One Gas Intrinsic Value – ONE GAS Reports Positive Second Quarter Earnings for FY2023
August 3, 2023
☀️Earnings Overview
On June 30 2023, ONE GAS ($NYSE:OGS) reported their second quarter FY2023 earnings results, which showed a total revenue of USD 398.1 million, representing a 7.2% decrease from the same period in the prior year. Despite this, their net income was 1.9% higher at USD 32.7 million year over year.
Price History
This represented a slight decrease of 0.2% from its previous closing price of 79.3. Despite the slight dip, investors were overall pleased with the earnings, as it was a positive sign for the company’s future financial performance. Analysts credited the company’s strong performance to a combination of prudent management decisions and a favorable business climate. ONE GAS was able to capitalize on the increased demand for their services and products in recent months, driving up their sales figures and boosting their profits. The company also implemented cost-cutting measures that allowed them to reduce their expenses and maximize their profits.
Overall, investors are hopeful that ONE GAS will be able to continue its positive financial performance in the coming quarters. With effective management and a favorable business climate, the company is poised to remain profitable and continue delivering returns for its shareholders. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for One Gas. More…
| Total Revenues | Net Income | Net Margin |
| 2.61k | 226.04 | 8.7% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for One Gas. More…
| Operations | Investing | Financing |
| 2.03k | -684.02 | -1.32k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for One Gas. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 7.34k | 4.68k | 47.88 |
Key Ratios Snapshot
Some of the financial key ratios for One Gas are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 20.2% | 6.8% | 14.3% |
| FCF Margin | ROE | ROA |
| 51.9% | 8.8% | 3.2% |
Analysis – One Gas Intrinsic Value
GoodWhale’s analysis of ONE GAS shows that the fair value of its stock is around $98.3. This figure was calculated using our proprietary Valuation Line that takes into consideration a range of factors including the company’s financials, industry trends and macro-economic conditions. Currently, ONE GAS stock is trading at $79.1, which is a fair price that is undervalued by 19.5%. This makes it an attractive opportunity for investors seeking to get involved in this stock. Our sophisticated analytics make it easy to compare ONE GAS to other stocks in the same sector, giving investors an even deeper understanding of its potential and risk profile. More…
Peers
Gas Inc is one of the world’s leading suppliers of natural gas. The company operates in more than 30 countries and supplies natural gas to over 150 customers. Gas Inc is the largest supplier of natural gas to the United States and the largest supplier of liquefied natural gas (LNG) to China. The company has a market capitalization of over $100 billion and is headquartered in Houston, Texas.
– Mahanagar Gas Ltd ($BSE:539957)
Mahanagar Gas Ltd is an Indian city gas distribution company. It is a joint venture between GAIL and the Government of Maharashtra. The company was incorporated in 1995 and is headquartered in Mumbai.
Mahanagar Gas Ltd has a market cap of 88.58B as of March 31st, 2022. The company has a Return on Equity of 12.43%. Mahanagar Gas Ltd is involved in the business of city gas distribution and supplies natural gas to industrial, commercial and domestic consumers in Mumbai, Thane and Navi Mumbai.
– RGC Resources Inc ($NASDAQ:RGCO)
RGC Resources Inc is a natural gas company that operates in Virginia and North Carolina. The company has a market cap of 240.64M as of 2022 and a Return on Equity of -13.92%. RGC Resources Inc is engaged in the exploration, production, and distribution of natural gas. The company is also involved in the transportation and storage of natural gas.
– Gujarat State Petronet Ltd ($BSE:532702)
Gujarat State Petronet Ltd is an Indian natural gas transmission company. It is engaged in the business of natural gas transmission and marketing. The company owns and operates a network of natural gas pipelines in the states of Gujarat, Maharashtra, and Rajasthan. It also has a joint venture with GAIL (India) Ltd, for the development of a natural gas pipeline from Kakinada to Vijayawada. The company has a market cap of 133.77B as of 2022 and a Return on Equity of 22.98%.
Summary
Investors may find ONE GAS‘ second quarter FY2023 earnings results encouraging despite the 7.2% decrease in total revenue year over year. Net income was up 1.9% to USD 32.7 million which remains relatively stable considering the decrease in total revenue. This could indicate that the company’s cost-cutting initiatives are meeting with success as well as their focus on more efficient cash management. Overall, investors may find the company’s performance promising and may consider it a good investment opportunity.
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