ONEOK Inc. [OKE] Resumes bearish Trend: What’s in it for Long-term Investors

ONEOK Inc. [NYSE: OKE] dipped by -5.88% on the last trading session, reaching $28.17 price per share at the time. ONEOK Inc. represents 413.91M in outstanding shares, while the company has a total market value of 12.39B with the latest information.

The ONEOK Inc. traded at the price of $28.17 with 2.07 million shares were bought and sold during the latest trading session. Over the period of the last 3 months, the average trading volume of OKE shares recorded 7.00M.

ONEOK Inc. [NYSE:OKE]: Analyst Rating and Earnings

Equities traders often pay a significant amount of attention to what top market analysts have to say about a potential stock investment. In regards to ONEOK Inc. [OKE], the most recent average analyst recommendation we can read comes from the fiscal quarter ending in 3/30/2020. On average, stock market experts give OKE an Overweight rating. The average 12-month price forecast for this stock is $28.13, with the high estimate being $65.00, the low estimate being $24.00 and the median estimate amounting to $36.50. This is compared to its latest closing price of $29.93.

Wall Street analysts provide their ratings on a scale of 1 to 5, and the current average score for ONEOK Inc. [OKE] is sitting at 4.13. This is compared to 1 month ago, when its average rating was 4.13.

Keep your eyes on this company’s next financial results, which are scheduled to be made public on 08/04/2020.

Fundamental Analysis of ONEOK Inc. [OKE]

Now let’s turn to look at profitability: with a current Operating Margin for ONEOK Inc. [OKE] sitting at 18.80% and its Gross Margin at 33.20%, this company’s Net Margin is now 12.60. These measurements indicate that ONEOK Inc. [OKE] is generating considerably more profit, after expenses are accounted for, compared to its market peers.

This company’s Return on Total Capital is 10.69, and its Return on Invested Capital has reached 7.48. Its Return on Equity is 20.20%, and its Return on Assets is 6.20%. These metrics all suggest that ONEOK Inc. is doing well at using the money it earns to generate returns.

Turning to investigate this organization’s capital structure, ONEOK Inc. [OKE] has generated a Total Debt to Total Equity ratio of 204.77. Similarly, its Total Debt to Total Capital is 67.19, while its Total Debt to Total Assets stands at 58.45. Looking toward the future, this publicly-traded company’s Long-Term Debt to Equity is 201.05, and its Long-Term Debt to Total Capital is 65.97.

What about valuation? This company’s Enterprise Value to EBITDA is 10.32 and its Total Debt to EBITDA Value is 5.43. The Enterprise Value to Sales for this firm is now 2.56, and its Total Debt to Enterprise Value stands at 0.29. ONEOK Inc. [OKE] has a Price to Book Ratio of 5.02, a Price to Cash Flow Ratio of 15.40 and P/E Ratio of 14.62. These metrics all suggest that ONEOK Inc. is more likely to generate a positive ROI.

ONEOK Inc. [OKE] has 413.91M shares outstanding, amounting to a total market cap of 12.39B. Its stock price has been found in the range of 12.16 to 78.48. At its current price, it has moved down by -64.11% from its 52-week high, and it has moved up 131.66% from its 52-week low.

This stock’s Beta value is currently 2.01, which indicates that it is 8.35% more volatile that the wider market. This stock’s Relative Strength Index (RSI) is at 40.35. This RSI score is good, suggesting this stock is neither overbought or oversold.

Conclusion: Is ONEOK Inc. [OKE] a Reliable Buy?

Shares of ONEOK Inc. [OKE], overall, appear to be a solid investment option, with Wall Street analysts expecting its price to rise considerably in the next 12 months. This company generates high value from the labor resources and other capital it has available, and while it has heavy Long-Term Debt to Equity, the majority of the metrics point to this investment being highly attractive.

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Author: Kevin Freeman