$ONEOK Inc (OKE.US)$Listed in 1954, single US market, curren...

In the past 5 years, revenue has shrunk for 2 years in 2019 and 2020, and operating profit has continued to grow for 5 years. Among them, 2019 and 2020 continued to grow due to rising gross margin and lower expenses. Net profit shrank by 52% in 2020 due to surges in interest expenses and depreciation of capital assets, and continued to grow for the remaining 4 years. The return on net assets is basically above 20% except in 2020, and interest expenses in 2022 are 24% of operating profit.

In the first three quarters of 2023, revenue contracted by 28.3%, operating profit increased by 51% due to higher gross margin and lower expenses, and net profit increased 59%.

The balance ratio has increased from 63.9% to 73.4% over the past 5 years. The ratio and growth rate of accounts receivable and inventory are relatively normal. Long-term loans of 12.696 billion yuan, double the net assets of 6.494 billion yuan, and the leverage ratio is very high. Major acquisitions were carried out in the 2023Q3. Goodwill and other intangible assets increased by 5.8 billion dollars to 6.5 billion, net assets increased to 16.299 billion yuan, the balance ratio decreased to 62.9%, and long-term loans increased to 21.45 billion yuan. 23Q3 interest expenses reached 25% of operating profit, and the burden was already very heavy.

Net cash flow was slightly higher than net investment over the past 5 years, but the 2023Q3 acquisition made cash flow operations lower than net investment, and did not generate shareholders' surpluses.

Currently, the price-earnings ratio is 23.8, the price-earnings ratio TTM has dropped to 16.7, and the dividend rate is 5.4%. The 5-year average net profit of 1.25 billion yuan corresponds to 33 times the price-earnings ratio. If you look at growth stocks, the valuation is very discounted; if you look at cyclical stocks, the valuation is too high; wait and see for now.