OGE Energy Corp. (OGE) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

The AES Corp.

Evergy, Inc.

Alliant Energy Corp.

Pinnacle West Capital Corp.

PPL Corp.

OGE Energy Corp.

Avangrid, Inc.

CMS Energy Corp.

Vistra Corp.

CenterPoint Energy, Inc.

NRG Energy, Inc.

Why is OGE Energy Corp. ?

Poor long term growth as Operating profit has grown by an annual rate 9.15% of over the last 5 years

Flat results in Jun 25

OPERATING CASH FLOW(Y) Lowest at USD 831.2 MM
RAW MATERIAL COST(Y) Grown by 9.05% (YoY)
DEBT-EQUITY RATIO (HY) Highest at 127.05 %

With ROCE of 7.68%, it has a fair valuation with a 1.40 Enterprise value to Capital Employed

The stock is trading at a discount compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 1.14%, its profits have risen by 22.3% ; the PEG ratio of the company is 0.8
At the current price, the company has a high dividend yield of 382.1

Underperformed the market in the last 1 year

The stock has generated a return of 1.14% in the last 1 year, much lower than market (S&P 500) returns of 13.22%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to OGE Energy Corp. should be less than 10%
Overall Portfolio exposure to Power should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Power)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is OGE Energy Corp. for you?

Low Risk, Medium Return

Absolute

Risk Adjusted

Volatility

OGE Energy Corp.

1.14%

1.27

17.66%

S&P 500

13.22%

0.65

20.20%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

8.25%

EBIT Growth (5y)

9.15%

EBIT to Interest (avg)

3.28

Debt to EBITDA (avg)

4.67

Net Debt to Equity (avg)

1.27

Sales to Capital Employed (avg)

0.30

Tax Ratio

15.30%

Dividend Payout Ratio

76.55%

Pledged Shares

Institutional Holding

77.96%

ROCE (avg)

6.76%

ROE (avg)

11.14%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

1.91

EV to EBIT

18.24

EV to EBITDA

10.85

EV to Capital Employed

1.40

EV to Sales

4.68

PEG Ratio

0.83

Dividend Yield

382.11%

ROCE (Latest)

7.68%

ROE (Latest)

10.52%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

RSI

No Signal

Bollinger Bands

Sideways

Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Dow Theory

Mildly Bearish

OBV

Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

4What is working for the Company

NET PROFIT(9M)

At USD 272.1 MM has Grown at 60.91%

ROCE(HY)

Highest at 10.76%

-6What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at USD 831.2 MM

RAW MATERIAL COST(Y)

Grown by 9.05% (YoY

DEBT-EQUITY RATIO (HY)

Highest at 127.05 %

INTEREST(Q)

Highest at USD 72.2 MM

Here's what is working for OGE Energy Corp.

Net Profit

At USD 272.1 MM has Grown at 60.91%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is positive

Net Profit (USD MM)

Here's what is not working for OGE Energy Corp.

Operating Cash Flow

Lowest at USD 831.2 MM and Fallen

In each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (USD MM)

Interest

Highest at USD 72.2 MM

in the last five periods and Increased by 7.28% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (USD MM)

Debt-Equity Ratio

Highest at 127.05 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Raw Material Cost

Grown by 9.05% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales

Non Operating Income

Highest at USD 0.12 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income