Kodiak Gas Services, Inc. (KGS) stock analysis

P/E below its 5-year median

Kodiak Gas Services's P/E of 26.1 is below its own 5-year median of 60.9.

P/E above the industry

Kodiak Gas Services's P/E of 26.1 is above the Gas Production and Distribution median of 17.4.

EV/EBITDA below its 5-year median

Kodiak Gas Services's EV/EBITDA of 9.6 is below its 5-year median of 9.9.

P/S above the industry

Kodiak Gas Services's price-to-sales of 3.07 is above the Gas Production and Distribution median of 2.71 (book value is negative, so we use sales).

Trading below fair value

The share price of $44.69 is below our fair value estimate of $57.10.

Margin of safety over 20%

The price is 21.7% below fair value, more than the 20% cushion we look for.

Revenue growing 10%+ a year

Revenue grew 22.7% a year over the last three fiscal years.

EPS growing under 10% a year

Diluted EPS grew -20.9% a year over the last three fiscal years.

Earnings acceleration

Needs positive net income now, a year ago and five years ago.

Growing faster than the industry

Revenue grew 14.5% over the last twelve months; the Gas Production and Distribution median is 13.6%.

Guidance raised

Kodiak Gas Services raised its full year 2026 Other Services revenue outlook on Nov 9, 2026.

Gross margin improving

Gross margin was 64.0% over the last twelve months, against 62.8% a year earlier.

Return on equity

Needs positive equity and five years of results.

Return on invested capital

Needs operating income and invested capital.

Return on equity against the industry

Needs positive equity.

Earnings over 5 years

Needs positive net income five years ago and in the latest year.

Net margin below its 5-year average

Net margin was 11.3% over the last twelve months, against a 5-year average of 11.5%.

Net margin below the industry

Kodiak Gas Services's net margin of 11.3% is below the Gas Production and Distribution median of 13.1%.

Debt level

Needs debt and equity figures.

Debt trend

Needs a balance sheet from five years ago with positive equity.

Debt covered by cash flow

Operating cash flow over the last twelve months equals 20.4% of total debt.

Interest coverage

Interest expense is not reported separately.

Short-term assets cover short-term debts

Current assets are 1.31 times current liabilities.

Elevated bankruptcy risk

The Altman Z-score is 1.35; above 3 is the safe zone and below 1.8 the distress zone.

Pays a dividend

Kodiak Gas Services paid dividends worth 3.3% of the share price over the last twelve months.

Yield below Treasuries

The 3.3% yield is below the 4.7% on a 1-year Treasury.

Yield below the top quarter

The top quarter of US dividend payers yield 3.8% or more; Kodiak Gas Services yields 3.3%.

Dividend stability

Fewer than five years of dividend history.

Not covered by earnings

Dividends take 112% of net income, leaving little room.

Cash-flow cover

Needs dividends paid and free cash flow.