ONEOK, Inc.
ONEOK, Inc. Fundamental Analysis
ONEOK, Inc. (OKE) shows moderate financial fundamentals with a PE ratio of 16.41, profit margin of 10.58%, and ROE of 16.23%. The company generates $31.7B in annual revenue with strong year-over-year growth of 22.41%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 60.4/100 based on profitability, valuation, growth, and balance sheet metrics. The C+ grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze OKE's fundamental strength across five key dimensions:
Efficiency Score
WeakOKE struggles to generate sufficient returns from assets.
Valuation Score
ModerateOKE shows balanced valuation metrics.
Growth Score
ModerateOKE shows steady but slowing expansion.
Financial Health Score
WeakOKE carries high financial risk with limited liquidity.
Profitability Score
ModerateOKE maintains healthy but balanced margins.
Key Financial Metrics
Is OKE Expensive or Cheap?
P/E Ratio
OKE trades at 16.41 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, OKE's PEG of 2.64 indicates potential overvaluation.
Price to Book
The market values ONEOK, Inc. at 2.48 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 2.87 times EBITDA. This is generally considered low.
How Well Does OKE Make Money?
Net Profit Margin
For every $100 in sales, ONEOK, Inc. keeps $10.58 as profit after all expenses.
Operating Margin
Core operations generate 18.51 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $16.23 in profit for every $100 of shareholder equity.
ROA
ONEOK, Inc. generates $5.01 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
ONEOK, Inc. produces operating cash flow of $5.68B, showing steady but balanced cash generation.
Free Cash Flow
ONEOK, Inc. produces free cash flow of $2.93B, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $4.66 in free cash annually.
FCF Yield
OKE converts 5.30% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
16.41
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
2.64
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.48
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.74
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.53
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.90
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.16
vs 25 benchmark
ROA
Return on assets percentage
0.05
vs 25 benchmark
ROCE
Return on capital employed
0.10
vs 25 benchmark
How OKE Stacks Against Its Sector Peers
| Metric | OKE Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 16.41 | 20.10 | Better (Cheaper) |
| ROE | 16.23% | 1093.00% | Weak |
| Net Margin | 10.58% | -30341.00% (disorted) | Strong |
| Debt/Equity | 1.53 | -0.69 (disorted) | Distorted |
| Current Ratio | 0.90 | 4.79 | Weak Liquidity |
| ROA | 5.01% | 2.00% | Excellent |
OKE outperforms its industry in 3 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews ONEOK, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
50.86%
Industry Style: Cyclical, Value, Commodity
High GrowthEPS CAGR
67.38%
Industry Style: Cyclical, Value, Commodity
High GrowthFCF CAGR
77.05%
Industry Style: Cyclical, Value, Commodity
High Growth