KINETIK HOLDINGS INC (KNTK) Stock Fundamental Analysis
NYSE:KNTK - New York Stock Exchange, Inc. - US02215L2097 - Common Stock - Currency: USD
We assign a fundamental rating of 3 out of 10 to KNTK. KNTK was compared to 210 industry peers in the Oil, Gas & Consumable Fuels industry. There are concerns on the financial health of KNTK while its profitability can be described as average. While showing a medium growth rate, KNTK is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
KNTK had positive earnings in the past year.
KNTK had a positive operating cash flow in the past year.
KNTK had positive earnings in 4 of the past 5 years.
KNTK had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
KNTK's Return On Assets of 0.91% is on the low side compared to the rest of the industry. KNTK is outperformed by 63.33% of its industry peers.
Looking at the Return On Invested Capital, with a value of 2.76%, KNTK is doing worse than 68.57% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for KNTK is significantly below the industry average of 23.80%.
The 3 year average ROIC (2.60%) for KNTK is below the current ROIC(2.76%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.91% | ||
| ROE | N/A | ||
| ROIC | 2.76% |
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
With a Profit Margin value of 3.32%, KNTK perfoms like the industry average, outperforming 41.43% of the companies in the same industry.
Looking at the Operating Margin, with a value of 10.51%, KNTK is doing worse than 60.95% of the companies in the same industry.
KNTK's Operating Margin has improved in the last couple of years.
The Gross Margin of KNTK (54.55%) is better than 62.38% of its industry peers.
In the last couple of years the Gross Margin of KNTK has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.51% | ||
| PM (TTM) | 3.32% | ||
| GM | 54.55% |
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.
KNTK has more shares outstanding than it did 1 year ago.
The number of shares outstanding for KNTK has been reduced compared to 5 years ago.
Compared to 1 year ago, KNTK has an improved debt to assets ratio.
2.2 Solvency
KNTK has an Altman-Z score of 0.23. This is a bad value and indicates that KNTK is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.23, KNTK is doing worse than 68.57% of the companies in the same industry.
The Debt to FCF ratio of KNTK is 10.23, which is on the high side as it means it would take KNTK, 10.23 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 10.23, KNTK is in line with its industry, outperforming 51.43% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 10.23 | ||
| Altman-Z | 0.23 |
ROIC/WACC0.28
WACC9.8%
2.3 Liquidity
KNTK has a Current Ratio of 0.66. This is a bad value and indicates that KNTK is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Current ratio value of 0.66, KNTK is not doing good in the industry: 78.57% of the companies in the same industry are doing better.
KNTK has a Quick Ratio of 0.66. This is a bad value and indicates that KNTK is not financially healthy enough and could expect problems in meeting its short term obligations.
KNTK has a Quick ratio of 0.66. This is in the lower half of the industry: KNTK underperforms 71.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.66 | ||
| Quick Ratio | 0.66 |
3. Growth
3.1 Past
The earnings per share for KNTK have decreased strongly by -61.07% in the last year.
Measured over the past years, KNTK shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -61.79% on average per year.
The Revenue has grown by 46.28% in the past year. This is a very strong growth!
The Revenue has been growing by 61.30% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)-61.07%
EPS 3Y-39.67%
EPS 5Y-61.79%
EPS Q2Q%-58.33%
Revenue 1Y (TTM)46.28%
Revenue growth 3Y109.79%
Revenue growth 5Y61.3%
Sales Q2Q%29.84%
3.2 Future
Based on estimates for the next years, KNTK will show a small growth in Earnings Per Share. The EPS will grow by 5.10% on average per year.
The Revenue is expected to grow by 15.37% on average over the next years. This is quite good.
EPS Next Y32.78%
EPS Next 2Y47.87%
EPS Next 3Y39.39%
EPS Next 5Y5.1%
Revenue Next Year22.28%
Revenue Next 2Y27.61%
Revenue Next 3Y24.23%
Revenue Next 5Y15.37%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 43.21, KNTK can be considered very expensive at the moment.
66.19% of the companies in the same industry are cheaper than KNTK, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of KNTK to the average of the S&P500 Index (27.19), we can say KNTK is valued expensively.
The Price/Forward Earnings ratio is 18.41, which indicates a rather expensive current 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.
KNTK is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 35.33, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 43.21 | ||
| Fwd PE | 18.41 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, KNTK is valued a bit more expensive than the industry average as 68.10% of the companies are valued more cheaply.
The rest of the industry has a similar Price/Free Cash Flow ratio as KNTK.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.85 | ||
| EV/EBITDA | 18.55 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
KNTK's earnings are expected to grow with 39.39% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.32
PEG (5Y)N/A
EPS Next 2Y47.87%
EPS Next 3Y39.39%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 7.53%, KNTK is a good candidate for dividend investing.
KNTK's Dividend Yield is a higher than the industry average which is at 6.41.
KNTK's Dividend Yield is rather good when compared to the S&P500 average which is at 2.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.53% |
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
750.07% of the earnings are spent on dividend by KNTK. This is not a sustainable payout ratio.
DP750.07%
EPS Next 2Y47.87%
EPS Next 3Y39.39%
41.05
-0.52 (-1.25%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners70.42%
Inst Owner ChangeN/A
Ins Owners8.32%
Ins Owner Change2.89%
Market Cap6.48B
Analysts77
Price Target55.1 (34.23%)
Short Float %9.09%
Short Ratio3.09
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.53% |
Yearly Dividend2.56
Dividend Growth(5Y)N/A
DP750.07%
Div Incr Years2
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-90.92%
Min EPS beat(2)-97.39%
Max EPS beat(2)-84.45%
EPS beat(4)1
Avg EPS beat(4)-44.96%
Min EPS beat(4)-97.39%
Max EPS beat(4)25.12%
EPS beat(8)2
Avg EPS beat(8)-10.41%
EPS beat(12)3
Avg EPS beat(12)-23.81%
EPS beat(16)4
Avg EPS beat(16)-9.18%
Revenue beat(2)0
Avg Revenue beat(2)-2.04%
Min Revenue beat(2)-3.11%
Max Revenue beat(2)-0.96%
Revenue beat(4)2
Avg Revenue beat(4)4.43%
Min Revenue beat(4)-3.11%
Max Revenue beat(4)17.33%
Revenue beat(8)5
Avg Revenue beat(8)4.35%
Revenue beat(12)9
Avg Revenue beat(12)11.37%
Revenue beat(16)12
Avg Revenue beat(16)15.64%
PT rev (1m)0.34%
PT rev (3m)-9.34%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-23.54%
EPS NY rev (1m)-16.45%
EPS NY rev (3m)-27.32%
Revenue NQ rev (1m)0.16%
Revenue NQ rev (3m)-4.15%
Revenue NY rev (1m)0.41%
Revenue NY rev (3m)-14.06%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 43.21 | ||
| Fwd PE | 18.41 | ||
| P/S | 3.37 | ||
| P/FCF | 17.85 | ||
| P/OCF | 9.82 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 18.55 |
EPS(TTM)0.95
EY2.31%
EPS(NY)2.23
Fwd EY5.43%
FCF(TTM)2.3
FCFY5.6%
OCF(TTM)4.18
OCFY10.19%
SpS12.19
BVpS-16.14
TBVpS-20.19
PEG (NY)1.32
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.91% | ||
| ROE | N/A | ||
| ROCE | 3.09% | ||
| ROIC | 2.76% | ||
| ROICexc | 2.76% | ||
| ROICexgc | 3.06% | ||
| OM | 10.51% | ||
| PM (TTM) | 3.32% | ||
| GM | 54.55% | ||
| FCFM | 18.86% |
ROA(3y)2.04%
ROA(5y)1.09%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)2.6%
ROIC(5y)2.92%
ROICexc(3y)2.6%
ROICexc(5y)2.99%
ROICexgc(3y)2.91%
ROICexgc(5y)3.18%
ROCE(3y)2.86%
ROCE(5y)3.21%
ROICexcg growth 3Y-9.6%
ROICexcg growth 5Y25.06%
ROICexc growth 3Y-12.74%
ROICexc growth 5Y22.43%
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%
F-Score5
Asset Turnover0.27
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 10.23 | ||
| Debt/EBITDA | 6.81 | ||
| Cap/Depr | 86.57% | ||
| Cap/Sales | 15.43% | ||
| Interest Coverage | 0.96 | ||
| Cash Conversion | 121.02% | ||
| Profit Quality | 568.11% | ||
| Current Ratio | 0.66 | ||
| Quick Ratio | 0.66 | ||
| Altman-Z | 0.23 |
F-Score5
WACC9.8%
ROIC/WACC0.28
Cap/Depr(3y)95.84%
Cap/Depr(5y)100.92%
Cap/Sales(3y)21.03%
Cap/Sales(5y)17.23%
Profit Quality(3y)441.7%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-61.07%
EPS 3Y-39.67%
EPS 5Y-61.79%
EPS Q2Q%-58.33%
EPS Next Y32.78%
EPS Next 2Y47.87%
EPS Next 3Y39.39%
EPS Next 5Y5.1%
Revenue 1Y (TTM)46.28%
Revenue growth 3Y109.79%
Revenue growth 5Y61.3%
Sales Q2Q%29.84%
Revenue Next Year22.28%
Revenue Next 2Y27.61%
Revenue Next 3Y24.23%
Revenue Next 5Y15.37%
EBIT growth 1Y11.55%
EBIT growth 3Y40.49%
EBIT growth 5Y65.19%
EBIT Next Year258.85%
EBIT Next 3Y63.82%
EBIT Next 5Y37.72%
FCF growth 1Y-3.58%
FCF growth 3Y20.79%
FCF growth 5YN/A
OCF growth 1Y4.14%
OCF growth 3Y44.85%
OCF growth 5Y52.89%