ONE Gas, Inc. (OGS) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

New Jersey Resources Corp.

Targa Resources Corp.

Chesapeake Utilities Corp.

Atmos Energy Corp.

Spire Inc.

Cheniere Energy Partners LP

NiSource, Inc.

ONE Gas, Inc.

Southwest Gas Holdings, Inc.

MDU Resources Group, Inc.

New Fortress Energy, Inc.

Why is ONE Gas, Inc. ?

Poor long term growth as Operating profit has grown by an annual rate 7.87% of over the last 5 years

Flat results in Jun 25

RAW MATERIAL COST(Y) Grown by 9.57% (YoY)

With ROCE of 6.81%, it has a expensive valuation with a 1.19 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 8.29%, its profits have risen by 6.6% ; the PEG ratio of the company is 18.1
At the current price, the company has a high dividend yield of 335.1

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to ONE Gas, Inc. should be less than 10%
Overall Portfolio exposure to Gas should be less than 30%

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

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

Is ONE Gas, Inc. for you?

Low Risk, High Return

Absolute

Risk Adjusted

Volatility

ONE Gas, Inc.

10.4%

1.34

19.83%

S&P 500

19.75%

0.70

20.15%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

9.67%

EBIT Growth (5y)

8.55%

EBIT to Interest (avg)

4.02

Debt to EBITDA (avg)

5.88

Net Debt to Equity (avg)

1.00

Sales to Capital Employed (avg)

0.36

Tax Ratio

15.21%

Dividend Payout Ratio

61.38%

Pledged Shares

Institutional Holding

96.46%

ROCE (avg)

5.86%

ROE (avg)

8.29%

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

1.55

EV to EBIT

18.95

EV to EBITDA

11.19

EV to Capital Employed

1.28

EV to Sales

3.57

PEG Ratio

1.70

Dividend Yield

280.07%

ROCE (Latest)

6.74%

ROE (Latest)

7.67%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bullish

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

10What is working for the Company

DIVIDEND PER SHARE(HY)

Highest at USD 4.84

INTEREST COVERAGE RATIO(Q)

Highest at 823.22

RAW MATERIAL COST(Y)

Fallen by -18% (YoY

DEBT-EQUITY RATIO (HY)

Lowest at 95.25 %

OPERATING PROFIT(Q)

Highest at USD 266.38 MM

PRE-TAX PROFIT(Q)

Highest at USD 155.26 MM

NET PROFIT(Q)

Highest at USD 128.77 MM

EPS(Q)

Highest at USD 2.04

-5What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at USD 477.69 MM

DIVIDEND PAYOUT RATIO(Y)

Lowest at 33.4%

DEBTORS TURNOVER RATIO(HY)

Lowest at 4.84 times

Here's what is working for ONE Gas, Inc.

Interest Coverage Ratio

Highest at 823.22

in the last five periods

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Dividend per share

Highest at USD 4.84 and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (USD)

Operating Profit

Highest at USD 266.38 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (USD MM)

Pre-Tax Profit

Highest at USD 155.26 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (USD MM)

Net Profit

Highest at USD 128.77 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (USD MM)

EPS

Highest at USD 2.04

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (USD)

Debt-Equity Ratio

Lowest at 95.25 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Raw Material Cost

Fallen by -18% (YoY)

MOJO Watch

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

Raw Material Cost as a percentage of Sales

Here's what is not working for ONE Gas, Inc.

Operating Cash Flow

Lowest at USD 477.69 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)

Debtors Turnover Ratio

Lowest at 4.84 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Dividend Payout Ratio

Lowest at 33.4%

in the last five years

MOJO Watch

Company is distributing lower proportion of profits generated as dividend

DPR (%)