Stock Price & Analysis

OGS stock is currently trading near its 52-week high and has surpassed the average analyst target price, suggesting it may be nearing a valuation peak. However, with a dividend yield of 3.67% and mixed analyst opinions, it might be wise to hold rather than buy or sell at this time.

OGS stock is predicted to reach $78 by 2025, driven by strong dividend yields and analyst target prices. The stock currently trades near the lower end of its 52-week range, suggesting potential upside. Analysts expect the stock to rebound, with a mean target of $73.83 and a high estimate of $82.

The S1 support level for OGS Stock is $72.2 ,The R1 resistant level for OGS Stock is $75.8.

As of the end of day on 2025-03-24, the price of OGS Stock was $73.41.

The target price for OGS Stock according to analyst rating is 73.50, with the highest price target at 77.00 and the lowest at 68.00. Analysts have a Hold rating on OGS Stock overall.

The market cap of OGS is $4.4B.

Analysis and Insights

Valuation Metrics:

ONE Gas Inc (OGS) currently exhibits valuation metrics that suggest a premium relative to industry averages. The price-to-earnings (P/E) ratio is approximately 16.19, which is slightly above the industry average of 15. The enterprise value-to-EBITDA (EV/EBITDA) ratio is 11.08, also above the industry average of 10. These metrics indicate that OGS may be trading at a premium.

Price Multiples:

The price-to-sales (P/S) ratio is 1.75, slightly above the industry average of 1.70, and the price-to-book (P/B) ratio is 1.47, higher than the industry average of 1.40. These metrics further support the notion of a premium valuation.

Dividend Yield:

The dividend yield is approximately 4.08%, which is attractive but does not necessarily indicate undervaluation. The current ratio is 1.34, indicating manageable liquidity.

Technical Analysis:

The Relative Strength Index (RSI) is 56.16, indicating a neutral position, while the MACD shows a slight positive signal. The stock is trading near the lower end of its Bollinger Bands, suggesting potential undervaluation, but this is contradicted by the fundamental valuation metrics.

Analyst Sentiment:

Analysts have a Hold rating on OGS with a price target of $76, suggesting limited upside potential.

Conclusion:

Based on the premium valuation metrics, neutral technical indicators, and analyst sentiment, OGS appears to be overvalued. Investors may want to wait for a correction before considering a purchase.

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ONE Gas, Inc. is a regulated natural gas distribution utility in the United States. The Company operates through a single segment, regulated public utilities, which delivers natural gas to residential, commercial and transportation customers. The Company provides natural gas distribution services to approximately 2.3 million customers. The Company has three divisions: Oklahoma Natural Gas, Kansas Gas Service and Texas Gas Service. It primarily serves residential, commercial and transportation customers in all three states. The Company’s natural gas distribution markets in terms of customers are Oklahoma City and Tulsa, Oklahoma; Kansas City, Wichita and Topeka, Kansas; and Austin and El Paso, Texas. It distributes natural gas to approximately 89%, 71% and 13% of the natural gas distribution customers in Oklahoma, Kansas and Texas, respectively.

The price prediction for OGS stock by 2030 is estimated to reach $90 per share, driven by steady growth in the natural gas sector and stable market conditions.

OGS has a total of 3900 employees.