KOSMOS ENERGY LTD (KOS) Stock Fundamental Analysis
NYSE:KOS - New York Stock Exchange, Inc. - US5006881065 - Common Stock - Currency: USD
Taking everything into account, KOS scores 3 out of 10 in our fundamental rating. KOS was compared to 213 industry peers in the Oil, Gas & Consumable Fuels industry. KOS has a medium profitability rating, but doesn't score so well on its financial health evaluation. KOS is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
KOS had positive earnings in the past year.
In the past year KOS had a positive cash flow from operations.
In multiple years KOS reported negative net income over the last 5 years.
KOS had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of KOS (3.58%) is comparable to the rest of the industry.
Looking at the Return On Equity, with a value of 15.82%, KOS is in the better half of the industry, outperforming 71.36% of the companies in the same industry.
KOS's Return On Invested Capital of 7.53% is fine compared to the rest of the industry. KOS outperforms 60.09% of its industry peers.
KOS had an Average Return On Invested Capital over the past 3 years of 14.10%. This is significantly below the industry average of 25.70%.
The 3 year average ROIC (14.10%) for KOS is well above the current ROIC(7.53%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.58% | ||
| ROE | 15.82% | ||
| ROIC | 7.53% |
ROA(3y)4.28%
ROA(5y)0.13%
ROE(3y)21.75%
ROE(5y)-8.59%
ROIC(3y)14.1%
ROIC(5y)N/A
1.3 Margins
KOS has a Profit Margin (11.33%) which is comparable to the rest of the industry.
KOS has a better Operating Margin (26.82%) than 61.03% of its industry peers.
KOS's Operating Margin has improved in the last couple of years.
The Gross Margin of KOS (68.33%) is better than 74.65% of its industry peers.
In the last couple of years the Gross Margin of KOS has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 26.82% | ||
| PM (TTM) | 11.33% | ||
| GM | 68.33% |
OM growth 3Y-0.89%
OM growth 5Y9.48%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-2.63%
GM growth 5Y-1.35%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so KOS is creating value.
KOS has more shares outstanding than it did 1 year ago.
KOS has more shares outstanding than it did 5 years ago.
The debt/assets ratio for KOS is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 0.39, we must say that KOS is in the distress zone and has some risk of bankruptcy.
KOS's Altman-Z score of 0.39 is on the low side compared to the rest of the industry. KOS is outperformed by 65.73% of its industry peers.
KOS has a Debt/Equity ratio of 2.29. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 2.29, KOS is doing worse than 84.98% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.29 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.39 |
ROIC/WACC1.13
WACC6.69%
2.3 Liquidity
KOS has a Current Ratio of 0.75. This is a bad value and indicates that KOS is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 0.75, KOS is doing worse than 71.36% of the companies in the same industry.
A Quick Ratio of 0.46 indicates that KOS may have some problems paying its short term obligations.
KOS has a worse Quick ratio (0.46) than 83.57% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.75 | ||
| Quick Ratio | 0.46 |
3. Growth
3.1 Past
KOS shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -45.57%.
Looking at the last year, KOS shows a decrease in Revenue. The Revenue has decreased by -1.54% in the last year.
Measured over the past years, KOS shows a small growth in Revenue. The Revenue has been growing by 2.24% on average per year.
EPS 1Y (TTM)-45.57%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-109.68%
Revenue 1Y (TTM)-1.54%
Revenue growth 3Y7.94%
Revenue growth 5Y2.24%
Sales Q2Q%-21.69%
3.2 Future
KOS is expected to show a very negative growth in Earnings Per Share. In the coming years, the EPS will decrease by -32.42% yearly.
KOS is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -1.12% yearly.
EPS Next Y-100.08%
EPS Next 2Y-20.22%
EPS Next 3Y-10.91%
EPS Next 5Y-32.42%
Revenue Next Year-1.11%
Revenue Next 2Y4.03%
Revenue Next 3Y0.43%
Revenue Next 5Y-1.12%
3.3 Evolution
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 3.70 indicates a rather cheap valuation of KOS.
Compared to the rest of the industry, the Price/Earnings ratio of KOS indicates a rather cheap valuation: KOS is cheaper than 91.55% of the companies listed in the same industry.
KOS's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.10.
KOS is expected to report negative earnings next year, which makes the Forward Price/Earnings Ratio negative.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 3.7 | ||
| Fwd PE | N/A |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of KOS indicates a somewhat cheap valuation: KOS is cheaper than 77.00% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 3.74 |
4.3 Compensation for Growth
KOS has a very decent profitability rating, which may justify a higher PE ratio.
A cheap valuation may be justified as KOS's earnings are expected to decrease with -10.91% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-20.22%
EPS Next 3Y-10.91%
5. Dividend
5.1 Amount
No dividends for KOS!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
1.59
-0.11 (-6.47%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners97.76%
Inst Owner Change-2.55%
Ins Owners2.1%
Ins Owner Change1.37%
Market Cap760.04M
Analysts78.46
Price Target5.73 (260.38%)
Short Float %9.99%
Short Ratio4.17
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly Dividend0
Dividend Growth(5Y)N/A
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-76.36%
Min EPS beat(2)-151.72%
Max EPS beat(2)-0.99%
EPS beat(4)2
Avg EPS beat(4)-20.33%
Min EPS beat(4)-151.72%
Max EPS beat(4)36.1%
EPS beat(8)4
Avg EPS beat(8)-8.59%
EPS beat(12)8
Avg EPS beat(12)8.17%
EPS beat(16)9
Avg EPS beat(16)-6.79%
Revenue beat(2)1
Avg Revenue beat(2)0.4%
Min Revenue beat(2)-0.85%
Max Revenue beat(2)1.64%
Revenue beat(4)2
Avg Revenue beat(4)0.76%
Min Revenue beat(4)-0.85%
Max Revenue beat(4)2.29%
Revenue beat(8)4
Avg Revenue beat(8)0.54%
Revenue beat(12)6
Avg Revenue beat(12)0.58%
Revenue beat(16)8
Avg Revenue beat(16)-0.4%
PT rev (1m)0%
PT rev (3m)-14.61%
EPS NQ rev (1m)-55.99%
EPS NQ rev (3m)-221.07%
EPS NY rev (1m)-100.7%
EPS NY rev (3m)-100.08%
Revenue NQ rev (1m)-3.05%
Revenue NQ rev (3m)-27.36%
Revenue NY rev (1m)-0.18%
Revenue NY rev (3m)-13.86%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 3.7 | ||
| Fwd PE | N/A | ||
| P/S | 0.45 | ||
| P/FCF | N/A | ||
| P/OCF | 1.12 | ||
| P/B | 0.63 | ||
| P/tB | 0.63 | ||
| EV/EBITDA | 3.74 |
EPS(TTM)0.43
EY27.04%
EPS(NY)0
Fwd EYN/A
FCF(TTM)-0.53
FCFYN/A
OCF(TTM)1.42
OCFY89.24%
SpS3.5
BVpS2.51
TBVpS2.51
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.58% | ||
| ROE | 15.82% | ||
| ROCE | 9.53% | ||
| ROIC | 7.53% | ||
| ROICexc | 7.67% | ||
| ROICexgc | 7.67% | ||
| OM | 26.82% | ||
| PM (TTM) | 11.33% | ||
| GM | 68.33% | ||
| FCFM | N/A |
ROA(3y)4.28%
ROA(5y)0.13%
ROE(3y)21.75%
ROE(5y)-8.59%
ROIC(3y)14.1%
ROIC(5y)N/A
ROICexc(3y)14.59%
ROICexc(5y)N/A
ROICexgc(3y)14.59%
ROICexgc(5y)N/A
ROCE(3y)17.85%
ROCE(5y)N/A
ROICexcg growth 3Y4.21%
ROICexcg growth 5Y6.17%
ROICexc growth 3Y4.21%
ROICexc growth 5Y6.17%
OM growth 3Y-0.89%
OM growth 5Y9.48%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-2.63%
GM growth 5Y-1.35%
F-Score3
Asset Turnover0.32
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.29 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 3 | ||
| Cap/Depr | 200.58% | ||
| Cap/Sales | 55.73% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 74.15% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.75 | ||
| Quick Ratio | 0.46 | ||
| Altman-Z | 0.39 |
F-Score3
WACC6.69%
ROIC/WACC1.13
Cap/Depr(3y)188.24%
Cap/Depr(5y)167.54%
Cap/Sales(3y)48.86%
Cap/Sales(5y)52.84%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-45.57%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-109.68%
EPS Next Y-100.08%
EPS Next 2Y-20.22%
EPS Next 3Y-10.91%
EPS Next 5Y-32.42%
Revenue 1Y (TTM)-1.54%
Revenue growth 3Y7.94%
Revenue growth 5Y2.24%
Sales Q2Q%-21.69%
Revenue Next Year-1.11%
Revenue Next 2Y4.03%
Revenue Next 3Y0.43%
Revenue Next 5Y-1.12%
EBIT growth 1Y-36.85%
EBIT growth 3Y6.98%
EBIT growth 5Y11.94%
EBIT Next Year49.5%
EBIT Next 3Y19.04%
EBIT Next 5Y7.19%
FCF growth 1Y-52.54%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-11.36%
OCF growth 3Y21.91%
OCF growth 5Y1.54%