ONEOK Inc. (NYSE:OKE)

Price to earnings (P/E) ratio

The P/E ratio showed an initial slight increase from 23 in 2018 to 23.82 in 2019, followed by a substantial rise to 33.19 in 2020. Subsequently, there was a notable decrease in the ratio over the next two years, dropping to 19 in 2021 and further to 17.01 in 2022. This trend suggests an initial higher market valuation relative to earnings in 2020, which then normalized and declined, indicating possibly improved earnings or reduced investor expectations in the latter years.

Price to operating profit (P/OP) ratio

The P/OP ratio increased from 14.42 in 2018 to 15.89 in 2019, then slightly decreased to 14.91 in 2020. A more significant decline was observed in 2021 and 2022, reaching 10.97 and 10.43 respectively. This downward trend from 2019 onward implies an improving operating profit relative to price or a reduction in market price multiples, reflecting possibly enhanced operational performance or changing market perceptions.

Price to sales (P/S) ratio

The P/S ratio increased markedly from 2.1 in 2018 to 2.99 in 2019, but then fell to 2.38 in 2020. A sharper decline occurred in the following years, dropping to 1.72 in 2021 and further to 1.31 in 2022. This consistent decrease suggests that sales growth may not have kept pace with market valuation or that the company's revenue became less valuable to investors over time.

Price to book value (P/BV) ratio

The P/BV ratio exhibited fluctuations without a clear linear trend. It increased from 4.02 in 2018 to 4.89 in 2019, then declined to 3.36 in 2020. The ratio rebounded to 4.73 in 2021 before slightly decreasing again to 4.51 in 2022. These variations indicate changes in the market valuation relative to the company's book value, reflecting intermittent shifts in investor sentiment or changes in the company’s asset base and equity valuation over the period analyzed.

Share Price

The share price demonstrated significant volatility over the five-year period. Starting at $64.29 at the end of 2018, it increased to a peak of $73.61 in 2019, followed by a sharp decline to $45.62 in 2020. The price then recovered to $63.82 in 2021 and slightly increased further to $65.45 in 2022, indicating a stabilization after the prior decline.

Earnings Per Share (EPS)

EPS showed a similar pattern of fluctuation. It rose moderately from $2.80 in 2018 to $3.09 in 2019, before dropping substantially to $1.37 in 2020. A strong recovery followed in 2021 and 2022, with EPS increasing to $3.36 and $3.85, respectively. This trend reflects a temporary earnings setback in 2020, succeeded by consistent growth.

Price-to-Earnings (P/E) Ratio

The P/E ratio varied notably during the period. It remained relatively stable around 23 in 2018 and 2019, surged to a peak of 33.19 in 2020, and then declined to 19 in 2021 and further to 17.01 in 2022. The elevated P/E in 2020 can be attributed to the sharp decline in EPS that year, temporarily inflating the ratio. The subsequent downward trend in P/E indicates an improving earnings base relative to share price over the last two years.

The share price of the company exhibited notable fluctuations over the five-year period. It increased from $64.29 at the end of 2018 to a peak of $73.61 in 2019, followed by a significant decline to $45.62 in 2020. Subsequently, the share price recovered, rising to $63.82 in 2021 and slightly increasing further to $65.45 in 2022.

Operating profit per share showed a generally positive trend with some variation. Starting at $4.46 in 2018, it experienced a slight increase in 2019 to $4.63, then dropped to $3.06 in 2020, indicating a possible operational challenge or external impact that year. However, a strong recovery followed, with operating profit per share rising substantially to $5.82 in 2021 and increasing further to $6.28 in 2022, reaching its highest level within the observed period.

The price to operating profit ratio (P/OP) demonstrated an inverse movement compared to operating profit per share. It was relatively stable and moderately high in 2018 and 2019, standing at 14.42 and 15.89 respectively, suggesting a higher market valuation relative to operating profit. In 2020, P/OP decreased slightly to 14.91, then substantially declined to 10.97 in 2021 and further to 10.43 in 2022. This downward trend indicates an improvement in the market’s valuation relative to operating profit, implying either increased profitability or a more attractive valuation for investors following the 2020 downturn.

Overall, the data points to a strong recovery in operational performance and a corresponding normalization or improvement in the company’s valuation metrics after a setback in 2020.

Share Price

The share price experienced fluctuations over the five-year period. It increased from $64.29 in 2018 to a peak of $73.61 in 2019, followed by a significant decline to $45.62 in 2020. Afterward, the share price rebounded, reaching $63.82 in 2021 and slightly increasing again to $65.45 in 2022. This pattern indicates volatility with a recovery phase after a considerable drop in 2020.

Sales per Share

Sales per share followed a downward trend initially, decreasing from $30.59 in 2018 to $19.20 in 2020. However, from 2020 onward, there was a substantial increase, rising sharply to $37.07 in 2021 and further to $50.06 in 2022. This suggests a strong recovery and growth in sales on a per-share basis in the latter years of the period analyzed.

Price-to-Sales (P/S) Ratio

The P/S ratio was relatively high at 2.1 in 2018, increased to 2.99 in 2019, and then decreased steadily in subsequent years to 2.38 in 2020, 1.72 in 2021, and 1.31 in 2022. This decline in the P/S ratio despite rising sales per share after 2020 suggests that the share price did not increase proportionally with sales growth, potentially reflecting market valuation adjustments or investor sentiments.

Share Price Trends

The share price experienced a notable fluctuation over the period. It increased from $64.29 at the end of 2018 to a peak of $73.61 in 2019, followed by a sharp decline to $45.62 in 2020. Subsequently, there was a recovery trend, with the price rising to $63.82 in 2021 and slightly increasing further to $65.45 in 2022. This indicates a period of volatility, with a significant drop in 2020 likely influenced by broader market conditions, before a gradual rebound.

Book Value Per Share (BVPS) Patterns

BVPS showed a generally declining trend from 2018 through 2021, starting at $15.98 in 2018 and dropping steadily each year to a low of $13.48 in 2021. In 2022, BVPS exhibited a modest recovery, increasing to $14.52. This decline followed by a slight rise suggests some erosion in the company's equity base over the years with a tentative improvement in the latest year.

Price-to-Book Value (P/BV) Ratio Dynamics

The P/BV ratio exhibited considerable volatility, reflecting the interplay between fluctuating share prices and changes in book value per share. It rose from 4.02 in 2018 to a high of 4.89 in 2019, decreased sharply to 3.36 in 2020, likely due to the combined effects of share price decline and book value reduction. The ratio then increased again to 4.73 in 2021 and slightly declined to 4.51 in 2022. The elevated levels suggest that the market consistently valued the company at a premium to its book value despite the fluctuations, indicating investor confidence or expectations of future growth.

Overall Insights

The financial ratios demonstrate a cycle of market uncertainty and recovery. The share price and P/BV ratio trends highlight a sharp downturn in 2020, attributable potentially to external economic or sector-specific challenges, with recovery phases in subsequent years. Meanwhile, the BVPS decline points to gradual equity dilution or earnings challenges but with potential stabilization in the most recent period. Overall, the company's valuation remained relatively high in relation to book value, suggesting continued positive market sentiment despite underlying asset value pressures.