📊 OGS Key Takeaways
Is ONE Gas, Inc. (OGS) a Good Investment?
ONE Gas demonstrates strong operational fundamentals with exceptional 42.5% revenue growth and robust 17.7% operating margins, supported by substantial operating cash flow of $578.8M. However, negative free cash flow of -$128.4M combined with critically low liquidity ratios (0.60x current and quick ratios) and minimal cash reserves ($10.6M) present significant financial stress despite its capital-intensive utility infrastructure investment profile.
ONE Gas exhibits solid fundamental momentum with double‑digit EPS and net income growth, healthy operating and net margins for a regulated utility, and moderate leverage. Strong operating cash flow supports elevated capex aimed at system expansion and safety, positioning earnings to grow as investments enter rate base. Liquidity is tight and interest coverage is modest, but both remain within typical utility norms.
Why Buy ONE Gas, Inc. Stock? OGS Key Strengths
- Exceptional revenue growth of 42.5% YoY significantly above typical utility benchmarks
- Strong operating margins of 17.7% and robust operating cash flow generation of $578.8M
- Moderate leverage with Debt/Equity of 0.77x and acceptable interest coverage of 3.2x
- Resilient profitability: 17.7% operating margin, 10.2% net margin, EPS +11.8% YoY
- Moderate leverage (0.77x D/E) with manageable 3.2x interest coverage
- Robust operating cash flow ($579M) underpinning infrastructure and growth capex
OGS Stock Risks: ONE Gas, Inc. Investment Risks
- Negative free cash flow of -$128.4M indicates company is burning cash despite strong operating performance
- Critically low liquidity with current ratio of 0.60x and quick ratio of 0.60x; only 10.6M cash against 707.2M annual capex
- Margin compression indicated by net income growth (18.6%) lagging revenue growth (42.5%), suggesting operating leverage limitations
- Negative free cash flow and 0.60x current ratio necessitate external financing
- Interest rate sensitivity given modest coverage and $2.64B long-term debt
- Regulatory and weather variability may affect recovery timing and volumes
Key Metrics to Watch
- Free cash flow trend and sustainability of capital spending relative to operating cash generation
- Current ratio and cash position relative to debt obligations and capex requirements
- Net income margin stability and cost inflation impacts on profitability
- Interest coverage ratio trend
- Free cash flow trajectory (OCF vs Capex)
ONE Gas, Inc. (OGS) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The current ratio below 1.0x warrants monitoring of short-term liquidity.
OGS Profit Margin, ROE & Profitability Analysis
OGS vs Utilities Sector: How ONE Gas, Inc. Compares
How ONE Gas, Inc. compares to Utilities sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is ONE Gas, Inc. Stock Overvalued? OGS Valuation Analysis 2026
Based on fundamental analysis, ONE Gas, Inc. has mixed fundamental signals relative to the Utilities sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
ONE Gas, Inc. Balance Sheet: OGS Debt, Cash & Liquidity
OGS Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: ONE Gas, Inc.'s revenue has grown significantly by 58% over the 5-year period, indicating strong business expansion. The most recent EPS of $4.14 reflects profitable operations.
OGS Revenue Growth, EPS Growth & YoY Performance
ONE Gas, Inc. Dividends, Buybacks & Capital Allocation
OGS SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for ONE Gas, Inc. (CIK: 0001587732)
📋 Recent SEC Filings
❓ Frequently Asked Questions about OGS
What is the AI rating for OGS?
ONE Gas, Inc. (OGS) has a Combined AI Rating of BUY from Claude (HOLD) and ChatGPT (BUY) with 74% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are OGS's key strengths?
Claude: Exceptional revenue growth of 42.5% YoY significantly above typical utility benchmarks. Strong operating margins of 17.7% and robust operating cash flow generation of $578.8M. ChatGPT: Resilient profitability: 17.7% operating margin, 10.2% net margin, EPS +11.8% YoY. Moderate leverage (0.77x D/E) with manageable 3.2x interest coverage.
What are the risks of investing in OGS?
Claude: Negative free cash flow of -$128.4M indicates company is burning cash despite strong operating performance. Critically low liquidity with current ratio of 0.60x and quick ratio of 0.60x; only 10.6M cash against 707.2M annual capex. ChatGPT: Negative free cash flow and 0.60x current ratio necessitate external financing. Interest rate sensitivity given modest coverage and $2.64B long-term debt.
What is OGS's revenue and growth?
ONE Gas, Inc. reported revenue of $2.6B.
Does OGS pay dividends?
ONE Gas, Inc. pays dividends, with $160.7M distributed to shareholders in the trailing twelve months.
Where can I find OGS SEC filings?
Official SEC filings for ONE Gas, Inc. (CIK: 0001587732) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is OGS's EPS?
ONE Gas, Inc. has a diluted EPS of $4.37.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is OGS a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, ONE Gas, Inc. has a BUY rating with 74% confidence. The AI analysis suggests favorable fundamentals based on SEC filings. This is not investment advice.
Is OGS stock overvalued or undervalued?
Valuation metrics for OGS: ROE of 7.7% (sector avg: 10%), net margin of 10.2% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.
Should I buy OGS stock in 2026?
Our dual AI analysis gives ONE Gas, Inc. a combined BUY rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is OGS's free cash flow?
ONE Gas, Inc.'s operating cash flow is $578.8M, with capital expenditures of $707.2M. FCF margin is -5.0%.
How does OGS compare to other Utilities stocks?
Vs Utilities sector averages: Net margin 10.2% (avg: 12%), ROE 7.7% (avg: 10%), current ratio 0.60 (avg: 0.8).