KOSMOS ENERGY LTD (KOS) Stock Fundamental Analysis
NYSE:KOS - New York Stock Exchange, Inc. - US5006881065 - Common Stock - Currency: USD
We assign a fundamental rating of 2 out of 10 to KOS. KOS was compared to 213 industry peers in the Oil, Gas & Consumable Fuels industry. KOS may be in some trouble as it scores bad on both profitability and health. KOS has a expensive valuation and it also scores bad on growth.
1. Profitability
1.1 Basic Checks
KOS had negative earnings in the past year.
KOS had a positive operating cash flow in the past year.
In multiple years KOS reported negative net income over the last 5 years.
Each year in the past 5 years KOS had a positive operating cash flow.
1.2 Ratios
The Return On Assets of KOS (-0.24%) is worse than 69.01% of its industry peers.
The Return On Equity of KOS (-1.13%) is worse than 66.67% of its industry peers.
KOS has a Return On Invested Capital of 3.88%. This is in the lower half of the industry: KOS underperforms 65.73% of its industry peers.
The Average Return On Invested Capital over the past 3 years for KOS is significantly below the industry average of 25.73%.
The last Return On Invested Capital (3.88%) for KOS is well below the 3 year average (14.10%), which needs to be investigated, but indicates that KOS had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.24% | ||
| ROE | -1.13% | ||
| ROIC | 3.88% |
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 Operating Margin (15.01%) which is comparable to the rest of the industry.
In the last couple of years the Operating Margin of KOS has grown nicely.
KOS has a Gross Margin of 60.93%. This is in the better half of the industry: KOS outperforms 67.14% of its industry peers.
KOS's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15.01% | ||
| PM (TTM) | N/A | ||
| GM | 60.93% |
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.
Compared to 1 year ago, KOS has more shares outstanding
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 0.21, we must say that KOS is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.21, KOS is doing worse than 69.48% of the companies in the same industry.
A Debt/Equity ratio of 2.59 is on the high side and indicates that KOS has dependencies on debt financing.
The Debt to Equity ratio of KOS (2.59) is worse than 84.98% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.59 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.21 |
ROIC/WACC0.57
WACC6.8%
2.3 Liquidity
KOS has a Current Ratio of 0.76. 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 0.76, KOS is doing worse than 72.77% of the companies in the same industry.
KOS has a Quick Ratio of 0.76. This is a bad value and indicates that KOS is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of KOS (0.40) is worse than 87.79% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.76 | ||
| Quick Ratio | 0.4 |
3. Growth
3.1 Past
The earnings per share for KOS have decreased strongly by -100.00% in the last year.
Looking at the last year, KOS shows a very negative growth in Revenue. The Revenue has decreased by -10.43% in the last year.
KOS shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.24% yearly.
EPS 1Y (TTM)-100%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-204.76%
Revenue 1Y (TTM)-10.43%
Revenue growth 3Y7.94%
Revenue growth 5Y2.24%
Sales Q2Q%-30.71%
3.2 Future
The Earnings Per Share is expected to decrease by -32.42% on average over the next years. This is quite bad
KOS is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -1.12% yearly.
EPS Next Y-100.56%
EPS Next 2Y-24.56%
EPS Next 3Y-9.77%
EPS Next 5Y-32.42%
Revenue Next Year-5.25%
Revenue Next 2Y2.79%
Revenue Next 3Y1.29%
Revenue Next 5Y-1.12%
3.3 Evolution
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Forward Earnings ratio of 6.78 indicates a rather cheap valuation of KOS.
Based on the Price/Forward Earnings ratio, KOS is valued cheaply inside the industry as 84.51% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 22.15. KOS is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 6.78 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, KOS is valued a bit cheaper than 69.48% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 5.01 |
4.3 Compensation for Growth
A cheap valuation may be justified as KOS's earnings are expected to decrease with -9.77% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-24.56%
EPS Next 3Y-9.77%
5. Dividend
5.1 Amount
KOS does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
1.66
-0.06 (-3.49%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners97.76%
Inst Owner Change1.03%
Ins Owners2.1%
Ins Owner Change1.37%
Market Cap793.50M
Analysts78.46
Price Target5.24 (215.66%)
Short Float %9.81%
Short Ratio3.91
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)-154.37%
Min EPS beat(2)-157.02%
Max EPS beat(2)-151.72%
EPS beat(4)1
Avg EPS beat(4)-68.41%
Min EPS beat(4)-157.02%
Max EPS beat(4)36.1%
EPS beat(8)4
Avg EPS beat(8)-27.58%
EPS beat(12)7
Avg EPS beat(12)-5.89%
EPS beat(16)8
Avg EPS beat(16)-17.37%
Revenue beat(2)1
Avg Revenue beat(2)-3.98%
Min Revenue beat(2)-9.61%
Max Revenue beat(2)1.64%
Revenue beat(4)2
Avg Revenue beat(4)-1.63%
Min Revenue beat(4)-9.61%
Max Revenue beat(4)2.29%
Revenue beat(8)4
Avg Revenue beat(8)0.76%
Revenue beat(12)5
Avg Revenue beat(12)-0.71%
Revenue beat(16)8
Avg Revenue beat(16)-0.9%
PT rev (1m)-8.57%
PT rev (3m)-21.18%
EPS NQ rev (1m)-89.81%
EPS NQ rev (3m)-93.52%
EPS NY rev (1m)-627.27%
EPS NY rev (3m)-100.6%
Revenue NQ rev (1m)-2.57%
Revenue NQ rev (3m)-6.89%
Revenue NY rev (1m)-4.19%
Revenue NY rev (3m)-12.49%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 6.78 | ||
| P/S | 0.51 | ||
| P/FCF | N/A | ||
| P/OCF | 1.96 | ||
| P/B | 0.72 | ||
| P/tB | 0.72 | ||
| EV/EBITDA | 5.01 |
EPS(TTM)0
EYN/A
EPS(NY)0.24
Fwd EY14.74%
FCF(TTM)-0.64
FCFYN/A
OCF(TTM)0.85
OCFY51.01%
SpS3.24
BVpS2.3
TBVpS2.3
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.24% | ||
| ROE | -1.13% | ||
| ROCE | 4.91% | ||
| ROIC | 3.88% | ||
| ROICexc | 3.92% | ||
| ROICexgc | 3.92% | ||
| OM | 15.01% | ||
| PM (TTM) | N/A | ||
| GM | 60.93% | ||
| 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-Score2
Asset Turnover0.29
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.59 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 3.97 | ||
| Cap/Depr | 146.29% | ||
| Cap/Sales | 45.85% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 56.47% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.76 | ||
| Quick Ratio | 0.4 | ||
| Altman-Z | 0.21 |
F-Score2
WACC6.8%
ROIC/WACC0.57
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)-100%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-204.76%
EPS Next Y-100.56%
EPS Next 2Y-24.56%
EPS Next 3Y-9.77%
EPS Next 5Y-32.42%
Revenue 1Y (TTM)-10.43%
Revenue growth 3Y7.94%
Revenue growth 5Y2.24%
Sales Q2Q%-30.71%
Revenue Next Year-5.25%
Revenue Next 2Y2.79%
Revenue Next 3Y1.29%
Revenue Next 5Y-1.12%
EBIT growth 1Y-68.48%
EBIT growth 3Y6.98%
EBIT growth 5Y11.94%
EBIT Next Year28.9%
EBIT Next 3Y19.54%
EBIT Next 5Y7.19%
FCF growth 1Y-477.99%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-59.71%
OCF growth 3Y21.91%
OCF growth 5Y1.54%