KODIAK GAS SERVICES INC (KGS) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:KGS - US50012A1088 - Common Stock
40.5 USD
-0.76 (-1.84%)
40.5 USD
0 (0%)
Taking everything into account, KGS scores 4 out of 10 in our fundamental rating. KGS was compared to 61 industry peers in the Energy Equipment & Services industry. KGS has a medium profitability rating, but doesn't score so well on its financial health evaluation. KGS is showing excellent growth while it is valued at reasonable prices. Keep and eye on this one!
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 had positive earnings in 4 of the past 5 years.
- Each year in the past 5 years KGS had a positive operating cash flow.
1.2 Ratios
- KGS has a Return On Assets (1.68%) which is comparable to the rest of the industry.
- With a Return On Equity value of 5.88%, KGS perfoms like the industry average, outperforming 54.10% of the companies in the same industry.
- Looking at the Return On Invested Capital, with a value of 6.09%, KGS is in the better half of the industry, outperforming 60.66% of the companies in the same industry.
- The Average Return On Invested Capital over the past 3 years for KGS is significantly below the industry average of 12.90%.
- The 3 year average ROIC (4.60%) for KGS is below the current ROIC(6.09%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.68% | ||
| ROE | 5.88% | ||
| ROIC | 6.09% |
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
- Looking at the Profit Margin, with a value of 5.72%, KGS is in line with its industry, outperforming 57.38% of the companies in the same industry.
- KGS's Profit Margin has declined in the last couple of years.
- Looking at the Operating Margin, with a value of 30.92%, KGS belongs to the top of the industry, outperforming 95.08% of the companies in the same industry.
- KGS's Operating Margin has declined in the last couple of years.
- KGS has a Gross Margin of 62.78%. This is amongst the best in the industry. KGS outperforms 95.08% of its industry peers.
- KGS's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 30.92% | ||
| PM (TTM) | 5.72% | ||
| GM | 62.78% |
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.
- KGS has more shares outstanding than it did 1 year ago.
- Compared to 1 year ago, KGS has a worse debt to assets ratio.
2.2 Solvency
- KGS has an Altman-Z score of 1.28. This is a bad value and indicates that KGS is not financially healthy and even has some risk of bankruptcy.
- With a Altman-Z score value of 1.28, KGS is not doing good in the industry: 68.85% of the companies in the same industry are doing better.
- The Debt to FCF ratio of KGS is 13.95, which is on the high side as it means it would take KGS, 13.95 years of fcf income to pay off all of its debts.
- KGS's Debt to FCF ratio of 13.95 is in line compared to the rest of the industry. KGS outperforms 42.62% of its industry peers.
- A Debt/Equity ratio of 2.09 is on the high side and indicates that KGS has dependencies on debt financing.
- KGS's Debt to Equity ratio of 2.09 is on the low side compared to the rest of the industry. KGS is outperformed by 85.25% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.09 | ||
| Debt/FCF | 13.95 | ||
| Altman-Z | 1.28 |
ROIC/WACC0.76
WACC7.97%
2.3 Liquidity
- KGS has a Current Ratio of 0.98. 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 has a Current ratio of 0.98. This is amonst the worse of the industry: KGS underperforms 90.16% of its industry peers.
- KGS has a Quick Ratio of 0.98. This is a bad value and indicates that KGS is not financially healthy enough and could expect problems in meeting its short term obligations.
- With a Quick ratio value of 0.69, KGS is not doing good in the industry: 90.16% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.98 | ||
| Quick Ratio | 0.69 |
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.
- The earnings per share for KGS have been decreasing by -37.59% on average. This is quite bad
- Looking at the last year, KGS shows a quite strong growth in Revenue. The Revenue has grown by 19.43% in the last year.
- KGS shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 24.11% yearly.
EPS 1Y (TTM)200%
EPS 3Y-37.59%
EPS 5YN/A
EPS Q2Q%620%
Revenue 1Y (TTM)19.43%
Revenue growth 3Y24.11%
Revenue growth 5YN/A
Sales Q2Q%-0.59%
3.2 Future
- The Earnings Per Share is expected to grow by 47.55% on average over the next years. This is a very strong growth
- Based on estimates for the next years, KGS will show a quite strong growth in Revenue. The Revenue will grow by 10.20% on average per year.
EPS Next Y66.9%
EPS Next 2Y70.81%
EPS Next 3Y54.31%
EPS Next 5Y47.55%
Revenue Next Year11.56%
Revenue Next 2Y9.27%
Revenue Next 3Y8.44%
Revenue Next 5Y10.2%
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.
- Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
4. Valuation
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 26.47 indicates a quite expensive valuation of KGS.
- The rest of the industry has a similar Price/Earnings ratio as KGS.
- KGS's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 28.60.
- A Price/Forward Earnings ratio of 17.35 indicates a rather expensive valuation of KGS.
- KGS's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. KGS is cheaper than 63.93% of the companies in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.83, KGS is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.47 | ||
| Fwd PE | 17.35 |
4.2 Price Multiples
- KGS's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. KGS is more expensive than 62.30% of the companies in the same industry.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of KGS is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.72 | ||
| EV/EBITDA | 9.13 |
4.3 Compensation for Growth
- KGS's 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 54.31% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.4
PEG (5Y)N/A
EPS Next 2Y70.81%
EPS Next 3Y54.31%
5. Dividend
5.1 Amount
- KGS has a Yearly Dividend Yield of 4.51%, which is a nice return.
- Compared to an average industry Dividend Yield of 1.14, KGS pays a better dividend. On top of this KGS pays more dividend than 95.08% of the companies listed in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.82, KGS pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.51% |
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
- KGS pays out 49.51% of its income as dividend. This is a bit on the high side, but may be sustainable.
DP49.51%
EPS Next 2Y70.81%
EPS Next 3Y54.31%
KODIAK GAS SERVICES INC / KGS FAQ
What is the fundamental rating for KGS stock?
ChartMill assigns a fundamental rating of 4 / 10 to KGS.
Can you provide the valuation status for KODIAK GAS SERVICES INC?
ChartMill assigns a valuation rating of 4 / 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 valuation of KODIAK GAS SERVICES INC based on its PE and PB ratios?
The Price/Earnings (PE) ratio for KODIAK GAS SERVICES INC (KGS) is 26.47 and the Price/Book (PB) ratio is 2.81.
How financially healthy is KODIAK GAS SERVICES INC?
The financial health rating of KODIAK GAS SERVICES INC (KGS) is 0 / 10.