| Snowflake Score | |
|---|---|
| Valuation | 2/6 |
| Future Growth | 2/6 |
| Past Performance | 5/6 |
| Financial Health | 2/6 |
| Dividends | 4/6 |
OKE Stock Overview
ONEOK, Inc., together with its subsidiaries, engages in gathering, processing, storage, and transportation of natural gas in the United States.
ONEOK Competitors
Price History & Performance
| Historical stock prices | |
|---|---|
| Current Share Price | US$58.53 |
| 52 Week High | US$66.78 |
| 52 Week Low | US$38.90 |
| Beta | 1.85 |
| 1 Month Change | 1.30% |
| 3 Month Change | -9.69% |
| 1 Year Change | 36.63% |
| 3 Year Change | -6.26% |
| 5 Year Change | 6.59% |
| Change since IPO | 1,363.25% |
Recent News & Updates
Does ONEOK (NYSE:OKE) Have A Healthy Balance Sheet?
Some say volatility, rather than debt, is the best way to think about risk as an investor, but Warren Buffett famously...
ONEOK: A Solid 6%-Yielder With Natural Gas Strength
ONEOK is one of the largest natural gas-focused midstream companies in the United States. The company has a history of delivering growth and even managed to deliver some in 2020, albeit barely. The future of natural gas and NGLs is incredibly strong, which could give the company some potential growth as this story plays out. The leverage is very high compared to its peers but it does appear able to support its leverage. The dividend yield is 6.07% at the current price and the company can easily support it at the present level.
The 2 Best S&P 500 High Yield Dividend Stocks For 2022
I take a look at high yielding stocks from the index, and pick the best 2. These opportunities tick all boxes: quality, value, and growth prospects. For high yielding investors, these two deserve a spot in your portfolio.
ONEOK Will Benefit From Continued Strength In Natural Gas Demand
ONEOK operates in the natural gas business, one with a much longer growth and demand pipeline than crude oil. The company has a strong dividend yield of 6% that it's been able to maintain for 25 years., and we expect it'll be able to continue. The company has been capturing efficiency across its system leading to higher volumes and income. We expect the income to provide reliable long-term cash flow and modest growth, making it a reliable investment in an expensive market.
ONEOK: 6% Yield, Strong Q3 Growth, Guidance Raised Again
OKE yields 6.05%, with 1.2x trailing coverage. Management raised full-year 2021 guidance again in Q3 '21, and analysts raised price targets. OKE has outperformed the midstream industry, the energy sector and the S&P by wide margins in 2021. There are two options trades in this article.
Calculating The Intrinsic Value Of ONEOK, Inc. (NYSE:OKE)
Today we will run through one way of estimating the intrinsic value of ONEOK, Inc. ( NYSE:OKE ) by projecting its...
Shareholder Returns
| OKE | US Oil and Gas | US Market | |
|---|---|---|---|
| 7D | -6.5% | 0.4% | -4.0% |
| 1Y | 36.6% | 48.8% | 6.6% |
Return vs Industry: OKE underperformed the US Oil and Gas industry which returned 45.7% over the past year.
Return vs Market: OKE exceeded the US Market which returned 7.7% over the past year.
Price Volatility
| OKE volatility | |
|---|---|
| OKE Average Weekly Movement | 4.0% |
| Oil and Gas Industry Average Movement | 7.2% |
| Market Average Movement | 6.6% |
| 10% most volatile stocks in US Market | 15.7% |
| 10% least volatile stocks in US Market | 2.4% |
Stable Share Price: OKE is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 4% a week.
Volatility Over Time: OKE's weekly volatility (4%) has been stable over the past year.
About the Company
| Founded | Employees | CEO | Website |
|---|---|---|---|
| 1906 | 2,886 | Pierce Norton | https://www.oneok.com |
ONEOK, Inc., together with its subsidiaries, engages in gathering, processing, storage, and transportation of natural gas in the United States. It operates through Natural Gas Gathering and Processing, Natural Gas Liquids, and Natural Gas Pipelines segments. The company owns natural gas gathering pipelines and processing plants in the Mid-Continent and Rocky Mountain regions.
ONEOK Fundamentals Summary
| OKE fundamental statistics | |
|---|---|
| Market Cap | US$26.10b |
| Earnings (TTM) | US$1.43b |
| Revenue (TTM) | US$13.69b |
18.3x
P/E Ratio1.9x
P/S RatioIs OKE overvalued?
See Fair Value and valuation analysisEarnings & Revenue
| OKE income statement (TTM) | |
|---|---|
| Revenue | US$13.69b |
| Cost of Revenue | US$9.56b |
| Gross Profit | US$4.13b |
| Expenses | US$2.70b |
| Earnings | US$1.43b |
Last Reported Earnings
Sep 30, 2021
Next Earnings Date
Feb 28, 2022
| Earnings per share (EPS) | 3.20 |
| Gross Margin | 30.14% |
| Net Profit Margin | 10.43% |
| Debt/Equity Ratio | 245.2% |
How did OKE perform over the long term?
See historical performance and comparisonDividends
6.4%
Current Dividend Yield117%
Payout RatioValuation
Is ONEOK undervalued compared to its fair value and its price relative to the market?
23.4%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: OKE ($59.39) is trading below our estimate of fair value ($76.46)
Significantly Below Fair Value: OKE is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: OKE's PE Ratio (18.6x) is in line with the US Oil and Gas industry average.
PE vs Market: OKE is poor value based on its PE Ratio (18.6x) compared to the US market (16.9x).
Price to Earnings Growth Ratio
PEG Ratio: OKE is poor value based on its PEG Ratio (2.3x)
Price to Book Ratio
PB vs Industry: OKE is overvalued based on its PB Ratio (4.5x) compared to the US Oil and Gas industry average (2.2x).
Future Growth
How is ONEOK forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?
8.1%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: OKE's forecast earnings growth (8.1% per year) is above the savings rate (2%).
Earnings vs Market: OKE's earnings (8.1% per year) are forecast to grow slower than the US market (13.1% per year).
High Growth Earnings: OKE's earnings are forecast to grow, but not significantly.
Revenue vs Market: OKE's revenue (8.9% per year) is forecast to grow slower than the US market (9.3% per year).
High Growth Revenue: OKE's revenue (8.9% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: OKE's Return on Equity is forecast to be high in 3 years time (31.2%)
Past Performance
How has ONEOK performed over the past 5 years?
21.7%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: OKE has high quality earnings.
Growing Profit Margin: OKE's current net profit margins (10.4%) are higher than last year (7.2%).
Past Earnings Growth Analysis
Earnings Trend: OKE's earnings have grown significantly by 21.7% per year over the past 5 years.
Accelerating Growth: OKE's earnings growth over the past year (128.8%) exceeds its 5-year average (21.7% per year).
Earnings vs Industry: OKE earnings growth over the past year (128.8%) exceeded the Oil and Gas industry 17.4%.
Return on Equity
High ROE: Whilst OKE's Return on Equity (24.45%) is high, this metric is skewed due to their high level of debt.
Financial Health
How is ONEOK's financial position?
Financial Position Analysis
Short Term Liabilities: OKE's short term assets ($2.7B) do not cover its short term liabilities ($2.8B).
Long Term Liabilities: OKE's short term assets ($2.7B) do not cover its long term liabilities ($15.2B).
Debt to Equity History and Analysis
Debt Level: OKE's net debt to equity ratio (241.4%) is considered high.
Reducing Debt: OKE's debt to equity ratio has reduced from 275.4% to 245.2% over the past 5 years.
Debt Coverage: OKE's debt is not well covered by operating cash flow (16%).
Interest Coverage: OKE's interest payments on its debt are well covered by EBIT (3.4x coverage).
Balance Sheet
Dividend
What is ONEOK current dividend yield, its reliability and sustainability?
6.39%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: OKE's dividend (6.3%) is higher than the bottom 25% of dividend payers in the US market (1.34%).
High Dividend: OKE's dividend (6.3%) is in the top 25% of dividend payers in the US market (3.49%)
Stability and Growth of Payments
Stable Dividend: OKE's dividends per share have been stable in the past 10 years.
Growing Dividend: OKE's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its high payout ratio (116.9%), OKE's dividend payments are not well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: OKE's dividends in 3 years are not forecast to be well covered by earnings (91% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
4.0yrs
Average management tenure
CEO
Pierce Norton (61 yo)
0.58
Tenure
US$860,234
Compensation
Mr. Pierce H. Norton II has been President, Chief Executive Officer and Director of ONEOK, Inc. since June 28, 2021. He has been the Chief Executive Officer and President of ONE Gas, Inc. since January 31,...
Leadership Team
Experienced Management: OKE's management team is considered experienced (4 years average tenure).
Board Members
Experienced Board: OKE's board of directors are seasoned and experienced ( 10 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
ONEOK, Inc.'s employee growth, exchange listings and data sources
Key Information
- Name: ONEOK, Inc.
- Ticker: OKE
- Exchange: NYSE
- Founded: 1906
- Industry: Oil and Gas Storage and Transportation
- Sector: Energy
- Implied Market Cap: US$26.101b
- Shares outstanding: 445.94m
- Website: https://www.oneok.com
Number of Employees
Location
- ONEOK, Inc.
- 100 West Fifth Street
- Tulsa
- Oklahoma
- 74103
- United States
Listings
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2022/01/21 23:36 |
| End of Day Share Price | 2022/01/21 00:00 |
| Earnings | 2021/09/30 |
| Annual Earnings | 2020/12/31 |
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.