KINETIK HOLDINGS INC (KNTK) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:KNTK - US02215L2097 - Common Stock
39.78 USD
+0.48 (+1.22%)
39.78 USD
0 (0%)
KNTK gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 207 industry peers in the Oil, Gas & Consumable Fuels industry. KNTK has a bad profitability rating. Also its financial health evaluation is rather negative. KNTK 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 KNTK was profitable.
- KNTK had a positive operating cash flow in the past year.
- KNTK had positive earnings in 4 of the past 5 years.
- In the past 5 years KNTK always reported a positive cash flow from operatings.
1.2 Ratios
- With a Return On Assets value of 0.35%, KNTK is not doing good in the industry: 66.67% of the companies in the same industry are doing better.
- KNTK has a worse Return On Invested Capital (1.86%) than 68.60% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for KNTK is significantly below the industry average of 21.94%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.35% | ||
| ROE | N/A | ||
| ROIC | 1.86% |
ROA(3y)2.04%
ROA(5y)1.09%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)2.6%
ROIC(5y)2.92%
1.3 Margins
- KNTK has a worse Profit Margin (1.46%) than 60.87% of its industry peers.
- Looking at the Operating Margin, with a value of 8.15%, KNTK is doing worse than 60.39% of the companies in the same industry.
- In the last couple of years the Operating Margin of KNTK has grown nicely.
- Looking at the Gross Margin, with a value of 52.43%, KNTK is in the better half of the industry, outperforming 61.35% of the companies in the same industry.
- In the last couple of years the Gross Margin of KNTK has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.15% | ||
| PM (TTM) | 1.46% | ||
| GM | 52.43% |
OM growth 3Y-33.04%
OM growth 5Y2.41%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-6.48%
GM growth 5Y-0.81%
2. Health
2.1 Basic Checks
- KNTK has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
- Compared to 1 year ago, KNTK has more shares outstanding
- KNTK has less shares outstanding than it did 5 years ago.
- Compared to 1 year ago, KNTK has an improved debt to assets ratio.
2.2 Solvency
- Based on the Altman-Z score of 0.31, we must say that KNTK is in the distress zone and has some risk of bankruptcy.
- Looking at the Altman-Z score, with a value of 0.31, KNTK is doing worse than 65.70% of the companies in the same industry.
- The Debt to FCF ratio of KNTK is 30.30, which is on the high side as it means it would take KNTK, 30.30 years of fcf income to pay off all of its debts.
- KNTK's Debt to FCF ratio of 30.30 is in line compared to the rest of the industry. KNTK outperforms 42.03% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 30.3 | ||
| Altman-Z | 0.31 |
ROIC/WACC0.21
WACC9%
2.3 Liquidity
- KNTK has a Current Ratio of 0.62. This is a bad value and indicates that KNTK is not financially healthy enough and could expect problems in meeting its short term obligations.
- With a Current ratio value of 0.62, KNTK is not doing good in the industry: 77.29% of the companies in the same industry are doing better.
- KNTK has a Quick Ratio of 0.62. This is a bad value and indicates that KNTK is not financially healthy enough and could expect problems in meeting its short term obligations.
- KNTK's Quick ratio of 0.62 is on the low side compared to the rest of the industry. KNTK is outperformed by 69.08% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.62 | ||
| Quick Ratio | 0.62 |
3. Growth
3.1 Past
- The earnings per share for KNTK have decreased strongly by -84.50% in the last year.
- KNTK shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -61.79% yearly.
- The Revenue has decreased by -3.79% in the past year.
- KNTK shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 61.30% yearly.
EPS 1Y (TTM)-84.5%
EPS 3Y-39.67%
EPS 5Y-61.79%
EPS Q2Q%-91.43%
Revenue 1Y (TTM)-3.79%
Revenue growth 3Y109.79%
Revenue growth 5Y61.3%
Sales Q2Q%17.06%
3.2 Future
- KNTK is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 30.94% yearly.
- Based on estimates for the next years, KNTK will show a quite strong growth in Revenue. The Revenue will grow by 18.10% on average per year.
EPS Next Y-17.89%
EPS Next 2Y33.87%
EPS Next 3Y34.24%
EPS Next 5Y30.94%
Revenue Next Year34.73%
Revenue Next 2Y24.33%
Revenue Next 3Y19.77%
Revenue Next 5Y18.1%
3.3 Evolution
- The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
- Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
4. Valuation
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 94.71, the valuation of KNTK can be described as expensive.
- KNTK's Price/Earnings ratio is a bit more expensive when compared to the industry. KNTK is more expensive than 66.18% of the companies in the same industry.
- The average S&P500 Price/Earnings ratio is at 27.21. KNTK is valued rather expensively when compared to this.
- A Price/Forward Earnings ratio of 21.76 indicates a rather expensive valuation of KNTK.
- KNTK's Price/Forward Earnings is on the same level as the industry average.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.98, KNTK is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 94.71 | ||
| Fwd PE | 21.76 |
4.2 Price Multiples
- 69.57% of the companies in the same industry are cheaper than KNTK, based on the Enterprise Value to EBITDA ratio.
- KNTK's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 47.1 | ||
| EV/EBITDA | 20.35 |
4.3 Compensation for Growth
- KNTK's earnings are expected to grow with 34.24% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y33.87%
EPS Next 3Y34.24%
5. Dividend
5.1 Amount
- KNTK has a Yearly Dividend Yield of 7.94%, which is a nice return.
- KNTK's Dividend Yield is rather good when compared to the industry average which is at 3.73. KNTK pays more dividend than 84.06% of the companies in the same industry.
- KNTK's Dividend Yield is rather good when compared to the S&P500 average which is at 1.81.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.94% |
5.2 History
- KNTK has been paying a dividend for over 5 years, so it has already some track record.
- KNTK has decreased its dividend in the last 3 years.
Dividend Growth(5Y)N/A
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
- 1972.21% of the earnings are spent on dividend by KNTK. This is not a sustainable payout ratio.
DP1972.21%
EPS Next 2Y33.87%
EPS Next 3Y34.24%
KINETIK HOLDINGS INC / KNTK FAQ
Can you provide the ChartMill fundamental rating for KINETIK HOLDINGS INC?
ChartMill assigns a fundamental rating of 3 / 10 to KNTK.
What is the valuation status of KINETIK HOLDINGS INC (KNTK) stock?
ChartMill assigns a valuation rating of 2 / 10 to KINETIK HOLDINGS INC (KNTK). This can be considered as Overvalued.
How profitable is KINETIK HOLDINGS INC (KNTK) stock?
KINETIK HOLDINGS INC (KNTK) has a profitability rating of 3 / 10.
Can you provide the PE and PB ratios for KNTK stock?
The Price/Earnings (PE) ratio for KINETIK HOLDINGS INC (KNTK) is 94.71 and the Price/Book (PB) ratio is -3.62.
Can you provide the dividend sustainability for KNTK stock?
The dividend rating of KINETIK HOLDINGS INC (KNTK) is 5 / 10 and the dividend payout ratio is 1972.21%.