KODIAK GAS SERVICES INC (KGS) Stock Fundamental Analysis
NYSE:KGS - New York Stock Exchange, Inc. - US50012A1088 - Common Stock - Currency: USD
We assign a fundamental rating of 3 out of 10 to KGS. KGS was compared to 62 industry peers in the Energy Equipment & Services industry. While KGS is still in line with the averages on profitability rating, there are concerns on its financial health. KGS is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year KGS was profitable.
KGS had a positive operating cash flow in the past year.
Of the past 5 years KGS 4 years were profitable.
KGS had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a Return On Assets value of 1.13%, KGS is not doing good in the industry: 69.35% of the companies in the same industry are doing better.
Looking at the Return On Equity, with a value of 3.73%, KGS is doing worse than 66.13% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 4.92%, KGS is doing worse than 61.29% 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 8.42%.
The 3 year average ROIC (4.60%) for KGS is below the current ROIC(4.92%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.13% | ||
| ROE | 3.73% | ||
| ROIC | 4.92% |
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's Profit Margin of 3.93% is on the low side compared to the rest of the industry. KGS is outperformed by 62.90% of its industry peers.
KGS's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 25.70%, KGS belongs to the top of the industry, outperforming 91.94% of the companies in the same industry.
In the last couple of years the Operating Margin of KGS has declined.
With an excellent Gross Margin value of 60.48%, KGS belongs to the best of the industry, outperforming 95.16% of the companies in the same industry.
In the last couple of years the Gross Margin of KGS has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 25.7% | ||
| PM (TTM) | 3.93% | ||
| GM | 60.48% |
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.
KGS has more shares outstanding than it did 1 year ago.
The debt/assets ratio for KGS is higher compared to a year ago.
2.2 Solvency
KGS has an Altman-Z score of 1.12. This is a bad value and indicates that KGS is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.12, KGS is doing worse than 70.97% of the companies in the same industry.
KGS has a debt to FCF ratio of 71.34. This is a negative value and a sign of low solvency as KGS would need 71.34 years to pay back of all of its debts.
KGS has a Debt to FCF ratio of 71.34. This is in the lower half of the industry: KGS underperforms 64.52% of its industry peers.
A Debt/Equity ratio of 1.93 is on the high side and indicates that KGS has dependencies on debt financing.
KGS's Debt to Equity ratio of 1.93 is on the low side compared to the rest of the industry. KGS is outperformed by 88.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.93 | ||
| Debt/FCF | 71.34 | ||
| Altman-Z | 1.12 |
ROIC/WACC0.59
WACC8.36%
2.3 Liquidity
A Current Ratio of 1.17 indicates that KGS should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.17, KGS is doing worse than 87.10% of the companies in the same industry.
A Quick Ratio of 0.87 indicates that KGS may have some problems paying its short term obligations.
The Quick ratio of KGS (0.87) is worse than 85.48% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.17 | ||
| Quick Ratio | 0.87 |
3. Growth
3.1 Past
The earnings per share for KGS have decreased strongly by -36.73% in the last year.
KGS shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -37.59% yearly.
The Revenue has grown by 45.41% in the past year. This is a very strong growth!
KGS shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 24.11% yearly.
EPS 1Y (TTM)-36.73%
EPS 3Y-37.59%
EPS 5YN/A
EPS Q2Q%15.38%
Revenue 1Y (TTM)45.41%
Revenue growth 3Y24.11%
Revenue growth 5YN/A
Sales Q2Q%52.97%
3.2 Future
KGS is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 47.91% yearly.
KGS is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.72% yearly.
EPS Next Y119.44%
EPS Next 2Y64.4%
EPS Next 3Y47.91%
EPS Next 5YN/A
Revenue Next Year14.51%
Revenue Next 2Y10.27%
Revenue Next 3Y8.72%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 38.62, the valuation of KGS can be described as expensive.
Based on the Price/Earnings ratio, KGS is valued a bit more expensive than the industry average as 67.74% of the companies are valued more cheaply.
When comparing the Price/Earnings ratio of KGS to the average of the S&P500 Index (27.41), we can say KGS is valued slightly more expensively.
KGS is valuated correctly with a Price/Forward Earnings ratio of 15.36.
Compared to the rest of the industry, the Price/Forward Earnings ratio of KGS is on the same level as its industry peers.
KGS's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 35.19.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 38.62 | ||
| Fwd PE | 15.36 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of KGS indicates a slightly more expensive valuation: KGS is more expensive than 75.81% of the companies listed in the same industry.
64.52% of the companies in the same industry are cheaper than KGS, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 80.12 | ||
| EV/EBITDA | 8.87 |
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 47.91% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.32
PEG (5Y)N/A
EPS Next 2Y64.4%
EPS Next 3Y47.91%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.28%, KGS is a good candidate for dividend investing.
KGS's Dividend Yield is rather good when compared to the industry average which is at 3.52. KGS pays more dividend than 90.32% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.35, KGS pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.28% |
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 280.62% of its income as dividend. This is not a sustainable payout ratio.
DP280.62%
EPS Next 2Y64.4%
EPS Next 3Y47.91%
NYSE:KGS (7/14/2025, 3:40:58 PM)
33.21
+1.07 (+3.33%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryEnergy Equipment & Services
Earnings (Last)
Earnings (Next)
Inst Owners65.71%
Inst Owner Change0%
Ins Owners0.66%
Ins Owner Change15.96%
Market Cap2.92B
Analysts83.75
Price Target45.39 (36.68%)
Short Float %11.41%
Short Ratio6.64
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.28% |
Yearly Dividend1.62
Dividend Growth(5Y)N/A
DP280.62%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-15.66%
Min EPS beat(2)-47.53%
Max EPS beat(2)16.21%
EPS beat(4)1
Avg EPS beat(4)-47.23%
Min EPS beat(4)-86.57%
Max EPS beat(4)16.21%
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)-2.57%
Min Revenue beat(2)-5.32%
Max Revenue beat(2)0.18%
Revenue beat(4)2
Avg Revenue beat(4)-1.3%
Min Revenue beat(4)-5.32%
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)-0.37%
PT rev (3m)-4.85%
EPS NQ rev (1m)0.93%
EPS NQ rev (3m)2.27%
EPS NY rev (1m)2.33%
EPS NY rev (3m)1.07%
Revenue NQ rev (1m)-0.55%
Revenue NQ rev (3m)-0.99%
Revenue NY rev (1m)-0.59%
Revenue NY rev (3m)-1.02%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 38.62 | ||
| Fwd PE | 15.36 | ||
| P/S | 2.29 | ||
| P/FCF | 80.12 | ||
| P/OCF | 7.47 | ||
| P/B | 2.17 | ||
| P/tB | 3.8 | ||
| EV/EBITDA | 8.87 |
EPS(TTM)0.86
EY2.59%
EPS(NY)2.16
Fwd EY6.51%
FCF(TTM)0.41
FCFY1.25%
OCF(TTM)4.45
OCFY13.39%
SpS14.49
BVpS15.3
TBVpS8.74
PEG (NY)0.32
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.13% | ||
| ROE | 3.73% | ||
| ROCE | 7.97% | ||
| ROIC | 4.92% | ||
| ROICexc | 4.92% | ||
| ROICexgc | 5.72% | ||
| OM | 25.7% | ||
| PM (TTM) | 3.93% | ||
| GM | 60.48% | ||
| FCFM | 2.86% |
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%
ROICexcg growth 3Y-0.49%
ROICexcg 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-Score6
Asset Turnover0.29
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.93 | ||
| Debt/FCF | 71.34 | ||
| Debt/EBITDA | 4.25 | ||
| Cap/Depr | 124.84% | ||
| Cap/Sales | 27.83% | ||
| Interest Coverage | 1.9 | ||
| Cash Conversion | 63.95% | ||
| Profit Quality | 72.73% | ||
| Current Ratio | 1.17 | ||
| Quick Ratio | 0.87 | ||
| Altman-Z | 1.12 |
F-Score6
WACC8.36%
ROIC/WACC0.59
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)-36.73%
EPS 3Y-37.59%
EPS 5YN/A
EPS Q2Q%15.38%
EPS Next Y119.44%
EPS Next 2Y64.4%
EPS Next 3Y47.91%
EPS Next 5YN/A
Revenue 1Y (TTM)45.41%
Revenue growth 3Y24.11%
Revenue growth 5YN/A
Sales Q2Q%52.97%
Revenue Next Year14.51%
Revenue Next 2Y10.27%
Revenue Next 3Y8.72%
Revenue Next 5YN/A
EBIT growth 1Y34.55%
EBIT growth 3Y13.34%
EBIT growth 5YN/A
EBIT Next Year136.18%
EBIT Next 3Y40.06%
EBIT Next 5Y23.23%
FCF growth 1Y176.19%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y107.53%
OCF growth 3Y9.47%
OCF growth 5YN/A