One-glance verdict
Within fair range
$52.63 our estimate vs market $41.67
Wall Street consensus: $79.50 (51.1% higher than our fair-value estimate)
21% below our estimate
Fundamentals snapshot
Kodiak Gas Services, Inc.
KGS · NYQ · Energy · Oil & Gas Equipment & Services
Current price
$41.67
52-week range
$32.55 - $77.68
Market cap
$4.21B
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
1 Risk
3 rewards · 1 risks
- Reward Revenue grew 6.5% last year.
- Reward Free cash flow was positive in 3/10 years.
- Reward Dividend yield is 5.0% with 4-year payout history.
- Risk Insider ownership is only 0.6% (peer median: 3.2%).
What this company does
Kodiak Gas Services, Inc.
Kodiak Gas Services provides equipment and services that help move natural gas and oil from where it's found to where it's used. The company makes most of its money from long-term contracts to provide this essential equipment, similar to a landlord renting out their property for a steady income. This is important because it shows the company has a predictable stream of earnings, which is often seen as a sign of stability for investors.
How the company got here
Kodiak Gas Services, Inc. was founded in 2010, originally known as Frontier TopCo, Inc., and is based in The Woodlands, Texas. The company has grown to become a significant player in providing essential services to the oil and gas industry. Its journey has been focused on building and operating infrastructure that helps move natural gas and oil from where it's produced to where it can be processed and transported.
What it actually does
Kodiak Gas Services provides critical infrastructure and services that help oil and gas companies extract and transport their products. Think of them as the behind-the-scenes mechanics for the energy industry. They own and operate specialized equipment, like compressors, that are essential for moving natural gas and oil through pipelines. They also offer a variety of support services to keep these operations running smoothly.
Contract Services
This is Kodiak's main business, making up the largest portion of its revenue. In this segment, Kodiak operates and maintains compression infrastructure, which is equipment that increases the pressure of natural gas to help move it through pipelines. They also manage gas treating and cooling equipment. Customers in the oil and gas industry pay Kodiak to use this infrastructure, which is vital for getting natural gas and oil from the ground to processing facilities and then to market.
Other Services
This segment provides a range of additional services that support the core operations of their oil and gas customers. This includes building new facilities (station construction), repairing and overhauling equipment (maintenance and overhaul), and supplying necessary parts. These are often billed on a time and materials basis, meaning customers pay for the actual labor and parts used, rather than a fixed contract. This segment complements their main contract services by offering a one-stop shop for many customer needs.
What management is betting on now
Kodiak's strategy likely centers on expanding its contract services fleet and optimizing its existing infrastructure to meet the ongoing demand for natural gas and oil transportation. By providing reliable and efficient compression services, they aim to be a preferred partner for energy producers. Management is focused on growing their customer base and ensuring their equipment is well-maintained and technologically up-to-date to support the energy supply chain.
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 $52.63 vs current price $41.67
Wall Street consensus is the average analyst price target: $79.50 (51.1% higher than our fair-value estimate).
Our most-likely fair value is $52.63 a share — about 26.3% away from today's price of $41.67, 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 $2.35B Interest coverage 3.48x +69% vs KGS Carries about 1.7x more debt cushion than KGS.
Total debt — 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
1 Risk
Rewards
-
Revenue grew 6.5% last year.
-
Free cash flow was positive in 3/10 years.
-
Dividend yield is 5.0% with 4-year payout history.
Risks
-
Insider ownership is only 0.6% (peer median: 3.2%).
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)
48.45x
Forward P/E
13.14x
P/B
1.95x
P/S
3.03x
EV/EBITDA
8.84x
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
0.86
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
5.0%
Payout ratio
223.3%
Last ex-div date
2026-08-17