NYSE:OGS

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Second-rate dividend payer with questionable track record.


Similar Companies

Share Price & News

How has ONE Gas's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

0.8%

OGS

-0.7%

US Gas Utilities

0.5%

US Market


1 Year Return

15.0%

OGS

0.3%

US Gas Utilities

6.8%

US Market

Return vs Industry: OGS exceeded the US Gas Utilities industry which returned 0.3% over the past year.

Return vs Market: OGS exceeded the US Market which returned 6.8% over the past year.


Shareholder returns

OGSIndustryMarket
7 Day0.8%-0.7%0.5%
30 Day1.0%-1.9%-0.8%
90 Day5.0%-1.0%-0.9%
1 Year17.6%15.0%2.8%0.3%9.2%6.8%
3 Year68.6%56.9%37.6%27.6%45.6%36.2%
5 Year192.0%157.9%72.0%50.4%63.2%45.4%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

28.02x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: OGS ($95.07) is trading above our estimate of fair value ($46.77)

Significantly Below Fair Value: OGS is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: OGS is poor value based on its PE Ratio (28x) compared to the Gas Utilities industry average (25.8x).

PE vs Market: OGS is poor value based on its PE Ratio (28x) compared to the US market (17.7x).


Price to Earnings Growth Ratio

PEG Ratio: OGS is poor value based on its PEG Ratio (4.3x)


Price to Book Ratio

PB vs Industry: OGS is overvalued based on its PB Ratio (2.4x) compared to the US Gas Utilities industry average (2.3x).


Next Steps

Future Growth

How is ONE Gas forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

6.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: OGS's forecast earnings growth (6.5% per year) is above the savings rate (2.7%).

Earnings vs Market: OGS's earnings (6.5% per year) are forecast to grow slower than the US market (14.6% per year).

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

Revenue vs Market: OGS's revenue (4.5% per year) is forecast to grow slower than the US market (7.2% per year).

High Growth Revenue: OGS's revenue (4.5% 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 (8.9%).


Next Steps

Past Performance

How has ONE Gas performed over the past 5 years?

12.5%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: OGS's earnings have grown by 12.5% per year over the past 5 years.

Accelerating Growth: OGS's earnings growth over the past year (1.1%) is below its 5-year average (12.5% per year).

Earnings vs Industry: OGS earnings growth over the past year (1.1%) exceeded the Gas Utilities industry -8.9%.


Return on Equity

High ROE: OGS's Return on Equity (8.5%) is considered low.


Return on Assets

ROA vs Industry: OGS's Return on Assets is below or equal to the Gas Utilities industry average last year.


Return on Capital Employed

ROCE Improving: OGS has not improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is ONE Gas's financial position?


Financial Position Analysis

Short Term Liabilities: OGS's short term assets ($376.8M) do not cover its short term liabilities ($578.4M)

Long Term Liabilities: OGS's short term assets (376.8M) do not cover its long term liabilities (2.8B)


Debt to Equity History and Analysis

Debt Level: OGS's debt to equity ratio (74.9%) is considered high

Reducing Debt: OGS's debt to equity ratio has increased from 67.5% to 74.9% over the past 5 years.

Debt Coverage: OGS's debt is not well covered by operating cash flow (19.6%).

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


Balance Sheet

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

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


Next Steps

Dividend

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

2.10%

Current Dividend Yield


Dividend Yield vs Market

company2.1%marketbottom25%1.4%markettop25%3.7%industryaverage2.5%forecastin3Years2.3%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: OGS's dividend (2.1%) is higher than the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: OGS's dividend (2.1%) is low compared to the top 25% of dividend payers in the US market (3.73%).

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 6 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (56.6%), 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 (60.9% payout ratio).


Next Steps

Management

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

3.9yrs

Average management tenure


CEO

Pierce Norton (59yo)

5.8yrs

Tenure

US$4,222,330

Compensation

Mr. Pierce H. Norton, II has been the Chief Executive Officer and President of ONE Gas, Inc. since January 31, 2014. Mr. Norton served as the Chief Operating Officer and Executive Vice President of TransCa ...


CEO Compensation Analysis

Compensation vs. Market: Pierce's total compensation ($USD4.22M) is about average for companies of similar size in the US market ($USD6.81M).

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


Management Age and Tenure

3.9yrs

Average Tenure

54.5yo

Average Age

Experienced Management: OGS's management team is considered experienced (3.9 years average tenure).


Board Age and Tenure

5.8yrs

Average Tenure

63yo

Average Age

Experienced Board: OGS's board of directors are considered experienced (5.8 years average tenure).


Insider Trading

Insider Buying: OGS insiders have sold more shares than they have bought in the past 3 months.


Recent Insider Transactions

BuyUS$23,81327 Sep 19
Tracy Hart
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares250
Max PriceUS$95.25
SellUS$26,89209 Aug 19
Jeffrey Husen
EntityIndividual
Role
Chief Accounting Officer
VP, Chief Accounting Officer & Controller
Shares300
Max PriceUS$89.64
SellUS$44,52019 Mar 19
Eduardo Rodriguez
EntityIndividual
Role
Lead Director
Lead Independent Director
Shares500
Max PriceUS$89.04

Ownership Breakdown


Management Team

  • Pierce Norton (59yo)

    President

    • Tenure: 5.8yrs
    • Compensation: US$4.22m
  • Brian Shore

    Corporate Secretary

    • Tenure: 0yrs
  • Curtis Dinan (51yo)

    Senior Vice President of Commercial

    • Tenure: 0.7yrs
    • Compensation: US$1.30m
  • Caron Lawhorn (57yo)

    Senior VP & CFO

    • Tenure: 0.6yrs
    • Compensation: US$1.14m
  • Joe McCormick (59yo)

    Senior VP

    • Tenure: 5.8yrs
    • Compensation: US$1.07m
  • Sid McAnnally (55yo)

    Senior Vice President of Operations

    • Tenure: 4.6yrs
    • Compensation: US$1.17m
  • Mark Bender (54yo)

    Senior VP of Administration & Chief Information Officer

    • Tenure: 3.9yrs
  • Brandon Lohse

    Director of Investor Relations

    • Tenure: 0yrs
  • Julie White (48yo)

    Vice President of Communications

    • Tenure: 0yrs
  • Jeffrey Husen (47yo)

    VP, Chief Accounting Officer & Controller

    • Tenure: 1.3yrs

Board Members

  • Pattye Moore (61yo)

    Independent Director

    • Tenure: 5.8yrs
    • Compensation: US$215.00k
  • Eduardo Rodriguez (63yo)

    Lead Independent Director

    • Tenure: 0yrs
    • Compensation: US$225.00k
  • Doug Yaeger (70yo)

    Independent Director

    • Tenure: 5.8yrs
    • Compensation: US$195.00k
  • John Gibson (67yo)

    Non-Executive Chairman of the Board

    • Tenure: 5.8yrs
    • Compensation: US$303.82k
  • Pierce Norton (59yo)

    President

    • Tenure: 5.8yrs
    • Compensation: US$4.22m
  • Bobby Evans (71yo)

    Independent Director

    • Tenure: 5.8yrs
    • Compensation: US$195.00k
  • Tracy Hart (57yo)

    Independent Director

    • Tenure: 1.3yrs
    • Compensation: US$162.77k
  • Arcilia Acosta (53yo)

    Independent Director

    • Tenure: 1.3yrs
    • Compensation: US$162.77k
  • Mike Hutchinson (63yo)

    Independent Director

    • Tenure: 5.8yrs
    • Compensation: US$210.00k

Company Information

ONE Gas, Inc.'s company bio, 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$5.013b
  • Shares outstanding: 52.73m
  • Website: https://www.onegas.com

Number of Employees


Location

  • ONE Gas, Inc.
  • 15 East Fifth Street
  • Tulsa
  • Oklahoma
  • 74103
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
OGSNYSE (New York Stock Exchange)YesCommon StockUSUSDJan 2014
OG9DB (Deutsche Boerse AG)YesCommon StockDEEURJan 2014

Biography

ONE Gas, Inc. operates as a regulated natural gas distribution utility company in the United States. The company operates in three divisions: Oklahoma Natural Gas, Kansas Gas Service, and Texas Gas Service ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/21 00:34
End of Day Share Price2019/10/18 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.