ONE Gas Inc. Common Stock (OGS)

FairStock Score: 51/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look at ONE Gas as a regulated natural gas distributor serving about 2.3 million customers in Oklahoma, Kansas, and Texas, with 43,200 miles of distribution pipe and 2,200 miles of transmission pipe. That service territory is a real advantage: customers need heat and regulators limit competition. But the flip side is that returns are set in rate cases, and the business must keep investing heavily to earn those returns. In the filed figures, fiscal Q2 2026, the quarter ended 2026-06-30, showed net income of $46.8 million and diluted EPS of $0.74. Fiscal Q1 2026, quarter ended 2026-03-31, showed $128.7 million and $2.04. For FY2025, net income was $264.2 million and diluted EPS $4.37, compared with $222.8 million and $3.91 in FY2024; FY2023 was $231.2 million and $4.14. So profit is growing slowly and is seasonal. At the $74.54 close on 2026-10-13, FairStock calculates a P/E of 16.06, P/B of 1.32, dividend yield of 3.62%, ROE of 8.58%, ROCE of 3.46%, and debt-to-equity of 0.96; the provided beta is 0.66. Trailing free cash flow is negative $175.5 million, a negative 3.7% FCF yield. The Graham Number is $76.69, giving only a 2.80% margin of safety; Piotroski is 4/9 and Altman Z is 0.67. The Lynch category is SLOW GROWER, with 6.1% profit growth over five years, and FairStock's score is 51/100. My conclusion: a dependable but capital-hungry utility. The dividend and low beta are attractive, but leverage, negative free cash flow, and slow growth mean the price is roughly fair, not a bargain.

In plain English: ONE Gas delivers natural gas to homes and businesses in Oklahoma, Kansas, and Texas. The business is steady because customers need gas, but profit is growing slowly and the company carries a lot of debt while spending more cash than it currently brings in. At $74.54, the stock looks about fair for what the numbers show, not clearly cheap or expensive.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer