NYSE:OGS

Stock Analysis Report

Executive Summary

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


Snowflake Analysis

Proven track record second-rate dividend payer.


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

Stable Share Price: OGS has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

15.8%

OGS

15.3%

US Gas Utilities

7.2%

US Market


1 Year Return

-4.0%

OGS

-18.9%

US Gas Utilities

-10.4%

US Market

Return vs Industry: OGS exceeded the US Gas Utilities industry which returned -24.1% over the past year.

Return vs Market: OGS exceeded the US Market which returned -12.7% over the past year.


Shareholder returns

OGSIndustryMarket
7 Day15.8%15.3%7.2%
30 Day1.7%-4.0%-12.6%
90 Day-10.7%-17.5%-19.4%
1 Year-1.8%-4.0%-16.6%-18.9%-8.5%-10.4%
3 Year31.9%22.9%-2.0%-9.4%15.8%8.3%
5 Year119.7%94.7%38.4%20.9%35.8%21.0%

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?

23.66x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: OGS ($79.39) is trading above our estimate of fair value ($53.83)

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 (22.5x) compared to the Gas Utilities industry average (20.8x).

PE vs Market: OGS is poor value based on its PE Ratio (22.5x) compared to the US market (13x).


Price to Earnings Growth Ratio

PEG Ratio: OGS is poor value based on its PEG Ratio (3.5x)


Price to Book Ratio

PB vs Industry: OGS is overvalued based on its PB Ratio (2x) compared to the US Gas Utilities industry average (1.7x).


Next Steps

Future Growth

How is ONE Gas forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

6.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: OGS's forecast earnings growth (6.4% per year) is above the savings rate (1.7%).

Earnings vs Market: OGS's earnings (6.4% per year) are forecast to grow slower than the US market (12.3% per year).

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

Revenue vs Market: OGS's revenue (0.4% per year) is forecast to grow slower than the US market (7.3% per year).

High Growth Revenue: OGS's revenue (0.4% 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 (9.1%).


Next Steps

Past Performance

How has ONE Gas performed over the past 5 years?

11.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: OGS has high quality earnings.

Growing Profit Margin: OGS's current net profit margins (11.3%) are higher than last year (10.5%).


Past Earnings Growth Analysis

Earnings Trend: OGS's earnings have grown by 11.3% per year over the past 5 years.

Accelerating Growth: OGS's earnings growth over the past year (8.4%) is below its 5-year average (11.3% per year).

Earnings vs Industry: OGS earnings growth over the past year (8.4%) exceeded the Gas Utilities industry 8%.


Return on Equity

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


Next Steps

Financial Health

How is ONE Gas's financial position?


Financial Position Analysis

Short Term Liabilities: OGS's short term assets ($506.2M) do not cover its short term liabilities ($872.7M).

Long Term Liabilities: OGS's short term assets ($506.2M) do not cover its long term liabilities ($2.7B).


Debt to Equity History and Analysis

Debt Level: OGS's debt to equity ratio (84.7%) is considered high.

Reducing Debt: OGS's debt to equity ratio has increased from 69.3% to 84.7% over the past 5 years.

Debt Coverage: OGS's debt is not well covered by operating cash flow (17.2%).

Interest Coverage: OGS's interest payments on its debt are well covered by EBIT (4.6x 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 0.3x debt).


Next Steps

Dividend

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

2.59%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: OGS's dividend (2.72%) is higher than the bottom 25% of dividend payers in the US market (1.98%).

High Dividend: OGS's dividend (2.72%) is low compared to the top 25% of dividend payers in the US market (5.49%).


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 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 (60.4% payout ratio).


Next Steps

Management

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

3.5yrs

Average management tenure


CEO

Pierce Norton (59yo)

6.17s

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 ($USD4.22M) is about average for companies of similar size in the US market ($USD5.55M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Pierce Norton
President6.17yrsUS$4.22m0.46% $20.3m
Caron Lawhorn
Senior VP & CFO1yrUS$1.14m0.25% $10.9m
Robert McAnnally
Senior Vice President of Operations5yrsUS$1.17m0.037% $1.6m
Joseph McCormick
Senior VP6.17yrsUS$1.07m0.11% $5.0m
Curtis Dinan
Senior Vice President of Commercial1yrUS$1.30m0.25% $10.9m
Jeffrey Husen
VP, Chief Accounting Officer & Controller1.67yrsno data0.011% $494.5k
Mark Bender
Senior VP of Administration & Chief Information Officer5.83yrsno data0.033% $1.4m
Brandon Lohse
Director of Investor Relationsno datano datano data
Julie White
Vice President of Communications2yrsno datano data
Brian Shore
Corporate Secretaryno datano datano data

3.5yrs

Average Tenure

54.5yo

Average Age

Experienced Management: OGS's management team is considered experienced (3.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Pierce Norton
President6.17yrsUS$4.22m0.46% $20.3m
Pattye Moore
Independent Director6.17yrsUS$215.00k0.00095% $41.9k
Eduardo Rodriguez
Lead Independent Directorno dataUS$225.00k0.017% $767.7k
Douglas Yaeger
Independent Director6.17yrsUS$195.00k0.040% $1.7m
John Gibson
Non-Executive Chairman of the Board6.17yrsUS$303.82k0.52% $22.8m
Robert Evans
Independent Director6.17yrsUS$195.00k0.021% $909.4k
Tracy Hart
Independent Director1.67yrsUS$162.77k0.0032% $143.5k
Michael Hutchinson
Independent Director6.17yrsUS$210.00k0.020% $884.7k

6.2yrs

Average Tenure

63yo

Average Age

Experienced Board: OGS's board of directors are considered experienced (6.2 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: OGS insiders have bought more shares than they have sold 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 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$4.415b
  • Shares outstanding: 52.86m
  • 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. It provides natural gas distribution services to 2.2 million customers in three states. The company serves residential, commercial and industrial, transportation and wholesale, and public authority customers. As of December 31, 2018, it operated approximately 40,300 miles of distribution mains; and 2,600 miles of transmission pipelines, as well as had 48.4 billion cubic feet of natural gas storage capacity. The company was founded in 1906 and is headquartered in Tulsa, Oklahoma. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/31 03:40
End of Day Share Price2020/03/30 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.