KINETIK HOLDINGS INC (KNTK) Stock Fundamental Analysis
NYSE:KNTK - New York Stock Exchange, Inc. - US02215L2097 - Common Stock - Currency: USD
KNTK gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 209 industry peers in the Oil, Gas & Consumable Fuels industry. KNTK has a medium profitability rating, but doesn't score so well on its financial health evaluation. KNTK is quite expensive at the moment. 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.
Of the past 5 years KNTK 4 years were profitable.
KNTK had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
KNTK's Return On Assets of 0.91% is on the low side compared to the rest of the industry. KNTK is outperformed by 62.20% of its industry peers.
KNTK's Return On Invested Capital of 2.76% is on the low side compared to the rest of the industry. KNTK is outperformed by 67.94% of its industry peers.
The Average Return On Invested Capital over the past 3 years for KNTK is significantly below the industry average of 23.53%.
The 3 year average ROIC (2.60%) for KNTK is below the current ROIC(2.76%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.91% | ||
| ROE | N/A | ||
| ROIC | 2.76% |
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 Profit Margin (3.32%) which is comparable to the rest of the industry.
With a Operating Margin value of 10.51%, KNTK is not doing good in the industry: 62.20% of the companies in the same industry are doing better.
KNTK's Operating Margin has improved in the last couple of years.
The Gross Margin of KNTK (54.55%) is better than 64.11% of its industry peers.
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 | 10.51% | ||
| PM (TTM) | 3.32% | ||
| GM | 54.55% |
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so KNTK is destroying value.
Compared to 1 year ago, KNTK has more shares outstanding
Compared to 5 years ago, KNTK has less shares outstanding
KNTK has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 0.21, 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 0.21, KNTK is doing worse than 67.46% of the companies in the same industry.
The Debt to FCF ratio of KNTK is 10.23, which is on the high side as it means it would take KNTK, 10.23 years of fcf income to pay off all of its debts.
KNTK's Debt to FCF ratio of 10.23 is in line compared to the rest of the industry. KNTK outperforms 52.15% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 10.23 | ||
| Altman-Z | 0.21 |
ROIC/WACC0.29
WACC9.4%
2.3 Liquidity
A Current Ratio of 0.66 indicates that KNTK may have some problems paying its short term obligations.
The Current ratio of KNTK (0.66) is worse than 77.99% of its industry peers.
KNTK has a Quick Ratio of 0.66. 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 Quick ratio, with a value of 0.66, KNTK is doing worse than 71.77% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.66 | ||
| Quick Ratio | 0.66 |
3. Growth
3.1 Past
KNTK shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -71.21%.
Measured over the past years, KNTK shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -61.79% on average per year.
The Revenue has grown by 18.03% in the past year. This is quite good.
KNTK shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 61.30% yearly.
EPS 1Y (TTM)-71.21%
EPS 3Y-39.67%
EPS 5Y-61.79%
EPS Q2Q%-38.89%
Revenue 1Y (TTM)18.03%
Revenue growth 3Y109.79%
Revenue growth 5Y61.3%
Sales Q2Q%18.72%
3.2 Future
KNTK is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 5.10% yearly.
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 Y32.78%
EPS Next 2Y47.87%
EPS Next 3Y39.39%
EPS Next 5Y5.1%
Revenue Next Year35.73%
Revenue Next 2Y27.33%
Revenue Next 3Y20.18%
Revenue Next 5Y15.37%
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.
The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
4. Valuation
4.1 Price/Earnings Ratio
KNTK is valuated quite expensively with a Price/Earnings ratio of 53.82.
68.90% of the companies in the same industry are cheaper than KNTK, based on the Price/Earnings ratio.
KNTK is valuated expensively when we compare the Price/Earnings ratio to 26.76, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 17.86, KNTK is valued on the expensive side.
The rest of the industry has a similar Price/Forward Earnings ratio as KNTK.
When comparing the Price/Forward Earnings ratio of KNTK to the average of the S&P500 Index (34.91), we can say KNTK is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 53.82 | ||
| Fwd PE | 17.86 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of KNTK indicates a slightly more expensive valuation: KNTK is more expensive than 69.38% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of KNTK is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.32 | ||
| EV/EBITDA | 18.02 |
4.3 Compensation for Growth
KNTK's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
KNTK's earnings are expected to grow with 39.39% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.64
PEG (5Y)N/A
EPS Next 2Y47.87%
EPS Next 3Y39.39%
5. Dividend
5.1 Amount
KNTK has a Yearly Dividend Yield of 7.62%, which is a nice return.
KNTK's Dividend Yield is rather good when compared to the industry average which is at 6.31. KNTK pays more dividend than 81.34% of the companies in the same industry.
KNTK's Dividend Yield is rather good when compared to the S&P500 average which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.62% |
5.2 History
KNTK has been paying a dividend for over 5 years, so it has already some track record.
The dividend of KNTK decreased in the last 3 years.
Dividend Growth(5Y)N/A
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
KNTK pays out 750.07% of its income as dividend. This is not a sustainable payout ratio.
DP750.07%
EPS Next 2Y47.87%
EPS Next 3Y39.39%
39.83
+0.1 (+0.25%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners71.86%
Inst Owner ChangeN/A
Ins Owners8.32%
Ins Owner Change2.89%
Market Cap6.29B
Analysts77
Price Target53.6 (34.57%)
Short Float %9.63%
Short Ratio3.52
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.62% |
Yearly Dividend2.56
Dividend Growth(5Y)N/A
DP750.07%
Div Incr Years2
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-90.92%
Min EPS beat(2)-97.39%
Max EPS beat(2)-84.45%
EPS beat(4)1
Avg EPS beat(4)-44.96%
Min EPS beat(4)-97.39%
Max EPS beat(4)25.12%
EPS beat(8)2
Avg EPS beat(8)-10.41%
EPS beat(12)3
Avg EPS beat(12)-23.81%
EPS beat(16)4
Avg EPS beat(16)-9.18%
Revenue beat(2)0
Avg Revenue beat(2)-2.04%
Min Revenue beat(2)-3.11%
Max Revenue beat(2)-0.96%
Revenue beat(4)2
Avg Revenue beat(4)4.43%
Min Revenue beat(4)-3.11%
Max Revenue beat(4)17.33%
Revenue beat(8)5
Avg Revenue beat(8)4.35%
Revenue beat(12)9
Avg Revenue beat(12)11.37%
Revenue beat(16)12
Avg Revenue beat(16)15.64%
PT rev (1m)-2.73%
PT rev (3m)-8.28%
EPS NQ rev (1m)-20.6%
EPS NQ rev (3m)-26.57%
EPS NY rev (1m)0%
EPS NY rev (3m)-16.45%
Revenue NQ rev (1m)-3.84%
Revenue NQ rev (3m)-3.39%
Revenue NY rev (1m)11%
Revenue NY rev (3m)-0.31%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 53.82 | ||
| Fwd PE | 17.86 | ||
| P/S | 3.27 | ||
| P/FCF | 17.32 | ||
| P/OCF | 9.53 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 18.02 |
EPS(TTM)0.74
EY1.86%
EPS(NY)2.23
Fwd EY5.6%
FCF(TTM)2.3
FCFY5.77%
OCF(TTM)4.18
OCFY10.5%
SpS12.19
BVpS-16.14
TBVpS-20.19
PEG (NY)1.64
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.91% | ||
| ROE | N/A | ||
| ROCE | 3.09% | ||
| ROIC | 2.76% | ||
| ROICexc | 2.76% | ||
| ROICexgc | 3.06% | ||
| OM | 10.51% | ||
| PM (TTM) | 3.32% | ||
| GM | 54.55% | ||
| FCFM | 18.86% |
ROA(3y)2.04%
ROA(5y)1.09%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)2.6%
ROIC(5y)2.92%
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 | 10.23 | ||
| Debt/EBITDA | 6.81 | ||
| Cap/Depr | 86.57% | ||
| Cap/Sales | 15.43% | ||
| Interest Coverage | 0.96 | ||
| Cash Conversion | 121.02% | ||
| Profit Quality | 568.11% | ||
| Current Ratio | 0.66 | ||
| Quick Ratio | 0.66 | ||
| Altman-Z | 0.21 |
F-Score5
WACC9.4%
ROIC/WACC0.29
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)-71.21%
EPS 3Y-39.67%
EPS 5Y-61.79%
EPS Q2Q%-38.89%
EPS Next Y32.78%
EPS Next 2Y47.87%
EPS Next 3Y39.39%
EPS Next 5Y5.1%
Revenue 1Y (TTM)18.03%
Revenue growth 3Y109.79%
Revenue growth 5Y61.3%
Sales Q2Q%18.72%
Revenue Next Year35.73%
Revenue Next 2Y27.33%
Revenue Next 3Y20.18%
Revenue Next 5Y15.37%
EBIT growth 1Y11.55%
EBIT growth 3Y40.49%
EBIT growth 5Y65.19%
EBIT Next Year253.24%
EBIT Next 3Y63.9%
EBIT Next 5Y38.78%
FCF growth 1Y-3.58%
FCF growth 3Y20.79%
FCF growth 5YN/A
OCF growth 1Y4.14%
OCF growth 3Y44.85%
OCF growth 5Y52.89%