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. While ONK has a great profitability rating, there are quite some concerns on its financial health. ONK has a decent growth rate and is not valued too expensively. ONK also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
- ONK had positive earnings in the past year.
- ONK had a positive operating cash flow in the past year.
- Each year in the past 5 years ONK has been profitable.
- Each year in the past 5 years ONK had a positive operating cash flow.
1.2 Ratios
- With a decent Return On Assets value of 5.01%, ONK is doing good in the industry, outperforming 71.83% of the companies in the same industry.
- With an excellent Return On Equity value of 15.12%, ONK belongs to the best of the industry, outperforming 81.69% of the companies in the same industry.
- Looking at the Return On Invested Capital, with a value of 7.36%, ONK is in the better half of the industry, outperforming 71.83% of the companies in the same industry.
- Measured over the past 3 years, the Average Return On Invested Capital 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 has a Profit Margin of 10.58%. This is in the better half of the industry: ONK outperforms 60.56% of its industry peers.
- ONK's Profit Margin has improved in the last couple of years.
- Looking at the Operating Margin, with a value of 18.71%, ONK is in line with its industry, outperforming 56.34% of the companies in the same industry.
- ONK's Operating Margin has improved in the last couple of years.
- Looking at the Gross Margin, with a value of 31.97%, ONK is doing worse than 69.01% of the companies in the same industry.
- 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.
- ONK has about the same amout of shares outstanding than it did 1 year ago.
- The number of shares outstanding for ONK has been increased compared to 5 years ago.
- Compared to 1 year ago, ONK has a worse debt to assets ratio.
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.
- 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.
- ONK has a Debt to FCF ratio of 11.55. This is in the lower half of the industry: ONK underperforms 60.56% of its industry peers.
- ONK has a Debt/Equity ratio of 1.45. This is a high value indicating a heavy dependency on external financing.
- ONK has a worse Debt to Equity ratio (1.45) than 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
WACC7.93%
2.3 Liquidity
- A Current Ratio of 0.90 indicates that ONK may have some problems paying 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's Quick ratio of 0.75 is on the low side compared to the rest of the industry. ONK is outperformed by 78.87% of its industry peers.
| 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%.
- ONK shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 16.38% yearly.
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
- The Earnings Per Share is expected to grow by 7.74% on average over the next years.
- Based on estimates for the next years, ONK will show a quite strong growth in Revenue. The Revenue will grow by 9.99% on average per year.
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
- 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
- Based on the Price/Earnings ratio of 14.56, the valuation of ONK can be described as correct.
- ONK's Price/Earnings ratio is a bit cheaper when compared to the industry. ONK is 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 28.60.
- Based on the Price/Forward Earnings ratio of 13.22, the valuation of ONK can be described as correct.
- ONK's Price/Forward Earnings is on the same level as the industry average.
- When comparing the Price/Forward Earnings ratio of ONK to the average of the S&P500 Index (25.83), we can say ONK is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.56 | ||
| Fwd PE | 13.22 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, ONK is valued a bit more expensive than the industry average as 67.61% of the companies are valued more cheaply.
- The rest of the industry has a similar Price/Free Cash Flow ratio as ONK.
| 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 an expensive valuation of the company.
- ONK has a very decent profitability rating, which 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.
- ONK's Dividend Yield is a higher than the industry average which is at 5.24.
- ONK's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
| 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.
- 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%.