--- title: "ONE Gas (OGS) Could Be 12% Undervalued As $4.3b Pipeline Plan Draws Focus" type: "News" locale: "en" url: "https://longbridge.com/en/news/292403088.md" description: "ONE Gas (OGS) is drawing investor attention due to a $4.3 billion five-year pipeline and infrastructure investment plan. Analysts suggest the stock may be undervalued, citing a fair value of $90.22 against its current price of $79.17, driven by expected EPS growth from an expanded regulated rate base. However, the stock trades at a premium P/E ratio of 18.2x compared to peers, raising concerns about regulatory risks and capital recovery." datetime: "2026-07-12T12:58:26.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/292403088.md) - [en](https://longbridge.com/en/news/292403088.md) - [zh-HK](https://longbridge.com/zh-HK/news/292403088.md) --- # ONE Gas (OGS) Could Be 12% Undervalued As $4.3b Pipeline Plan Draws Focus ## Why ONE Gas Stock Is Back on Investors’ Radar ONE Gas (OGS) recently outlined plans to invest about $800 million in 2026 and nearly $4.3 billion over five years in pipeline replacement, infrastructure expansion, and system reliability, drawing fresh attention to the stock. See our latest analysis for ONE Gas. Against this backdrop, ONE Gas shares trade at $79.17, with a 7 day share price return of 2.39% and a 30 day share price return of 1.79%, although the 90 day share price return is down 10.48%. Over a longer window, the 1 year total shareholder return of 11.95% and 5 year total shareholder return of 26.31% point to steadier compounding. This helps frame recent pipeline investment plans as part of an ongoing story, not a purely short term one. If you are comparing ONE Gas with other income focused ideas, it can help to widen the lens and scan 9 dividend fortresses ONE Gas has drawn fresh interest after its capex plans and recent share move, but are investors reacting to real shifts in the regulated utility business, or simply leaning into changing sentiment around the stock’s story and valuation? ## Most Popular Narrative: 12.2% Undervalued On the most followed narrative, ONE Gas screens as undervalued, with a fair value of $90.22 versus the recent $79.17 share price. This puts its investment program and earnings guidance into sharper focus. > _Accelerating capital investment in system reinforcement and modernization (such as the Austin system project), in response to both safety and demand, expands the regulated rate base, resulting in higher allowed returns and EPS growth._ _Read the complete narrative._ Analysts are tying this valuation to a very specific earnings path, higher long run margins, and a richer future earnings multiple than many gas utilities typically command. **Result: Fair Value of $90.22 (UNDERVALUED)** Have a read of the narrative in full and understand what's behind the forecasts. However, the ONE Gas narrative could be tested if heavy capital spending fails to be fully recovered through rates, or if regional regulatory support softens in a meaningful way. Find out about the key risks to this ONE Gas narrative. ## Another View: ONE Gas Looked At Through Its P/E Ratio The earlier fair value of $90.22 for ONE Gas leans on analyst forecasts, but the current P/E of 18.2x tells a different story. It sits above both the global gas utilities average of 13.3x and a peer average of 14.1x, and even edges its own fair ratio of 18x. That kind of premium can signal confidence in the earnings outlook, but it also means less room for disappointment if forecasts or regulation shift. For an income focused stock with moderate expected growth, is this extra valuation stretch a comfort or a concern for you? See what the numbers say about this price — find out in our valuation breakdown. NYSE:OGS P/E Ratio as at Jul 2026 ## Next Steps If the mixed signals around ONE Gas have you torn, act while the details are fresh. Weigh the trade off between caution and optimism by checking the 3 key rewards and 2 important warning signs ## Looking for more investment ideas beyond ONE Gas? If ONE Gas has sharpened your focus, do not stop here. Broaden your watchlist with fresh ideas that could fit different roles in your portfolio. - Target steadier potential compounding by scanning companies in the 78 resilient stocks with low risk scores that may better match your comfort with volatility. - Hunt for possible mispriced opportunities by reviewing the screener containing 19 high quality undiscovered gems and see which stocks the market might be overlooking. - Strengthen the quality of your core holdings by checking the solid balance sheet and fundamentals stocks screener (47 results) before others spot these fundamentals. _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._ ### **New:** AI Stock Screener & Alerts Our new AI Stock Screener scans the market every day to uncover opportunities. • Dividend Powerhouses (3%+ Yield) • Undervalued Small Caps with Insider Buying • High growth Tech and AI Companies Or build your own from over 50 metrics. Explore Now for Free ### Related Stocks - [OGS.US](https://longbridge.com/en/quote/OGS.US.md) ## Related News & Research - [Inceptionr LLC Takes $1.35 Million Position in ONE Gas, Inc. $OGS](https://longbridge.com/en/news/293738602.md) - [Truist Financial Sticks to Their Buy Rating for ONE Gas (OGS)](https://longbridge.com/en/news/293548257.md) - [16:15 ETONE Gas 2026 Sustainability Report Highlights Progress on Safety, Environmental Stewardship and Community Commitment](https://longbridge.com/en/news/293516179.md) - [Is AECOM’s New Lisbon Airport Design Win Reshaping The Investment Case For ACM?](https://longbridge.com/en/news/294087796.md) - [Resolution Capital says Global Listed Infrastructure Fund gains 3.3% in Q2, beats benchmark](https://longbridge.com/en/news/293878497.md)