KINETIK HOLDINGS INC (KNTK) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:KNTK - US02215L2097 - Common Stock
40.65 USD
+1.19 (+3.02%)
40.37 USD
-0.28 (-0.69%)
Taking everything into account, KNTK scores 3 out of 10 in our fundamental rating. KNTK was compared to 207 industry peers in the Oil, Gas & Consumable Fuels industry. KNTK has a bad profitability rating. Also its financial health evaluation is rather negative. KNTK is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
- In the past year KNTK was profitable.
- KNTK had a positive operating cash flow in the past year.
- Of the past 5 years KNTK 4 years were profitable.
- Each year in the past 5 years KNTK had a positive operating cash flow.
1.2 Ratios
- KNTK's Return On Assets of 0.35% is on the low side compared to the rest of the industry. KNTK is outperformed by 66.67% of its industry peers.
- KNTK has a worse Return On Invested Capital (1.86%) than 68.60% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for KNTK is significantly below the industry average of 21.94%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.35% | ||
| ROE | N/A | ||
| ROIC | 1.86% |
ROA(3y)2.04%
ROA(5y)1.09%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)2.6%
ROIC(5y)2.92%
1.3 Margins
- Looking at the Profit Margin, with a value of 1.46%, KNTK is doing worse than 60.87% of the companies in the same industry.
- KNTK has a Operating Margin of 8.15%. This is in the lower half of the industry: KNTK underperforms 60.39% of its industry peers.
- KNTK's Operating Margin has improved in the last couple of years.
- KNTK has a Gross Margin of 52.43%. This is in the better half of the industry: KNTK outperforms 61.35% of its industry peers.
- KNTK's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.15% | ||
| PM (TTM) | 1.46% | ||
| GM | 52.43% |
OM growth 3Y-33.04%
OM growth 5Y2.41%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-6.48%
GM growth 5Y-0.81%
2. Health
2.1 Basic Checks
- KNTK has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
- The number of shares outstanding for KNTK has been increased compared to 1 year ago.
- The number of shares outstanding for KNTK has been reduced compared to 5 years ago.
- KNTK has a better debt/assets ratio than last year.
2.2 Solvency
- Based on the Altman-Z score of 0.31, we must say that KNTK is in the distress zone and has some risk of bankruptcy.
- KNTK has a Altman-Z score of 0.31. This is in the lower half of the industry: KNTK underperforms 65.70% of its industry peers.
- The Debt to FCF ratio of KNTK is 30.30, which is on the high side as it means it would take KNTK, 30.30 years of fcf income to pay off all of its debts.
- KNTK has a Debt to FCF ratio (30.30) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 30.3 | ||
| Altman-Z | 0.31 |
ROIC/WACC0.2
WACC9.16%
2.3 Liquidity
- A Current Ratio of 0.62 indicates that KNTK may have some problems paying its short term obligations.
- KNTK has a worse Current ratio (0.62) than 77.29% of its industry peers.
- A Quick Ratio of 0.62 indicates that KNTK may have some problems paying its short term obligations.
- KNTK has a Quick ratio of 0.62. This is in the lower half of the industry: KNTK underperforms 69.08% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.62 | ||
| Quick Ratio | 0.62 |
3. Growth
3.1 Past
- The earnings per share for KNTK have decreased strongly by -84.50% in the last year.
- The earnings per share for KNTK have been decreasing by -61.79% on average. This is quite bad
- The Revenue has decreased by -3.79% in the past year.
- KNTK shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 61.30% yearly.
EPS 1Y (TTM)-84.5%
EPS 3Y-39.67%
EPS 5Y-61.79%
EPS Q2Q%-91.43%
Revenue 1Y (TTM)-3.79%
Revenue growth 3Y109.79%
Revenue growth 5Y61.3%
Sales Q2Q%17.06%
3.2 Future
- Based on estimates for the next years, KNTK will show a very strong growth in Earnings Per Share. The EPS will grow by 30.94% on average per year.
- KNTK is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 18.10% yearly.
EPS Next Y-17.89%
EPS Next 2Y33.87%
EPS Next 3Y34.24%
EPS Next 5Y30.94%
Revenue Next Year34.73%
Revenue Next 2Y24.33%
Revenue Next 3Y19.77%
Revenue Next 5Y18.1%
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
- With a Price/Earnings ratio of 96.79, KNTK can be considered very expensive at the moment.
- KNTK's Price/Earnings ratio is a bit more expensive when compared to the industry. KNTK is more expensive than 66.18% of the companies in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 28.60, KNTK is valued quite expensively.
- A Price/Forward Earnings ratio of 22.24 indicates a rather expensive valuation of KNTK.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of KNTK is on the same level as its industry peers.
- When comparing the Price/Forward Earnings ratio of KNTK to the average of the S&P500 Index (25.83), we can say KNTK is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 96.79 | ||
| Fwd PE | 22.24 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of KNTK indicates a slightly more expensive valuation: KNTK is more expensive than 69.57% of the companies listed in the same industry.
- The rest of the industry has a similar Price/Free Cash Flow ratio as KNTK.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 48.13 | ||
| EV/EBITDA | 20.25 |
4.3 Compensation for Growth
- KNTK's earnings are expected to grow with 34.24% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y33.87%
EPS Next 3Y34.24%
5. Dividend
5.1 Amount
- KNTK has a Yearly Dividend Yield of 7.94%, which is a nice return.
- KNTK's Dividend Yield is rather good when compared to the industry average which is at 3.73. KNTK pays more dividend than 84.06% of the companies in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.82, KNTK pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.94% |
5.2 History
- KNTK has been paying a dividend for over 5 years, so it has already some track record.
- The dividend of KNTK decreased in the last 3 years.
Dividend Growth(5Y)N/A
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
- KNTK pays out 1972.21% of its income as dividend. This is not a sustainable payout ratio.
DP1972.21%
EPS Next 2Y33.87%
EPS Next 3Y34.24%
KINETIK HOLDINGS INC / KNTK FAQ
Can you provide the ChartMill fundamental rating for KINETIK HOLDINGS INC?
ChartMill assigns a fundamental rating of 3 / 10 to KNTK.
What is the valuation status of KINETIK HOLDINGS INC (KNTK) stock?
ChartMill assigns a valuation rating of 2 / 10 to KINETIK HOLDINGS INC (KNTK). This can be considered as Overvalued.
How profitable is KINETIK HOLDINGS INC (KNTK) stock?
KINETIK HOLDINGS INC (KNTK) has a profitability rating of 3 / 10.
Can you provide the PE and PB ratios for KNTK stock?
The Price/Earnings (PE) ratio for KINETIK HOLDINGS INC (KNTK) is 96.79 and the Price/Book (PB) ratio is -3.7.
Can you provide the dividend sustainability for KNTK stock?
The dividend rating of KINETIK HOLDINGS INC (KNTK) is 5 / 10 and the dividend payout ratio is 1972.21%.