ONE Gas (OGS) Stock Analysis & Winston Score

ONE Gas is a natural gas utility company. It delivers natural gas through underground pipelines to homes, businesses, and industrial customers across three states: Oklahoma, Kansas, and Texas. It owns the Oklahoma Natural Gas, Kansas Gas Service, and Texas Gas Service brands, making it one of the largest standalone natural gas distribution companies in the United States.

The company makes money by charging customers a regulated rate for delivering gas through its pipeline network. Because it operates as a regulated utility, state governments set the prices it can charge, which limits big profit swings but also provides very stable, predictable revenue. ONE Gas serves roughly 2.2 million customers and generates around $2.5 billion in annual revenue. Its main risk is that warmer winters reduce gas demand, and its long-term challenge is the broader energy transition as homes and businesses increasingly consider switching away from natural gas to electric alternatives.

Winston Score History

Growth Profile

For growth stock investors

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

-11.1% YoY

YoY Growth Rate

Revenue declining

EPS Growth

+3.0% YoY

YoY Growth Rate

Slow EPS growth

Insider Activity

1.1%ownership

→ Flat

Insiders holding steady — not selling despite ability to

Cash Position

Cash flow positive

$23M cash & investments

Quarterly Free Cash Flow

↓ Burn rate worsening

Company generates more cash than it spends — no dilution risk from fundraising

Revenue declining

ONE Gas's revenue is actually shrinking. In a growth stock, that removes the core investment thesis. The low Winston Score here may be warranted — unless there's a turnaround story.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

Every number that matters to educated investors.

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Quality

Gross Margin

52.7%

Healthy — 52.7% gross margin

Operating Margin

22.8%

Excellent — 22.8% operating margin

ROCE

2.7%

Weak — 2.7% return on capital

ROIC between 0% and 5%. They earn a few cents back per dollar invested in the business.

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Growth

Sales YoY

+2.8%

Nearly flat sales (2.8% YoY)

EPS YoY

+7.0%

Modest earnings growth (7.0% YoY)

Single-digit earnings growth — steady but not exciting.

EPS Consistency

8/8 quarters

Every recent quarter grew earnings vs last year

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Cash Flow

Cash Conversion

175%

Turns 175% of profit into real cash

FCF Margin

-9.4%

Burning cash (-9.4%)

Free cash flow is negative. They are burning cash, not generating it.

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Stability

Debt / Equity

0.96

Moderate — manageable debt (0.96)

Interest Cover

3.35x

Tight — interest eats into profit (3.3x)

Interest coverage between 3 and 8. Profits cover interest several times over.

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Valuation

P/E Ratio (TTM)

17.5x

no trend

Fair value — P/E 17.5

P/E in the normal range. Price is roughly $15 for every $1 of yearly profit.

P/E vs Forward

+3.4

GROWING

Earnings expected to grow meaningfully — cheaper on forward P/E (17.5 → 14.2)

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Dividends

Dividend Yield

3.49%

no trend

Moderate income — 3.49% yield

Standard yield zone for stable dividend payers. A meaningful piece of total return.

Dividend Growth

+1.5%

no trend

Dividend flat

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