KODIAK GAS SERVICES INC (KGS) Stock Fundamental Analysis
NYSE:KGS - New York Stock Exchange, Inc. - US50012A1088 - Common Stock - Currency: USD
Overall KGS gets a fundamental rating of 3 out of 10. We evaluated KGS against 63 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. KGS is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year KGS was profitable.
KGS had a positive operating cash flow in the past year.
KGS had positive earnings in 4 of the past 5 years.
Each year in the past 5 years KGS had a positive operating cash flow.
1.2 Ratios
With a Return On Assets value of 1.13%, KGS is not doing good in the industry: 68.25% of the companies in the same industry are doing better.
KGS has a Return On Equity of 3.73%. This is in the lower half of the industry: KGS underperforms 63.49% of its industry peers.
Looking at the Return On Invested Capital, with a value of 4.92%, KGS is doing worse than 61.90% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for KGS is below the industry average of 8.69%.
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
KGS's Profit Margin of 3.93% is on the low side compared to the rest of the industry. KGS is outperformed by 60.32% of its industry peers.
KGS's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 25.70%, KGS belongs to the top of the industry, outperforming 93.65% of the companies in the same industry.
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 95.24% 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so KGS is destroying value.
Compared to 1 year ago, KGS has more shares outstanding
The debt/assets ratio for KGS is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.16, we must say that KGS is in the distress zone and has some risk of bankruptcy.
KGS's Altman-Z score of 1.16 is on the low side compared to the rest of the industry. KGS is outperformed by 66.67% 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.
KGS has a worse Debt to FCF ratio (71.34) than 63.49% of its industry peers.
A Debt/Equity ratio of 1.93 is on the high side and indicates that KGS has dependencies on debt financing.
KGS has a worse Debt to Equity ratio (1.93) than 88.89% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.93 | ||
| Debt/FCF | 71.34 | ||
| Altman-Z | 1.16 |
ROIC/WACC0.59
WACC8.31%
2.3 Liquidity
A Current Ratio of 1.17 indicates that KGS should not have too much problems paying its short term obligations.
KGS has a worse Current ratio (1.17) than 87.30% of its industry peers.
A Quick Ratio of 0.87 indicates that KGS may have some problems paying its short term obligations.
With a Quick ratio value of 0.87, KGS is not doing good in the industry: 85.71% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.17 | ||
| Quick Ratio | 0.87 |
3. Growth
3.1 Past
The earnings per share for KGS have decreased strongly by -36.73% in the last year.
The earnings per share for KGS have been decreasing by -37.59% on average. This is quite bad
The Revenue has grown by 45.41% in the past year. This is a very strong growth!
KGS shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 24.11% yearly.
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
The Earnings Per Share is expected to grow by 49.66% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 9.43% on average over the next years. This is quite good.
EPS Next Y114.46%
EPS Next 2Y65.09%
EPS Next 3Y49.66%
EPS Next 5YN/A
Revenue Next Year15.11%
Revenue Next 2Y11.04%
Revenue Next 3Y9.43%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
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
With a Price/Earnings ratio of 40.26, KGS can be considered very expensive at the moment.
Based on the Price/Earnings ratio, KGS is valued a bit more expensive than 69.84% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 25.82. KGS is valued rather expensively when compared to this.
KGS is valuated correctly with a Price/Forward Earnings ratio of 15.88.
63.49% of the companies in the same industry are cheaper than KGS, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 21.76. KGS is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 40.26 | ||
| Fwd PE | 15.88 |
4.2 Price Multiples
KGS's Enterprise Value to EBITDA ratio is rather expensive when compared to the industry. KGS is more expensive than 80.95% of the companies in the same industry.
KGS's Price/Free Cash Flow ratio is a bit more expensive when compared to the industry. KGS is more expensive than 63.49% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 83.52 | ||
| EV/EBITDA | 9.23 |
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 49.66% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.35
PEG (5Y)N/A
EPS Next 2Y65.09%
EPS Next 3Y49.66%
5. Dividend
5.1 Amount
KGS has a Yearly Dividend Yield of 4.91%, which is a nice return.
In the last 3 months the price of KGS has falen by -20.78%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
KGS's Dividend Yield is rather good when compared to the industry average which is at 4.06. KGS pays more dividend than 85.71% of the companies in the same industry.
KGS's Dividend Yield is rather good when compared to the S&P500 average which is at 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.91% |
5.2 History
KGS has paid a dividend for less than 5 years, so there is no long track record yet.
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 2Y65.09%
EPS Next 3Y49.66%
34.62
+0.28 (+0.82%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryEnergy Equipment & Services
Earnings (Last)
Earnings (Next)
Inst Owners57.16%
Inst Owner Change14.94%
Ins Owners0.53%
Ins Owner Change20.32%
Market Cap3.04B
Analysts82.35
Price Target45.9 (32.58%)
Short Float %9.99%
Short Ratio4.65
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.91% |
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)-3.78%
PT rev (3m)-4.72%
EPS NQ rev (1m)-3.05%
EPS NQ rev (3m)-3.67%
EPS NY rev (1m)0.1%
EPS NY rev (3m)-4.43%
Revenue NQ rev (1m)-0.36%
Revenue NQ rev (3m)-0.42%
Revenue NY rev (1m)0.15%
Revenue NY rev (3m)-0.8%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 40.26 | ||
| Fwd PE | 15.88 | ||
| P/S | 2.39 | ||
| P/FCF | 83.52 | ||
| P/OCF | 7.78 | ||
| P/B | 2.26 | ||
| P/tB | 3.96 | ||
| EV/EBITDA | 9.23 |
EPS(TTM)0.86
EY2.48%
EPS(NY)2.18
Fwd EY6.3%
FCF(TTM)0.41
FCFY1.2%
OCF(TTM)4.45
OCFY12.85%
SpS14.49
BVpS15.3
TBVpS8.74
PEG (NY)0.35
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 | 1.16 |
F-Score6
WACC8.31%
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 Y114.46%
EPS Next 2Y65.09%
EPS Next 3Y49.66%
EPS Next 5YN/A
Revenue 1Y (TTM)45.41%
Revenue growth 3Y24.11%
Revenue growth 5YN/A
Sales Q2Q%52.97%
Revenue Next Year15.11%
Revenue Next 2Y11.04%
Revenue Next 3Y9.43%
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