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Oge Energy Corp. (OGE)
NYSE:OGE
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OGE Energy
(NYSE:OGE)73Outperform
Positive Factors
Earnings Growth
OGE's visibility in meeting its 5-7% EPS CAGR is among the strongest in the coverage.
Load Growth
Robust retail load growth of 7.5%-9.5% in FY’25 and the expectation for continued strong growth thereafter limits underearning.
Negative Factors
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 (OGE) vs. S&P 500 (SPY)
Market Cap
$8.99B
Dividend Yield3.81%
Average Volume (3M)1.12M
Price to Earnings (P/E)20.4
Beta (1Y)0.47
Revenue Growth11.63%
EPS Growth5.61%
CountryUS
Employees2,291
SectorUtilities
Sector Strength79
IndustryRegulated Utilities
Share Statistics
EPS (TTM)2.19
Shares Outstanding201,328,110
10 Day Avg. Volume1,412,842
30 Day Avg. Volume1,116,666
Financial Highlights & Ratios
PEG Ratio3.63
Price to Book (P/B)N/A
Price to Sales (P/S)3.01
Price to Cash Flow (P/CF)17.30
P/FCF Ratio11.90
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$45.29Price Target Upside3.14% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering7
OGE Energy Business Overview & Revenue Model
Company DescriptionOGE 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 MoneyOGE 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 reflect a mixed performance. The income statement shows improved profitability with a positive net profit margin, but revenue growth has been inconsistent. The balance sheet is stable, with increasing stockholders' equity, although the rising debt-to-equity ratio poses a risk. Cash flow volatility and historical inconsistency highlight potential risks despite strong cash generation in 2023.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.65
Positive
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.72
Positive
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.60
Neutral
| 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 |
| -20.30M | -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
Positive
43.91
Price Trends
42.75
Positive
42.10
Positive
39.63
Positive
Market Momentum
0.58
Positive
48.63
Neutral
14.68
Positive
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 43.91 is below the 20-day moving average (MA) of 44.41, above the 50-day MA of 42.75, and above the 200-day MA of 39.63, indicating a neutral trend. The MACD of 0.58 indicates Positive momentum. The RSI at 48.63 is Neutral, neither overbought nor oversold. The STOCH value of 14.68 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for OGE.
OGE Energy Risk Analysis
OGE Energy disclosed 25 risk factors in its most recent earnings report. OGE Energy reported the most risks in the “Production” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
OGE Energy Peers Comparison
Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $21.63B | 21.74 | 12.72% | 2.91% | 0.71% | 11.07% | |
77 Outperform | $27.37B | 19.51 | 12.32% | 3.14% | -1.13% | 0.16% | |
73 Outperform | $8.99B | 20.36 | 9.65% | 3.81% | 11.63% | 5.61% | |
73 Outperform | $55.13B | 18.51 | 11.37% | 3.53% | 2.76% | 31.53% | |
69 Neutral | $39.49B | 19.99 | 10.43% | 3.24% | -5.25% | 7.11% | |
68 Neutral | $25.50B | 28.84 | 6.33% | 3.04% | 1.80% | 19.78% | |
65 Neutral | $12.05B | 15.92 | 6.71% | 4.32% | 8.04% | 3.76% |
* Utilities Sector Average
Performance Comparison
OGE
OGE Energy
43.91
11.54
35.65%
AEP
American Electric Power
104.62
23.89
29.59%
CMS
CMS Energy
73.08
14.68
25.14%
DTE
DTE Energy
131.68
22.81
20.95%
PPL
PPL
34.07
7.56
28.52%
XEL
Xcel Energy
68.00
18.87
38.41%
OGE Energy Earnings Call Summary
Earnings Call Date: Feb 19, 2025 | % Change Since: 0.11% | Next Earnings Date: May 1, 2025
Earnings Call Sentiment Positive
The earnings call highlighted significant achievements in terms of exceeding earnings guidance, strong load and customer growth, and a robust financial position. The only notable challenge was the loss reported by the holding company. Overall, the positive aspects of growth and financial performance significantly outshine the negatives.Highlights
Exceeded Earnings Guidance
Consolidated earnings for 2024 exceeded the top end of guidance, achieving $2.19 per share, with the electric company earning $2.33 per share.
Significant Load Growth
The company experienced exceptional weather-normalized load growth of 7.6% for 2024, with a forecast of 8.5% growth for 2025.
Customer and Community Growth
Added over 10,000 customers, with a 1.2% increase in customer growth and a 2.4% increase in residential load growth.
Commercial and Industrial Expansion
Commercial load growth saw an extraordinary 21.4% increase, driven by diverse industries including multi-unit housing, defense, and manufacturing.
Strong Credit and Financial Base
Maintained strong balance sheet with FFO to debt forecast at approximately 17%, and no need for external equity issuances.
Lowlights
Holding Company Loss
The holding company reported a loss of $28 million or $0.14 per diluted share in 2024, compared to a loss of $10 million or $0.05 in 2023, due primarily to higher interest expense and lower net other income.
Company Guidance
In the OGE Energy Corp. 2024 fourth quarter earnings call, the company reported consolidated earnings surpassing their guidance, at $2.19 per share for the year, with the electric company achieving $2.33 per share and the holding company experiencing a loss of $0.14 per share. Key achievements included a 1.2% increase in customer growth, driven by a 7.6% load growth, and a notable 21.4% growth in the commercial sector. For 2025, the company set a guidance midpoint 7% higher than the previous year and anticipates an 8.5% weather-normalized load growth, with long-term annual EPS growth projected at 5% to 7%. OGE Energy also highlighted the continuation of infrastructure projects and advancements in automation and AI to enhance customer service and operational efficiency.OGE Energy Corporate Events
Executive/Board Changes
OGE Energy Appoints Charles Walworth as New CFO
Neutral
Dec 4, 2024
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.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.