OGE Energy (OGE) AI Stock Analysis

• Market Cap: $8.79B
• Dividend Yield: 3.85%
• Average Volume (3M): 1.60M
• Price to Earnings (P/E): 19.9
• Beta (1Y): 0.40
• Revenue Growth: 11.63%
• EPS Growth: 5.61%
• Country: US
• Employees: 2,291
• Sector: Utilities
• Sector Strength: 92
• Industry: Regulated Electric
• EPS (TTM): 2.19
• Shares Outstanding: 201,328,780
• 10 Day Avg. Volume: 1,507,382
• 30 Day Avg. Volume: 1,599,108
• PEG Ratio: 3.55
• Price to Book (P/B): N/A
• Price to Sales (P/S): 3.03
• Price to Cash Flow (P/CF): 17.50
• P/FCF Ratio: 12.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $45.71
• Price Target Upside: 8.21% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 7

OGE Energy's stock is rated favorably due to its robust earnings performance and positive technical indicators. Key strengths include earnings exceeding guidance, strong customer and load growth, and a stable dividend yield. However, challenges such as cash flow volatility and increased leverage should be monitored. Overall, the stock is well-positioned within its industry.

Positive Factors

Earnings

OGE's visibility in meeting its 5-7% EPS CAGR is among the strongest in the coverage.

Growth

Robust retail load growth of 7.5%-9.5% in FY’25 and the expectation for continued strong growth thereafter limits underearning.

Strategic Initiatives

Management is in conversations with several potential data center customers, which could be a potential catalyst.

Negative Factors

Growth Expectations

It would take a long-term growth CAGR increase for the stock to rise into the next tier of premiums versus the rest of the coverage.

Regulatory Environment

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.

Valuation

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 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.

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
-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

• Technical Analysis Sentiment: Negative
• Last Price: 42.24
• 50DMA: Negative
• 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 Negative. The current price of 42.24 is below the 20-day moving average (MA) of 45.01, below the 50-day MA of 44.26, and above the 200-day MA of 40.67, indicating a neutral trend. The MACD of 0.42 indicates Negative momentum. The RSI at 64.70 is Neutral, neither overbought nor oversold. The STOCH value of 87.51 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for OGE.

OGE Energy Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DTE	77 Outperform	$27.35B	19.47	12.32%	3.20%	-1.13%	0.16%
OGE	73 Outperform	$8.79B	19.91	9.65%	3.85%	11.63%	5.61%
EVRG	72 Outperform	$15.22B	17.47	8.91%	3.96%	5.73%	19.34%
LNT	72 Outperform	$15.76B	22.84	10.01%	3.17%	-1.12%	-3.22%
PNW	70 Neutral	$10.86B	17.39	9.42%	3.90%	9.13%	21.11%
CNP	66 Neutral	$23.51B	22.81	10.02%	2.30%	-0.61%	15.54%
Sector *	65 Neutral	$11.66B	15.54	6.23%	4.52%	5.50%	-9.06%

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.