OGE Energy (OGE) AI Stock Analysis

• Market Cap: $9.08B
• Dividend Yield: 3.75%
• Average Volume (3M): 1.40M
• Price to Earnings (P/E): 20.6
• Beta (1Y): 0.35
• Revenue Growth: 15.56%
• EPS Growth: 21.90%
• Country: US
• Employees: 2,291
• Sector: Utilities
• Sector Strength: 87
• Industry: Regulated Electric
• EPS (TTM): 2.41
• Shares Outstanding: 201,330,200
• 10 Day Avg. Volume: 1,134,353
• 30 Day Avg. Volume: 1,398,370
• PEG Ratio: 0.94
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.52
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 9.93
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $45.88
• Price Target Upside: 1.71% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 8

OGE Energy scores well due to its improved financial performance, positive technical indicators, and strong earnings call highlights. Key strengths include robust earnings growth and reliable customer expansion, while challenges include cash flow volatility and a higher debt-to-equity ratio. The valuation is fair, supported by a reasonable P/E ratio and an attractive dividend yield. Overall, OGE presents a balanced investment opportunity with a stable outlook.

Positive Factors

Data Centers

OGE Energy Corp is expected to benefit from new data center capacity and discussions with multiple data centers, showing no decline in interest.

Earnings Potential

OGE is expected to be at the high end of 5-7% EPS CAGR near-term and even higher over the long-term with RFP and other spend.

Load Growth

OGE Energy Corp shows strong load growth momentum driven by residential and commercial classes.

Negative Factors

Credit Risk

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

Market Valuation

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

Regulatory Challenges

There is uncertainty and a near-term overhang on shares due to awaiting an OCC final order of the ALJ approved OK rate case settlement.

OGE Energy Business Overview & Revenue Model

Company Description

OGE Energy Corp. is an energy services provider based in Oklahoma City, Oklahoma, primarily operating through its subsidiary, Oklahoma Gas and Electric Company (OG&E). The company is engaged in the generation, transmission, distribution, and sale of electricity, serving over 850,000 customers in Oklahoma and western Arkansas. OGE Energy is committed to delivering reliable and affordable energy solutions while focusing on sustainable practices and innovations in the energy sector.

How the Company Makes Money

OGE Energy Corp. generates revenue primarily through its regulated utility operations, which involve the generation, transmission, and distribution of electricity to residential, commercial, and industrial customers. The company charges customers based on electricity consumption, with rates regulated by state authorities to ensure fair pricing. Additionally, OGE Energy invests in infrastructure improvements and grid modernization, which can lead to adjustments in approved rates. The company also benefits from regulatory mechanisms that allow for cost recovery and performance incentives. Although OGE Energy may engage in partnerships or joint ventures to enhance its service offerings or operational efficiency, these are not the primary drivers of its revenue.

OGE Energy Financial Statement Overview

Summary

OGE Energy's financial statements show a company that has managed to improve profitability but faces challenges with cash flow volatility and increased leverage. The income statement reflects improved net profit margins, while the balance sheet maintains a stable equity base despite a higher debt-to-equity ratio. Cash flow consistency is a concern, although recent improvements in operating cash flow are positive.

Income Statement

The income statement shows mixed performance. While the net profit margin has improved from negative in 2020 to positive in 2023, revenue growth has been inconsistent with a significant decline in 2021. Gross profit margins have remained relatively stable but were impacted by fluctuating revenues, and EBIT and EBITDA margins have shown resilience despite revenue volatility.

Balance Sheet

The balance sheet indicates a stable equity base with stockholders' equity improving over the years. The debt-to-equity ratio has increased, highlighting a reliance on debt financing, which could pose risks in a rising interest rate environment. However, the equity ratio remains reasonable, suggesting a balanced capital structure.

Cash Flow

Cash flow analysis shows volatility with operating cash flow experiencing fluctuations. Free cash flow has been inconsistent, with negative figures in some years. The operating cash flow to net income ratio indicates strong cash generation capability in 2023, but historical inconsistency poses a risk.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
2.99B	2.67B	3.38B	3.65B	2.12B
	Gross Profit
1.39B	1.26B	1.21B	1.06B	1.01B
	EBIT
745.30M	650.20M	948.70M	1.03B	-145.50M
	EBITDA
1.31B	1.20B	1.42B	1.45B	248.70M
	Net Income Common Stockholders
441.50M	416.80M	665.70M	737.30M	-173.70M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
600.00K	200.00K	88.10M	0.00	1.10M
	Total Assets
13.72B	12.79B	12.54B	12.61B	10.72B
	Total Debt
5.52B	4.84B	4.55B	4.98B	3.59B
	Net Debt
5.52B	4.84B	4.46B	4.98B	3.59B
	Total Liabilities
9.08B	8.28B	8.13B	8.55B	7.09B
	Stockholders Equity
4.64B	4.51B	4.41B	4.06B	3.63B
Cash Flow		Free Cash Flow
-278.10M	54.10M	-207.80M	-1.09B	62.30M
	Operating Cash Flow
812.80M	1.23B	843.10M	-313.30M	712.80M
	Investing Cash Flow
-1.16B	-1.27B	12.90M	-749.10M	-654.90M
	Financing Cash Flow
348.80M	-48.10M	-767.90M	1.06B	-56.80M

OGE Energy Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 45.11
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 45.11 is above the 20-day moving average (MA) of 44.44, above the 50-day MA of 44.57, and above the 200-day MA of 41.24, indicating a bullish trend. The MACD of 0.27 indicates Negative momentum. The RSI at 53.29 is Neutral, neither overbought nor oversold. The STOCH value of 37.38 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
DTE	73 Outperform	$28.30B	20.15	12.32%	3.11%	-1.13%	0.16%
EVRG	72 Outperform	$15.93B	18.28	8.91%	3.83%	5.73%	19.34%
OGE	72 Outperform	$9.08B	20.57	10.72%	3.75%	15.56%	21.90%
LNT	72 Outperform	$15.71B	22.77	10.01%	3.26%	-1.12%	-3.22%
PNW	70 Outperform	$11.14B	17.83	9.42%	3.80%	9.13%	21.11%
CNP	67 Neutral	$25.45B	26.21	9.22%	2.15%	4.76%	4.08%
Sector *	63 Neutral	$8.48B	11.89	5.79%	4.37%	3.17%	-10.89%

OGE Energy Corporate Events

OGE Energy Appoints Charles Walworth as New CFO

OGE Energy Corp. has appointed Charles B. Walworth as its new CFO and Treasurer. Walworth, who previously served as the interim CFO, will earn an annual base salary of $560,019 in 2025, with additional incentives tied to performance and shareholder returns. His compensation package includes both annual and long-term incentive plans, highlighting a focus on enhancing shareholder value over the next few years.