KODIAK GAS SERVICES INC (KGS) Stock Fundamental Analysis
NYSE:KGS - New York Stock Exchange, Inc. - US50012A1088 - Common Stock - Currency: USD
Taking everything into account, KGS scores 3 out of 10 in our fundamental rating. KGS was compared to 62 industry peers in the Energy Equipment & Services industry. There are concerns on the financial health of KGS while its profitability can be described as average. While showing a medium growth rate, KGS is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
In the past year KGS was profitable.
In the past year KGS had a positive cash flow from operations.
KGS had positive earnings in 4 of the past 5 years.
In the past 5 years KGS always reported a positive cash flow from operatings.
1.2 Ratios
With a Return On Assets value of 1.13%, KGS is not doing good in the industry: 69.35% of the companies in the same industry are doing better.
The Return On Equity of KGS (3.73%) is worse than 66.13% of its industry peers.
Looking at the Return On Invested Capital, with a value of 4.92%, KGS is doing worse than 61.29% of the companies in the same industry.
KGS had an Average Return On Invested Capital over the past 3 years of 4.60%. This is below the industry average of 8.42%.
The 3 year average ROIC (4.60%) for KGS is below the current ROIC(4.92%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.13% | ||
| ROE | 3.73% | ||
| ROIC | 4.92% |
ROA(3y)1.69%
ROA(5y)2.2%
ROE(3y)17.27%
ROE(5y)14.08%
ROIC(3y)4.6%
ROIC(5y)5.21%
1.3 Margins
With a Profit Margin value of 3.93%, KGS is not doing good in the industry: 62.90% of the companies in the same industry are doing better.
KGS's Profit Margin has declined in the last couple of years.
KGS has a better Operating Margin (25.70%) than 91.94% of its industry peers.
In the last couple of years the Operating Margin of KGS has declined.
Looking at the Gross Margin, with a value of 60.48%, KGS belongs to the top of the industry, outperforming 95.16% of the companies in the same industry.
KGS's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 25.7% | ||
| PM (TTM) | 3.93% | ||
| GM | 60.48% |
OM growth 3Y-8.68%
OM growth 5YN/A
PM growth 3Y-47.56%
PM growth 5YN/A
GM growth 3Y-2.55%
GM growth 5YN/A
2. Health
2.1 Basic Checks
KGS 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 KGS has been increased compared to 1 year ago.
Compared to 1 year ago, KGS has a worse debt to assets ratio.
2.2 Solvency
KGS has an Altman-Z score of 1.11. This is a bad value and indicates that KGS is not financially healthy and even has some risk of bankruptcy.
KGS's Altman-Z score of 1.11 is on the low side compared to the rest of the industry. KGS is outperformed by 72.58% of its industry peers.
KGS has a debt to FCF ratio of 71.34. This is a negative value and a sign of low solvency as KGS would need 71.34 years to pay back of all of its debts.
The Debt to FCF ratio of KGS (71.34) is worse than 64.52% of its industry peers.
KGS has a Debt/Equity ratio of 1.93. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of KGS (1.93) is worse than 88.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.93 | ||
| Debt/FCF | 71.34 | ||
| Altman-Z | 1.11 |
ROIC/WACC0.59
WACC8.38%
2.3 Liquidity
A Current Ratio of 1.17 indicates that KGS should not have too much problems paying its short term obligations.
KGS's Current ratio of 1.17 is on the low side compared to the rest of the industry. KGS is outperformed by 87.10% of its industry peers.
A Quick Ratio of 0.87 indicates that KGS may have some problems paying its short term obligations.
The Quick ratio of KGS (0.87) is worse than 85.48% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.17 | ||
| Quick Ratio | 0.87 |
3. Growth
3.1 Past
KGS shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -36.73%.
The earnings per share for KGS have been decreasing by -37.59% on average. This is quite bad
Looking at the last year, KGS shows a very strong growth in Revenue. The Revenue has grown by 45.41%.
Measured over the past years, KGS shows a very strong growth in Revenue. The Revenue has been growing by 24.11% on average per year.
EPS 1Y (TTM)-36.73%
EPS 3Y-37.59%
EPS 5YN/A
EPS Q2Q%15.38%
Revenue 1Y (TTM)45.41%
Revenue growth 3Y24.11%
Revenue growth 5YN/A
Sales Q2Q%52.97%
3.2 Future
KGS is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 47.91% yearly.
The Revenue is expected to grow by 8.72% on average over the next years. This is quite good.
EPS Next Y119.44%
EPS Next 2Y64.4%
EPS Next 3Y47.91%
EPS Next 5YN/A
Revenue Next Year14.51%
Revenue Next 2Y10.27%
Revenue Next 3Y8.72%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
The Price/Earnings ratio is 36.36, which means the current valuation is very expensive for KGS.
KGS's Price/Earnings ratio is a bit more expensive when compared to the industry. KGS is more expensive than 67.74% of the companies in the same industry.
When comparing the Price/Earnings ratio of KGS to the average of the S&P500 Index (28.04), we can say KGS is valued slightly more expensively.
A Price/Forward Earnings ratio of 14.46 indicates a correct valuation of KGS.
KGS's Price/Forward Earnings ratio is in line with the industry average.
The average S&P500 Price/Forward Earnings ratio is at 37.64. KGS is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.36 | ||
| Fwd PE | 14.46 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of KGS indicates a slightly more expensive valuation: KGS is more expensive than 72.58% of the companies listed in the same industry.
64.52% of the companies in the same industry are cheaper than KGS, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 75.44 | ||
| EV/EBITDA | 8.74 |
4.3 Compensation for Growth
KGS's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
KGS's earnings are expected to grow with 47.91% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.3
PEG (5Y)N/A
EPS Next 2Y64.4%
EPS Next 3Y47.91%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.32%, KGS is a good candidate for dividend investing.
KGS's Dividend Yield is rather good when compared to the industry average which is at 3.53. KGS pays more dividend than 91.94% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.31, KGS pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.32% |
5.2 History
KGS has been paying a dividend for less than 5 years, so it still needs to build a track record.
Dividend Growth(5Y)N/A
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
280.62% of the earnings are spent on dividend by KGS. This is not a sustainable payout ratio.
DP280.62%
EPS Next 2Y64.4%
EPS Next 3Y47.91%
31.27
-0.53 (-1.67%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryEnergy Equipment & Services
Earnings (Last)
Earnings (Next)
Inst Owners65.71%
Inst Owner Change0.04%
Ins Owners0.66%
Ins Owner Change15.96%
Market Cap2.75B
Analysts83.75
Price Target45.53 (45.6%)
Short Float %14.05%
Short Ratio7.87
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.32% |
Yearly Dividend1.62
Dividend Growth(5Y)N/A
DP280.62%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-15.66%
Min EPS beat(2)-47.53%
Max EPS beat(2)16.21%
EPS beat(4)1
Avg EPS beat(4)-47.23%
Min EPS beat(4)-86.57%
Max EPS beat(4)16.21%
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)1
Avg Revenue beat(2)-2.57%
Min Revenue beat(2)-5.32%
Max Revenue beat(2)0.18%
Revenue beat(4)2
Avg Revenue beat(4)-1.3%
Min Revenue beat(4)-5.32%
Max Revenue beat(4)1.48%
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)0.31%
PT rev (3m)-1.31%
EPS NQ rev (1m)0.93%
EPS NQ rev (3m)2.27%
EPS NY rev (1m)1.78%
EPS NY rev (3m)2.43%
Revenue NQ rev (1m)-0.99%
Revenue NQ rev (3m)-1.43%
Revenue NY rev (1m)-0.51%
Revenue NY rev (3m)-0.37%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.36 | ||
| Fwd PE | 14.46 | ||
| P/S | 2.16 | ||
| P/FCF | 75.44 | ||
| P/OCF | 7.03 | ||
| P/B | 2.04 | ||
| P/tB | 3.58 | ||
| EV/EBITDA | 8.74 |
EPS(TTM)0.86
EY2.75%
EPS(NY)2.16
Fwd EY6.91%
FCF(TTM)0.41
FCFY1.33%
OCF(TTM)4.45
OCFY14.22%
SpS14.49
BVpS15.3
TBVpS8.74
PEG (NY)0.3
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.13% | ||
| ROE | 3.73% | ||
| ROCE | 7.97% | ||
| ROIC | 4.92% | ||
| ROICexc | 4.92% | ||
| ROICexgc | 5.72% | ||
| OM | 25.7% | ||
| PM (TTM) | 3.93% | ||
| GM | 60.48% | ||
| FCFM | 2.86% |
ROA(3y)1.69%
ROA(5y)2.2%
ROE(3y)17.27%
ROE(5y)14.08%
ROIC(3y)4.6%
ROIC(5y)5.21%
ROICexc(3y)4.62%
ROICexc(5y)5.26%
ROICexgc(3y)5.39%
ROICexgc(5y)6.78%
ROCE(3y)7.46%
ROCE(5y)8.44%
ROICexcg growth 3Y-0.49%
ROICexcg growth 5YN/A
ROICexc growth 3Y0.18%
ROICexc growth 5YN/A
OM growth 3Y-8.68%
OM growth 5YN/A
PM growth 3Y-47.56%
PM growth 5YN/A
GM growth 3Y-2.55%
GM growth 5YN/A
F-Score6
Asset Turnover0.29
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.93 | ||
| Debt/FCF | 71.34 | ||
| Debt/EBITDA | 4.25 | ||
| Cap/Depr | 124.84% | ||
| Cap/Sales | 27.83% | ||
| Interest Coverage | 1.9 | ||
| Cash Conversion | 63.95% | ||
| Profit Quality | 72.73% | ||
| Current Ratio | 1.17 | ||
| Quick Ratio | 0.87 | ||
| Altman-Z | 1.11 |
F-Score6
WACC8.38%
ROIC/WACC0.59
Cap/Depr(3y)132.75%
Cap/Depr(5y)145.74%
Cap/Sales(3y)30.51%
Cap/Sales(5y)36.14%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-36.73%
EPS 3Y-37.59%
EPS 5YN/A
EPS Q2Q%15.38%
EPS Next Y119.44%
EPS Next 2Y64.4%
EPS Next 3Y47.91%
EPS Next 5YN/A
Revenue 1Y (TTM)45.41%
Revenue growth 3Y24.11%
Revenue growth 5YN/A
Sales Q2Q%52.97%
Revenue Next Year14.51%
Revenue Next 2Y10.27%
Revenue Next 3Y8.72%
Revenue Next 5YN/A
EBIT growth 1Y34.55%
EBIT growth 3Y13.34%
EBIT growth 5YN/A
EBIT Next Year136.18%
EBIT Next 3Y40.06%
EBIT Next 5Y23.23%
FCF growth 1Y176.19%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y107.53%
OCF growth 3Y9.47%
OCF growth 5YN/A