KOSMOS ENERGY LTD (KOS) Stock Fundamental Analysis
NYSE:KOS - New York Stock Exchange, Inc. - US5006881065 - Common Stock - Currency: USD
KOS gets a fundamental rating of 2 out of 10. The analysis compared the fundamentals against 212 industry peers in the Oil, Gas & Consumable Fuels industry. There are concerns on the financial health of KOS while its profitability can be described as average. KOS has a expensive valuation and it also scores bad on growth.
1. Profitability
1.1 Basic Checks
KOS had positive earnings in the past year.
KOS had a positive operating cash flow in the past year.
In multiple years KOS reported negative net income over the last 5 years.
Each year in the past 5 years KOS had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 3.58%, KOS is in line with its industry, outperforming 48.11% of the companies in the same industry.
KOS has a Return On Equity of 15.82%. This is in the better half of the industry: KOS outperforms 71.23% of its industry peers.
With a Return On Invested Capital value of 7.53%, KOS perfoms like the industry average, outperforming 58.96% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for KOS is significantly below the industry average of 27.43%.
The last Return On Invested Capital (7.53%) for KOS is well below the 3 year average (14.10%), which needs to be investigated, but indicates that KOS had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.58% | ||
| ROE | 15.82% | ||
| ROIC | 7.53% |
ROA(3y)4.28%
ROA(5y)0.13%
ROE(3y)21.75%
ROE(5y)-8.59%
ROIC(3y)14.1%
ROIC(5y)N/A
1.3 Margins
Looking at the Profit Margin, with a value of 11.33%, KOS is in line with its industry, outperforming 56.60% of the companies in the same industry.
Looking at the Operating Margin, with a value of 26.82%, KOS is in the better half of the industry, outperforming 60.85% of the companies in the same industry.
KOS's Operating Margin has improved in the last couple of years.
KOS has a better Gross Margin (68.33%) than 75.00% of its industry peers.
In the last couple of years the Gross Margin of KOS has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 26.82% | ||
| PM (TTM) | 11.33% | ||
| GM | 68.33% |
OM growth 3Y-0.89%
OM growth 5Y9.48%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-2.63%
GM growth 5Y-1.35%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), KOS is creating value.
Compared to 1 year ago, KOS has more shares outstanding
The number of shares outstanding for KOS has been increased compared to 5 years ago.
The debt/assets ratio for KOS is higher compared to a year ago.
2.2 Solvency
KOS has an Altman-Z score of 0.40. This is a bad value and indicates that KOS is not financially healthy and even has some risk of bankruptcy.
KOS has a worse Altman-Z score (0.40) than 65.57% of its industry peers.
A Debt/Equity ratio of 2.29 is on the high side and indicates that KOS has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 2.29, KOS is doing worse than 85.38% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.29 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.4 |
ROIC/WACC1.08
WACC6.96%
2.3 Liquidity
A Current Ratio of 0.75 indicates that KOS may have some problems paying its short term obligations.
KOS has a Current ratio of 0.75. This is in the lower half of the industry: KOS underperforms 72.17% of its industry peers.
A Quick Ratio of 0.46 indicates that KOS may have some problems paying its short term obligations.
With a Quick ratio value of 0.46, KOS is not doing good in the industry: 84.91% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.75 | ||
| Quick Ratio | 0.46 |
3. Growth
3.1 Past
The earnings per share for KOS have decreased strongly by -45.57% in the last year.
Looking at the last year, KOS shows a decrease in Revenue. The Revenue has decreased by -1.54% in the last year.
Measured over the past years, KOS shows a small growth in Revenue. The Revenue has been growing by 2.24% on average per year.
EPS 1Y (TTM)-45.57%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-109.68%
Revenue 1Y (TTM)-1.54%
Revenue growth 3Y7.94%
Revenue growth 5Y2.24%
Sales Q2Q%-21.69%
3.2 Future
KOS is expected to show a very negative growth in Earnings Per Share. In the coming years, the EPS will decrease by -32.42% yearly.
Based on estimates for the next years, KOS will show a decrease in Revenue. The Revenue will decrease by -1.12% on average per year.
EPS Next Y-100.08%
EPS Next 2Y-20.22%
EPS Next 3Y-10.91%
EPS Next 5Y-32.42%
Revenue Next Year-1.05%
Revenue Next 2Y4%
Revenue Next 3Y1.13%
Revenue Next 5Y-1.12%
3.3 Evolution
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
A Price/Earnings ratio of 4.12 indicates a rather cheap valuation of KOS.
89.15% of the companies in the same industry are more expensive than KOS, based on the Price/Earnings ratio.
KOS's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.63.
The Forward Price/Earnings Ratio is negative for KOS. No positive earnings are expected for the next year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.12 | ||
| Fwd PE | N/A |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, KOS is valued a bit cheaper than 73.58% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 3.85 |
4.3 Compensation for Growth
KOS's earnings are expected to decrease with -10.91% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-20.22%
EPS Next 3Y-10.91%
5. Dividend
5.1 Amount
KOS does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
NYSE:KOS (4/22/2025, 1:50:02 PM)
1.77
-0.03 (-1.67%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners97.76%
Inst Owner Change-3.72%
Ins Owners2.1%
Ins Owner Change1.37%
Market Cap845.88M
Analysts78.46
Price Target5.73 (223.73%)
Short Float %10.53%
Short Ratio5.48
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly Dividend0
Dividend Growth(5Y)N/A
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-76.36%
Min EPS beat(2)-151.72%
Max EPS beat(2)-0.99%
EPS beat(4)2
Avg EPS beat(4)-20.33%
Min EPS beat(4)-151.72%
Max EPS beat(4)36.1%
EPS beat(8)4
Avg EPS beat(8)-8.59%
EPS beat(12)8
Avg EPS beat(12)8.17%
EPS beat(16)9
Avg EPS beat(16)-6.79%
Revenue beat(2)1
Avg Revenue beat(2)0.4%
Min Revenue beat(2)-0.85%
Max Revenue beat(2)1.64%
Revenue beat(4)2
Avg Revenue beat(4)0.76%
Min Revenue beat(4)-0.85%
Max Revenue beat(4)2.29%
Revenue beat(8)4
Avg Revenue beat(8)0.54%
Revenue beat(12)6
Avg Revenue beat(12)0.58%
Revenue beat(16)8
Avg Revenue beat(16)-0.4%
PT rev (1m)-11.24%
PT rev (3m)-16.98%
EPS NQ rev (1m)-41.27%
EPS NQ rev (3m)-202.33%
EPS NY rev (1m)-100.08%
EPS NY rev (3m)-100.06%
Revenue NQ rev (1m)-0.77%
Revenue NQ rev (3m)-27.89%
Revenue NY rev (1m)1.07%
Revenue NY rev (3m)-14.34%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.12 | ||
| Fwd PE | N/A | ||
| P/S | 0.5 | ||
| P/FCF | N/A | ||
| P/OCF | 1.25 | ||
| P/B | 0.7 | ||
| P/tB | 0.7 | ||
| EV/EBITDA | 3.85 |
EPS(TTM)0.43
EY24.29%
EPS(NY)0
Fwd EYN/A
FCF(TTM)-0.53
FCFYN/A
OCF(TTM)1.42
OCFY80.18%
SpS3.51
BVpS2.51
TBVpS2.51
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.58% | ||
| ROE | 15.82% | ||
| ROCE | 9.53% | ||
| ROIC | 7.53% | ||
| ROICexc | 7.67% | ||
| ROICexgc | 7.67% | ||
| OM | 26.82% | ||
| PM (TTM) | 11.33% | ||
| GM | 68.33% | ||
| FCFM | N/A |
ROA(3y)4.28%
ROA(5y)0.13%
ROE(3y)21.75%
ROE(5y)-8.59%
ROIC(3y)14.1%
ROIC(5y)N/A
ROICexc(3y)14.59%
ROICexc(5y)N/A
ROICexgc(3y)14.59%
ROICexgc(5y)N/A
ROCE(3y)17.85%
ROCE(5y)N/A
ROICexcg growth 3Y4.21%
ROICexcg growth 5Y6.17%
ROICexc growth 3Y4.21%
ROICexc growth 5Y6.17%
OM growth 3Y-0.89%
OM growth 5Y9.48%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-2.63%
GM growth 5Y-1.35%
F-Score3
Asset Turnover0.32
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.29 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 3 | ||
| Cap/Depr | 200.58% | ||
| Cap/Sales | 55.73% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 74.15% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.75 | ||
| Quick Ratio | 0.46 | ||
| Altman-Z | 0.4 |
F-Score3
WACC6.96%
ROIC/WACC1.08
Cap/Depr(3y)188.24%
Cap/Depr(5y)167.54%
Cap/Sales(3y)48.86%
Cap/Sales(5y)52.84%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-45.57%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-109.68%
EPS Next Y-100.08%
EPS Next 2Y-20.22%
EPS Next 3Y-10.91%
EPS Next 5Y-32.42%
Revenue 1Y (TTM)-1.54%
Revenue growth 3Y7.94%
Revenue growth 5Y2.24%
Sales Q2Q%-21.69%
Revenue Next Year-1.05%
Revenue Next 2Y4%
Revenue Next 3Y1.13%
Revenue Next 5Y-1.12%
EBIT growth 1Y-36.85%
EBIT growth 3Y6.98%
EBIT growth 5Y11.94%
EBIT Next Year49.5%
EBIT Next 3Y19.04%
EBIT Next 5Y7.19%
FCF growth 1Y-52.54%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-11.36%
OCF growth 3Y21.91%
OCF growth 5Y1.54%