KODIAK GAS SERVICES INC (KGS) Stock Fundamental Analysis
USA - NYSE:KGS - US50012A1088 - Common Stock
33.75 USD
-0.23 (-0.68%)
33.75 USD
0 (0%)
We assign a fundamental rating of 4 out of 10 to KGS. KGS was compared to 60 industry peers in the Energy Equipment & Services industry. There are concerns on the financial health of KGS while its profitability can be described as average. KGS is not priced too expensively while it is growing strongly. Keep and eye on this one!
1. Profitability
1.1 Basic Checks
KGS had positive earnings in the past year.
In the past year KGS had a positive cash flow from operations.
Of the past 5 years KGS 4 years were profitable.
Each year in the past 5 years KGS had a positive operating cash flow.
1.2 Ratios
With a Return On Assets value of 1.88%, KGS is not doing good in the industry: 60.00% of the companies in the same industry are doing better.
The Return On Equity of KGS (6.16%) is comparable to the rest of the industry.
With a Return On Invested Capital value of 5.79%, KGS perfoms like the industry average, outperforming 53.33% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for KGS is below the industry average of 7.82%.
The last Return On Invested Capital (5.79%) for KGS is above the 3 year average (4.60%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.88% | ||
| ROE | 6.16% | ||
| ROIC | 5.79% |
ROA(3y)1.69%
ROA(5y)2.2%
ROE(3y)17.27%
ROE(5y)14.08%
ROIC(3y)4.6%
ROIC(5y)5.21%
1.3 Margins
KGS has a Profit Margin of 6.40%. This is in the better half of the industry: KGS outperforms 61.67% of its industry peers.
KGS's Profit Margin has declined in the last couple of years.
KGS has a better Operating Margin (29.62%) than 93.33% of its industry peers.
In the last couple of years the Operating Margin of KGS has declined.
KGS has a better Gross Margin (61.82%) than 95.00% of its industry peers.
In the last couple of years the Gross Margin of KGS has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 29.62% | ||
| PM (TTM) | 6.4% | ||
| GM | 61.82% |
OM growth 3Y-8.68%
OM growth 5YN/A
PM growth 3Y-47.56%
PM growth 5YN/A
GM growth 3Y-2.55%
GM growth 5YN/A
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), KGS is destroying value.
Compared to 1 year ago, KGS has more shares outstanding
The debt/assets ratio for KGS is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.20, we must say that KGS is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of 1.20, KGS is not doing good in the industry: 63.33% of the companies in the same industry are doing better.
KGS has a debt to FCF ratio of 20.11. This is a negative value and a sign of low solvency as KGS would need 20.11 years to pay back of all of its debts.
KGS's Debt to FCF ratio of 20.11 is on the low side compared to the rest of the industry. KGS is outperformed by 61.67% of its industry peers.
KGS has a Debt/Equity ratio of 1.91. This is a high value indicating a heavy dependency on external financing.
KGS has a Debt to Equity ratio of 1.91. This is amonst the worse of the industry: KGS underperforms 88.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.91 | ||
| Debt/FCF | 20.11 | ||
| Altman-Z | 1.2 |
ROIC/WACC0.74
WACC7.86%
2.3 Liquidity
KGS has a Current Ratio of 1.10. This is a normal value and indicates that KGS is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of KGS (1.10) is worse than 91.67% of its industry peers.
KGS has a Quick Ratio of 1.10. This is a bad value and indicates that KGS is not financially healthy enough and could expect problems in meeting its short term obligations.
KGS's Quick ratio of 0.78 is on the low side compared to the rest of the industry. KGS is outperformed by 90.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.1 | ||
| Quick Ratio | 0.78 |
3. Growth
3.1 Past
KGS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 200.00%, which is quite impressive.
Measured over the past years, KGS shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -37.59% on average per year.
KGS shows a strong growth in Revenue. In the last year, the Revenue has grown by 36.33%.
Measured over the past years, KGS shows a very strong growth in Revenue. The Revenue has been growing by 24.11% on average per year.
EPS 1Y (TTM)200%
EPS 3Y-37.59%
EPS 5YN/A
EPS Q2Q%620%
Revenue 1Y (TTM)36.33%
Revenue growth 3Y24.11%
Revenue growth 5YN/A
Sales Q2Q%-0.59%
3.2 Future
KGS is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 50.92% yearly.
The Revenue is expected to grow by 7.81% on average over the next years.
EPS Next Y154.68%
EPS Next 2Y72.25%
EPS Next 3Y50.92%
EPS Next 5YN/A
Revenue Next Year12.32%
Revenue Next 2Y9.08%
Revenue Next 3Y7.81%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 22.06, the valuation of KGS can be described as rather expensive.
Compared to the rest of the industry, the Price/Earnings ratio of KGS is on the same level as its industry peers.
KGS is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 25.83, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 14.22, which indicates a correct valuation of KGS.
Compared to the rest of the industry, the Price/Forward Earnings ratio of KGS indicates a somewhat cheap valuation: KGS is cheaper than 66.67% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of KGS to the average of the S&P500 Index (32.68), we can say KGS is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.06 | ||
| Fwd PE | 14.22 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, KGS is valued a bit more expensive than 68.33% of the companies in the same industry.
KGS's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.05 | ||
| EV/EBITDA | 8.3 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
KGS's earnings are expected to grow with 50.92% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.14
PEG (5Y)N/A
EPS Next 2Y72.25%
EPS Next 3Y50.92%
5. Dividend
5.1 Amount
KGS has a Yearly Dividend Yield of 5.30%, which is a nice return.
Compared to an average industry Dividend Yield of 2.94, KGS pays a better dividend. On top of this KGS pays more dividend than 95.00% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.39, KGS pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.3% |
5.2 History
KGS has paid a dividend for less than 5 years, so there is no long track record yet.
Dividend Growth(5Y)N/A
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
179.88% of the earnings are spent on dividend by KGS. This is not a sustainable payout ratio.
DP179.88%
EPS Next 2Y72.25%
EPS Next 3Y50.92%
33.75
-0.23 (-0.68%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryEnergy Equipment & Services
Earnings (Last)
Earnings (Next)
Inst Owners74.07%
Inst Owner Change1.67%
Ins Owners0.67%
Ins Owner Change-2.95%
Market Cap2.93B
Revenue(TTM)1.16B
Net Income(TTM)82.33M
Analysts83.75
Price Target44.88 (32.98%)
Short Float %7.92%
Short Ratio3.32
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.3% |
Yearly Dividend1.62
Dividend Growth(5Y)N/A
DP179.88%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)16.14%
Min EPS beat(2)16.06%
Max EPS beat(2)16.21%
EPS beat(4)2
Avg EPS beat(4)-25.46%
Min EPS beat(4)-86.57%
Max EPS beat(4)16.21%
EPS beat(8)4
Avg EPS beat(8)-25.51%
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)1
Avg Revenue beat(2)-2.07%
Min Revenue beat(2)-4.32%
Max Revenue beat(2)0.18%
Revenue beat(4)2
Avg Revenue beat(4)-2%
Min Revenue beat(4)-5.32%
Max Revenue beat(4)1.48%
Revenue beat(8)3
Avg Revenue beat(8)-0.38%
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)-0.82%
PT rev (3m)-1.43%
EPS NQ rev (1m)-0.63%
EPS NQ rev (3m)10.28%
EPS NY rev (1m)2.93%
EPS NY rev (3m)16.06%
Revenue NQ rev (1m)0.03%
Revenue NQ rev (3m)-2.99%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.77%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.06 | ||
| Fwd PE | 14.22 | ||
| P/S | 2.27 | ||
| P/FCF | 23.05 | ||
| P/OCF | 6.55 | ||
| P/B | 2.19 | ||
| P/tB | 3.84 | ||
| EV/EBITDA | 8.3 |
EPS(TTM)1.53
EY4.53%
EPS(NY)2.37
Fwd EY7.03%
FCF(TTM)1.46
FCFY4.34%
OCF(TTM)5.16
OCFY15.28%
SpS14.84
BVpS15.41
TBVpS8.79
PEG (NY)0.14
PEG (5Y)N/A
Graham Number23.04
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.88% | ||
| ROE | 6.16% | ||
| ROCE | 9.38% | ||
| ROIC | 5.79% | ||
| ROICexc | 5.8% | ||
| ROICexgc | 6.75% | ||
| OM | 29.62% | ||
| PM (TTM) | 6.4% | ||
| GM | 61.82% | ||
| FCFM | 9.86% |
ROA(3y)1.69%
ROA(5y)2.2%
ROE(3y)17.27%
ROE(5y)14.08%
ROIC(3y)4.6%
ROIC(5y)5.21%
ROICexc(3y)4.62%
ROICexc(5y)5.26%
ROICexgc(3y)5.39%
ROICexgc(5y)6.78%
ROCE(3y)7.46%
ROCE(5y)8.44%
ROICexgc growth 3Y-0.49%
ROICexgc growth 5YN/A
ROICexc growth 3Y0.18%
ROICexc growth 5YN/A
OM growth 3Y-8.68%
OM growth 5YN/A
PM growth 3Y-47.56%
PM growth 5YN/A
GM growth 3Y-2.55%
GM growth 5YN/A
F-Score7
Asset Turnover0.29
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.91 | ||
| Debt/FCF | 20.11 | ||
| Debt/EBITDA | 3.85 | ||
| Cap/Depr | 114.05% | ||
| Cap/Sales | 24.87% | ||
| Interest Coverage | 1.97 | ||
| Cash Conversion | 67.53% | ||
| Profit Quality | 154.17% | ||
| Current Ratio | 1.1 | ||
| Quick Ratio | 0.78 | ||
| Altman-Z | 1.2 |
F-Score7
WACC7.86%
ROIC/WACC0.74
Cap/Depr(3y)132.75%
Cap/Depr(5y)145.74%
Cap/Sales(3y)30.51%
Cap/Sales(5y)36.14%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)200%
EPS 3Y-37.59%
EPS 5YN/A
EPS Q2Q%620%
EPS Next Y154.68%
EPS Next 2Y72.25%
EPS Next 3Y50.92%
EPS Next 5YN/A
Revenue 1Y (TTM)36.33%
Revenue growth 3Y24.11%
Revenue growth 5YN/A
Sales Q2Q%-0.59%
Revenue Next Year12.32%
Revenue Next 2Y9.08%
Revenue Next 3Y7.81%
Revenue Next 5YN/A
EBIT growth 1Y62.34%
EBIT growth 3Y13.34%
EBIT growth 5YN/A
EBIT Next Year137.11%
EBIT Next 3Y38.9%
EBIT Next 5Y23.23%
FCF growth 1Y-119.27%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y23.15%
OCF growth 3Y9.47%
OCF growth 5YN/A
KODIAK GAS SERVICES INC / KGS FAQ
What is the fundamental rating for KGS stock?
ChartMill assigns a fundamental rating of 4 / 10 to KGS.
What is the valuation status for KGS stock?
ChartMill assigns a valuation rating of 5 / 10 to KODIAK GAS SERVICES INC (KGS). This can be considered as Fairly Valued.
How profitable is KODIAK GAS SERVICES INC (KGS) stock?
KODIAK GAS SERVICES INC (KGS) has a profitability rating of 5 / 10.
What is the expected EPS growth for KODIAK GAS SERVICES INC (KGS) stock?
The Earnings per Share (EPS) of KODIAK GAS SERVICES INC (KGS) is expected to grow by 154.68% in the next year.
Can you provide the dividend sustainability for KGS stock?
The dividend rating of KODIAK GAS SERVICES INC (KGS) is 4 / 10 and the dividend payout ratio is 179.88%.