OGE Energy (OGE) AI Stock Analysis

• Market Cap: $9.08B
• Dividend Yield: 3.74%
• Average Volume (3M): 1.09M
• Price to Earnings (P/E): 18.5
• Beta (1Y): 0.29
• Revenue Growth: 16.01%
• EPS Growth: 19.05%
• Country: US
• Employees: 2,291
• Sector: Utilities
• Sector Strength: 83
• Industry: Regulated Electric
• EPS (TTM): 0.53
• Shares Outstanding: 201,395,140
• 10 Day Avg. Volume: 978,175
• 30 Day Avg. Volume: 1,090,926
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.64
• Enterprise Value/Revenue: 4.63
• Enterprise Value/Gross Profit: 8.55
• Enterprise Value/Ebitda: 11.10
• 1Y Price Target: $48.20
• Price Target Upside: 6.90% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 5

• Rating: 72 Outperform
• Price Target: $51.00 ▲(13.11% Upside)

OGE Energy's overall score is driven by strong earnings performance and positive technical indicators. The company's growth initiatives and legislative successes further enhance its outlook. However, liquidity concerns due to declining free cash flow and increased expenses impacting net income are risks that need to be monitored.

Positive Factors

Earnings Growth

OGE has a tangible earnings revision thesis bolstered by recent legislation, positioning it as one of the few small caps with this advantage.

Legislative Impact

The recent legislation fundamentally changes OGE's ability to accelerate its CapEx program with less frequent rate filings and improved cash recovery for large gas investments.

Negative Factors

Credit Risk

There is a potential risk of a credit rating downgrade if Moody's does not relax its downgrade threshold.

Regulatory Challenges

OGE's 9% relative premium to the electric utility peer group limits upside, especially with another upcoming general rate case filing in Oklahoma.

OGE Energy Business Overview & Revenue Model

Company Description

OGE Energy Corp., together with its subsidiaries, operates as an energy and energy services provider that offers physical delivery and related services for electricity, natural gas, crude oil, and natural gas liquids in the United States. The company generates, transmits, distributes, and sells electric energy. It provides retail electric service to approximately 879,000 customers, which covers a service area of approximately 30,000 square miles in Oklahoma and western Arkansas; and owns and operates coal-fired, natural gas-fired, wind-powered, and solar-powered generating assets. As of December 31, 2021, the company owned and operated interconnected electric generation, transmission, and distribution systems, including 16 generating stations with an aggregate capability of 7,207 megawatts; and transmission systems comprising 54 substations and 5,122 structure miles of lines in Oklahoma, and 7 substations and 277 structure miles of lines in Arkansas. Its distribution systems included 350 substations; 29,494 structure miles of overhead lines; 3,365 miles of underground conduit; and 11,125 miles of underground conductors in Oklahoma, as well as 29 substations, 2,795 structure miles of overhead lines, 349 miles of underground conduit, and 662 miles of underground conductors in Arkansas. The company was founded in 1902 and is based in Oklahoma City, Oklahoma.

How the Company Makes Money

OGE Energy generates revenue primarily through its regulated utility operations, which include the sale of electricity and natural gas to customers. This revenue is largely derived from customer rates set by regulatory authorities, ensuring a stable income stream. The company also earns revenue from its non-regulated operations, which encompass energy generation and other services, including renewable energy projects. Key revenue streams include power generation from traditional sources and renewable energy, as well as transmission and distribution services. Significant partnerships with other energy companies and investments in infrastructure projects further enhance OGE's earnings potential, allowing it to expand its service offerings and reach.

OGE Energy Financial Statement Overview

Summary

OGE Energy demonstrates strong revenue growth and profitability with well-managed costs as seen in its income statement. The balance sheet is stable with moderate leverage and good equity utilization. However, cash flow management poses challenges due to high capital expenditures, impacting free cash flow.

Income Statement

OGE Energy shows a strong performance in its income statement with a consistent increase in revenue over the years, particularly evident with a TTM revenue of $3.14 billion. The gross profit margin is robust at 46.53% for TTM, indicating efficient cost management. Net profit margin stands at 15.49%, which is strong, reflecting effective profitability strategies. The revenue growth rate from the previous year to TTM is 5.06%, suggesting steady growth. However, EBIT and EBITDA margins have slightly improved, indicating stable operational efficiency.

Balance Sheet

The balance sheet reflects a moderate level of financial health. The debt-to-equity ratio of 1.28 for TTM indicates a balanced leverage, which is typical for the regulated electric industry. Return on equity is relatively healthy at 10.52%, showing effective utilization of equity capital. The equity ratio is at 33.08%, which shows a reasonable level of equity financing, though there is room for improvement to enhance financial stability.

Cash Flow

The cash flow statement presents a mixed picture. Operating cash flow to net income ratio is 1.54, indicating strong cash generation relative to net income. However, the free cash flow is negative at -$367.8 million for TTM, showing challenges in covering capital expenditures. Free cash flow to net income is also negative, highlighting potential cash flow management issues. The free cash flow growth rate is negative, reflecting ongoing investment needs that may pressure cash reserves.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.22B	2.99B	2.67B	3.38B	3.65B	2.12B
Gross Profit	1.74B	1.39B	1.26B	1.21B	1.06B	1.01B
EBITDA	1.34B	1.31B	1.20B	1.42B	1.45B	248.70M
Net Income	490.80M	441.50M	416.80M	665.70M	737.30M	-173.70M
Balance Sheet
Total Assets	14.09B	13.72B	12.79B	12.54B	12.61B	10.72B
Cash, Cash Equivalents and Short-Term Investments	500.00K	600.00K	200.00K	88.10M	0.00	1.10M
Total Debt	5.90B	5.52B	4.84B	4.55B	4.98B	3.59B
Total Liabilities	9.44B	9.08B	8.28B	8.13B	8.55B	7.09B
Stockholders Equity	4.64B	4.64B	4.51B	4.41B	4.06B	3.63B
Cash Flow
Free Cash Flow	41.00M	-278.10M	54.10M	-207.80M	-1.09B	62.30M
Operating Cash Flow	831.20M	812.80M	1.23B	843.10M	-313.30M	712.80M
Investing Cash Flow	-1.13B	-1.16B	-1.27B	12.90M	-749.10M	-654.90M
Financing Cash Flow	299.80M	348.80M	-48.10M	-767.90M	1.06B	-56.80M

OGE Energy Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 45.09
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For OGE, the sentiment is Positive. The current price of 45.09 is below the 20-day moving average (MA) of 45.27, above the 50-day MA of 44.43, and above the 200-day MA of 43.01, indicating a neutral trend. The MACD of 0.28 indicates Positive momentum. The RSI at 50.73 is Neutral, neither overbought nor oversold. The STOCH value of 55.63 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for OGE.

OGE Energy Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
EVRG	74 Outperform	$16.76B	20.04	8.55%	3.68%	3.28%	13.56%
LNT	73 Outperform	$16.63B	20.00	11.94%	3.09%	4.62%	32.23%
OGE	72 Outperform	$9.08B	18.52	10.76%	3.74%	16.01%	19.05%
DTE	71 Outperform	$29.05B	20.13	12.61%	3.09%	14.35%	3.62%
PNW	69 Neutral	$10.98B	18.93	8.90%	3.92%	7.47%	-8.53%
CNP	67 Neutral	$25.10B	26.79	8.76%	2.23%	4.84%	-11.24%
Sector *	62 Neutral	C$8.27B	3.54	-16.63%	4.58%	0.42%	-203.16%

OGE Energy Corporate Events

OGE Energy Holds Annual Shareholders Meeting, Elects Board

At the Annual Meeting of Shareholders held on May 15, 2025, OGE Energy Corp. elected 10 board members, ratified Ernst & Young LLP as their principal independent accountants for 2025, and approved executive compensation. However, an amendment to eliminate supermajority voting provisions was not passed. Additionally, the Board of Directors declared a third quarter dividend of $0.42125 per common share, payable on July 25, 2025.

The most recent analyst rating on (OGE) stock is a Hold with a $46.00 price target. To see the full list of analyst forecasts on OGE Energy stock, see the OGE Stock Forecast page.