KODIAK GAS SERVICES INC (KGS) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:KGS - US50012A1088 - Common Stock
40 USD
+0.09 (+0.23%)
40 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. 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
- In the past year KGS was profitable.
- KGS had a positive operating cash flow in the past year.
- KGS had positive earnings in 4 of the past 5 years.
- KGS had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- KGS's Return On Assets of 1.68% is in line compared to the rest of the industry. KGS outperforms 40.32% of its industry peers.
- KGS has a Return On Equity (5.88%) which is comparable to the rest of the industry.
- Looking at the Return On Invested Capital, with a value of 6.09%, KGS is in the better half of the industry, outperforming 61.29% of the companies in the same industry.
- KGS had an Average Return On Invested Capital over the past 3 years of 4.60%. This is significantly below the industry average of 12.92%.
- 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 58.06% 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 95.16% 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 95.16% of its industry peers.
- In the last couple of years the Gross Margin of KGS has declined.
| 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
- KGS has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
- Compared to 1 year ago, KGS has more shares outstanding
- KGS has a worse debt/assets ratio than last year.
2.2 Solvency
- Based on the Altman-Z score of 1.27, we must say that KGS is in the distress zone and has some risk of bankruptcy.
- Looking at the Altman-Z score, with a value of 1.27, KGS is doing worse than 69.35% of the companies in the same industry.
- 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 has a Debt to FCF ratio (13.95) which is comparable to the rest of the industry.
- KGS has a Debt/Equity ratio of 2.09. This is a high value indicating a heavy dependency on external 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 85.48% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.09 | ||
| Debt/FCF | 13.95 | ||
| Altman-Z | 1.27 |
ROIC/WACC0.77
WACC7.95%
2.3 Liquidity
- A Current Ratio of 0.98 indicates that KGS may have some problems paying its short term obligations.
- Looking at the Current ratio, with a value of 0.98, KGS is doing worse than 90.32% of the companies in the same industry.
- A Quick Ratio of 0.69 indicates that KGS may have some problems paying its short term obligations.
- Looking at the Quick ratio, with a value of 0.69, KGS is doing worse than 90.32% of the companies in the same industry.
| 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.
- 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.
- The Revenue has grown by 19.43% in the past year. This is quite good.
- 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)19.43%
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 47.55% yearly.
- KGS is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 10.20% yearly.
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
- Based on the Price/Earnings ratio of 26.14, the valuation of KGS can be described as expensive.
- KGS's Price/Earnings is on the same level as the industry average.
- KGS's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.21.
- The Price/Forward Earnings ratio is 17.14, which indicates a rather expensive current valuation of KGS.
- KGS's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. KGS is cheaper than 64.52% of the companies in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 25.98. KGS is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.14 | ||
| Fwd PE | 17.14 |
4.2 Price Multiples
- 62.90% of the companies in the same industry are cheaper than KGS, based on the Enterprise Value to EBITDA ratio.
- 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 | 18.49 | ||
| EV/EBITDA | 9.07 |
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 54.31% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.39
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 95.16% of the companies listed in the same industry.
- KGS's Dividend Yield is rather good when compared to the S&P500 average which is at 1.81.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.51% |
5.2 History
- KGS has been paying a dividend for less than 5 years, so it still needs to build a track record.
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 26.14 and the Price/Book (PB) ratio is 2.77.
How financially healthy is KODIAK GAS SERVICES INC?
The financial health rating of KODIAK GAS SERVICES INC (KGS) is 0 / 10.