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

1.9%

OGE

1.7%

US Electric Utilities

0.07%

US Market


1 Year Return

16.6%

OGE

18.3%

US Electric Utilities

8.9%

US Market

Return vs Industry: OGE matched the US Electric Utilities industry which returned 18.3% over the past year.

Return vs Market: OGE exceeded the US Market which returned 8.9% over the past year.


Shareholder returns

OGEIndustryMarket
7 Day1.9%1.7%0.07%
30 Day-3.8%0.3%-0.3%
90 Day1.4%6.6%-1.6%
1 Year20.8%16.6%22.2%18.3%11.3%8.9%
3 Year57.4%41.0%44.8%30.3%46.3%36.8%
5 Year40.2%16.8%71.4%42.1%62.1%44.3%

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?

43.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: OGE ($43.26) is trading below our estimate of fair value ($75.85)

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 (21.2x) compared to the Electric Utilities industry average (23.9x).

PE vs Market: OGE is poor value based on its PE Ratio (21.2x) compared to the US market (17.8x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

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

6.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: OGE's forecast earnings growth (6.8% per year) is above the savings rate (2.7%).

Earnings vs Market: OGE's earnings (6.8% 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 (2.9% per year) is forecast to grow slower than the US market (7.2% per year).

High Growth Revenue: OGE's revenue (2.9% 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 (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?

3.58%

Current Dividend Yield


Dividend Yield vs Market

company3.6%marketbottom25%1.4%markettop25%3.7%industryaverage3.1%forecastin3Years3.7%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: OGE's dividend (3.58%) is higher than the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: OGE's dividend (3.58%) is low compared to the top 25% of dividend payers in the US market (3.68%).

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 (70.8% 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 ($USD5.69M) is about average for companies of similar size in the US market ($USD6.88M).

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)

    Independent 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)

    Independent Director

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

    Independent 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$8.660b
  • 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 Analysis2019/10/22 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.