One-glance verdict
Within fair range
$35.04 our estimate vs market $54.69
Wall Street consensus: $83.13 (137.2% higher than our fair-value estimate)
56% above our estimate
Fundamentals snapshot
Kodiak Gas Services, Inc.
KGS · NYQ · Energy · Oil & Gas Equipment & Services
Current price
$54.69
52-week range
$32.55 - $77.68
Market cap
$5.53B
Balance sheet
Distressed
2.06x Stretched
Net debt $2.68B. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
2 Risks
3 rewards · 2 risks
- Reward Revenue grew 6.5% last year.
- Reward Free cash flow was positive in 3/10 years.
- Risk Insider ownership is only 0.6% (peer median: 3.2%).
- Risk Stock trades 1.2% above its 5-year average P/E.
What this company does
Kodiak Gas Services, Inc.
Kodiak Gas Services provides and operates essential machinery, called compressors, that oil and gas companies use to push natural gas through pipelines. The company makes most of its money from long-term contracts for these services, which creates predictable recurring revenue (income that is likely to continue in the future). This is a crucial step for energy companies to get natural gas out of the ground and to the market for homes and businesses to use.
How the company got here
Kodiak Gas Services was founded in 2010 to rent out and operate essential equipment for the U.S. oil and gas industry. A key moment came in 2011 when it partnered with a private equity group (a firm that invests in companies to help them grow) to expand its business. By 2019, it had become the largest privately-owned company in its field and was acquired by an infrastructure fund (a large investment pool focused on long-term assets like pipelines and equipment). The company became publicly traded on the stock market in 2023 and recently made a major acquisition in 2026 to enter the business of providing on-site power generation.
What it actually does
Think of natural gas moving through a pipeline like water through a garden hose; it needs pressure to keep flowing. Kodiak provides the engine-driven machines, called compressors, that create this pressure. Instead of just selling the equipment, Kodiak operates on a contract basis, meaning customers pay Kodiak to install, operate, and maintain these large, complex machines at their sites. This service is critical for oil and gas companies to move their products from the wellhead to processing facilities and eventually to consumers.
Compression Infrastructure
This is Kodiak's primary business and makes up the vast majority of its revenue. In this segment, the company rents out its large fleet of compression equipment to oil and gas producers and midstream operators (companies that transport and store oil and gas). Customers sign long-term contracts for Kodiak to provide and run the machinery needed to keep natural gas pressurized and moving through the supply chain (the entire process from production to the final customer). Kodiak focuses on high-horsepower units, which are the biggest and most powerful compressors used for the largest projects.
Power Infrastructure
This is a new and growing part of Kodiak's business, started after an acquisition in 2026. This segment provides on-site, reliable power generation for customers outside of traditional oil and gas. For example, a large data center that needs a huge amount of uninterrupted electricity can contract with Kodiak to build and operate a dedicated power source right next to their facility. Customers pay for the reliable power, which helps them operate without depending solely on the main electrical grid.
Other Services
This is a smaller slice of the company that provides a variety of related support services. This includes things like building the sites where compressors are installed, performing major maintenance and overhauls on equipment that customers own themselves, and selling parts. These services are often complementary to its main compression business. While it doesn't bring in as much money as the main segments, it supports customer needs and provides an additional revenue stream.
What management is betting on now
Management is focused on two main areas for growth. First, they continue to invest in their core business of large-horsepower natural gas compression, as they see sustained demand from oil and gas producers. Second, they are making a big bet on their new Power Infrastructure segment, believing that the growing electricity needs of data centers and other industries create a major opportunity. The company's strategy involves using long-term contracts to create predictable cash flow and practicing disciplined capital allocation (being careful and strategic about how they spend money on new equipment and projects).
Price history
How the share price has moved
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Loading price history…
Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q3
$-49.66M
FY2024 Q4
$45.25M
FY2025 Q1
$36.77M
FY2025 Q2
$94.55M
FY2025 Q3
$10.91M
FY2025 Q4
$142.03M
FY2026 Q1
$-47.19M
FY2026 Q2
$-100.74M
Revenue
$391.12M
Net income
$51.97M
Diluted EPS
0.53
Operating cash flow
$99.47M
Free cash flow
$-100.74M
Fetching…
Sources
Revenue
$345.76M
Net income
$17.80M
Diluted EPS
0.20
Operating cash flow
$71.18M
Free cash flow
$-47.19M
Fetching…
Sources
Revenue
$332.87M
Net income
$24.62M
Diluted EPS
0.30
Operating cash flow
$194.86M
Free cash flow
$142.03M
Fetching…
Sources
Revenue
$322.74M
Net income
$-14.01M
Diluted EPS
-0.17
Operating cash flow
$113.38M
Free cash flow
$10.91M
Fetching…
Sources
Revenue
$322.84M
Net income
$39.50M
Diluted EPS
0.43
Operating cash flow
$177.17M
Free cash flow
$94.55M
Fetching…
Sources
Revenue
$329.64M
Net income
$30.41M
Diluted EPS
0.33
Operating cash flow
$114.33M
Free cash flow
$36.77M
Fetching…
Sources
Revenue
$309.52M
Net income
$19.08M
Diluted EPS
0.18
Operating cash flow
$118.48M
Free cash flow
$45.25M
Fetching…
Sources
Revenue
$324.65M
Net income
$-5.65M
Diluted EPS
-0.07
Operating cash flow
$36.88M
Free cash flow
$-49.66M
Fetching…
Sources
Is it cheap or expensive?
Fair value $35.04 vs current price $54.69
Wall Street consensus is the average analyst price target: $83.13 (137.2% higher than our fair-value estimate).
Our most-likely fair value is $35.04 a share — about 35.9% away from today's price of $54.69, so the stock currently looks fairly priced.
Is it drowning in debt?
Distressed
Net debt $2.7B. Interest coverage 2.1x.
Net debt
$2.68B
Interest coverage
2.06x
Kodiak Gas Services, Inc.'s profit covers its interest bill about 2.1 times over. which is stronger than most peers shown here.
Distressed
Worse cushion
Baseline
Better cushion
KGS
BASELINE
Kodiak Gas Services, Inc.
Total debt $2.82B Interest coverage 2.06x This is the baseline the peer rows are being compared against.
Total debt $2.36B Interest coverage 3.48x +69% vs KGS Carries about 1.7x more debt cushion than KGS.
Total debt $2.96B Interest coverage 1.70x -17% vs KGS Carries about 1.2x less debt cushion than KGS.
Total debt $329.28M Interest coverage 3.26x +58% vs KGS Carries about 1.6x more debt cushion than KGS.
What you should know
The case for and against KGS
3 Rewards
2 Risks
Rewards
-
Revenue grew 6.5% last year.
-
Free cash flow was positive in 3/10 years.
-
Dividend yield is 3.5% with 4-year payout history.
Risks
-
Insider ownership is only 0.6% (peer median: 3.2%).
-
Stock trades 1.2% above its 5-year average P/E.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
62.15x
Forward P/E
16.89x
P/B
2.55x
P/S
3.97x
EV/EBITDA
10.97x
PEG ratio
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Profitability
How much profit each dollar creates
Gross margin
63.8%
Operating margin
34.2%
Net margin
5.8%
ROE
4.6%
ROA
5.9%
Health
Liquidity and balance-sheet strength
Debt / equity
1.30x
Current ratio
1.45x
Quick ratio
1.13x
Total debt
$2.82B
Total cash
$137.55M
Growth
How the business has been compounding
Revenue TTM
$1.39B
Revenue 5Y CAGR
21.2%
EPS TTM
0.88
EPS 5Y CAGR
-14.4%
Cash flow
How much cash the business throws off
Operating CF TTM
$478.89M
Free CF TTM
$284.27M
FCF margin
20.4%
Dividend
Shareholder payout
Yield
3.5%
Payout ratio
218.2%
Last ex-div date
2026-08-17