Kodiak Gas Services, Inc.
Kodiak Gas Services, Inc. Fundamental Analysis
Kodiak Gas Services, Inc. (KGS) shows weak financial fundamentals with a PE ratio of 58.39, profit margin of 6.16%, and ROE of 6.27%. The company generates $1.3B in annual revenue with strong year-over-year growth of 36.33%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 59.7/100 based on profitability, valuation, growth, and balance sheet metrics. The C grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze KGS's fundamental strength across five key dimensions:
Efficiency Score
WeakKGS struggles to generate sufficient returns from assets.
Valuation Score
WeakKGS trades at a premium to fair value.
Growth Score
ModerateKGS shows steady but slowing expansion.
Financial Health Score
ModerateKGS shows balanced financial health with some risks.
Profitability Score
WeakKGS struggles to sustain strong margins.
Key Financial Metrics
Is KGS Expensive or Cheap?
P/E Ratio
KGS trades at 58.39 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, KGS's PEG of 4.79 indicates potential overvaluation.
Price to Book
The market values Kodiak Gas Services, Inc. at 3.89 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 7.90 times EBITDA. This is generally considered low.
How Well Does KGS Make Money?
Net Profit Margin
For every $100 in sales, Kodiak Gas Services, Inc. keeps $6.16 as profit after all expenses.
Operating Margin
Core operations generate 27.05 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $6.27 in profit for every $100 of shareholder equity.
ROA
Kodiak Gas Services, Inc. generates $1.86 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Kodiak Gas Services, Inc. generates strong operating cash flow of $597.55M, reflecting robust business health.
Free Cash Flow
Kodiak Gas Services, Inc. generates strong free cash flow of $283.23M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $3.30 in free cash annually.
FCF Yield
KGS converts 6.10% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
58.39
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
4.79
vs 25 benchmark
P/B Ratio
Price to book value ratio
3.89
vs 25 benchmark
P/S Ratio
Price to sales ratio
3.58
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.04
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.84
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.06
vs 25 benchmark
ROA
Return on assets percentage
0.02
vs 25 benchmark
ROCE
Return on capital employed
0.09
vs 25 benchmark
How KGS Stacks Against Its Sector Peers
| Metric | KGS Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 58.39 | 19.95 | Worse (Expensive) |
| ROE | 6.27% | 963.00% | Weak |
| Net Margin | 6.16% | -48347.00% (disorted) | Weak |
| Debt/Equity | 0.04 | -0.54 (disorted) | Distorted |
| Current Ratio | 0.84 | 4.82 | Weak Liquidity |
| ROA | 1.86% | -2296.00% (disorted) | Weak |
KGS outperforms its industry in 0 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Kodiak Gas Services, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
96.53%
Industry Style: Cyclical, Value, Commodity
High GrowthEPS CAGR
2161.09%
Industry Style: Cyclical, Value, Commodity
High GrowthFCF CAGR
21.34%
Industry Style: Cyclical, Value, Commodity
High Growth