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OKE

ONEOKNYSE:OKE Stock Report

Last Price

US$58.53

Market Cap

US$26.1b

7D

-6.5%

1Y

36.6%

Updated

21 Jan, 2022

Data

Company Financials +
OKE fundamental analysis
Snowflake Score
Valuation2/6
Future Growth2/6
Past Performance5/6
Financial Health2/6
Dividends4/6

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

Kinder Morgan

NYSE:KMI

US$39.4b

Energy Transfer

NYSE:ET

US$28.3b

Cheniere Energy

NYSEAM:LNG

US$26.5b

Cheniere Energy Partners

NYSEAM:CQP

US$22.0b

Price History & Performance

Summary of all time highs, changes and price drops for ONEOK
Historical stock prices
Current Share PriceUS$58.53
52 Week HighUS$66.78
52 Week LowUS$38.90
Beta1.85
1 Month Change1.30%
3 Month Change-9.69%
1 Year Change36.63%
3 Year Change-6.26%
5 Year Change6.59%
Change since IPO1,363.25%

Recent News & Updates

Jan 20
Does ONEOK (NYSE:OKE) Have A Healthy Balance Sheet?

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...

Jan 09

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.

Jan 03

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.

Dec 09

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.

Nov 21

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.

Nov 11
Calculating The Intrinsic Value Of ONEOK, Inc. (NYSE:OKE)

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

OKEUS Oil and GasUS Market
7D-6.5%0.4%-4.0%
1Y36.6%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

Is OKE's price volatile compared to industry and market?
OKE volatility
OKE Average Weekly Movement4.0%
Oil and Gas Industry Average Movement7.2%
Market Average Movement6.6%
10% most volatile stocks in US Market15.7%
10% least volatile stocks in US Market2.4%

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

FoundedEmployeesCEOWebsite
19062,886Pierce Nortonhttps://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

How do ONEOK's earnings and revenue compare to its market cap?
OKE fundamental statistics
Market CapUS$26.10b
Earnings (TTM)US$1.43b
Revenue (TTM)US$13.69b

18.3x

P/E Ratio

1.9x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
OKE income statement (TTM)
RevenueUS$13.69b
Cost of RevenueUS$9.56b
Gross ProfitUS$4.13b
ExpensesUS$2.70b
EarningsUS$1.43b

Last Reported Earnings

Sep 30, 2021

Next Earnings Date

Feb 28, 2022

Earnings per share (EPS)3.20
Gross Margin30.14%
Net Profit Margin10.43%
Debt/Equity Ratio245.2%

How did OKE perform over the long term?

See historical performance and comparison

Dividends

6.4%

Current Dividend Yield

117%

Payout Ratio

Valuation

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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/01/21 23:36
End of Day Share Price2022/01/21 00:00
Earnings2021/09/30
Annual Earnings2020/12/31


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.