ONE Gas, Inc.
ONE Gas, Inc. Fundamental Analysis
ONE Gas, Inc. (OGS) shows moderate financial fundamentals with a PE ratio of 20.24, profit margin of 10.88%, and ROE of 8.14%. The company generates $2.5B in annual revenue with strong year-over-year growth of 16.50%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 42.7/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze OGS's fundamental strength across five key dimensions:
Efficiency Score
WeakOGS struggles to generate sufficient returns from assets.
Valuation Score
ExcellentOGS trades at attractive valuation levels.
Growth Score
ExcellentOGS delivers strong and consistent growth momentum.
Financial Health Score
ModerateOGS shows balanced financial health with some risks.
Profitability Score
WeakOGS struggles to sustain strong margins.
Key Financial Metrics
Is OGS Expensive or Cheap?
P/E Ratio
OGS trades at 20.24 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, OGS's PEG of 1.69 indicates fair valuation.
Price to Book
The market values ONE Gas, Inc. at 1.55 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 2.83 times EBITDA. This is generally considered low.
How Well Does OGS Make Money?
Net Profit Margin
For every $100 in sales, ONE Gas, Inc. keeps $10.88 as profit after all expenses.
Operating Margin
Core operations generate 18.85 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $8.14 in profit for every $100 of shareholder equity.
ROA
ONE Gas, Inc. generates $2.83 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
ONE Gas, Inc. produces operating cash flow of $602.75M, showing steady but balanced cash generation.
Free Cash Flow
ONE Gas, Inc. generates weak or negative free cash flow of $-133.70M, restricting financial flexibility.
FCF Per Share
Each share generates $-2.13 in free cash annually.
FCF Yield
OGS converts -2.30% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
20.24
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
1.69
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.55
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.29
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.99
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.60
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.08
vs 25 benchmark
ROA
Return on assets percentage
0.03
vs 25 benchmark
ROCE
Return on capital employed
0.06
vs 25 benchmark
How OGS Stacks Against Its Sector Peers
| Metric | OGS Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 20.24 | 20.42 | Neutral |
| ROE | 8.14% | 900.00% | Weak |
| Net Margin | 10.88% | 724.00% | Weak |
| Debt/Equity | 0.99 | 1.46 | Strong (Low Leverage) |
| Current Ratio | 0.60 | 1.30 | Weak Liquidity |
| ROA | 2.83% | -4801.00% (disorted) | Weak |
OGS outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews ONE Gas, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
40.10%
Industry Style: Defensive, Dividend, Income
High GrowthEPS CAGR
18.81%
Industry Style: Defensive, Dividend, Income
High GrowthFCF CAGR
40.25%
Industry Style: Defensive, Dividend, Income
High Growth