ONEOK (OKE) has been drifting after a choppy stretch for energy names, but the stock’s recent pullback contrasts with its solid profit growth and invites a closer look at whether the market is over-discounting execution risk.

Over the past year, ONEOK’s share price return has been pressured by shifting sentiment toward energy demand and rate expectations, even as its 5 year total shareholder return of 150.03% points to a business that has historically compounded value steadily.

If this type of steady midstream story appeals to you, it is worth comparing it with more growth tilted names and discovering fast growing stocks with high insider ownership.

With shares down year to date despite rising revenue and profit, and trading at a discount to analyst targets and intrinsic value estimates, is ONEOK quietly undervalued here, or is the market already pricing in its future growth?

Most Popular Narrative: 17.1% Undervalued

With ONEOK closing at $73.59 against a narrative fair value near $88.79, the gap reflects expectations for sturdier cash generation ahead.

Improved free cash flow and reduced leverage strengthen capital allocation, supporting higher shareholder returns and reinvestment aligned with global energy demand trends.

Recent tax legislation changes lowering projected cash taxes until 2028, combined with growing free cash flow and reduced leverage, improve ONEOK's capacity for disciplined capital allocation, accelerating shareholder returns and enabling reinvestment to capitalize on global energy trends supporting long term net income and cash flow growth.

Want to see what is driving that confidence in future cash? The narrative leans on compounding volumes, rising margins, and a bolder earnings multiple. Curious?

Result: Fair Value of $88.79 (UNDERVALUED)

However, that upside case could be derailed if commodity volatility persists and recent acquisitions fail to deliver the promised synergies and leverage reduction.

Build Your Own ONEOK Narrative

If you see the story differently or want to dig into the numbers yourself, you can build a custom view in just minutes: Do it your way.

A great starting point for your ONEOK research is our analysis highlighting 5 key rewards and 1 important warning sign that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.