NYSE:OGE

Stock Analysis Report

Executive Summary

OGE Energy Corp., together with its subsidiaries, operates as an energy and energy services provider that provides physical delivery and related services for electricity and natural gas primarily in the south central United States.


Snowflake Analysis

Established dividend payer and good value.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: OGE has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-1.9%

OGE

0.5%

US Electric Utilities

0.06%

US Market


1 Year Return

5.4%

OGE

26.0%

US Electric Utilities

19.3%

US Market

Return vs Industry: OGE underperformed the US Electric Utilities industry which returned 26% over the past year.

Return vs Market: OGE underperformed the US Market which returned 19.3% over the past year.


Shareholder returns

OGEIndustryMarket
7 Day-1.9%0.5%0.06%
30 Day-1.5%5.0%1.7%
90 Day7.0%14.3%9.0%
1 Year9.2%5.4%30.2%26.0%21.8%19.3%
3 Year40.3%25.7%52.6%37.8%49.5%39.9%
5 Year65.0%37.2%88.9%57.3%73.1%54.1%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

41.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: OGE ($44.92) is trading below our estimate of fair value ($77.12)

Significantly Below Fair Value: OGE is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: OGE is good value based on its PE Ratio (19.8x) compared to the Electric Utilities industry average (25.3x).

PE vs Market: OGE is poor value based on its PE Ratio (19.8x) compared to the US market (18.5x).


Price to Earnings Growth Ratio

PEG Ratio: OGE is poor value based on its PEG Ratio (4.9x)


Price to Book Ratio

PB vs Industry: OGE is good value based on its PB Ratio (2.1x) compared to the US Electric Utilities industry average (2.4x).


Next Steps

Future Growth

How is OGE Energy forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

4.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: OGE's forecast earnings growth (4% per year) is above the savings rate (1.7%).

Earnings vs Market: OGE's earnings (4% per year) are forecast to grow slower than the US market (14.2% per year).

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

Revenue vs Market: OGE's revenue (2.8% per year) is forecast to grow slower than the US market (7.6% per year).

High Growth Revenue: OGE's revenue (2.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: OGE's Return on Equity is forecast to be low in 3 years time (10.7%).


Next Steps

Past Performance

How has OGE Energy performed over the past 5 years?

10.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: OGE has high quality earnings.

Growing Profit Margin: OGE's current net profit margins (19.9%) are lower than last year (29.4%).


Past Earnings Growth Analysis

Earnings Trend: OGE's earnings have grown by 10.3% per year over the past 5 years.

Accelerating Growth: OGE's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: OGE had negative earnings growth (-32%) over the past year, making it difficult to compare to the Electric Utilities industry average (6%).


Return on Equity

High ROE: OGE's Return on Equity (10.8%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is OGE Energy's financial position?


Financial Position Analysis

Short Term Liabilities: OGE's short term assets ($549.1M) do not cover its short term liabilities ($696.6M).

Long Term Liabilities: OGE's short term assets ($549.1M) do not cover its long term liabilities ($6.2B).


Debt to Equity History and Analysis

Debt Level: OGE's debt to equity ratio (80.3%) is considered high.

Reducing Debt: OGE's debt to equity ratio has reduced from 90.1% to 80.3% over the past 5 years.

Debt Coverage: OGE's debt is not well covered by operating cash flow (19.5%).

Interest Coverage: OGE's interest payments on its debt are well covered by EBIT (3.2x coverage).


Balance Sheet

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

Debt Coverage by Assets: OGE's debt is not covered by short term assets (assets are 0.2x debt).


Next Steps

Dividend

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

3.45%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: OGE's dividend (3.45%) is higher than the bottom 25% of dividend payers in the US market (1.44%).

High Dividend: OGE's dividend (3.45%) is low compared to the top 25% of dividend payers in the US market (3.71%).


Stability and Growth of Payments

Stable Dividend: OGE's dividends per share have been stable in the past 10 years.

Growing Dividend: OGE's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (64.5%), OGE's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: OGE's dividends in 3 years are forecast to be covered by earnings (70.6% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

5.4yrs

Average management tenure


CEO

Robert Trauschke (52yo)

4.7yrs

Tenure

US$5,694,937

Compensation

Mr. Robert Sean Trauschke has been Chief Executive Officer of Oklahoma Gas and Electric Company since May 29, 2015 and Chief Executive Officer of OGE Energy Corp since June 1, 2015. Mr. Trauschke has been  ...


CEO Compensation Analysis

Compensation vs Market: Robert's total compensation ($USD5.69M) is about average for companies of similar size in the US market ($USD6.36M).

Compensation vs Earnings: Robert's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Robert Trauschke
Chairman4.7yrsUS$5.69m0.11% $10.0m
Stephen Merrill
Chief Financial Officer5.4yrsUS$1.77m0.033% $3.0m
William Sultemeier
General Counsel3.1yrsUS$1.39m0.0048% $432.5k
Jean Leger
Senior Vice President of Utility Operations -Oklahoma Gas and Electric Company0yrsUS$1.21m0.020% $1.8m
E. Mitchell
Chief Operating Officer of Oklahoma Gas & Electric Company0yrsUS$2.35m0.057% $5.2m
Sarah Stafford
Chief Accounting Officer & Controller1.9yrsno data0.0041% $368.7k
Todd Tidwell
Director of Investor Relations0yrsno datano data
Patricia Horn
VP of Governance & Corporate Secretary8.1yrsno data0.024% $2.1m
Charles Walworth
Treasurer6yrsno data0.0062% $558.4k
Cristina McQuistion
VP & Chief Information Officer of Oklahoma Gas and Electric Company12.1yrsno data0.010% $897.4k

5.4yrs

Average Tenure

54yo

Average Age

Experienced Management: OGE's management team is seasoned and experienced (5.4 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Robert Trauschke
Chairman4.7yrsUS$5.69m0.11% $10.0m
Judy McReynolds
Independent Director8.6yrsUS$237.50k0.00050% $45.0k
David Rainbolt
Independent Director1.1yrsno data0.0010% $89.9k
Luke Corbett
Lead Director0yrsUS$250.00k0.00057% $51.3k
David Hauser
Independent Director4.6yrsUS$230.00k0.00050% $45.0k
James Brandi
Independent Director10yrsUS$237.50k0.0040% $359.7k
Sheila Talton
Independent Director6.4yrsUS$225.00kno data
Frank Bozich
Independent Director4yrsUS$230.00k0.0075% $673.5k
Peter Clarke
Independent Director2yrsUS$206.25k0.00092% $82.7k
J. Sanner
Independent Director2.4yrsUS$230.00kno data

4.2yrs

Average Tenure

66yo

Average Age

Experienced Board: OGE's board of directors are considered experienced (4.2 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.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

OGE Energy Corp.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: OGE Energy Corp.
  • Ticker: OGE
  • Exchange: NYSE
  • Founded: 1902
  • Industry: Electric Utilities
  • Sector: Utilities
  • Market Cap: US$8.992b
  • Shares outstanding: 200.18m
  • Website: https://www.ogeenergy.com

Number of Employees


Location

  • OGE Energy Corp.
  • 321 North Harvey
  • PO Box 321
  • Oklahoma City
  • Oklahoma
  • 73101
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
OGENYSE (New York Stock Exchange)YesCommon StockUSUSDJan 1968
OG5DB (Deutsche Boerse AG)YesCommon StockDEEURJan 1968

Biography

OGE Energy Corp., together with its subsidiaries, operates as an energy and energy services provider that provides physical delivery and related services for electricity and natural gas primarily in the south central United States. It operates in two segments, Electric Utility and Natural Gas Midstream Operations. The Electric Utility segment generates, transmits, distributes, and sells electric energy. This segment furnishes retail electric service in 267 communities and their contiguous rural and suburban areas; and owns and operates coal-fired, natural gas-fired, wind-powered, and solar-powered generating assets. Its service area covers 30,000 square miles in Oklahoma and western Arkansas, including Oklahoma City in Oklahoma; and Fort Smith, Arkansas. The Natural Gas Midstream Operations segment engages in gathering, processing, transporting, and storing natural gas; and the provision of crude oil gathering services, and interstate and intrastate natural gas pipeline transportation and storage services primarily to its producer, power plant, local distribution company, and industrial end-user customers. As of December 31, 2018, the company owned and operated interconnected electric generation, transmission, and distribution systems, including 11 generating stations with an aggregate capability of 6,616 megawatts; and transmission systems comprising 52 substations and 5,100 structure miles of lines in Oklahoma, and 7 substations and 277 structure miles of lines in Arkansas. Its distribution systems include 345 substations; 29,345 structure miles of overhead lines; 2,940 miles of underground conduit; and 10,932 miles of underground conductors in Oklahoma, as well as 30 substations, 2,786 structure miles of overhead lines, 297 miles of underground conduit, and 685 miles of underground conductors in Arkansas. The company was founded in 1902 and is headquartered in Oklahoma City, Oklahoma. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/20 23:58
End of Day Share Price2020/02/20 00:00
Earnings2019/09/30
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.