KINETIK HOLDINGS INC (KNTK) Stock Fundamental Analysis
NYSE:KNTK - New York Stock Exchange, Inc. - US02215L2097 - Common Stock - Currency: USD
We assign a fundamental rating of 3 out of 10 to KNTK. KNTK was compared to 213 industry peers in the Oil, Gas & Consumable Fuels industry. There are concerns on the financial health of KNTK while its profitability can be described as average. KNTK is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
KNTK had positive earnings in the past year.
In the past year KNTK had a positive cash flow from operations.
Of the past 5 years KNTK 4 years were profitable.
Each year in the past 5 years KNTK had a positive operating cash flow.
1.2 Ratios
With a Return On Assets value of 1.01%, KNTK is not doing good in the industry: 64.32% of the companies in the same industry are doing better.
KNTK's Return On Invested Capital of 2.99% is on the low side compared to the rest of the industry. KNTK is outperformed by 68.54% 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 25.70%.
The 3 year average ROIC (2.60%) for KNTK is below the current ROIC(2.99%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.01% | ||
| ROE | N/A | ||
| ROIC | 2.99% |
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 (3.76%) than 60.09% of its industry peers.
With a Operating Margin value of 11.71%, KNTK is not doing good in the industry: 60.56% of the companies in the same industry are doing better.
In the last couple of years the Operating Margin of KNTK has grown nicely.
Looking at the Gross Margin, with a value of 55.86%, KNTK is in the better half of the industry, outperforming 61.03% 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 | 11.71% | ||
| PM (TTM) | 3.76% | ||
| GM | 55.86% |
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), KNTK 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 0.14, we must say that KNTK is in the distress zone and has some risk of bankruptcy.
KNTK has a Altman-Z score of 0.14. This is in the lower half of the industry: KNTK underperforms 68.54% of its industry peers.
KNTK has a debt to FCF ratio of 9.69. This is a negative value and a sign of low solvency as KNTK would need 9.69 years to pay back of all of its debts.
KNTK's Debt to FCF ratio of 9.69 is in line compared to the rest of the industry. KNTK outperforms 51.17% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 9.69 | ||
| Altman-Z | 0.14 |
ROIC/WACC0.27
WACC11%
2.3 Liquidity
KNTK has a Current Ratio of 0.70. This is a bad value and indicates that KNTK is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 0.70, KNTK is doing worse than 74.18% of the companies in the same industry.
KNTK has a Quick Ratio of 0.70. 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 Quick ratio value of 0.70, KNTK is not doing good in the industry: 69.01% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.7 | ||
| Quick Ratio | 0.7 |
3. Growth
3.1 Past
The earnings per share for KNTK have decreased strongly by -54.87% in the last year.
The earnings per share for KNTK have been decreasing by -61.79% on average. This is quite bad
The Revenue has grown by 45.21% in the past year. This is a very strong growth!
KNTK shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 61.30% yearly.
EPS 1Y (TTM)-54.87%
EPS 3Y-39.67%
EPS 5Y-61.79%
EPS Q2Q%-99.41%
Revenue 1Y (TTM)45.21%
Revenue growth 3Y109.79%
Revenue growth 5Y61.3%
Sales Q2Q%10.56%
3.2 Future
The Earnings Per Share is expected to grow by 5.10% on average over the next years.
Based on estimates for the next years, KNTK will show a quite strong growth in Revenue. The Revenue will grow by 15.37% on average per year.
EPS Next Y77.02%
EPS Next 2Y52.92%
EPS Next 3Y41.17%
EPS Next 5Y5.1%
Revenue Next Year39%
Revenue Next 2Y29.44%
Revenue Next 3Y26.53%
Revenue Next 5Y15.37%
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
KNTK is valuated quite expensively with a Price/Earnings ratio of 39.33.
66.67% of the companies in the same industry are cheaper than KNTK, based on the Price/Earnings ratio.
KNTK's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 28.10.
Based on the Price/Forward Earnings ratio of 22.22, the valuation of KNTK can be described as rather expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of KNTK is on the same level as its industry peers.
KNTK's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 20.74.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 39.33 | ||
| Fwd PE | 22.22 |
4.2 Price Multiples
69.48% of the companies in the same industry are cheaper than KNTK, based on the Enterprise Value to EBITDA ratio.
The rest of the industry has a similar Price/Free Cash Flow ratio as KNTK.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.53 | ||
| EV/EBITDA | 18.46 |
4.3 Compensation for Growth
KNTK's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
KNTK's earnings are expected to grow with 41.17% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.51
PEG (5Y)N/A
EPS Next 2Y52.92%
EPS Next 3Y41.17%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 7.59%, KNTK is a good candidate for dividend investing.
In the last 3 months the price of KNTK has falen by -36.42%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
KNTK's Dividend Yield is a higher than the industry average which is at 7.27.
KNTK's Dividend Yield is rather good when compared to the S&P500 average which is at 2.43.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.59% |
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
577.08% of the earnings are spent on dividend by KNTK. This is not a sustainable payout ratio.
DP577.08%
EPS Next 2Y52.92%
EPS Next 3Y41.17%
40.12
-1.44 (-3.46%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners67.31%
Inst Owner ChangeN/A
Ins Owners8.28%
Ins Owner Change2.42%
Market Cap6.34B
Analysts75
Price Target60 (49.55%)
Short Float %8.76%
Short Ratio4.01
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.59% |
Yearly Dividend2.56
Dividend Growth(5Y)N/A
DP577.08%
Div Incr Years2
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-60.26%
Min EPS beat(2)-97.39%
Max EPS beat(2)-23.13%
EPS beat(4)1
Avg EPS beat(4)-42.06%
Min EPS beat(4)-97.39%
Max EPS beat(4)25.12%
EPS beat(8)2
Avg EPS beat(8)-13.85%
EPS beat(12)3
Avg EPS beat(12)-18.6%
EPS beat(16)5
Avg EPS beat(16)27.8%
Revenue beat(2)1
Avg Revenue beat(2)7.11%
Min Revenue beat(2)-3.11%
Max Revenue beat(2)17.33%
Revenue beat(4)3
Avg Revenue beat(4)9.82%
Min Revenue beat(4)-3.11%
Max Revenue beat(4)20.6%
Revenue beat(8)6
Avg Revenue beat(8)5.88%
Revenue beat(12)10
Avg Revenue beat(12)14.32%
Revenue beat(16)13
Avg Revenue beat(16)16.09%
PT rev (1m)-1.94%
PT rev (3m)-1.78%
EPS NQ rev (1m)-15.88%
EPS NQ rev (3m)-24.54%
EPS NY rev (1m)-3.1%
EPS NY rev (3m)-7.53%
Revenue NQ rev (1m)-5.58%
Revenue NQ rev (3m)-5%
Revenue NY rev (1m)-2.3%
Revenue NY rev (3m)6.37%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 39.33 | ||
| Fwd PE | 22.22 | ||
| P/S | 3.47 | ||
| P/FCF | 17.53 | ||
| P/OCF | 9.94 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 18.46 |
EPS(TTM)1.02
EY2.54%
EPS(NY)1.81
Fwd EY4.5%
FCF(TTM)2.29
FCFY5.7%
OCF(TTM)4.03
OCFY10.06%
SpS11.55
BVpS-18.84
TBVpS-23.01
PEG (NY)0.51
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.01% | ||
| ROE | N/A | ||
| ROCE | 3.34% | ||
| ROIC | 2.99% | ||
| ROICexc | 2.99% | ||
| ROICexgc | 3.32% | ||
| OM | 11.71% | ||
| PM (TTM) | 3.76% | ||
| GM | 55.86% | ||
| FCFM | 19.81% |
ROA(3y)2.04%
ROA(5y)1.09%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)2.6%
ROIC(5y)2.92%
ROICexc(3y)2.6%
ROICexc(5y)2.99%
ROICexgc(3y)2.91%
ROICexgc(5y)3.18%
ROCE(3y)2.86%
ROCE(5y)3.21%
ROICexcg growth 3Y-9.6%
ROICexcg growth 5Y25.06%
ROICexc growth 3Y-12.74%
ROICexc growth 5Y22.43%
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%
F-Score5
Asset Turnover0.27
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 9.69 | ||
| Debt/EBITDA | 6.52 | ||
| Cap/Depr | 85.09% | ||
| Cap/Sales | 15.12% | ||
| Interest Coverage | 0.87 | ||
| Cash Conversion | 118.52% | ||
| Profit Quality | 526.8% | ||
| Current Ratio | 0.7 | ||
| Quick Ratio | 0.7 | ||
| Altman-Z | 0.14 |
F-Score5
WACC11%
ROIC/WACC0.27
Cap/Depr(3y)95.84%
Cap/Depr(5y)100.92%
Cap/Sales(3y)21.03%
Cap/Sales(5y)17.23%
Profit Quality(3y)441.7%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-54.87%
EPS 3Y-39.67%
EPS 5Y-61.79%
EPS Q2Q%-99.41%
EPS Next Y77.02%
EPS Next 2Y52.92%
EPS Next 3Y41.17%
EPS Next 5Y5.1%
Revenue 1Y (TTM)45.21%
Revenue growth 3Y109.79%
Revenue growth 5Y61.3%
Sales Q2Q%10.56%
Revenue Next Year39%
Revenue Next 2Y29.44%
Revenue Next 3Y26.53%
Revenue Next 5Y15.37%
EBIT growth 1Y19.51%
EBIT growth 3Y40.49%
EBIT growth 5Y65.19%
EBIT Next Year269.4%
EBIT Next 3Y67.43%
EBIT Next 5Y38.71%
FCF growth 1Y41.8%
FCF growth 3Y20.79%
FCF growth 5YN/A
OCF growth 1Y9.04%
OCF growth 3Y44.85%
OCF growth 5Y52.89%