 81.33% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.9 | ||
| Quick Ratio | 0.75 |
3. Growth
3.1 Past
- ONK shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 13.81%, which is quite good.
- The Earnings Per Share has been growing by 10.99% on average over the past years. This is quite good.
- ONK shows a strong growth in Revenue. In the last year, the Revenue has grown by 58.35%.
- The Revenue has been growing by 16.38% on average over the past years. This is quite good.
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
- ONK is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.74% yearly.
- ONK is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 9.99% yearly.
EPS Next Y6.16%
EPS Next 2Y7.93%
EPS Next 3Y8.07%
EPS Next 5Y7.74%
Revenue Next Year54.38%
Revenue Next 2Y29.43%
Revenue Next 3Y21.27%
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.
- The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- ONK is valuated correctly with a Price/Earnings ratio of 14.38.
- Compared to the rest of the industry, the Price/Earnings ratio of ONK indicates a somewhat cheap valuation: ONK is cheaper than 61.33% of the companies listed in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 27.21, ONK is valued a bit cheaper.
- ONK is valuated correctly with a Price/Forward Earnings ratio of 12.99.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of ONK is on the same level as its industry peers.
- Compared to an average S&P500 Price/Forward Earnings ratio of 24.26, ONK is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.38 | ||
| Fwd PE | 12.99 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ONK indicates a slightly more expensive valuation: ONK is more expensive than 66.67% of the companies listed in the same industry.
- ONK's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.86 | ||
| EV/EBITDA | 10.94 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates ONK does not grow enough to justify the current Price/Earnings ratio.
- ONK has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)2.33
PEG (5Y)1.31
EPS Next 2Y7.93%
EPS Next 3Y8.07%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 5.45%, ONK is a good candidate for dividend investing.
- Compared to an average industry Dividend Yield of 5.08, ONK pays a bit more dividend than its industry peers.
- ONK's Dividend Yield is rather good when compared to the S&P500 average which is at 1.81.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.45% |
5.2 History
- The dividend of ONK has a limited annual growth rate of 2.34%.
Dividend Growth(5Y)2.34%
Div Incr Years2
Div Non Decr Years3
5.3 Sustainability
- 75.29% of the earnings are spent on dividend by ONK. This is not a sustainable payout ratio.
- The dividend of ONK is growing, but earnings are growing more, so the dividend growth is sustainable.
DP75.29%
EPS Next 2Y7.93%
EPS Next 3Y8.07%
ONEOK INC / ONK.DE FAQ
What is the fundamental rating for ONK stock?
ChartMill assigns a fundamental rating of 4 / 10 to ONK.DE.
Can you provide the valuation status for ONEOK INC?
ChartMill assigns a valuation rating of 4 / 10 to ONEOK INC (ONK.DE). This can be considered as Fairly Valued.
How profitable is ONEOK INC (ONK.DE) stock?
ONEOK INC (ONK.DE) has a profitability rating of 7 / 10.
What is the expected EPS growth for ONEOK INC (ONK.DE) stock?
The Earnings per Share (EPS) of ONEOK INC (ONK.DE) is expected to grow by 6.16% in the next year.
Can you provide the dividend sustainability for ONK stock?
The dividend rating of ONEOK INC (ONK.DE) is 7 / 10 and the dividend payout ratio is 75.29%.