ONE Gas (OGS) AI Stock Analysis

• Market Cap: $4.91B
• Dividend Yield: 3.28%
• Average Volume (3M): 381.14K
• Price to Earnings (P/E): 19.1
• Beta (1Y): 0.15
• Revenue Growth: 15.06%
• EPS Growth: 12.27%
• Country: US
• Employees: 3,900
• Sector: Utilities
• Sector Strength: 65
• Industry: Regulated Gas
• EPS (TTM): 0.44
• Shares Outstanding: 59,998,367
• 10 Day Avg. Volume: 311,086
• 30 Day Avg. Volume: 381,141
• PEG Ratio: -3.06
• Price to Book (P/B): 1.27
• Price to Sales (P/S): 1.89
• P/FCF Ratio: -11.76
• Enterprise Value/Market Cap: 1.54
• Enterprise Value/Revenue: 3.20
• Enterprise Value/Gross Profit: 5.42
• Enterprise Value/Ebitda: 9.95
• 1Y Price Target: $86.00
• Price Target Upside: 5.61% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 5
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 72 Outperform
• Price Target: $90.00 ▲(10.52% Upside)

ONE Gas's overall stock score reflects solid financial performance and positive technical indicators. The increased earnings guidance and successful project completions from the earnings call further enhance the outlook. However, challenges with cash flow management and rising operating costs slightly temper the score.

Positive Factors

Revenue Growth

Consistent revenue growth from new rates and customer expansion indicates a strong market position and demand for services, supporting long-term financial stability.

Infrastructure Development

Completion of major infrastructure projects enhances service reliability and capacity, positioning the company for future growth and operational efficiency.

Balance Sheet Strength

Enhancing liquidity through credit facility expansion strengthens financial flexibility, supporting long-term strategic initiatives and stability.

Negative Factors

Rising Operating Costs

Rising operating costs can pressure profit margins, potentially impacting the company's ability to maintain profitability and invest in growth.

Cash Flow Challenges

Negative free cash flow indicates potential liquidity issues, which may constrain the company's ability to fund new projects and manage unexpected expenses.

Rate Case Uncertainty

Uncertainty in rate case outcomes can delay revenue adjustments, affecting financial planning and potentially straining financial performance.

ONE Gas Business Overview & Revenue Model

Company Description

ONE Gas, Inc. is a leading natural gas utility company based in the United States, primarily serving residential, commercial, and industrial customers across Oklahoma, Kansas, and Texas. The company operates through three main segments: natural gas distribution, pipeline services, and infrastructure development. ONE Gas focuses on providing safe, reliable, and efficient natural gas services while investing in infrastructure improvements to enhance service delivery and customer satisfaction.

How the Company Makes Money

ONE Gas generates revenue primarily through the distribution of natural gas to its customers. The company charges customers based on their natural gas consumption, which is measured through meters installed at their premises. Additionally, ONE Gas earns revenue from transportation services for moving natural gas through its pipeline network. The company also benefits from regulatory mechanisms that allow it to recover costs associated with infrastructure investments and maintenance. Significant partnerships with natural gas suppliers and local governments further enhance its ability to serve customers efficiently and secure favorable pricing, contributing to its overall profitability.

ONE Gas Financial Statement Overview

Summary

ONE Gas demonstrates solid revenue growth and operational efficiency with strong gross margins. However, profitability could be improved, and high debt levels pose potential risks. Cash flow management needs attention, as negative free cash flow could impact future investments and financial flexibility.

Income Statement

ONE Gas shows a stable revenue growth trajectory with a recent TTM revenue growth rate of 1.66%. The gross profit margin has improved significantly to 59.02% in TTM, indicating better cost management. However, the net profit margin remains relatively stable at around 10.76%, suggesting room for improvement in profitability. EBIT and EBITDA margins are healthy, reflecting efficient operations.

Balance Sheet

The company's debt-to-equity ratio is slightly over 1, indicating a balanced approach to leveraging. Return on equity is modest at 8.06%, showing stable returns for shareholders. The equity ratio is reasonable, suggesting a solid asset base. However, the high debt levels could pose risks if not managed carefully.

Cash Flow

Operating cash flow is positive, but free cash flow is negative, indicating potential liquidity challenges. The free cash flow growth rate is negative, reflecting a decline in cash generation. The operating cash flow to net income ratio is moderate, suggesting that earnings are not fully translating into cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.37B	2.08B	2.37B	2.58B	1.81B	1.53B
Gross Profit	1.40B	775.11M	729.08M	646.65M	583.91M	561.71M
EBITDA	761.01M	703.17M	666.90M	574.25M	514.28M	495.38M
Net Income	254.94M	222.85M	231.23M	221.74M	206.43M	196.41M
Balance Sheet
Total Assets	8.50B	8.43B	7.77B	7.78B	8.40B	6.03B
Cash, Cash Equivalents and Short-Term Investments	20.79M	57.99M	18.84M	9.68M	8.85M	7.99M
Total Debt	3.40B	3.33B	3.05B	3.23B	4.18B	2.00B
Total Liabilities	2.97B	5.32B	5.01B	5.19B	6.05B	3.80B
Stockholders Equity	3.18B	3.10B	2.77B	2.58B	2.35B	2.23B
Cash Flow
Free Cash Flow	-116.80M	-334.75M	272.90M	961.36M	-2.03B	-109.65M
Operating Cash Flow	598.45M	368.41M	939.53M	1.57B	-1.54B	364.50M
Investing Cash Flow	-729.12M	-707.50M	-669.64M	-614.11M	-501.08M	-470.37M
Financing Cash Flow	122.70M	378.23M	-248.63M	-947.46M	2.04B	96.01M

ONE Gas Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 81.43
• 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 OGS, the sentiment is Positive. The current price of 81.43 is below the 20-day moving average (MA) of 81.60, above the 50-day MA of 79.14, and above the 200-day MA of 74.58, indicating a bullish trend. The MACD of 0.58 indicates Positive momentum. The RSI at 56.99 is Neutral, neither overbought nor oversold. The STOCH value of 64.24 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for OGS.

ONE Gas Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NJR	75 Outperform	$4.48B	10.91	18.03%	4.04%	21.88%	71.35%
NWN	73 Outperform	$1.88B	18.32	7.20%	4.21%	11.27%	20.04%
OGS	72 Outperform	$4.91B	19.08	8.51%	3.28%	15.06%	12.27%
SR	72 Outperform	$5.16B	18.88	8.37%	3.54%	-6.65%	11.47%
Sector *	66 Neutral	$17.65B	18.10	5.60%	3.62%	6.62%	11.55%
SWX	63 Neutral	$5.69B	12.28	5.42%	3.11%	-23.15%	157.45%
UGI	62 Neutral	$7.24B	17.76	8.75%	4.45%	-0.52%	-39.42%

ONE Gas Corporate Events

ONE Gas Reports Q3 2025 Financial Results

On November 3, 2025, ONE Gas announced its third-quarter financial results, highlighting a net income increase to $26.5 million from $19.3 million in the same quarter of 2024, and narrowed its 2025 financial guidance. The company declared a quarterly dividend of $0.67 per share, payable on December 1, 2025. The results reflect disciplined strategy execution and operational efficiency, with increased operating income driven by new rates and customer growth, despite higher expenses in depreciation, taxes, and employee costs. Regulatory activities in 2025 included rate cases and infrastructure program filings in Texas, Kansas, and Oklahoma, with new rates expected to take effect in 2026.

The most recent analyst rating on (OGS) stock is a Buy with a $92.00 price target. To see the full list of analyst forecasts on ONE Gas stock, see the OGS Stock Forecast page.

ONE Gas Secures $1.5 Billion Credit Facility

On October 30, 2025, ONE Gas, Inc. entered into a third amended and restated credit agreement with Bank of America and other lenders, establishing a $1.5 billion unsecured revolving credit facility. This agreement, which can be increased by up to $750 million, will support the company’s working capital, capital expenditures, and other corporate purposes, potentially enhancing its operational flexibility and market positioning.

The most recent analyst rating on (OGS) stock is a Buy with a $92.00 price target. To see the full list of analyst forecasts on ONE Gas stock, see the OGS Stock Forecast page.

ONE Gas Announces Q3 2025 Financial Results Release

On September 30, 2025, ONE Gas announced it will release its third quarter 2025 financial results on November 3, 2025, followed by a conference call on November 4, 2025. This announcement is significant for stakeholders as it provides insights into the company’s financial health and future outlook, impacting its market positioning and investor relations.

The most recent analyst rating on (OGS) stock is a Buy with a $86.00 price target. To see the full list of analyst forecasts on ONE Gas stock, see the OGS Stock Forecast page.

ONE Gas to Participate in AGA Mini-Forum

On September 12, 2025, ONE Gas announced its participation in the American Gas Association Mini-Forum held in Boston from September 15-16, 2025. Senior executives, including the CFO and treasurer, will engage with the investment community, with conference materials available on the company’s website. This participation underscores ONE Gas’s commitment to maintaining strong investor relations and industry presence.

The most recent analyst rating on (OGS) stock is a Hold with a $81.00 price target. To see the full list of analyst forecasts on ONE Gas stock, see the OGS Stock Forecast page.

ONE Gas Secures $250 Million Term Loan Facility

On August 11, 2025, ONE Gas, Inc. entered into a credit agreement with Bank of America, N.A. and other lenders for a $250 million unsecured term loan facility. The loan will be used for working capital, capital expenditures, acquisitions, mergers, and other corporate purposes, maturing in September 2026. This agreement includes various financial covenants and conditions, with potential impacts on the company’s financial operations and relationships with lenders, who have previously provided financial services to the company.

The most recent analyst rating on (OGS) stock is a Buy with a $80.00 price target. To see the full list of analyst forecasts on ONE Gas stock, see the OGS Stock Forecast page.

ONE Gas Inc. Earnings Call Reveals Optimistic Growth

The recent earnings call for ONE Gas Inc. painted an optimistic picture of the company’s financial and operational health. Despite facing challenges such as increased operating expenses and weather-related impacts, the overall sentiment was positive. The company demonstrated robust growth and strategic positioning, which was reflected in their increased financial guidance and significant regulatory progress.

ONE Gas Reports Strong Q2 2025 Results and Raises Guidance

ONE Gas, Inc. is a fully regulated natural gas utility company, serving over 2.3 million customers across Kansas, Oklahoma, and Texas, and is a significant player in the U.S. natural gas utility sector.