Kinetik Holdings Inc. (KNTK) stock analysis

P/E against its history

Not enough price and earnings history to compare.

P/E below the industry

Kinetik's P/E of 16.7 is below the Gas Production and Distribution median of 17.3.

EV/EBITDA above its 5-year median

Kinetik's EV/EBITDA of 19.4 is above its 5-year median of 12.5.

P/S above the industry

Kinetik's price-to-sales of 4.38 is above the Gas Production and Distribution median of 2.68 (book value is negative, so we use sales).

Trading above fair value

The share price of $53.71 is above our fair value estimate of $38.40.

Margin of safety under 20%

The price is 39.9% above fair value, so there is no margin of safety.

Revenue growing 10%+ a year

Revenue grew 13.3% a year over the last three fiscal years.

EPS growing 10%+ a year

Diluted EPS grew 21.4% 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 15.8% over the last twelve months; the Gas Production and Distribution median is 13.6%.

Guidance raised

Kinetik raised its full year 2026 Adjusted EBITDA outlook on Aug 6, 2026.

Gross margin improving

Gross margin was 54.9% over the last twelve months, against 54.0% a year earlier.

Return on equity

Needs positive equity and five years of results.

Return on capital under 10%

Return on invested capital was 9.0%, below the 10% that usually covers the cost of 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 against its history

Needs five years of revenue and net income.

Net margin below the industry

Kinetik's net margin of 10.7% 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 not well covered by cash flow

Operating cash flow over the last twelve months equals 18.4% of total debt; we look for at least 20%.

Interest not well covered

Operating income covers interest expense 1.1 times; we look for at least 5.

Short-term assets don't cover short-term debts

Current assets are 0.64 times current liabilities.

Elevated bankruptcy risk

The Altman Z-score is 1.19; above 3 is the safe zone and below 1.8 the distress zone.

Pays a dividend

Kinetik paid dividends worth 4.5% of the share price over the last twelve months.

Yield above Treasuries

The 4.5% yield is above the 4.4% on a 1-year Treasury.

Yield in the top quarter

The top quarter of US dividend payers yield 3.8% or more; Kinetik yields 4.5%.

Dividend stability

Fewer than five years of dividend history.

Not covered by earnings

Dividends take 106% of net income, leaving little room.

Covered by free cash flow

Dividends take 85.7% of free cash flow.