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OGS

ONE GasNYSE:OGS Stock Report

Market Cap

US$3.4b

7D

-0.3%

1Y

-6.8%

Updated

27 Sep, 2021

Data

Company Financials +
OGS fundamental analysis
Snowflake Score
Valuation3/6
Future Growth1/6
Past Performance2/6
Financial Health2/6
Dividends4/6

OGS Overview

ONE Gas, Inc. operates as a regulated natural gas distribution utility company in the United States.

ONE Gas Competitors

Price History & Performance

Summary of all time highs, changes and price drops for ONE Gas
Historical stock prices
Current Share PriceUS$63.81
52 Week HighUS$63.10
52 Week LowUS$82.40
Beta0.43
1 Month Change-11.07%
3 Month Change-14.91%
1 Year Change-6.83%
3 Year Change-21.31%
5 Year Change4.66%
Change since IPO92.78%

Recent News & Updates

Jul 19
Is ONE Gas (NYSE:OGS) Using Too Much Debt?

Is ONE Gas (NYSE:OGS) Using Too Much Debt?

Some say volatility, rather than debt, is the best way to think about risk as an investor, but Warren Buffett famously...

Jul 04
Be Wary Of ONE Gas (NYSE:OGS) And Its Returns On Capital

Be Wary Of ONE Gas (NYSE:OGS) And Its Returns On Capital

If we want to find a potential multi-bagger, often there are underlying trends that can provide clues. Firstly, we'd...

Shareholder Returns

OGSUS Gas UtilitiesUS Market
7D-0.3%0.2%2.0%
1Y-6.8%10.9%32.8%

Return vs Industry: OGS underperformed the US Gas Utilities industry which returned 10.9% over the past year.

Return vs Market: OGS underperformed the US Market which returned 32.8% over the past year.

Price Volatility

Is OGS's price volatile compared to industry and market?
OGS volatility
OGS Beta0.43
Industry Beta0.60
Market Beta1

Stable Share Price: OGS is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: OGS's weekly volatility (3%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19063,700Sid McAnnallyhttps://www.onegas.com

ONE Gas, Inc. operates as a regulated natural gas distribution utility company in the United States. The company operates through three divisions: Oklahoma Natural Gas, Kansas Gas Service, and Texas Gas Service. It provides natural gas distribution services to 2.2 million customers in three states.

ONE Gas Fundamentals Summary

How do ONE Gas's earnings and revenue compare to its market cap?
OGS fundamental statistics
Market CapUS$3.41b
Earnings (TTM)US$205.08m
Revenue (TTM)US$1.67b

16.6x

P/E Ratio

2.0x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
OGS income statement (TTM)
RevenueUS$1.67b
Cost of RevenueUS$1.09b
Gross ProfitUS$576.01m
ExpensesUS$370.93m
EarningsUS$205.08m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

Nov 01, 2021

Earnings per share (EPS)3.83
Gross Margin34.50%
Net Profit Margin12.28%
Debt/Equity Ratio176.2%

How did OGS perform over the long term?

See historical performance and comparison

Dividends

3.6%

Current Dividend Yield

58%

Payout Ratio

Valuation

Is ONE Gas undervalued compared to its fair value and its price relative to the market?

4.2%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: OGS ($63.81) is trading below our estimate of fair value ($66.57)

Significantly Below Fair Value: OGS is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: OGS's PE Ratio (16.6x) is in line with the US Gas Utilities industry average.

PE vs Market: OGS is good value based on its PE Ratio (16.6x) compared to the US market (18.1x).


Price to Earnings Growth Ratio

PEG Ratio: OGS is poor value based on its PEG Ratio (2.1x)


Price to Book Ratio

PB vs Industry: OGS is good value based on its PB Ratio (1.5x) compared to the US Gas Utilities industry average (1.7x).


Future Growth

How is ONE Gas forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

7.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: OGS's forecast earnings growth (7.9% per year) is above the savings rate (2%).

Earnings vs Market: OGS's earnings (7.9% per year) are forecast to grow slower than the US market (15% per year).

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

Revenue vs Market: OGS's revenue (1.9% per year) is forecast to grow slower than the US market (9.8% per year).

High Growth Revenue: OGS's revenue (1.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: OGS's Return on Equity is forecast to be low in 3 years time (9.3%).


Past Performance

How has ONE Gas performed over the past 5 years?

7.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: OGS has a high level of non-cash earnings.

Growing Profit Margin: OGS's current net profit margins (12.3%) are lower than last year (12.4%).


Past Earnings Growth Analysis

Earnings Trend: OGS's earnings have grown by 7.4% per year over the past 5 years.

Accelerating Growth: OGS's earnings growth over the past year (10.5%) exceeds its 5-year average (7.4% per year).

Earnings vs Industry: OGS earnings growth over the past year (10.5%) underperformed the Gas Utilities industry 26.4%.


Return on Equity

High ROE: OGS's Return on Equity (8.8%) is considered low.


Financial Health

How is ONE Gas's financial position?


Financial Position Analysis

Short Term Liabilities: OGS's short term assets ($603.7M) exceed its short term liabilities ($369.3M).

Long Term Liabilities: OGS's short term assets ($603.7M) do not cover its long term liabilities ($5.5B).


Debt to Equity History and Analysis

Debt Level: OGS's debt to equity ratio (176.2%) is considered high.

Reducing Debt: OGS's debt to equity ratio has increased from 63.6% to 176.2% over the past 5 years.

Debt Coverage: OGS's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: OGS's interest payments on its debt are well covered by EBIT (4.9x coverage).


Balance Sheet


Dividend

What is ONE Gas's current dividend yield, its reliability and sustainability?

3.64%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: OGS's dividend (3.64%) is higher than the bottom 25% of dividend payers in the US market (1.3%).

High Dividend: OGS's dividend (3.64%) is in the top 25% of dividend payers in the US market (3.57%)


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, OGS has been paying a dividend for less than 10 years.

Growing Dividend: OGS's dividend payments have increased, but the company has only paid a dividend for 7 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (58.2%), OGS's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: OGS's dividends in 3 years are forecast to be covered by earnings (61.4% payout ratio).


Next Steps

Management

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

3.2yrs

Average management tenure


CEO

Sid McAnnally (57 yo)

0.25

Tenure

US$1,803,112

Compensation

Mr. Robert S. McAnnally, also known as Sid, serves as President, Chief Executive Officer and Director at ONE Gas, Inc. since June 28, 2021. Mr. McAnnally served as Senior Vice President and Chief Operating...


CEO Compensation Analysis

Compensation vs Market: Sid's total compensation ($USD1.80M) is below average for companies of similar size in the US market ($USD5.22M).

Compensation vs Earnings: Sid's compensation has increased by more than 20% in the past year.


Leadership Team

Experienced Management: OGS's management team is considered experienced (3.2 years average tenure).


Board Members

Experienced Board: OGS's board of directors are considered experienced (7.7 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: OGS insiders have only sold shares 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

ONE Gas, Inc.'s employee growth, exchange listings and data sources


Key Information

  • Name: ONE Gas, Inc.
  • Ticker: OGS
  • Exchange: NYSE
  • Founded: 1906
  • Industry: Gas Utilities
  • Sector: Utilities
  • Market Cap: US$3.414b
  • Shares outstanding: 53.50m
  • Website: https://www.onegas.com

Number of Employees


Location

  • ONE Gas, Inc.
  • 15 East 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 Analysis2021/09/27 23:06
End of Day Share Price2021/09/27 00:00
Earnings2021/06/30
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.