KOSMOS ENERGY LTD (KOS) Stock Fundamental Analysis
NYSE:KOS - New York Stock Exchange, Inc. - US5006881065 - Common Stock - Currency: USD
We assign a fundamental rating of 3 out of 10 to KOS. KOS was compared to 211 industry peers in the Oil, Gas & Consumable Fuels industry. KOS has a medium profitability rating, but doesn't score so well on its financial health evaluation. KOS has a valuation in line with the averages, but it does not seem to be growing.
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.
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 3.99%, KOS is in line with its industry, outperforming 41.67% of the companies in the same industry.
KOS's Return On Equity of 18.22% is fine compared to the rest of the industry. KOS outperforms 71.08% of its industry peers.
The Return On Invested Capital of KOS (9.10%) is better than 63.73% of its industry peers.
The Average Return On Invested Capital over the past 3 years for KOS is significantly below the industry average of 28.75%.
| Industry Rank | Sector 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
1.3 Margins
Looking at the Profit Margin, with a value of 12.22%, KOS is in line with its industry, outperforming 48.53% of the companies in the same industry.
KOS has a better Operating Margin (40.13%) than 80.39% of its industry peers.
With an excellent Gross Margin value of 73.03%, KOS belongs to the best of the industry, outperforming 80.88% of the companies in the same industry.
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 | 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%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so KOS is still creating some value.
KOS has more shares outstanding than it did 1 year ago.
The number of shares outstanding for KOS has been increased compared to 5 years ago.
Compared to 1 year ago, KOS has an improved debt to assets ratio.
2.2 Solvency
KOS has an Altman-Z score of 0.66. 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 (0.66) than 65.69% of its industry peers.
KOS has a Debt/Equity ratio of 2.25. This is a high value indicating a heavy dependency on external financing.
KOS has a worse Debt to Equity ratio (2.25) than 87.25% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.25 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.66 |
ROIC/WACC1.47
WACC6.18%
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 74.51% 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.
KOS's Quick ratio of 0.47 is on the low side compared to the rest of the industry. KOS is outperformed by 86.27% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.75 | ||
| Quick Ratio | 0.47 |
3. Growth
3.1 Past
KOS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 8.45%, which is quite good.
The Revenue has been growing slightly by 4.80% in the past year.
KOS shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 13.92% yearly.
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
KOS is expected to show a very negative growth in Earnings Per Share. In the coming years, the EPS will decrease by -10.47% yearly.
The Revenue is expected to decrease by -1.37% on average over the next years.
EPS Next Y-36.08%
EPS Next 2Y-28.26%
EPS Next 3Y-10.6%
EPS Next 5Y-10.47%
Revenue Next Year-0.06%
Revenue Next 2Y4.06%
Revenue Next 3Y4.62%
Revenue Next 5Y-1.37%
3.3 Evolution
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 4.13, the valuation of KOS can be described as very cheap.
Based on the Price/Earnings ratio, KOS is valued cheaper than 91.67% of the companies in the same industry.
KOS is valuated cheaply when we compare the Price/Earnings ratio to 29.63, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 7.82, the valuation of KOS can be described as very cheap.
KOS's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. KOS is cheaper than 74.51% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.68. KOS is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.13 | ||
| Fwd PE | 7.82 |
4.2 Price Multiples
KOS's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. KOS is cheaper than 78.43% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 3.6 |
4.3 Compensation for Growth
KOS's earnings are expected to decrease with -10.60% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-28.26%
EPS Next 3Y-10.6%
5. Dividend
5.1 Amount
KOS does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
3.18
-0.17 (-5.07%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners97.76%
Inst Owner Change-97.15%
Ins Owners2.1%
Ins Owner Change1.37%
Market Cap1.50B
Analysts80
Price Target6.64 (108.81%)
Short Float %9.05%
Short Ratio4.28
Dividend
| Industry Rank | Sector 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)-3.7%
PT rev (3m)-7.38%
EPS NQ rev (1m)2.5%
EPS NQ rev (3m)2.5%
EPS NY rev (1m)-16.67%
EPS NY rev (3m)-14.11%
Revenue NQ rev (1m)-5.74%
Revenue NQ rev (3m)-5.74%
Revenue NY rev (1m)-1.21%
Revenue NY rev (3m)-3.33%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.13 | ||
| Fwd PE | 7.82 | ||
| P/S | 0.84 | ||
| P/FCF | N/A | ||
| P/OCF | 1.88 | ||
| P/B | 1.25 | ||
| P/tB | 1.25 | ||
| EV/EBITDA | 3.6 |
EPS(TTM)0.77
EY24.21%
EPS(NY)0.41
Fwd EY12.79%
FCF(TTM)-0.63
FCFYN/A
OCF(TTM)1.69
OCFY53.06%
SpS3.78
BVpS2.54
TBVpS2.54
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector 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 Rank | Sector 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 | 0.66 |
F-Score5
WACC6.18%
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-36.08%
EPS Next 2Y-28.26%
EPS Next 3Y-10.6%
EPS Next 5Y-10.47%
Revenue 1Y (TTM)4.8%
Revenue growth 3Y28.39%
Revenue growth 5Y13.92%
Sales Q2Q%-22.52%
Revenue Next Year-0.06%
Revenue Next 2Y4.06%
Revenue Next 3Y4.62%
Revenue Next 5Y-1.37%
EBIT growth 1Y2.79%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year52.28%
EBIT Next 3Y21.74%
EBIT Next 5Y7.6%
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%