ONEOK Inc. Rates High in P/E Growth Investor Model

In a recent report, ONEOK Inc. received a 72% rating based on its fundamentals, according to the P/E/Growth Investor strategy. While it excels in several criteria such as P/E growth ratio and EPS growth rate, its total debt/equity ratio fails to meet expectations, indicating a modest risk.

Date: 23-09-2024

AI Rating: 6

Analysis of ONEOK INC

ONEOK INC (OKE) has shown a solid performance in the context of the P/E/Growth Investor model based on Peter Lynch's strategy. Scoring 72%, OKE demonstrates a reasonable valuation relative to its earnings growth and possesses strong underlying fundamentals. A score above 80% typically generates notable interest, while a score above 90% represents strong investment conviction. Thus, OKE appears to be a moderately attractive investment option.

Key Metrics

P/E Growth Ratio: PASS
Sales and P/E Ratio: PASS
Inventory to Sales: PASS
EPS Growth Rate: PASS
Total Debt/Equity Ratio: FAIL
Free Cash Flow: NEUTRAL
Net Cash Position: NEUTRAL

The positive ratings in P/E Growth Ratio, Sales and P/E Ratio, Inventory to Sales, and EPS Growth Rate showcase the company's potential for earnings growth, which is advantageous for investor sentiment. However, the failing grade in the Total Debt/Equity Ratio raises a potential red flag for investors, indicating a higher risk relating to debt levels.

Free Cash Flow and Net Cash Position achieving neutral ratings implies that while the company is not in a detrimental cash flow situation, its capacity for aggressive growth initiatives may be limited due to financial commitments.

In conclusion, while ONEOK Inc. shows several indicators of potential growth and strong fundamentals, the critical aspect of its debt level could temper investor enthusiasm.

Stocks: OKE