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KODIAK GAS SERVICES INC (KGS) Stock Fundamental Analysis

NYSE:KGS - New York Stock Exchange, Inc. - US50012A1088 - Common Stock

47.38  +0.33 (+0.7%)

After market: 47.38 0 (0%)

Fundamental Rating

2

We assign a fundamental rating of 2 out of 10 to KGS. KGS was compared to 58 industry peers in the Energy Equipment & Services industry. Both the profitability and financial health of KGS have multiple concerns. While showing a medium growth rate, KGS is valued expensive at the moment.


Dividend Valuation Growth Profitability Health

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2

1. Profitability

1.1 Basic Checks

In the past year KGS was profitable.
In the past year KGS had a positive cash flow from operations.
KGS Yearly Net Income VS EBIT VS OCF VS FCFKGS Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2020 2021 2022 2023 0 100M 200M

1.2 Ratios

KGS has a worse Return On Assets (0.53%) than 63.79% of its industry peers.
With a Return On Equity value of 1.92%, KGS is not doing good in the industry: 60.34% of the companies in the same industry are doing better.
With a Return On Invested Capital value of 4.19%, KGS is not doing good in the industry: 70.69% of the companies in the same industry are doing better.
The Average Return On Invested Capital over the past 3 years for KGS is below the industry average of 8.40%.
Industry RankSector Rank
ROA 0.53%
ROE 1.92%
ROIC 4.19%
ROA(3y)3.31%
ROA(5y)N/A
ROE(3y)22.34%
ROE(5y)N/A
ROIC(3y)4.95%
ROIC(5y)N/A
KGS Yearly ROA, ROE, ROICKGS Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2020 2021 2022 2023 0 10 20 30 40

1.3 Margins

Looking at the Profit Margin, with a value of 2.23%, KGS is doing worse than 60.34% of the companies in the same industry.
KGS has a Operating Margin of 24.19%. This is amongst the best in the industry. KGS outperforms 91.38% of its industry peers.
In the last couple of years the Operating Margin of KGS has declined.
Looking at the Gross Margin, with a value of 59.86%, KGS belongs to the top of the industry, outperforming 96.55% of the companies in the same industry.
In the last couple of years the Gross Margin of KGS has declined.
Industry RankSector Rank
OM 24.19%
PM (TTM) 2.23%
GM 59.86%
OM growth 3Y-3.28%
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-3.97%
GM growth 5YN/A
KGS Yearly Profit, Operating, Gross MarginsKGS Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2020 2021 2022 2023 0 20 40 60

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1

2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so KGS is destroying value.
Compared to 1 year ago, KGS has more shares outstanding
The debt/assets ratio for KGS has been reduced compared to a year ago.
KGS Yearly Shares OutstandingKGS Yearly Shares OutstandingYearly Shares Outstanding 2020 2021 2022 2023 20M 40M 60M
KGS Yearly Total Debt VS Total AssetsKGS Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2020 2021 2022 2023 1B 2B 3B

2.2 Solvency

KGS has an Altman-Z score of 1.26. This is a bad value and indicates that KGS is not financially healthy and even has some risk of bankruptcy.
KGS has a worse Altman-Z score (1.26) than 72.41% of its industry peers.
A Debt/Equity ratio of 2.08 is on the high side and indicates that KGS has dependencies on debt financing.
The Debt to Equity ratio of KGS (2.08) is worse than 91.38% of its industry peers.
Industry RankSector Rank
Debt/Equity 2.08
Debt/FCF N/A
Altman-Z 1.26
ROIC/WACC0.48
WACC8.81%
KGS Yearly LT Debt VS Equity VS FCFKGS Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2020 2021 2022 2023 0 500M 1B 1.5B 2B 2.5B

2.3 Liquidity

A Current Ratio of 1.27 indicates that KGS should not have too much problems paying its short term obligations.
KGS has a Current ratio of 1.27. This is amonst the worse of the industry: KGS underperforms 82.76% of its industry peers.
KGS has a Quick Ratio of 1.27. This is a bad value and indicates that KGS is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of KGS (0.93) is worse than 82.76% of its industry peers.
Industry RankSector Rank
Current Ratio 1.27
Quick Ratio 0.93
KGS Yearly Current Assets VS Current LiabilitesKGS Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2020 2021 2022 2023 500M 1B 1.5B

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5

3. Growth

3.1 Past

KGS shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -81.74%.
Looking at the last year, KGS shows a very strong growth in Revenue. The Revenue has grown by 20.13%.
KGS shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 16.89% yearly.
EPS 1Y (TTM)-81.74%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-86.49%
Revenue 1Y (TTM)20.13%
Revenue growth 3Y16.89%
Revenue growth 5YN/A
Sales Q2Q%40.55%

3.2 Future

The Earnings Per Share is expected to grow by 43.22% on average over the next years. This is a very strong growth
KGS is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 19.20% yearly.
EPS Next Y41.77%
EPS Next 2Y53.32%
EPS Next 3Y43.22%
EPS Next 5YN/A
Revenue Next Year38.21%
Revenue Next 2Y26.77%
Revenue Next 3Y19.2%
Revenue Next 5YN/A

3.3 Evolution

The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
KGS Yearly Revenue VS EstimatesKGS Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2020 2021 2022 2023 2024 2025 2026 2027 2028 500M 1B
KGS Yearly EPS VS EstimatesKGS Yearly EPS VS EstimatesYearly EPS VS Estimates 2020 2021 2022 2023 2024 2025 2026 2027 2028 0.5 1 1.5 2

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1

4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 92.90 indicates a quite expensive valuation of KGS.
KGS's Price/Earnings ratio is a bit more expensive when compared to the industry. KGS is more expensive than 72.41% of the companies in the same industry.
When comparing the Price/Earnings ratio of KGS to the average of the S&P500 Index (27.96), we can say KGS is valued expensively.
The Price/Forward Earnings ratio is 26.85, which means the current valuation is very expensive for KGS.
KGS's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. KGS is more expensive than 74.14% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 24.11, KGS is valued at the same level.
Industry RankSector Rank
PE 92.9
Fwd PE 26.85
KGS Price Earnings VS Forward Price EarningsKGS Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60 80

4.2 Price Multiples

Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of KGS indicates a rather expensive valuation: KGS more expensive than 86.21% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 13.55
KGS Per share dataKGS EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 5 10

4.3 Compensation for Growth

The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates KGS does not grow enough to justify the current Price/Earnings ratio.
A more expensive valuation may be justified as KGS's earnings are expected to grow with 43.22% in the coming years.
PEG (NY)2.22
PEG (5Y)N/A
EPS Next 2Y53.32%
EPS Next 3Y43.22%

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3

5. Dividend

5.1 Amount

KGS has a Yearly Dividend Yield of 3.36%. Purely for dividend investing, there may be better candidates out there.
KGS's Dividend Yield is rather good when compared to the industry average which is at 3.32. KGS pays more dividend than 86.21% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.29, KGS pays a bit more dividend than the S&P500 average.
Industry RankSector Rank
Dividend Yield 3.36%

5.2 History

KGS is new to the dividend game and has less than 3 years of track record.
Dividend Growth(5Y)N/A
Div Incr Years1
Div Non Decr Years1
KGS Yearly Dividends per shareKGS Yearly Dividends per shareYearly Dividends per share 2023 2024 0.5 1 1.5

5.3 Sustainability

KGS pays out 355.08% of its income as dividend. This is not a sustainable payout ratio.
DP355.08%
EPS Next 2Y53.32%
EPS Next 3Y43.22%
KGS Yearly Income VS Free CF VS DividendKGS Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2020 2021 2022 2023 0 50M -50M 100M 150M
KGS Dividend Payout.KGS Dividend Payout, showing the Payout Ratio.KGS Dividend Payout.PayoutRetained Earnings

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KODIAK GAS SERVICES INC

NYSE:KGS (1/17/2025, 8:11:12 PM)

After market: 47.38 0 (0%)

47.38

+0.33 (+0.7%)

Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryEnergy Equipment & Services
Earnings (Last)11-06 2024-11-06/amc
Earnings (Next)N/A N/A
Inst Owners27.75%
Inst Owner Change0.14%
Ins Owners0.55%
Ins Owner Change-1.59%
Market Cap4.14B
Analysts82.5
Price Target42.33 (-10.66%)
Short Float %7.27%
Short Ratio4.02
Dividend
Industry RankSector Rank
Dividend Yield 3.36%
Yearly Dividend0.39
Dividend Growth(5Y)N/A
DP355.08%
Div Incr Years1
Div Non Decr Years1
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-78.79%
Min EPS beat(2)-86.57%
Max EPS beat(2)-71.01%
EPS beat(4)1
Avg EPS beat(4)-70.56%
Min EPS beat(4)-130.46%
Max EPS beat(4)5.79%
EPS beat(8)N/A
Avg EPS beat(8)N/A
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)-0.04%
Min Revenue beat(2)-1.55%
Max Revenue beat(2)1.48%
Revenue beat(4)1
Avg Revenue beat(4)-0.92%
Min Revenue beat(4)-3.26%
Max Revenue beat(4)1.48%
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
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)4.84%
PT rev (3m)27.59%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-28%
EPS NY rev (1m)0%
EPS NY rev (3m)-30.73%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.84%
Revenue NY rev (1m)0.77%
Revenue NY rev (3m)1.28%
Valuation
Industry RankSector Rank
PE 92.9
Fwd PE 26.85
P/S 3.85
P/FCF N/A
P/OCF 15.2
P/B 3.32
P/tB 6.16
EV/EBITDA 13.55
EPS(TTM)0.51
EY1.08%
EPS(NY)1.76
Fwd EY3.72%
FCF(TTM)-0.75
FCFYN/A
OCF(TTM)3.12
OCFY6.58%
SpS12.32
BVpS14.28
TBVpS7.69
PEG (NY)2.22
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA 0.53%
ROE 1.92%
ROCE 6.28%
ROIC 4.19%
ROICexc 4.2%
ROICexgc 4.87%
OM 24.19%
PM (TTM) 2.23%
GM 59.86%
FCFM N/A
ROA(3y)3.31%
ROA(5y)N/A
ROE(3y)22.34%
ROE(5y)N/A
ROIC(3y)4.95%
ROIC(5y)N/A
ROICexc(3y)4.98%
ROICexc(5y)N/A
ROICexgc(3y)5.85%
ROICexgc(5y)N/A
ROCE(3y)7.43%
ROCE(5y)N/A
ROICexcg growth 3Y-22.89%
ROICexcg growth 5YN/A
ROICexc growth 3Y-15.11%
ROICexc growth 5YN/A
OM growth 3Y-3.28%
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-3.97%
GM growth 5YN/A
F-Score6
Asset Turnover0.24
Health
Industry RankSector Rank
Debt/Equity 2.08
Debt/FCF N/A
Debt/EBITDA 5.23
Cap/Depr 143.01%
Cap/Sales 31.41%
Interest Coverage 1.73
Cash Conversion 54.81%
Profit Quality N/A
Current Ratio 1.27
Quick Ratio 0.93
Altman-Z 1.26
F-Score6
WACC8.81%
ROIC/WACC0.48
Cap/Depr(3y)131.66%
Cap/Depr(5y)N/A
Cap/Sales(3y)31.92%
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-81.74%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-86.49%
EPS Next Y41.77%
EPS Next 2Y53.32%
EPS Next 3Y43.22%
EPS Next 5YN/A
Revenue 1Y (TTM)20.13%
Revenue growth 3Y16.89%
Revenue growth 5YN/A
Sales Q2Q%40.55%
Revenue Next Year38.21%
Revenue Next 2Y26.77%
Revenue Next 3Y19.2%
Revenue Next 5YN/A
EBIT growth 1Y10.01%
EBIT growth 3Y13.05%
EBIT growth 5YN/A
EBIT Next Year140.17%
EBIT Next 3Y44.65%
EBIT Next 5Y22.51%
FCF growth 1Y217.8%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y21.17%
OCF growth 3Y2.96%
OCF growth 5YN/A