Kodiak Gas Services, Inc. (KGS) AI Stock Analysis

• Market Cap: $3.60B
• Dividend Yield: 4.86%
• Average Volume (3M): 1.17M
• Price to Earnings (P/E): 52.0
• Beta (1Y): 0.94
• Revenue Growth: 19.43%
• EPS Growth: 164.71%
• Country: US
• Employees: 1,300
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Equipment & Services
• EPS (TTM): -0.17
• Shares Outstanding: 85,683,860
• 10 Day Avg. Volume: 1,257,720
• 30 Day Avg. Volume: 1,165,294
• PEG Ratio: 0.64
• Price to Book (P/B): 2.49
• Price to Sales (P/S): 2.93
• P/FCF Ratio: -378.27
• Enterprise Value/Market Cap: 1.74
• Enterprise Value/Revenue: 4.88
• Enterprise Value/Gross Profit: 10.46
• Enterprise Value/Ebitda: 10.74
• 1Y Price Target: $44.17
• Price Target Upside: 5.14% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 7
• EPS Forecast (FY): 2.31
• Revenue Forecast (FY): $1.39B

• Rating: 66 Neutral
• Price Target: $44.00 ▲(4.74% Upside)

KGS scores well on cash-flow strength and solid operating margins, reinforced by a positive earnings-call outlook with high utilization and contracted 2026 plans. The score is held back by high leverage and declining revenue growth, while the rich P/E valuation limits upside despite an attractive dividend yield. Technically, the uptrend is supportive but shows some near-term stretch.

Positive Factors

Strong free cash flow generation

Sustained, sizable free cash flow growth and strong operating cash conversion underpin durable self‑funding capacity. This supports reinvestment in fleet, steady dividends and buybacks, and cushions the business through oil/gas cycles, improving long‑term financial resilience.

High fleet utilization and contracted 2026 plan

Near‑maximized utilization and a fully contracted capital plan provide multi‑period revenue visibility and reduce vacancy risk. High utilization converts fixed fleet costs into predictable revenue, strengthening margin sustainability and reducing execution uncertainty over the next several quarters.

Debt refinanced and larger liquidity availability

Lengthening maturities and ample ABL availability materially lower near‑term refinancing risk and interest rate sensitivity. A structured debt profile plus liquidity enhances financial flexibility to fund growth, weather commodity volatility, and continue shareholder returns without immediate capital markets dependence.

Negative Factors

High leverage on the balance sheet

Material leverage raises structural risk in a cyclical midstream service business, amplifying earnings volatility and interest expense exposure during downturns. Even with refinancing, elevated gearing limits strategic optionality and increases sensitivity to cash‑flow shocks over multiple quarters.

Declining revenue growth trend

A multi‑period revenue contraction signals either demand softness or contract mix shifts that can persist, pressuring utilization upside and leaving fixed costs harder to absorb. Sustained revenue declines constrain margin expansion and reduce headroom for reinvestment and dividend maintenance.

Very long equipment lead times

Prolonged vendor lead times create structural delivery risk: inability to scale deployed horsepower quickly delays revenue growth and modernization, forces reliance on older units, and raises capex timing uncertainty. This supply constraint can persist for multiple quarters and dampen growth execution.

Kodiak Gas Services, Inc. Business Overview & Revenue Model

Company Description

Kodiak Gas Services, Inc. operates contract compression infrastructure for customers in the oil and gas industry in the United States. It operates in two segments, Compression Operations and Other Services. The Compression Operations segment operates company-owned and customer-owned compression infrastructure to enable the production, gathering, and transportation of natural gas and oil. The Other Services segment provides a range of contract services, including station construction, maintenance and overhaul, and other ancillary time and material-based offerings. The company was formerly known as Frontier TopCo, Inc. Kodiak Gas Services, Inc. was founded in 2010 and is based in Montgomery, Texas. Kodiak Gas Services, Inc. operates as a subsidiary of Frontier Topco Partnership, L.P.

How the Company Makes Money

Kodiak Gas Services generates revenue primarily through the rental of natural gas compression equipment, charging clients on a contractual basis for the use of its machinery. The company may also offer maintenance and operational support services, adding recurring revenue streams through service contracts. Key revenue streams include long-term rental agreements with large operators in high-demand areas, as well as one-time rentals for short-term projects. Significant partnerships with major oil and gas companies further contribute to its earnings, as these relationships often result in stable, long-term contracts that enhance KGS's financial stability.

Kodiak Gas Services, Inc. Financial Statement Overview

Summary

Operational profitability and cash generation are solid (41.5% gross margin, 24.2% EBIT margin; free cash flow growth +47.7% and strong cash conversion with operating cash flow at 1.50x net income). Offsetting this strength are declining revenue growth (-14.8%) and elevated leverage (debt-to-equity 2.12) with modest ROE (6.3%), which increase downside risk in a cyclical industry.

Income Statement

Kodiak Gas Services, Inc. shows a mixed performance in its income statement. The TTM (Trailing-Twelve-Months) data indicates a decline in revenue growth rate by 14.8%, which is concerning. However, the company maintains a healthy gross profit margin of 41.5% and an EBIT margin of 24.2%, indicating operational efficiency. The net profit margin has improved to 5.8% from the previous year, showing better profitability management.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio of 2.12, which suggests significant leverage and potential risk if market conditions worsen. The return on equity (ROE) is relatively low at 6.3%, indicating moderate efficiency in generating profits from shareholders' equity. The equity ratio stands at 28.7%, reflecting a stable capital structure but with room for improvement.

Cash Flow

Cash flow analysis is a strong point for Kodiak Gas Services, Inc., with a notable free cash flow growth rate of 47.7% in the TTM period. The operating cash flow to net income ratio is robust at 1.50, indicating good cash generation relative to net income. Additionally, the free cash flow to net income ratio of 0.36 suggests effective cash management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.28B	1.16B	850.38M	707.91M	606.38M	532.42M
Gross Profit	599.50M	440.66M	316.64M	266.10M	236.15M	207.47M
EBITDA	583.51M	533.32M	440.52M	479.69M	367.07M	264.41M
Net Income	74.98M	49.90M	20.07M	106.27M	180.96M	-2.19M
Balance Sheet
Total Assets	4.37B	4.44B	3.24B	3.21B	3.01B	3.30B
Cash, Cash Equivalents and Short-Term Investments	724.00K	4.75M	5.56M	20.43M	28.80M	24.11M
Total Debt	2.67B	2.65B	1.83B	2.73B	1.85B	1.90B
Total Liabilities	3.12B	3.06B	2.10B	2.98B	2.05B	2.54B
Stockholders Equity	1.25B	1.36B	1.14B	229.09M	960.07M	755.29M
Cash Flow
Free Cash Flow	187.49M	-8.97M	46.53M	-39.50M	48.04M	-53.41M
Operating Cash Flow	523.36M	327.99M	266.33M	219.85M	249.98M	243.98M
Investing Cash Flow	-288.84M	-292.47M	-218.42M	-251.38M	-202.03M	-296.38M
Financing Cash Flow	-241.23M	-36.33M	-62.77M	23.17M	-43.25M	73.71M

Kodiak Gas Services, Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 42.01
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For KGS, the sentiment is Positive. The current price of 42.01 is above the 20-day moving average (MA) of 38.28, above the 50-day MA of 36.84, and above the 200-day MA of 34.46, indicating a bullish trend. The MACD of 1.36 indicates Negative momentum. The RSI at 72.50 is Negative, neither overbought nor oversold. The STOCH value of 86.60 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for KGS.

Kodiak Gas Services, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AROC	78 Outperform	$5.19B	19.41	19.33%	3.08%	31.94%	64.74%
NGS	74 Outperform	$435.39M	23.33	7.15%	0.63%	9.53%	15.48%
WHD	73 Outperform	$4.49B	22.36	15.77%	1.16%	-3.76%	-11.00%
OII	69 Neutral	$3.00B	13.17	28.92%	―	8.71%	72.09%
USAC	67 Neutral	$3.17B	32.19	―	9.11%	6.66%	43.66%
KGS	66 Neutral	$3.60B	52.01	5.86%	4.86%	19.43%	164.71%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%

Kodiak Gas Services, Inc. Corporate Events

Kodiak Gas Services Declares Quarterly Dividend, Sets Earnings Date

On January 29, 2026, Kodiak Gas Services, Inc. declared a quarterly cash dividend of $0.49 per share on its common stock for the fourth quarter of 2025, payable on February 20, 2026 to shareholders of record as of February 13, 2026, while its subsidiary Kodiak Gas Services, LLC simultaneously approved an identical $0.49 per unit distribution to its unitholders on the same record and payment dates. The company also scheduled the release of its fourth‑quarter and full‑year 2025 financial results for February 25, 2026, followed by an earnings conference call and webcast on February 26, 2026, moves that underscore an ongoing capital‑return program and provide investors with a defined timetable for reviewing Kodiak’s recent operating and financial performance.

The most recent analyst rating on (KGS) stock is a Buy with a $45.00 price target. To see the full list of analyst forecasts on Kodiak Gas Services, Inc. stock, see the KGS Stock Forecast page.

Kodiak Gas Services Stock Sale Agreement Finalized

On December 1, 2025, Kodiak Gas Services, Inc. entered into an Underwriting Agreement with Frontier TopCo Partnership, L.P. and Goldman Sachs & Co. LLC for the sale of 9,762,573 shares of common stock by the Selling Stockholder at $34.60 per share. The company did not sell any shares or receive proceeds from this transaction, which closed on December 2, 2025, and included standard representations, warranties, and indemnification agreements.

The most recent analyst rating on (KGS) stock is a Buy with a $45.00 price target. To see the full list of analyst forecasts on Kodiak Gas Services, Inc. stock, see the KGS Stock Forecast page.

Kodiak Gas Services Completes Share Repurchase Program

On November 12, 2025, Kodiak Gas Services, Inc. entered into an Underwriting Agreement with Frontier TopCo Partnership, L.P. and Goldman Sachs & Co. LLC for the sale of 10,000,000 shares of common stock by the Selling Stockholder at $33.60 per share. The company did not sell any shares or receive proceeds from this sale but repurchased 1,000,000 shares for approximately $33.3 million as part of its existing share repurchase program, leaving $31.7 million available in the program. The Offering and Share Repurchase concluded on November 13, 2025, with standard contractual agreements and indemnifications in place.

The most recent analyst rating on (KGS) stock is a Buy with a $47.00 price target. To see the full list of analyst forecasts on Kodiak Gas Services, Inc. stock, see the KGS Stock Forecast page.