OGE Energy (OGE) AI Stock Analysis

• Market Cap: $9.21B
• Dividend Yield: 3.68%
• Average Volume (3M): 1.04M
• 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: 65
• Industry: Regulated Electric
• EPS (TTM): 0.53
• Shares Outstanding: 201,395,140
• 10 Day Avg. Volume: 1,184,814
• 30 Day Avg. Volume: 1,037,911
• PEG Ratio: 3.25
• Price to Book (P/B): 1.78
• Price to Sales (P/S): 2.77
• P/FCF Ratio: -29.78
• Enterprise Value/Market Cap: 1.61
• Enterprise Value/Revenue: 4.63
• Enterprise Value/Gross Profit: 10.05
• Enterprise Value/Ebitda: 10.60
• 1Y Price Target: $47.00
• Price Target Upside: 2.78% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 69 Neutral
• Price Target: $49.00 ▲(7.15% Upside)

OGE Energy's overall stock score is driven by strong financial performance and a positive earnings outlook. The company's profitability and dividend yield are attractive, but liquidity concerns due to declining free cash flow and mixed technical signals temper the score. The positive sentiment from the earnings call, highlighting growth initiatives and capacity expansion, supports the stock's potential.

Positive Factors

Revenue Growth

OGE Energy's consistent revenue growth and strong margins indicate a robust business model capable of sustaining profitability over time.

New Generation Capacity

The addition of new generation capacity enhances OGE's ability to meet future demand and supports long-term growth in its utility operations.

Economic Development Initiatives

Participation in economic development initiatives positions OGE Energy to benefit from regional growth and innovation, fostering long-term business expansion.

Negative Factors

Declining Free Cash Flow

The sharp decline in free cash flow could strain OGE's ability to fund operations and investments, potentially impacting financial stability.

Higher Expenses

Rising expenses could pressure margins and profitability, challenging OGE's ability to maintain its current financial performance.

Weaker Industrial Sales

Softness in industrial sales may indicate vulnerability in OGE's customer base, potentially affecting revenue stability in the long term.

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, supported by a stable balance sheet. However, the significant decline in free cash flow poses a risk to liquidity, which needs to be addressed to maintain financial health.

Income Statement

OGE Energy shows a solid financial performance with a consistent revenue growth rate of 2.52% in the TTM, indicating a positive trajectory. The gross profit margin of 54.12% and net profit margin of 15.26% reflect strong profitability. However, the EBIT margin has slightly decreased compared to previous years, which could indicate rising operational costs.

Balance Sheet

The company's balance sheet is stable with a debt-to-equity ratio of 1.27, which is manageable but slightly higher than the previous year, indicating increased leverage. The return on equity (ROE) of 10.60% is healthy, reflecting efficient use of equity. The equity ratio of 32.96% suggests a balanced capital structure.

Cash Flow

OGE Energy's cash flow statement reveals challenges with free cash flow, which has decreased significantly by 111.15% in the TTM. The operating cash flow to net income ratio of 0.66 indicates moderate cash generation from operations. The free cash flow to net income ratio is low at 4.93%, highlighting potential liquidity concerns.

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	1.48B	1.39B	1.26B	1.21B	1.06B	1.01B
EBITDA	1.40B	1.31B	1.20B	1.42B	1.46B	250.60M
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	-232.70M	-278.10M	54.10M	-98.50M	-1.01B	62.30M
Operating Cash Flow	831.20M	812.80M	1.23B	952.40M	-229.90M	712.80M
Investing Cash Flow	-1.13B	-1.16B	-1.27B	-96.40M	-832.50M	-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: 45.73
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 45.73 is above the 20-day moving average (MA) of 44.36, above the 50-day MA of 44.85, and above the 200-day MA of 43.50, indicating a bullish trend. The MACD of 0.10 indicates Negative momentum. The RSI at 62.41 is Neutral, neither overbought nor oversold. The STOCH value of 88.47 is Negative, 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
POR	73 Outperform	4.76B	15.67	7.63%	4.72%	9.78%	-6.19%
LNT	71 Outperform	16.98B	20.15	11.64%	3.03%	4.62%	32.23%
OGE	69 Neutral	$9.21B	18.52	10.76%	3.68%	16.01%	19.05%
IDA	69 Neutral	7.01B	22.43	9.03%	2.65%	-0.48%	6.40%
EVRG	66 Neutral	17.05B	20.23	8.44%	3.60%	3.28%	13.56%
PNW	65 Neutral	10.36B	17.73	8.56%	4.13%	7.47%	-8.53%
Sector *	66 Neutral	$17.65B	18.10	5.60%	3.62%	6.62%	11.55%