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

Fundamentals

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


Market Performance


7 Day Return

-2.3%

OGE

-1.5%

US Electric Utilities

1.0%

US Market


1 Year Return

18.8%

OGE

19.5%

US Electric Utilities

6.7%

US Market

Return vs Industry: OGE underperformed the US Electric Utilities industry which returned 19.5% over the past year.

Return vs Market: OGE exceeded the US Market which returned 6.7% over the past year.


Share holder returns

OGEIndustryMarket
7 Day-2.3%-1.5%1.0%
30 Day-1.3%1.8%-1.8%
90 Day0.8%5.1%-1.8%
1 Year23.0%18.8%23.5%19.5%9.1%6.7%
3 Year59.0%42.4%44.9%30.4%46.1%36.6%
5 Year43.7%19.7%75.0%45.0%66.9%48.6%

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 based on future cash flows and its price relative to the stock market?

43%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Undervalued: OGE ($43.36) is trading below our estimate of fair value ($75.85)

Significantly Undervalued: OGE is trading below fair value by more than 20%.


Price Based on Earnings

PE vs Industry: OGE is good value based on its PE Ratio (21.3x) compared to the Electric Utilities industry average (23.5x).

PE vs Market: OGE is poor value based on its PE Ratio (21.3x) compared to the US market (17.5x).


Price Based on Expected Growth

Low PEG Ratio: OGE is poor value based on its PEG Ratio (3.1x)


Price Based on Value of Assets

PB vs Industry: OGE is good value based on its PB Ratio (2.2x) compared to the US Electric Utilities industry average (2.3x).


Next Steps

Future Growth

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

6.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Earnings vs Savings Rate: OGE's forecast earnings growth (6.9% per year) is above the savings rate (2.7%).

Earnings vs Market: OGE's earnings (6.9% per year) are forecast to grow slower than the US market (14.5% per year).

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

Revenue vs Market: OGE's revenue (3.1% per year) is forecast to grow slower than the US market (7.3% per year).

High Growth Revenue: OGE's revenue (3.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Estimates


Future Return on Equity

High Future ROE: OGE's Return on Equity is forecast to be low in 3 years time (11%).


Next Steps

Past Performance

How has OGE Energy performed over the past 5 years?

9.6%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: OGE's earnings have grown by 9.6% 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 (-36.8%) over the past year, making it difficult to compare to the Electric Utilities industry average (4.2%).


Return on Equity

High ROE: OGE's Return on Equity (10.2%) is considered low.


Return on Assets

ROA vs Industry: OGE has a higher Return on Assets than the Electric Utilities industry average last year.


Return on Capital Employed

ROCE Improving: OGE's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is OGE Energy's financial position?


Financial Position Analysis

Short Term Liabilities: OGE's short term assets ($455.6M) do not cover its short term liabilities ($702.7M)

Long Term Liabilities: OGE's short term assets (455.6M) do not cover its long term liabilities (6.2B)


Debt to Equity History and Analysis

Debt Level: OGE's debt to equity ratio (84.9%) is considered high

Reducing Debt: OGE's debt to equity ratio has reduced from 97.9% to 84.9% over the past 5 years.

Debt Coverage: OGE's debt is well covered by operating cash flow (21.3%).

Interest Coverage: OGE's interest payments on its debt are not well covered by EBIT (2.9x 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 0.1x debt).


Next Steps

Dividend

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

3.68%

Expected Dividend Yield


Dividend Yield vs Market

company3.6%marketbottom25%1.5%markettop25%3.8%industryaverage2.9%forecastin3Years3.7%

Current dividend yield vs market & industry


Dividend Yield and Payments Analysis

Notable Dividend: OGE's dividend (3.57%) is higher than the bottom 25% of dividend payers in the US market (1.46%).

High Dividend: OGE's dividend (3.57%) is low compared to the top 25% of dividend payers in the US market (3.77%).

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 (70.1%), 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 (71% payout ratio).


Next Steps

Management

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

5.7yrs

Average management tenure


CEO

Robert Trauschke (52yo)

4.3yrs

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 ($USD5.69M) is about average for companies of similar size in the US market ($USD6.81M).

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


Management Age and Tenure

5.7yrs

Average Tenure

54yo

Average Age

Experienced Management: OGE's management team is seasoned and experienced (5.7 years average tenure).


Board Age and Tenure

3.8yrs

Average Tenure

66yo

Average Age

Experienced Board: OGE's board of directors are considered experienced (3.8 years average tenure).


Insider Trading

Insider Buying: OGE insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$30,18116 Aug 19
Charles Walworth
EntityIndividual
Role
Treasurer
Treasurer
Shares705
Max PriceUS$42.81
SellUS$3,14508 May 19
J. Sanner
EntityIndividual
Role
Member of the Board of Directors
Director
Shares75
Max PriceUS$41.94
SellUS$254,96105 Mar 19
Jerry Peace
EntityIndividual
Shares6,000
Max PriceUS$42.75
SellUS$63,29328 Feb 19
Kenneth Grant
EntityIndividual
Shares1,500
Max PriceUS$42.20
SellUS$169,12427 Feb 19
Jerry Peace
EntityIndividual
Shares4,000
Max PriceUS$42.28
SellUS$395,00021 Nov 18
Patricia Horn
EntityIndividual
Role
Secretary
VP of Governance & Corporate Secretary
Shares10,000
Max PriceUS$39.50
BuyUS$389,88015 Nov 18
Frank Bozich
EntityIndividual
Role
Member of the Board of Directors
Director
Shares10,000
Max PriceUS$38.99
SellUS$154,10014 Nov 18
Cristina McQuistion
EntityIndividual
Role
Other Key Executive
VP & Chief Information Officer of Oklahoma Gas and Electric Company
Shares4,000
Max PriceUS$38.53

Ownership Breakdown


Management Team

  • Steve Merrill (54yo)

    Chief Financial Officer

    • Tenure: 5.1yrs
    • Compensation: US$1.77m
  • Todd Tidwell

    Director of Investor Relations

    • Tenure: 0yrs
  • Robert Trauschke (52yo)

    Chairman

    • Tenure: 4.3yrs
    • Compensation: US$5.69m
  • E. Mitchell (57yo)

    Chief Operating Officer of Oklahoma Gas & Electric Company

    • Tenure: 11.8yrs
    • Compensation: US$2.35m
  • Jean Leger (60yo)

    Vice President of Utility Operations - Oklahoma Gas & Electric Company

    • Tenure: 11.3yrs
    • Compensation: US$1.21m
  • Patricia Horn (60yo)

    VP of Governance & Corporate Secretary

    • Tenure: 7.8yrs
  • Cristina McQuistion (54yo)

    VP & Chief Information Officer of Oklahoma Gas and Electric Company

    • Tenure: 11.8yrs
  • Chuck Walworth (44yo)

    Treasurer

    • Tenure: 5.7yrs
  • William Sultemeier (51yo)

    General Counsel

    • Tenure: 2.8yrs
    • Compensation: US$1.39m
  • Sarah Stafford (37yo)

    Chief Accounting Officer & Controller

    • Tenure: 1.6yrs

Board Members

  • Judy McReynolds (56yo)

    Director

    • Tenure: 8.3yrs
    • Compensation: US$237.50k
  • David Rainbolt (63yo)

    Director

    • Tenure: 0.8yrs
  • Luke Corbett (72yo)

    Lead Director

    • Tenure: 0yrs
    • Compensation: US$250.00k
  • David Hauser (67yo)

    Director

    • Tenure: 4.3yrs
    • Compensation: US$230.00k
  • Jim Brandi (70yo)

    Director

    • Tenure: 9.7yrs
    • Compensation: US$237.50k
  • Sheila Talton (66yo)

    Director

    • Tenure: 6.1yrs
    • Compensation: US$225.00k
  • Robert Trauschke (52yo)

    Chairman

    • Tenure: 4.3yrs
    • Compensation: US$5.69m
  • Frank Bozich (59yo)

    Director

    • Tenure: 3.7yrs
    • Compensation: US$230.00k
  • Peter Clarke (68yo)

    Director

    • Tenure: 1.7yrs
    • Compensation: US$206.25k
  • Mike Sanner (66yo)

    Director

    • Tenure: 2.1yrs
    • Compensation: US$230.00k

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$8.680b
  • 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 so ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/14 01:15
End of Day Share Price2019/10/11 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.

© 2018 SIMPLY WALL STREET PTY LTD, COMMUNITY DESIGN 2845206, US DESIGN PATENT #29/544/281, EUROPEAN DESIGN REGISTRATION #2845206, STANDARD & POOR’S FINANCIAL SERVICES LLC. ALL RIGHTS RESERVED.

Simply Wall Street Pty Ltd (ACN 600 056 611), is a Corporate Authorised Representative (Authorised Representative Number: 467183) of Sanlam Private Wealth Pty Ltd (AFSL No. 337927). Any advice contained in this website is general advice only and has been prepared without considering your objectives, financial situation or needs. You should not rely on any advice and/or information contained in this website and before making any investment decision we recommend that you consider whether it is appropriate for your situation and seek appropriate financial, taxation and legal advice. Please read our Financial Services Guide before deciding whether to obtain financial services from us.

Copyright © 2018, Standard & Poor’s Financial Services LLC. Reproduction of S&P Capital IQ in any form is prohibited except with the prior written permission of S&P. S&P does not guarantee the accuracy, adequacy, completeness or availability of any information and is not responsible for any errors or omissions, regardless of the cause or for the results obtained from the use of such information. S&P DISCLAIMS ANY AND ALL EXPRESS OR IMPLIED WARRANTIES, INCLUDING, BUT NOT LIMITED TO, ANY WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR USE. In no event shall S&P be liable for any direct, indirect, special or consequential damages, costs, expenses, legal fees, or losses (including lost income or lost profit and opportunity costs) in connection with subscriber’s or others’ use of S&P Capital IQ. (2018)