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

-2.0%

NYSE:OGE

0.1%

US Electric Utilities

-1.6%

US Market


1 Year Return

13.8%

NYSE:OGE

13.9%

US Electric Utilities

-3.0%

US Market

OGE matched the Electric Utilities industry (13.9%) over the past year.

OGE outperformed the Market in United States of America which returned -3% over the past year.


Share holder returns

OGEIndustryMarket
7 Day-2.0%0.1%-1.6%
30 Day-0.2%2.4%-5.7%
90 Day-1.6%3.1%0.2%
1 Year18.0%13.8%17.8%13.9%-0.8%-3.0%
3 Year54.8%38.5%37.3%23.6%38.1%29.1%
5 Year34.8%12.6%71.6%42.4%50.8%34.1%

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

47%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

OGE Energy's share price is below the future cash flow value, and at a moderate discount (> 20%).

OGE Energy's share price is below the future cash flow value, and at a substantial discount (> 40%).


Price Based on Earnings

OGE Energy is good value based on earnings compared to the US Electric Utilities industry average.

OGE Energy is overvalued based on earnings compared to the United States of America market.


Price Based on Expected Growth

OGE Energy is poor value based on expected growth next year.


Price Based on Value of Assets

OGE Energy is good value based on assets compared to the US Electric Utilities industry average.


Next Steps

Future Growth

How is OGE Energy expected to perform in the next 1 to 3 years based on estimates from 8 analysts?

7.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

OGE Energy's revenue is expected to grow by 3.2% yearly, however this is not considered high growth (20% yearly).

OGE Energy's earnings are expected to grow by 7% yearly, however this is not considered high growth (20% yearly).

OGE Energy's revenue growth is positive but not above the United States of America market average.

OGE Energy's earnings growth is positive but not above the United States of America market average.

OGE Energy's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

OGE Energy is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


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

OGE Energy's year on year earnings growth rate has been positive over the past 5 years.

OGE Energy's 1-year earnings growth is negative, it can't be compared to the 5-year average.

OGE Energy's 1-year earnings growth is negative, it can't be compared to the US Electric Utilities industry average.


Return on Equity

OGE Energy has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

OGE Energy used its assets more efficiently than the US Electric Utilities industry average last year based on Return on Assets.


Return on Capital Employed

OGE Energy's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is OGE Energy's financial position?


Financial Position Analysis

OGE Energy's short term (1 year) commitments are greater than its holdings of cash and other short term assets.

OGE Energy's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

OGE Energy's level of debt (84.9%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has been reduced over the past 5 years (97.9% vs 84.9% today).

Debt is well covered by operating cash flow (21.3%, greater than 20% of total debt).

Interest payments on debt are not well covered by earnings (EBIT is 2.9x annual interest expense, ideally 3x coverage).


Balance Sheet

High level of physical assets or inventory.

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?

3.81%

Expected Dividend Yield


Dividend Yield and Payments Analysis

OGE Energy's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.52%).

OGE Energy's dividend is below the markets top 25% of dividend payers in United States of America (3.93%).

Dividends per share have been stable in the past 10 years.

Dividends per share have increased over the past 10 years.


Current Payout to Shareholders

Dividends paid are covered by earnings (1.4x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be covered by earnings (1.4x coverage).


Next Steps

Management

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

5.5yrs

Average management tenure


CEO

Robert Trauschke (52yo)

4.2yrs

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

Robert's remuneration is about average for companies of similar size in United States of America.

Robert's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

5.5yrs

Average Tenure

54yo

Average Age

The average tenure for the OGE Energy management team is over 5 years, this suggests they are a seasoned and experienced team.


Board Age and Tenure

3.7yrs

Average Tenure

66yo

Average Age

The tenure for the OGE Energy board of directors is about average.


Insider Trading

OGE Energy individual insiders have only sold shares in the past 3 months, but not in substantial volumes.


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: 4.9yrs
    • Compensation: US$1.77m
  • Todd Tidwell

    Director of Investor Relations

    • Tenure: 0.0yrs
  • Robert Trauschke (52yo)

    Chairman

    • Tenure: 4.2yrs
    • Compensation: US$5.69m
  • E. Mitchell (57yo)

    Chief Operating Officer of Oklahoma Gas & Electric Company

    • Tenure: 11.6yrs
    • Compensation: US$2.35m
  • Jean Leger (60yo)

    Vice President of Utility Operations - Oklahoma Gas & Electric Company

    • Tenure: 11.2yrs
    • Compensation: US$1.21m
  • Patricia Horn (60yo)

    VP of Governance & Corporate Secretary

    • Tenure: 7.6yrs
  • Cristina McQuistion (54yo)

    VP & Chief Information Officer of Oklahoma Gas and Electric Company

    • Tenure: 11.6yrs
  • Chuck Walworth (44yo)

    Treasurer

    • Tenure: 5.5yrs
  • William Sultemeier (51yo)

    General Counsel

    • Tenure: 2.6yrs
    • Compensation: US$1.39m
  • Sarah Stafford (37yo)

    Chief Accounting Officer & Controller

    • Tenure: 1.4yrs

Board Members

  • Judy McReynolds (56yo)

    Director

    • Tenure: 8.1yrs
    • Compensation: US$237.50k
  • David Rainbolt (63yo)

    Director

    • Tenure: 0.6yrs
  • Luke Corbett (72yo)

    Lead Director

    • Tenure: 0.0yrs
    • Compensation: US$250.00k
  • David Hauser (67yo)

    Director

    • Tenure: 4.1yrs
    • Compensation: US$230.00k
  • Jim Brandi (70yo)

    Director

    • Tenure: 9.5yrs
    • Compensation: US$237.50k
  • Sheila Talton (66yo)

    Director

    • Tenure: 5.9yrs
    • Compensation: US$225.00k
  • Robert Trauschke (52yo)

    Chairman

    • Tenure: 4.2yrs
    • Compensation: US$5.69m
  • Frank Bozich (59yo)

    Director

    • Tenure: 3.5yrs
    • Compensation: US$230.00k
  • Peter Clarke (68yo)

    Director

    • Tenure: 1.5yrs
    • Compensation: US$206.25k
  • Mike Sanner (66yo)

    Director

    • Tenure: 1.9yrs
    • 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$8.453b
  • 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 Analysis2019/08/24 23:43
End of Day Share Price2019/08/23 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.