ONEOK INC /NEW/

Natural Gas Transmisison & Distribution
Stock Price
$87.31
$-0.75 (-0.85%)
Jun 24, 2026
Debt to Equity
69.8%
ROE
7.7%
PE Ratio
11.45
EPS (Diluted)
$3.38

Oneok Inc New (OKE) Fundamental Analysis

Overview

ONEOK is a capital‑intensive midstream energy company that gathers, processes and transports natural gas and NGLs, combining utility‑like asset exposure with recent, above‑average per‑share earnings growth.

Key Strengths

The company’s most obvious strengths are rapid per‑share and earnings expansion: five‑year diluted EPS compound annual growth is about 40.82% and three‑year EPS CAGR is about 25.36%, while the latest reported diluted EPS was $7.89 (period end 2026-03-31). Revenue per share has also stepped higher, with 1‑year RPS growth of 35.3% (period end 2022-12-31) and a recent revenue per share level of $67.80 (period end 2025-09-30). Operating cash flow on a trailing‑twelve‑month basis has risen materially over the multi‑year series to $2.91B even as the business continued to invest (TTM investing cash flow –$2.11B), and the trailing P/E sits in the low‑teens at roughly 11.5x (2026‑03‑31), reflecting a marked contraction from prior decade highs.

Risks and Challenges

Offsetting those positives are liquidity and profitability dynamics that warrant attention. The reported current ratio is below 1.0 at about 0.71, indicating tighter short‑term liquidity. Return dynamics are mixed: trailing ROE is a modest 7.7% (2026‑03‑31) but the measured ROE growth metric is negative (about −42.89%), and there is recent margin and cash‑flow divergence — net income (TTM) reached $3.53B while the most recent operating cash flow (TTM) is $2.91B, suggesting periods where earnings outpace cash generation. Gross margin has also shown short‑term volatility, slipping from 38.9% (2025‑06‑30) to 29.2% (2025‑09‑30).

Key Metrics to Watch

Thesis & Conclusion

ONEOK exhibits strong growth in earnings and revenue per share, with positive cash flow trends, though short‑term liquidity and profitability metrics suggest caution. Monitoring key fundamental indicators will be crucial for assessing its future performance.

Revenue and Growth

Revenue Trend

Revenue & Net Income

The foundation of business quality and long-term value creation

Revenue & Net Income Growth

ONEOK INC /NEW/'s revenue entries in recent quarters show large year-end figures and discontinuities in interim quarters. The last full-year/quarter spikes appear at 2024-12-31 ($18.30B) and earlier year-ends ($16.8B in 2022 and $16.5B in 2021), while quarterly revenue reported in early-to-mid 2025 was $6.29B (2025-03-31) and $5.74B (2025-06-30). The dataset also contains zero values for revenue at 2025-09-30 and 2024-09-30, which are recorded as $0 in the table.

Net Income

Net income for ONEOK INC /NEW/ shows notable year-end jumps and smaller quarterly results in between. Recent net income rose from $636.0M at 2025-03-31 to a larger $2.76B at 2025-12-31, then was $774.0M at 2026-03-31; earlier year-end net income was $2.21B at 2023-12-31 with intervening quarterly results (e.g., $454.0M at 2023-09-30, $780.0M at 2024-06-30). The most recent Revenue observed was $0 for the period ending 2025-09-30. The most recent Net Income observed was $774.0M for the period ending 2026-03-31.

Why Growth Matters

Consistent revenue and earnings growth are the lifeblood of successful long-term investments. Companies that can grow their top line (revenue) and bottom line (net income) over many years demonstrate they have products or services customers value and are willing to pay for repeatedly.

Revenue Growth shows whether the company is expanding its market reach, gaining market share, or successfully launching new products.Net Income Growth demonstrates the company can convert that revenue into actual profits while managing costs effectively.

Look for steady, sustainable growth rather than erratic spikes. The best businesses compound earnings year after year, creating tremendous value for shareholders over time. Companies that can grow earnings faster than revenue are improving their profitability—a sign of operational excellence and competitive strength.

ONEOK INC /NEW/ (OKE) quarterly revenue and net income trend analysis showing historical financial performance over multiple years. Interactive chart displaying revenue growth, net income trends, and profitability patterns for OKE stock with quarterly and annual data points.

Revenue & Net Income Trend

Revenue
Net Income

EPS Diluted & Revenue per Share

Per-share earnings and revenue — the shareholder's view of growth

Why Per-Share Metrics Matter

Total revenue and net income can grow simply because a company issues more shares or makes acquisitions. Per-share metrics cut through that noise — they show how much value each single share of stock is generating, which is what actually matters to shareholders.

Revenue per Share (split-adjusted) tells you how much revenue the business generates for every share outstanding. Growing revenue per share means the company is either expanding the business or shrinking the share count — both shareholder-friendly signals.EPS Diluted (split-adjusted) captures bottom-line earnings per share after accounting for all dilutive instruments such as stock options and convertible debt.

The most powerful signal is when both lines rise together over many years. If revenue per share grows but EPS lags, margins are being squeezed. If EPS grows faster than revenue per share, the company is becoming more profitable — a hallmark of businesses with durable competitive advantages. Watch for share buybacks, which can mechanically lift EPS even if total earnings are flat.

ONEOK INC /NEW/ (OKE) EPS diluted and revenue per share trend showing historical per-share earnings and revenue performance over time.

EPS Diluted & Revenue per Share

Revenue Per Share
Earnings Per Share (Diluted)

Revenue & EPS Growth

Year-over-year growth rates for revenue and earnings per share

Reading the Growth Rate Chart

This chart converts the absolute per-share figures into year-over-year percentage changes, making it easy to see whether growth is accelerating, decelerating, or reverting to trend — regardless of the company's absolute size.

Revenue per Share Growth (1-year, split-adjusted) measures how quickly the top line is expanding on a per-share basis. Sustained positive growth signals that the company continues to win customers and grow its addressable market.EPS Diluted Growth (1-year, split-adjusted) measures how quickly earnings are compounding for each shareholder. When EPS growth consistently outpaces revenue growth, operating leverage and margin expansion are at work.

Look for consistency, not just magnitude. A company that reliably grows EPS 10–15% per year is far more valuable than one that alternates between 50% spikes and deep contractions. Negative EPS growth during a period of positive revenue growth is a red flag — costs are rising faster than sales. Quarters where both lines converge near zero or go negative deserve close scrutiny.

ONEOK INC /NEW/ (OKE) year-over-year revenue per share and EPS diluted growth rate trend analysis showing historical growth performance.

Revenue & EPS Growth

Avg:
Revenue Per Share year-on-year growth rate
Diluted EPS year-on-year growth rate
10Y rolling avg (dashed)

Revenue Analysis

Revenue Waterfall Analysis

How revenue converts to net income for the most recent annual period

ONEOK INC /NEW/ (OKE) revenue waterfall chart showing the breakdown from total revenue to net income. Displays cost of goods sold, operating expenses, selling and administrative costs, research and development expenses, tax expenses, and final net income for OKE. Annual financial statement waterfall analysis showing profit margin components and expense structure.

Over the period Oct 2024 to Sep 2025, Oneok Inc New converts approximately 29¢ of every revenue dollar into gross profit (gross margin: 29.2%).The waterfall below shows how revenue flows through various expense categories.

Starting Revenue
Expenses
Other Items
Net Income

Period Information

Report Type: Annual (10-K)

Period: Oct 2024 to Sep 2025

Profitability

Profit Margins

Earnings Quality

Earnings Quality Analysis

Comparing reported earnings to actual cash generation

Earnings Quality Analysis — Net Income vs Operating Cash Flow (TTM)

ONEOK INC /NEW/'s trailing twelve‑month net income shows a clear upward trend in the most recent data. Net income rose from $1.72B at the 2022 year end to $2.66B by 2023 and then accelerated to $3.39B at 2025‑12‑31, reaching $3.53B in the latest 2026‑03‑31 observation. The most notable inflection occurred around 2022–2023 when net income moved materially higher and continued rising through early 2026.

Operating cash flow (TTM) in the dataset increased in earlier periods from roughly $1.29B–$1.36B in the 2013–2016 window to $1.95B by 2019 and then to $2.91B at 2022‑12‑31, which is the most recent operating cash flow observation available. Comparing the most recent values in the series, net income (TTM) at $3.53B exceeds the last reported operating cash flow (TTM) of $2.91B. The most recent Net Income (TTM) was $3.53B and the most recent Operating Cash Flow (TTM) was $2.91B (observed 2022‑12‑31).

The Earnings vs. Cash Flow Gap

Reported earnings (Net Income) doesn't always reflect actual cash generation. Companies use accrual accounting, which recognizes revenue when earned and expenses when incurred—not when cash actually changes hands. This creates timing differences and opportunities for accounting discretion that can mask underlying business health.

Net Income (the "earnings" number) can be influenced by non-cash items like depreciation, stock-based compensation, and changes in accounting estimates.Operating Cash Flow, however, shows the actual cash the business generates from its core operations—a harder number to manipulate.

Net Income vs Operating Cash Flow

Trailing Twelve Months

Net Income (Trailing Twelve Months)
Operating Cash Flow (Trailing Twelve Months)

What to Look For

  • Consistent Alignment: High-quality earnings show operating cash flow tracking closely with or exceeding net income over time. This indicates the company is actually collecting cash from its reported profits.
  • Warning Sign - Divergence: If net income consistently exceeds cash flow, the company may be reporting earnings that aren't translating to cash. This could indicate aggressive revenue recognition, growing receivables that may not be collected, or inventory building up.
  • Positive Sign - Cash Exceeds Earnings: When cash flow exceeds net income, it often reflects conservative accounting (like accelerated depreciation) or strong working capital management. This is generally a sign of high earnings quality.
  • Quarterly Volatility is Normal: Some variation is expected due to timing of collections, seasonal factors, and one-time items. Focus on the trend over multiple quarters rather than any single period.

Key Insight: Companies with durable competitive advantages typically show operating cash flow that meets or exceeds net income over time, demonstrating they convert accounting profits into actual cash that can be returned to shareholders or reinvested in the business.

Return on Equity

Return on Equity (ROE)

Measuring management's efficiency at generating profits from shareholder capital

Return on Equity (ROE)

ONEOK INC /NEW/'s trailing twelve‑month Return on Equity has been stable in recent reported quarters, with consecutive readings of 7.7% for 2026-03-31 and 2025-12-31; the 2022-12-31 value is also 7.7%, indicating persistence of this level since at least 2022. This represents a clear step up from the earlier historical values shown, where ROE ranged from 1.6% to 3.4% in the 2011–2017 window.

The key inflection is the move from low single‑digit ROE in the 2011–2017 period to the sustained 7.7% level observed from 2022 onward. The most recent Return on Equity (ROE) for ONEOK INC /NEW/ was 7.7% for the quarter ended 2026-03-31.

The Gold Standard of Profitability

Return on Equity (ROE) is a powerful measure of how effectively a company's management is using the money shareholders have invested. Calculated by dividing Net Income by Shareholders' Equity, it reveals how much profit is generated for every dollar of equity capital.

A consistently high ROE (typically above 15-20%) is often the signature of a "quality" business with a durable competitive advantage. It indicates that the company can generate high returns on its own capital, which it can then reinvest at these high rates to compound value over time.

What to Look For:

  • Consistency: Look for an ROE that is stable or rising over time. Erratic ROE can signal cyclicality or inconsistent management.
  • Quality vs. Leverage: While a high ROE is generally positive, it can sometimes be artificially inflated by high debt (leverage). Always cross-reference ROE with the company's Debt-to-Equity ratio to ensure the profitability is coming from operational excellence rather than excessive borrowing.
  • Comparison: ROE is most meaningful when compared against industry peers or the company's own historical average.
ONEOK INC /NEW/ (OKE) Return on Equity (ROE) historical trend analysis. Quarterly chart showing the company's return on equity over time, reflecting management's efficiency in using shareholder capital.

Return on Equity Trend

Avg:
Return on Equity
10Y rolling avg (dashed)

Capital Allocation & Cash Flow

Capital Strategy

Strategic Capital Allocation

How the company generates and deploys its cash

Strategic Capital Allocation — Cash Flow Allocation Trend (TTM)

ONEOK INC shows a multi-year increase in reported operating cash flow, with trailing-twelve-month operating cash rising from about $1.29B in 2013–2014 through $1.95B in 2019 to $2.91B in the most recent operating-period observation (2022-12-31).

Investing cash flow values in the available history are consistently negative, with recorded TTM investing outflows of −$2.57B in 2014 and −$2.11B in 2018, the latter being the most recent investing cash-flow data point provided.

Financing cash flow has shifted materially in the recent quarters shown: financing TTM was negative in late 2022 and early 2023 (−$1.69B at 2022-12-31, −$2.15B at 2023-03-31), then moved to positive net inflows through late 2023 and 2024, reaching $2.62B at 2024-03-31 before declining to $2.12B at 2024-12-31 and $1.61B at 2025-03-31.

The most recent trailing-twelve-month values observed are:

  • Operating Cash Flow TTM: $2.91B
  • Investing Cash Flow TTM: −$2.11B
  • Financing Cash Flow TTM: $1.61B

Understanding Company Strategy

Capital allocation refers to how management decides to spend and invest the company's cash. Analyzing the three primary categories of cash flow reveals a company's true operational strategy:

  • Operating Cash Flow: The engine of the business. This shows how much cash is generated from core operations. Sustainable businesses should ideally fund their growth and shareholder returns primarily from this source.
  • Investing Cash Flow: The future of the business. This includes spending on new equipment, R&D, and acquisitions. Consistent negative values are normal for growing companies as they reinvest in their future.
  • Financing Cash Flow: The funding of the business. This reflects capital raising (issuing stock or debt) versus returning capital to shareholders (dividends and buybacks) or repaying debt.

What to look for: Is the company bootstrapping (funding growth solely from operating cash)? Are they borrowing to fund aggressive expansion or dividends? Or are they capital raising by issuing new shares, potentially diluting your ownership? A healthy, mature company typically generates strong operating cash, moderately invests in growth, and returns the surplus to shareholders through financing activities.

ONEOK INC /NEW/ (OKE) cash flow allocation analysis. Quarterly chart displaying the three pillars of cash flow: net cash from operating activities, investing activities, and financing activities, providing insight into the company's capital allocation strategy.

Cash Flow Allocation Trend

Trailing Twelve Months

Operating CF (TTM)
Investing CF (TTM)
Financing CF (TTM)

Balance Sheet

Book Value per Share

Book Value per Share

Net assets attributable to each share — the accounting floor of intrinsic value

Why Book Value per Share Matters

Book value per share is the net worth of the company — total assets minus total liabilities — divided by shares outstanding (split-adjusted). It represents the theoretical liquidation value per share if every asset were sold and every liability repaid at balance-sheet carrying values. It is the accounting foundation upon which much of equity valuation is built.

A steadily rising book value per share is one of the most reliable signals of compounding wealth creation. It means the company is retaining earnings and building net worth faster than it is returning capital or eroding it. Warren Buffett famously tracked Berkshire Hathaway's book value per share for decades as his primary measure of intrinsic value growth.

Context is essential. Asset-heavy businesses (banks, manufacturers, utilities) should be judged by book value more directly than asset-light businesses (software, consumer brands), where intangible assets like intellectual property and customer loyalty may far exceed their balance-sheet carrying values. A company trading at a large premium to book value is not necessarily overvalued — it may simply possess competitive advantages that accounting rules do not capture. Conversely, a declining book value per share — especially over multiple years — is a serious warning sign of capital destruction.

ONEOK INC /NEW/ (OKE) book value per share trend showing historical net asset value per share over time, split-adjusted.

Book Value per Share

Book Value Per Share

Debt to Equity

Debt-to-Equity Ratio

How much of the company is financed by debt versus shareholders' equity

Reading the Debt-to-Equity Ratio

The debt-to-equity (D/E) ratio compares total financial debt to shareholders' equity. A ratio of 1.0 means the company has borrowed one dollar for every dollar of equity; a ratio of 2.0 means it has borrowed twice as much as it owns. Financial leverage amplifies both returns and risk: in good times, debt turbocharges equity returns; in bad times, it accelerates losses and can threaten solvency.

Trends matter more than a single number. A rising D/E ratio can mean the company is taking on debt to fund growth — potentially value-creating if returns exceed the cost of capital. But it can also mean equity is being eroded through losses or that the business is borrowing simply to sustain operations. A falling D/E ratio generally reflects strengthening financial health: earnings are being retained, debt maturities are being paid down, or both.

Industry norms vary enormously. Capital-intensive sectors (utilities, real estate, financials) routinely carry high D/E ratios that would be alarming in, say, a technology company. Always compare against sector peers. As a rough rule of thumb, a D/E above 2× in a cyclical business warrants careful scrutiny of interest coverage and refinancing risk.

ONEOK INC /NEW/ (OKE) debt-to-equity ratio trend showing the historical balance between financial leverage and shareholders' equity.

Debt-to-Equity Ratio

Debt-to-Equity Ratio

Current Ratio

Current Ratio

Short-term liquidity — can the company cover its near-term obligations?

Liquidity: Can the Business Pay Its Bills?

The current ratio is calculated as current assets divided by current liabilities. A ratio of 1.5 means the company has $1.50 of short-term assets — cash, receivables, inventory — for every $1.00 of obligations due within the next twelve months. It is the most direct measure of near-term financial resilience: can the business meet its obligations without needing to raise new capital or sell long-term assets at a discount?

A ratio above 1.0 is generally healthy, meaning current assets exceed current liabilities. A ratio consistently above 2.0 may indicate the company is holding excess cash or inventory that could be deployed more productively. A ratio below 1.0 is a warning sign — the company is relying on future cash generation or external financing to cover its near-term obligations, which is manageable in normal conditions but dangerous during a downturn.

Trends and context matter.A declining current ratio isn't always alarming — highly efficient businesses (e.g., large retailers with reliable daily cash flows) often run leaner balance sheets intentionally. Conversely, a rapidly rising current ratio can signal slowing sales causing inventory to build, or customers taking longer to pay. Always compare the trend against industry peers and cross-reference with the cash flow statement to assess whether the business is genuinely liquid or just holding non-cash current assets.

ONEOK INC /NEW/ (OKE) current ratio trend showing the ratio of current assets to current liabilities over time, a measure of short-term liquidity.

Current Ratio

Current Ratio

Valuation

PE Ratio

Price-to-Earnings (PE) Ratio Trend

How much the market is paying for each dollar of company earnings

Price-to-Earnings (PE) Ratio

ONEOK INC /NEW/’s trailing twelve-month price-to-earnings ratio has moved from very elevated levels in the 2010s into much lower single- to mid‑teens more recently. Notable inflection points in the series include a peak at 91.4x in 2013, a large narrowing to 28.0x by 2020-12-31, and a further contraction to the mid‑teens by 2022-12-31 (16.6x).

Focusing on the most recent quarters, the P/E fell to 9.7x at 2025-12-31 and then increased to 11.5x at 2026-03-31, representing a recent uptick from the prior quarter while remaining well below the historic highs. The most recent Price-to-Earnings (P/E) ratio was 11.5x as of 2026-03-31.

What Is the PE Ratio?

The Price-to-Earnings (PE) ratio is one of the most widely used valuation metrics in investing. It divides the current stock price by the company's earnings per share (EPS), revealing how much investors are willing to pay for each dollar of earnings. A high PE can signal that the market expects strong future growth, while a low PE may suggest undervaluation—or reflect genuine concerns about the company's prospects.

Context matters:PE ratios vary significantly across industries. High-growth technology companies routinely trade at PE ratios above 30x or 40x, while mature, low-growth sectors like utilities or financials often trade closer to 10–15x. Always compare a company's PE to its own history and its industry peers, not just an absolute number.

What to Look For:

  • Expanding PE (Re-rating):If the PE is rising while earnings are also growing, the market is assigning increasing confidence in the company's future. If PE rises while earnings stagnate, it may signal speculative excess.
  • Contracting PE (De-rating): A falling PE can indicate the market is losing confidence in growth prospects. If earnings grow but the PE shrinks, total returns may be muted.
  • Negative PE: When a company is loss-making, the PE ratio is negative or undefined. In these cases, investors typically use other metrics such as Price-to-Sales (P/S) or EV/EBITDA.
  • Spikes and Troughs: Sudden PE spikes often occur when earnings temporarily collapse (making the divisor small) rather than when the stock price surges. Context is key.

Key Insight:The PE ratio is a snapshot of market sentiment and expectations. Tracking it over time alongside earnings trends reveals whether the market's valuation has expanded or contracted—and whether that change is justified by fundamentals.

ONEOK INC /NEW/ (OKE) Price-to-Earnings (PE) ratio historical trend analysis. Quarterly chart showing how the market has valued the company's earnings over time.

PE Ratio Trend

Price-to-Earnings Ratio