OGE Energy Return On Equity vs. Operating Margin

OGE Stock  USD 43.81  0.70  1.62%   
Based on the key profitability measurements obtained from OGE Energy's financial statements, OGE Energy's profitability may be sliding down. It has an above-average probability of reporting lower numbers next quarter. Profitability indicators assess OGE Energy's ability to earn profits and add value for shareholders.
 
Return On Equity  
First Reported
2010-12-31
Previous Quarter
0.09238408
Current Value
0.13
Quarterly Volatility
0.05176031
 
Credit Downgrade
 
Yuan Drop
 
Covid
At present, OGE Energy's Days Sales Outstanding is projected to slightly decrease based on the last few years of reporting. The current year's EV To Sales is expected to grow to 4.65, whereas Sales General And Administrative To Revenue is forecasted to decline to 0.01. At present, OGE Energy's Net Income From Continuing Ops is projected to increase significantly based on the last few years of reporting. The current year's Non Operating Income Net Other is expected to grow to about 369.6 M, whereas Operating Income is forecasted to decline to about 496.4 M.
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.440.4712
Significantly Down
Very volatile
For OGE Energy profitability analysis, we use financial ratios and fundamental drivers that measure the ability of OGE Energy to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well OGE Energy utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between OGE Energy's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of OGE Energy over time as well as its relative position and ranking within its peers.
  
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Is Electric Utilities space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of OGE Energy. If investors know OGE will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about OGE Energy listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
(0.09)
Dividend Share
1.676
Earnings Share
1.93
Revenue Per Share
13.916
Quarterly Revenue Growth
0.021
The market value of OGE Energy is measured differently than its book value, which is the value of OGE that is recorded on the company's balance sheet. Investors also form their own opinion of OGE Energy's value that differs from its market value or its book value, called intrinsic value, which is OGE Energy's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because OGE Energy's market value can be influenced by many factors that don't directly affect OGE Energy's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between OGE Energy's value and its price as these two are different measures arrived at by different means. Investors typically determine if OGE Energy is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, OGE Energy's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

OGE Energy Operating Margin vs. Return On Equity Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining OGE Energy's current stock value. Our valuation model uses many indicators to compare OGE Energy value to that of its competitors to determine the firm's financial worth.
OGE Energy is rated below average in return on equity category among its peers. It is regarded fourth in operating margin category among its peers reporting about  3.85  of Operating Margin per Return On Equity. At present, OGE Energy's Return On Equity is projected to slightly decrease based on the last few years of reporting. Comparative valuation analysis is a catch-all technique that is used if you cannot value OGE Energy by discounting back its dividends or cash flows. It compares the stock's price multiples to nearest competition to determine if the stock is relatively undervalued or overvalued.

OGE Operating Margin vs. Return On Equity

Return on Equity or ROE tells company stockholders how effectually their money is being utilized or reinvested. It is a useful ratio when analyzing company profitability or the management effectiveness given the capital invested by the shareholders. ROE shows how efficiently a company utilizes investments to generate income.

OGE Energy

Return On Equity

 = 

Net Income

Total Equity

 = 
0.0847
For most industries, Return on Equity between 10% and 30% are considered desirable to provide dividends to owners and have funds for the future growth of the company. Investors should be very careful using ROE as the only efficiency indicator because ROE can be high if a company is heavily leveraged.
Operating Margin shows how much operating income a company makes on each dollar of sales. It is one of the profitability indicators which helps analysts to understand whether the firm is successful or not making money from everyday operations.

OGE Energy

Operating Margin

 = 

Operating Income

Revenue

X

100

 = 
0.33 %
A good Operating Margin is required for a company to be able to pay for its fixed costs or payout its debt, which implies that the higher the margin, the better. This ratio is most effective in evaluating the earning potential of a company over time when comparing it against a firm's competitors.

OGE Operating Margin Comparison

OGE Energy is currently under evaluation in operating margin category among its peers.

OGE Energy Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in OGE Energy, profitability is also one of the essential criteria for including it into their portfolios because, without profit, OGE Energy will eventually generate negative long term returns. The profitability progress is the general direction of OGE Energy's change in net profit over the period of time. It can combine multiple indicators of OGE Energy, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Last ReportedProjected for Next Year
Accumulated Other Comprehensive Income-7.2 M-7.6 M
Operating Income650.2 M496.4 M
Net Income416.8 M299 M
Income Tax Expense56.2 M42.3 M
Income Before Tax473 M394.3 M
Total Other Income Expense Net-177.2 M-168.3 M
Net Income Applicable To Common Shares765.6 M803.8 M
Net Income From Continuing Ops418.9 M438 M
Non Operating Income Net Other352 M369.6 M
Interest Income133.2 M160.7 M
Net Interest Income-208.5 M-218.9 M
Change To Netincome-242.6 M-230.5 M
Net Income Per Share 2.08  2.18 
Income Quality 2.96  2.17 
Net Income Per E B T 0.88  0.58 

OGE Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on OGE Energy. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of OGE Energy position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the OGE Energy's important profitability drivers and their relationship over time.

Use OGE Energy in pair-trading

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if OGE Energy position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in OGE Energy will appreciate offsetting losses from the drop in the long position's value.

OGE Energy Pair Trading

OGE Energy Pair Trading Analysis

The ability to find closely correlated positions to OGE Energy could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace OGE Energy when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back OGE Energy - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling OGE Energy to buy it.
The correlation of OGE Energy is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as OGE Energy moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if OGE Energy moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for OGE Energy can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your OGE Energy position

In addition to having OGE Energy in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

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When determining whether OGE Energy is a strong investment it is important to analyze OGE Energy's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact OGE Energy's future performance. For an informed investment choice regarding OGE Stock, refer to the following important reports:
Check out Your Equity Center.
For information on how to trade OGE Stock refer to our How to Trade OGE Stock guide.
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To fully project OGE Energy's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of OGE Energy at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include OGE Energy's income statement, its balance sheet, and the statement of cash flows.
Potential OGE Energy investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although OGE Energy investors may work on each financial statement separately, they are all related. The changes in OGE Energy's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on OGE Energy's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.