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KOSMOS ENERGY LTD (KOS) Stock Fundamental Analysis

NYSE:KOS - New York Stock Exchange, Inc. - US5006881065 - Common Stock

3.55  -0.04 (-1.11%)

Premarket: 3.55 0 (0%)

Fundamental Rating

3

Overall KOS gets a fundamental rating of 3 out of 10. We evaluated KOS against 210 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 valuation in line with the averages, but it does not seem to be growing.


Dividend Valuation Growth Profitability Health

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5

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.
The reported net income has been mixed in the past 5 years: KOS reported negative net income in multiple years.
In the past 5 years KOS always reported a positive cash flow from operatings.
KOS Yearly Net Income VS EBIT VS OCF VS FCFKOS Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 500M -500M 1B

1.2 Ratios

The Return On Assets of KOS (3.99%) is comparable to the rest of the industry.
Looking at the Return On Equity, with a value of 18.22%, KOS is in the better half of the industry, outperforming 69.90% of the companies in the same industry.
KOS's Return On Invested Capital of 9.10% is fine compared to the rest of the industry. KOS outperforms 63.11% of its industry peers.
The Average Return On Invested Capital over the past 3 years for KOS is significantly below the industry average of 28.71%.
Industry RankSector Rank
ROA 3.99%
ROE 18.22%
ROIC 9.1%
ROA(3y)2.57%
ROA(5y)-0.85%
ROE(3y)11.58%
ROE(5y)-13.08%
ROIC(3y)10.87%
ROIC(5y)N/A
KOS Yearly ROA, ROE, ROICKOS Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 20 -20 -40 -60 -80

1.3 Margins

Looking at the Profit Margin, with a value of 12.22%, KOS is in line with its industry, outperforming 48.54% of the companies in the same industry.
With an excellent Operating Margin value of 40.13%, KOS belongs to the best of the industry, outperforming 80.58% of the companies in the same industry.
KOS's Gross Margin of 73.03% is amongst the best of the industry. KOS outperforms 80.58% 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 RankSector Rank
OM 40.13%
PM (TTM) 12.22%
GM 73.03%
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y10%
GM growth 5Y0.64%
KOS Yearly Profit, Operating, Gross MarginsKOS Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 50 -50

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1

2. Health

2.1 Basic Checks

KOS has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
Compared to 1 year ago, KOS has more shares outstanding
KOS has more shares outstanding than it did 5 years ago.
KOS has a better debt/assets ratio than last year.
KOS Yearly Shares OutstandingKOS Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 100M 200M 300M 400M
KOS Yearly Total Debt VS Total AssetsKOS Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 1B 2B 3B 4B

2.2 Solvency

KOS has an Altman-Z score of 0.69. This is a bad value and indicates that KOS is not financially healthy and even has some risk of bankruptcy.
KOS has a Altman-Z score of 0.69. This is in the lower half of the industry: KOS underperforms 67.96% of its industry peers.
A Debt/Equity ratio of 2.25 is on the high side and indicates that KOS has dependencies on debt financing.
With a Debt to Equity ratio value of 2.25, KOS is not doing good in the industry: 86.89% of the companies in the same industry are doing better.
Industry RankSector Rank
Debt/Equity 2.25
Debt/FCF N/A
Altman-Z 0.69
ROIC/WACC1.47
WACC6.21%
KOS Yearly LT Debt VS Equity VS FCFKOS Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 1B 2B

2.3 Liquidity

KOS has a Current Ratio of 0.75. This is a bad value and indicates that KOS is not financially healthy enough and could expect problems in meeting its short term obligations.
KOS has a Current ratio of 0.75. This is in the lower half of the industry: KOS underperforms 74.27% of its industry peers.
KOS has a Quick Ratio of 0.75. This is a bad value and indicates that KOS is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.47, KOS is not doing good in the industry: 86.41% of the companies in the same industry are doing better.
Industry RankSector Rank
Current Ratio 0.75
Quick Ratio 0.47
KOS Yearly Current Assets VS Current LiabilitesKOS Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 200M 400M 600M

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3

3. Growth

3.1 Past

The Earnings Per Share has grown by an nice 8.45% over the past year.
KOS shows a small growth in Revenue. In the last year, the Revenue has grown by 4.80%.
The Revenue has been growing by 13.92% on average over the past years. This is quite good.
EPS 1Y (TTM)8.45%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-69.23%
Revenue 1Y (TTM)4.8%
Revenue growth 3Y28.39%
Revenue growth 5Y13.92%
Sales Q2Q%-22.52%

3.2 Future

The Earnings Per Share is expected to grow by 6.17% on average over the next years.
Based on estimates for the next years, KOS will show a decrease in Revenue. The Revenue will decrease by -0.79% on average per year.
EPS Next Y-23.29%
EPS Next 2Y-15.01%
EPS Next 3Y-3.29%
EPS Next 5Y6.17%
Revenue Next Year1.28%
Revenue Next 2Y7.48%
Revenue Next 3Y5.82%
Revenue Next 5Y-0.79%

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.
KOS Yearly Revenue VS EstimatesKOS Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 500M 1B 1.5B 2B
KOS Yearly EPS VS EstimatesKOS Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 0 0.5 -0.5 1

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5

4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 4.61 indicates a rather cheap valuation of KOS.
Compared to the rest of the industry, the Price/Earnings ratio of KOS indicates a rather cheap valuation: KOS is cheaper than 90.78% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 28.29, KOS is valued rather cheaply.
The Price/Forward Earnings ratio is 6.22, which indicates a rather cheap valuation of KOS.
Based on the Price/Forward Earnings ratio, KOS is valued cheaply inside the industry as 83.50% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of KOS to the average of the S&P500 Index (24.44), we can say KOS is valued rather cheaply.
Industry RankSector Rank
PE 4.61
Fwd PE 6.22
KOS Price Earnings VS Forward Price EarningsKOS Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, KOS is valued a bit cheaper than the industry average as 77.67% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 3.75
KOS Per share dataKOS EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 1 2 3

4.3 Compensation for Growth

A cheap valuation may be justified as KOS's earnings are expected to decrease with -3.29% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-15.01%
EPS Next 3Y-3.29%

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0

5. Dividend

5.1 Amount

KOS does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

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KOSMOS ENERGY LTD

NYSE:KOS (1/21/2025, 8:10:54 PM)

Premarket: 3.55 0 (0%)

3.55

-0.04 (-1.11%)

Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)11-04 2024-11-04/bmo
Earnings (Next)N/A N/A
Inst Owners98.66%
Inst Owner Change0.09%
Ins Owners1.89%
Ins Owner Change0%
Market Cap1.68B
Analysts78.33
Price Target6.9 (94.37%)
Short Float %8.45%
Short Ratio3.86
Dividend
Industry RankSector Rank
Dividend Yield N/A
Yearly Dividend0
Dividend Growth(5Y)N/A
DP-0.02%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)17.56%
Min EPS beat(2)-0.99%
Max EPS beat(2)36.1%
EPS beat(4)3
Avg EPS beat(4)25.21%
Min EPS beat(4)-0.99%
Max EPS beat(4)36.1%
EPS beat(8)5
Avg EPS beat(8)17.78%
EPS beat(12)8
Avg EPS beat(12)18.05%
EPS beat(16)10
Avg EPS beat(16)3.59%
Revenue beat(2)1
Avg Revenue beat(2)0.72%
Min Revenue beat(2)-0.85%
Max Revenue beat(2)2.29%
Revenue beat(4)2
Avg Revenue beat(4)1.66%
Min Revenue beat(4)-0.85%
Max Revenue beat(4)5.24%
Revenue beat(8)3
Avg Revenue beat(8)0.32%
Revenue beat(12)6
Avg Revenue beat(12)1.34%
Revenue beat(16)7
Avg Revenue beat(16)-1.25%
PT rev (1m)-3.82%
PT rev (3m)-10.36%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-93.42%
EPS NY rev (1m)0%
EPS NY rev (3m)-17.07%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-32.57%
Revenue NY rev (1m)0.17%
Revenue NY rev (3m)-6.51%
Valuation
Industry RankSector Rank
PE 4.61
Fwd PE 6.22
P/S 0.94
P/FCF N/A
P/OCF 2.1
P/B 1.4
P/tB 1.4
EV/EBITDA 3.75
EPS(TTM)0.77
EY21.69%
EPS(NY)0.57
Fwd EY16.07%
FCF(TTM)-0.63
FCFYN/A
OCF(TTM)1.69
OCFY47.53%
SpS3.78
BVpS2.54
TBVpS2.54
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA 3.99%
ROE 18.22%
ROCE 14.6%
ROIC 9.1%
ROICexc 9.2%
ROICexgc 9.2%
OM 40.13%
PM (TTM) 12.22%
GM 73.03%
FCFM N/A
ROA(3y)2.57%
ROA(5y)-0.85%
ROE(3y)11.58%
ROE(5y)-13.08%
ROIC(3y)10.87%
ROIC(5y)N/A
ROICexc(3y)11.28%
ROICexc(5y)N/A
ROICexgc(3y)11.28%
ROICexgc(5y)N/A
ROCE(3y)17.45%
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y10%
GM growth 5Y0.64%
F-Score5
Asset Turnover0.33
Health
Industry RankSector Rank
Debt/Equity 2.25
Debt/FCF N/A
Debt/EBITDA 2.34
Cap/Depr 251.71%
Cap/Sales 61.21%
Interest Coverage 250
Cash Conversion 69.2%
Profit Quality N/A
Current Ratio 0.75
Quick Ratio 0.47
Altman-Z 0.69
F-Score5
WACC6.21%
ROIC/WACC1.47
Cap/Depr(3y)186.82%
Cap/Depr(5y)139.71%
Cap/Sales(3y)53.76%
Cap/Sales(5y)46.39%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)8.45%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-69.23%
EPS Next Y-23.29%
EPS Next 2Y-15.01%
EPS Next 3Y-3.29%
EPS Next 5Y6.17%
Revenue 1Y (TTM)4.8%
Revenue growth 3Y28.39%
Revenue growth 5Y13.92%
Sales Q2Q%-22.52%
Revenue Next Year1.28%
Revenue Next 2Y7.48%
Revenue Next 3Y5.82%
Revenue Next 5Y-0.79%
EBIT growth 1Y2.79%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year53.24%
EBIT Next 3Y22.23%
EBIT Next 5Y8.34%
FCF growth 1Y-857%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-27.19%
OCF growth 3Y57.43%
OCF growth 5Y24.05%