ONEOK INC (ONK.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:ONK - US6826801036 - Common Stock
66.4 EUR
-0.45 (-0.67%)
ONK gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 71 industry peers in the Oil, Gas & Consumable Fuels industry. ONK has an excellent profitability rating, 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.
- ONK had a positive operating cash flow in the past year.
- 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 71.83% of its industry peers.
- ONK has a better Return On Equity (15.12%) than 81.69% of its industry peers.
- ONK's Return On Invested Capital of 7.36% is fine compared to the rest of the industry. ONK outperforms 71.83% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for ONK is in line with the industry average of 8.91%.
| 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 60.56% 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 56.34% of the companies in the same industry.
- In the last couple of years the Operating Margin of ONK has grown nicely.
- The Gross Margin of ONK (31.97%) is worse than 69.01% of its industry peers.
- ONK's Gross Margin has improved in the last couple of years.
| 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.
- The number of shares outstanding for ONK remains at a similar level compared to 1 year ago.
- The number of shares outstanding for ONK has been increased compared to 5 years ago.
- The debt/assets ratio for ONK is higher compared to a year ago.
2.2 Solvency
- ONK has an Altman-Z score of 1.47. This is a bad value and indicates that ONK is not financially healthy and even has some risk of bankruptcy.
- ONK's Altman-Z score of 1.47 is on the low side compared to the rest of the industry. ONK is outperformed by 61.97% of its industry peers.
- The Debt to FCF ratio of ONK is 11.55, which is on the high side as it means it would take ONK, 11.55 years of fcf income to pay off all of its debts.
- With a Debt to FCF ratio value of 11.55, ONK is not doing good in the industry: 60.56% of the companies in the same industry are doing better.
- A Debt/Equity ratio of 1.45 is on the high side and indicates that ONK has dependencies on debt financing.
- ONK has a Debt to Equity ratio of 1.45. This is amonst the worse of the industry: ONK underperforms 81.69% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.45 | ||
| Debt/FCF | 11.55 | ||
| Altman-Z | 1.47 |
ROIC/WACC0.93
WACC7.9%
2.3 Liquidity
- ONK has a Current 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.
- Looking at the Current ratio, with a value of 0.90, ONK is doing worse than 78.87% of the companies in the same industry.
- A Quick Ratio of 0.75 indicates that ONK may have some problems paying its short term obligations.
- ONK has a worse Quick ratio (0.75) than 78.87% 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.
- Measured over the past years, ONK shows a quite strong growth in Earnings Per Share. The EPS has been growing by 10.99% on average per year.
- The Revenue has grown by 58.35% in the past year. This is a very strong growth!
- Measured over the past years, ONK shows a quite strong growth in Revenue. The Revenue has been growing by 16.38% on average per year.
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
- Based on estimates for the next years, ONK will show a small growth in Earnings Per Share. The EPS will grow by 7.74% on average per year.
- 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 Y6.06%
EPS Next 2Y7.64%
EPS Next 3Y7.94%
EPS Next 5Y7.74%
Revenue Next Year54.7%
Revenue Next 2Y28.94%
Revenue Next 3Y20.55%
Revenue Next 5Y9.99%
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 decreasing.
- 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
- The Price/Earnings ratio is 14.56, which indicates a correct valuation of ONK.
- Based on the Price/Earnings ratio, ONK is valued a bit cheaper than 63.38% of the companies in the same industry.
- ONK's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 28.87.
- The Price/Forward Earnings ratio is 13.22, which indicates a correct valuation of ONK.
- The rest of the industry has a similar Price/Forward Earnings ratio as ONK.
- ONK's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 25.96.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.56 | ||
| Fwd PE | 13.22 |
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 67.61% of the companies listed in the same industry.
- ONK's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.07 | ||
| EV/EBITDA | 11.17 |
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.
- The decent profitability rating of ONK may justify a higher PE ratio.
PEG (NY)2.4
PEG (5Y)1.33
EPS Next 2Y7.64%
EPS Next 3Y7.94%
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 5.24, ONK pays a bit more dividend than its industry peers.
- Compared to an average S&P500 Dividend Yield of 1.82, ONK pays a better dividend.
| 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
- ONK pays out 75.29% of its income as dividend. This is not a sustainable payout ratio.
- ONK's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP75.29%
EPS Next 2Y7.64%
EPS Next 3Y7.94%
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 6.06% 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%.