ONE Gas, Inc. (OGS) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

-238.7%

-$109.60

vs $79.01 price

Levered DCF

-$295.60

After debt service

Piotroski score

6 / 9

Average

Altman Z-score

1.06

Distress zone

Rating

A-

Overall 4 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
P/E	17.6×	17.67×	15.32×	18.51×	20.15×	20.75×	26.51×	24.34×
P/B	1.35×	1.27×	1.28×	1.59×	1.77×	1.83×	2.32×	2.05×
P/S	1.91×	1.89×	1.49×	1.59×	2.3×	2.67×	2.99×	2.57×
EV / EBITDA	10.25×	10.25×	9.86×	12.8×	16.19×	12.26×	14.25×	13.17×
Gross margin	58.8%	37.2%	30.7%	25.1%	32.3%	36.7%	32.4%	31.1%
Operating margin	18.8%	19.2%	15.9%	13.6%	17.2%	19.8%	17.9%	17.7%
Net margin	10.9%	10.7%	9.7%	8.6%	11.4%	12.8%	11.3%	10.5%
Current ratio	0.6×	0.64×	0.52×	1.02×	2.27×	0.68×	0.58×	0.78×
Debt / equity	0.99×	1.07×	1.1×	1.26×	1.78×	0.9×	0.85×	0.78×
Interest coverage	3.2×	2.71×	3.27×	4.52×	5.15×	4.86×	4.71×	5.62×
Dividend yield	3.5%	3.8%	4.1%	3.3%	3.0%	2.8%	2.1%	2.3%
Payout ratio	60.8%	67.1%	62.3%	60.4%	60.0%	58.2%	56.5%	56.1%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	7.7%	7.2%	8.4%	8.6%	8.8%	8.8%	8.8%	8.4%
Return on invested capital	4.3%	4.3%	4.5%	4.0%	3.3%	4.4%	4.5%	4.3%
Return on assets	2.8%	2.6%	3.0%	2.9%	2.5%	3.3%	3.3%	3.1%
Free cash flow yield	-2.8%	-8.5%	7.7%	23.4%	-48.9%	-2.7%	-2.3%	1.7%
Earnings yield	5.7%	5.7%	6.5%	5.4%	5.0%	4.8%	3.8%	4.1%
Enterprise value	$8B	$7.2B	$6.6B	$7.4B	$8.3B	$6.1B	$6.7B	$5.8B
Net debt / EBITDA	4.3×	4.65×	4.54×	5.66×	8.11×	4.02×	3.78×	3.58×
Cash conversion cycle (days)	97	79	51	75	62	68	68	59