NYSE:OKE

Stock Analysis Report

Executive Summary

ONEOK, Inc., together with its subsidiaries, engages in the gathering, processing, storage, and transportation of natural gas in the United States.

Snowflake

Fundamentals

Solid track record with reasonable growth potential and pays a dividend.


Similar Companies

Share Price & News

How has ONEOK's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

1.6%

OKE

1.0%

US Oil and Gas

0.07%

US Market


1 Year Return

6.7%

OKE

-16.7%

US Oil and Gas

8.9%

US Market

Return vs Industry: OKE exceeded the US Oil and Gas industry which returned -16.7% over the past year.

Return vs Market: OKE underperformed the US Market which returned 8.9% over the past year.


Shareholder returns

OKEIndustryMarket
7 Day1.6%1.0%0.07%
30 Day-7.2%-4.3%-0.3%
90 Day2.8%-7.3%-1.6%
1 Year12.4%6.7%-13.5%-16.7%11.3%8.9%
3 Year66.7%43.0%-5.8%-14.4%46.3%36.8%
5 Year55.4%17.5%-23.1%-34.1%62.1%44.3%

Price Volatility Vs. Market

How volatile is ONEOK's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is ONEOK undervalued compared to its fair value and its price relative to the market?

23.14x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: OKE ($70.33) is trading above our estimate of fair value ($46.07)

Significantly Below Fair Value: OKE is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: OKE is poor value based on its PE Ratio (23.1x) compared to the Oil and Gas industry average (9.9x).

PE vs Market: OKE is poor value based on its PE Ratio (23.1x) compared to the US market (17.8x).


Price to Earnings Growth Ratio

PEG Ratio: OKE is poor value based on its PEG Ratio (1.3x)


Price to Book Ratio

PB vs Industry: OKE is overvalued based on its PB Ratio (4.6x) compared to the US Oil and Gas industry average (0.9x).


Next Steps

Future Growth

How is ONEOK forecast to perform in the next 1 to 3 years based on estimates from 15 analysts?

17.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: OKE's forecast earnings growth (17.2% per year) is above the savings rate (2.7%).

Earnings vs Market: OKE's earnings (17.2% per year) are forecast to grow faster than the US market (14.5% per year).

High Growth Earnings: OKE's earnings are forecast to grow, but not significantly.

Revenue vs Market: OKE's revenue (9.8% per year) is forecast to grow faster than the US market (7.2% per year).

High Growth Revenue: OKE's revenue (9.8% 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 (26.3%)


Next Steps

Past Performance

How has ONEOK performed over the past 5 years?

34.8%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: OKE's earnings have grown significantly by 34.8% per year over the past 5 years.

Accelerating Growth: OKE's earnings growth over the past year (62.2%) exceeds its 5-year average (34.8% per year).

Earnings vs Industry: OKE earnings growth over the past year (62.2%) exceeded the Oil and Gas industry 20.6%.


Return on Equity

High ROE: OKE's Return on Equity (19.8%) is considered low.


Return on Assets

ROA vs Industry: OKE has a higher Return on Assets than the Oil and Gas industry average last year.


Return on Capital Employed

ROCE Improving: OKE has improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is ONEOK's financial position?


Financial Position Analysis

Short Term Liabilities: OKE's short term assets ($1.4B) do not cover its short term liabilities ($1.7B)

Long Term Liabilities: OKE's short term assets (1.4B) do not cover its long term liabilities (11.7B)


Debt to Equity History and Analysis

Debt Level: OKE's debt to equity ratio (178.3%) is considered high

Reducing Debt: OKE's debt to equity ratio has reduced from 190.5% to 178.3% over the past 5 years.

Debt Coverage: OKE's debt is not well covered by operating cash flow (19%).

Interest Coverage: OKE's interest payments on its debt are well covered by EBIT (4x coverage).


Balance Sheet

Inventory Level: OKE has a high level of physical assets or inventory.

Debt Coverage by Assets: OKE's debt is not covered by short term assets (assets are 0.1x debt).


Next Steps

Dividend

What is ONEOK's current dividend yield, its reliability and sustainability?

5.06%

Current Dividend Yield


Dividend Yield vs Market

company5.1%marketbottom25%1.4%markettop25%3.7%industryaverage4.2%forecastin3Years5.6%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: OKE's dividend (5.06%) is higher than the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: OKE's dividend (5.06%) is in the top 25% of dividend payers in the US market (3.68%)

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 (114.2%), 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 (95.4% payout ratio).


Next Steps

Management

What is the CEO of ONEOK's salary, the management and board of directors tenure and is there insider trading?

2.4yrs

Average management tenure


CEO

Terry Spencer (60yo)

5.8yrs

Tenure

US$7,099,869

Compensation

Mr. Terry K. Spencer has been the Chief Executive Officer and President of Oneok Inc. since January 31, 2014 and January 2012 respectively. Mr. Spencer served as the Chief Executive Officer and President o ...


CEO Compensation Analysis

Compensation vs. Market: Terry's total compensation ($USD7.10M) is below average for companies of similar size in the US market ($USD11.18M).

Compensation vs Earnings: Terry's compensation has increased by more than 20% in the past year.


Management Age and Tenure

2.4yrs

Average Tenure

55yo

Average Age

Experienced Management: OKE's management team is considered experienced (2.4 years average tenure).


Board Age and Tenure

8.1yrs

Average Tenure

65yo

Average Age

Experienced Board: OKE's board of directors are considered experienced (8.1 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

SellUS$100,13018 Mar 19
Eduardo Rodriguez
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares1,500
Max PriceUS$66.75

Ownership Breakdown


Management Team

  • S. Grimshaw (67yo)

    VP, Associate General Counsel & Corporate Secretary

    • Tenure: 11.4yrs
  • Rob Martinovich (61yo)

    Executive VP & Chief Administrative Officer

    • Tenure: 4.7yrs
    • Compensation: US$2.14m
  • Walter Hulse (55yo)

    CFO, Treasurer and Executive VP of Strategic Planning & Corporate Affairs

    • Tenure: 2.4yrs
    • Compensation: US$2.84m
  • Terry Spencer (60yo)

    President

    • Tenure: 5.8yrs
    • Compensation: US$7.10m
  • Sheridan Swords (50yo)

    Senior Vice President of Natural Gas Liquids

    • Tenure: 6.8yrs
    • Compensation: US$2.00m
  • Steve Allen (45yo)

    Senior VP

    • Tenure: 2.3yrs
  • Chuck Kelley (60yo)

    Senior Vice President of Natural Gas

    • Tenure: 1.8yrs
  • Kevin Burdick (54yo)

    Executive VP & COO

    • Tenure: 2.4yrs
    • Compensation: US$2.72m
  • Andrew Ziola

    Vice president of Investor Relations & Corporate Affairs

    • Tenure: 0yrs
  • Mary Spears (39yo)

    VP & Chief Accounting Officer

    • Tenure: 0.6yrs

Board Members

  • Pattye Moore (61yo)

    Independent Director

    • Tenure: 17.8yrs
    • Compensation: US$225.65k
  • Eduardo Rodriguez (63yo)

    Independent Director

    • Tenure: 15.5yrs
    • Compensation: US$210.50k
  • Julie Edwards (60yo)

    Independent Director

    • Tenure: 12.3yrs
    • Compensation: US$230.71k
  • Steve Malcolm (70yo)

    Independent Director

    • Tenure: 7.8yrs
    • Compensation: US$223.00k
  • Gary Parker (73yo)

    Independent Director

    • Tenure: 28.8yrs
    • Compensation: US$210.50k
  • Jim Mogg (70yo)

    Lead Independent Director

    • Tenure: 6.8yrs
    • Compensation: US$215.50k
  • John Gibson (67yo)

    Non-Executive Chairman of the Board

    • Tenure: 8.4yrs
    • Compensation: US$382.06k
  • Randy Larson (61yo)

    Independent Director

    • Tenure: 3.8yrs
    • Compensation: US$230.50k
  • Brian Derksen (68yo)

    Independent Director

    • Tenure: 3.8yrs
    • Compensation: US$210.50k
  • Terry Spencer (60yo)

    President

    • Tenure: 5.8yrs
    • Compensation: US$7.10m

Company Information

ONEOK, Inc.'s company bio, 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
  • Market Cap: US$29.044b
  • Shares outstanding: 412.97m
  • Website: https://www.oneok.com

Number of Employees


Location

  • ONEOK, Inc.
  • 100 West Fifth Street
  • Tulsa
  • Oklahoma
  • 74103
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
OKENYSE (New York Stock Exchange)YesCommon StockUSUSDMar 1964
ONKDB (Deutsche Boerse AG)YesCommon StockDEEURMar 1964
0KCILSE (London Stock Exchange)YesCommon StockGBUSDMar 1964

Biography

ONEOK, Inc., together with its subsidiaries, engages in the gathering, processing, storage, and transportation of natural gas in the United States. It operates through Natural Gas Gathering and Processing, ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/22 23:38
End of Day Share Price2019/10/22 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.