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. KGS has a medium profitability rating, but doesn't score so well on its financial health evaluation. KGS is valied quite expensively at the moment, while it does show a decent growth rate.
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.
KGS had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
KGS's Return On Assets of 1.13% is on the low side compared to the rest of the industry. KGS is outperformed by 68.25% of its industry peers.
Looking at the Return On Equity, with a value of 3.73%, KGS is doing worse than 65.08% of the companies in the same industry.
KGS has a worse Return On Invested Capital (4.92%) than 61.90% of its industry peers.
KGS had an Average Return On Invested Capital over the past 3 years of 4.60%. This is below the industry average of 8.44%.
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
The Profit Margin of KGS (3.93%) is worse than 61.90% of its industry peers.
In the last couple of years the Profit Margin of KGS has declined.
With an excellent Operating Margin value of 25.70%, KGS belongs to the best of the industry, outperforming 92.06% of the companies in the same industry.
KGS's Operating Margin has declined in the last couple of years.
The Gross Margin of KGS (60.48%) is better than 95.24% of its industry peers.
In the last couple of years the Gross Margin of KGS has declined.
| 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.
The number of shares outstanding for KGS has been increased compared to 1 year ago.
KGS has a worse debt/assets ratio than last year.
2.2 Solvency
KGS has an Altman-Z score of 1.15. This is a bad value and indicates that KGS is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of KGS (1.15) is worse than 71.43% of its industry peers.
The Debt to FCF ratio of KGS is 71.34, which is on the high side as it means it would take KGS, 71.34 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 71.34, KGS is doing worse than 63.49% of the companies in the same industry.
A Debt/Equity ratio of 1.93 is on the high side and indicates that KGS has dependencies on debt financing.
The Debt to Equity ratio of KGS (1.93) is worse than 88.89% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.93 | ||
| Debt/FCF | 71.34 | ||
| Altman-Z | 1.15 |
ROIC/WACC0.59
WACC8.4%
2.3 Liquidity
A Current Ratio of 1.17 indicates that KGS should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.17, KGS is doing worse than 87.30% of the companies in the same industry.
A Quick Ratio of 0.87 indicates that KGS may have some problems paying its short term obligations.
KGS has a worse Quick ratio (0.87) than 85.71% of its industry peers.
| 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.
KGS shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -37.59% yearly.
The Revenue has grown by 45.41% in the past year. This is a very strong growth!
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 48.82% yearly.
Based on estimates for the next years, KGS will show a quite strong growth in Revenue. The Revenue will grow by 9.15% on average per year.
EPS Next Y115.61%
EPS Next 2Y66.07%
EPS Next 3Y48.82%
EPS Next 5YN/A
Revenue Next Year15.11%
Revenue Next 2Y10.73%
Revenue Next 3Y9.15%
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.
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
A Price/Earnings ratio of 39.31 indicates a quite expensive valuation of KGS.
Compared to the rest of the industry, the Price/Earnings ratio of KGS indicates a slightly more expensive valuation: KGS is more expensive than 69.84% of the companies listed in the same industry.
KGS's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 27.45.
The Price/Forward Earnings ratio is 15.32, which indicates a correct valuation of KGS.
Based on the Price/Forward Earnings ratio, KGS is valued a bit more expensive than 60.32% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.90, KGS is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 39.31 | ||
| Fwd PE | 15.32 |
4.2 Price Multiples
74.60% of the companies in the same industry are cheaper than KGS, based on the Enterprise Value to EBITDA ratio.
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 | 81.57 | ||
| EV/EBITDA | 9.11 |
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 48.82% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.34
PEG (5Y)N/A
EPS Next 2Y66.07%
EPS Next 3Y48.82%
5. Dividend
5.1 Amount
KGS has a Yearly Dividend Yield of 4.97%, which is a nice return.
KGS's Dividend Yield is rather good when compared to the industry average which is at 3.70. KGS pays more dividend than 88.89% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.42, KGS pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.97% |
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
KGS pays out 280.62% of its income as dividend. This is not a sustainable payout ratio.
DP280.62%
EPS Next 2Y66.07%
EPS Next 3Y48.82%
33.81
-0.21 (-0.62%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryEnergy Equipment & Services
Earnings (Last)
Earnings (Next)
Inst Owners65.71%
Inst Owner Change14.88%
Ins Owners0.66%
Ins Owner Change20.32%
Market Cap2.97B
Analysts83.75
Price Target45.39 (34.25%)
Short Float %11.41%
Short Ratio6.64
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.97% |
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)-1.11%
PT rev (3m)-5.32%
EPS NQ rev (1m)4.52%
EPS NQ rev (3m)0.29%
EPS NY rev (1m)0.54%
EPS NY rev (3m)-0.69%
Revenue NQ rev (1m)-0.09%
Revenue NQ rev (3m)-0.26%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.8%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 39.31 | ||
| Fwd PE | 15.32 | ||
| P/S | 2.33 | ||
| P/FCF | 81.57 | ||
| P/OCF | 7.6 | ||
| P/B | 2.21 | ||
| P/tB | 3.87 | ||
| EV/EBITDA | 9.11 |
EPS(TTM)0.86
EY2.54%
EPS(NY)2.21
Fwd EY6.53%
FCF(TTM)0.41
FCFY1.23%
OCF(TTM)4.45
OCFY13.15%
SpS14.49
BVpS15.3
TBVpS8.74
PEG (NY)0.34
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 | 1.15 |
F-Score6
WACC8.4%
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 Y115.61%
EPS Next 2Y66.07%
EPS Next 3Y48.82%
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 2Y10.73%
Revenue Next 3Y9.15%
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