Kinetik Holdings Inc. Fundamental Analysis (NYSE: KNTK)
Kinetik Holdings Inc. (NYSE: KNTK) shows moderate financial fundamentals with a PE ratio of 18.56, profit margin of 25.28%, and ROE of -36.70%. The company generates $1.8B in annual revenue with strong year-over-year growth of 18.98%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 55.4/100 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 KNTK's fundamental strength across five key dimensions:
Efficiency Score
WeakKNTK struggles to generate sufficient returns from assets.
Valuation Score
ExcellentKNTK trades at attractive valuation levels.
Growth Score
ModerateKNTK shows steady but slowing expansion.
Financial Health Score
ModerateKNTK shows balanced financial health with some risks.
Profitability Score
ModerateKNTK maintains healthy but balanced margins.
Key Financial Metrics
Is KNTK Expensive or Cheap?
P/E Ratio
KNTK trades at 18.56 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, KNTK's PEG of 0.07 indicates potential undervaluation.
Price to Book
The market values Kinetik Holdings Inc. at -3.28 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at -0.11 times EBITDA. This is generally considered low.
How Well Does KNTK Make Money?
Net Profit Margin
For every $100 in sales, Kinetik Holdings Inc. keeps $25.28 as profit after all expenses.
Operating Margin
Core operations generate 10.52 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $-36.70 in profit for every $100 of shareholder equity.
ROA
Kinetik Holdings Inc. generates $6.62 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Kinetik Holdings Inc. generates strong operating cash flow of $626.66M, reflecting robust business health.
Free Cash Flow
Kinetik Holdings Inc. generates strong free cash flow of $190.20M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $2.58 in free cash annually.
FCF Yield
KNTK converts 5.12% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
18.56
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.07
vs 25 benchmark
P/B Ratio
Price to book value ratio
-3.28
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.02
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
-3.36
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.13
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
-0.37
vs 25 benchmark
ROA
Return on assets percentage
0.07
vs 25 benchmark
ROCE
Return on capital employed
0.03
vs 25 benchmark
How KNTK Stacks Against Its Sector Peers
| Metric | KNTK Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 18.56 | 22.27 | Better (Cheaper) |
| ROE | -36.70% | 1228.00% | Weak |
| Net Margin | 25.28% | 1247.00% | Weak |
| Debt/Equity | -3.36 | 2.78 | Strong (Low Leverage) |
| Current Ratio | 0.13 | 5.40 | Weak Liquidity |
| ROA | 6.62% | 4396.00% | Weak |
KNTK outperforms its industry in 2 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Kinetik Holdings Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
162.37%
Industry Style: Cyclical, Value, Commodity
High GrowthEPS CAGR
127.75%
Industry Style: Cyclical, Value, Commodity
High GrowthFCF CAGR
260.91%
Industry Style: Cyclical, Value, Commodity
High Growth