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

• Market Cap: $3.04B
• Dividend Yield: 4.82%
• Average Volume (3M): 1.76M
• Price to Earnings (P/E): 44.9
• Beta (1Y): 0.96
• 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: 2,228,085
• 30 Day Avg. Volume: 1,758,915
• 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: 1.94
• Enterprise Value/Revenue: 4.59
• Enterprise Value/Gross Profit: 9.83
• Enterprise Value/Ebitda: 10.10
• 1Y Price Target: $43.00
• Price Target Upside: 21.09% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 7
• EPS Forecast (FY): 1.21
• Revenue Forecast (FY): $1.31B

• Rating: 68 Neutral
• Price Target: $39.00 ▲(9.83% Upside)

Kodiak Gas Services, Inc. has a strong financial performance with excellent cash flow management and operational efficiency. The positive technical indicators and strategic initiatives highlighted in the earnings call further support the stock's potential. However, high leverage and an overvalued P/E ratio present risks that could impact future performance.

Positive Factors

Cash Flow Management

Effective cash flow management ensures Kodiak Gas Services can sustain operations, reinvest in growth, and return value to shareholders, enhancing long-term stability.

Strategic Focus on U.S. Market

Focusing on the U.S. market allows Kodiak Gas Services to capitalize on higher returns and reduced operational risks, strengthening its competitive position.

High Fleet Utilization

High fleet utilization indicates strong demand for Kodiak's services, supporting revenue stability and operational efficiency in the long term.

Negative Factors

High Leverage

High leverage can limit financial flexibility and increase risk, especially in volatile markets, potentially impacting long-term financial health.

Declining Revenue Growth

Declining revenue growth may signal challenges in market expansion or competitiveness, affecting future profitability and market position.

Long Lead Times for Equipment

Extended lead times for equipment can hinder Kodiak's ability to meet demand and expand operations, impacting growth and customer satisfaction.

Kodiak Gas Services, Inc. Business Overview & Revenue Model

Company Description

Kodiak Gas Services, Inc. (KGS) is a leading provider of natural gas compression services and solutions primarily for the oil and gas industry. Operating in the midstream sector, KGS specializes in the rental and servicing of natural gas compression equipment, offering a range of products that include both high- and low-pressure compressors. The company caters to a diverse clientele, including producers and gatherers of natural gas, helping optimize production and transportation processes while ensuring compliance with industry standards.

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

Kodiak Gas Services, Inc. shows strong cash flow management and operational efficiency, with a notable free cash flow growth rate of 47.7%. However, challenges include declining revenue growth and high leverage, with a debt-to-equity ratio of 2.12, which could pose risks in a volatile market.

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: 35.51
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• 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 35.51 is above the 20-day moving average (MA) of 35.38, above the 50-day MA of 34.93, and above the 200-day MA of 34.02, indicating a bullish trend. The MACD of 0.80 indicates Negative momentum. The RSI at 63.16 is Neutral, neither overbought nor oversold. The STOCH value of 83.13 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	79 Outperform	$4.43B	16.79	19.33%	3.06%	31.94%	64.74%
NGS	78 Outperform	$408.24M	21.95	7.15%	0.65%	9.53%	15.48%
WHD	77 Outperform	$3.50B	17.43	15.77%	1.18%	-3.76%	-11.00%
OII	73 Outperform	$2.41B	10.57	28.92%	―	8.71%	72.09%
USAC	70 Outperform	$2.88B	29.33	―	8.93%	6.66%	43.66%
KGS	68 Neutral	$3.04B	44.94	5.86%	4.82%	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 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.

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.

Kodiak Gas Services Increases Quarterly Dividend

On October 23, 2025, Kodiak Gas Services, Inc. announced an increase in its quarterly cash dividend to $0.49 per share, payable on November 13, 2025, reflecting the company’s strong cash flow and commitment to shareholder returns. Additionally, Kodiak Services, a subsidiary, declared a similar distribution for its units. The company will release its third-quarter 2025 financial results on November 4, 2025, followed by a conference call on November 5, 2025, to discuss the earnings.

Kodiak Gas Services Completes $200M Senior Notes Offering

On September 22, 2025, Kodiak Gas Services, LLC completed a private offering of additional senior unsecured notes totaling $200 million, with maturities set for 2033 and 2035. This issuance is part of a broader strategy to manage the company’s debt portfolio, aligning with existing notes and offering structural guarantees, which may enhance the company’s financial flexibility and appeal to investors.

Kodiak Gas Services Announces $200M Notes Offering

On September 18, 2025, Kodiak Gas Services, Inc. announced that its subsidiary priced a private offering of an additional $200 million in senior unsecured notes, with $170 million due in 2033 and $30 million due in 2035. The proceeds from this offering are intended to repay a portion of the company’s outstanding indebtedness under its revolving asset-based loan credit facility, potentially impacting the company’s financial structure and market positioning.

Kodiak Gas Services Launches $200M Notes Offering

On September 18, 2025, Kodiak Gas Services, Inc. announced that its subsidiary, Kodiak Gas Services, LLC, launched a private offering of an additional $200 million in senior unsecured notes due 2033. The proceeds from this offering are intended to repay a portion of the company’s outstanding indebtedness under its revolving asset-based loan credit facility, which may impact the company’s financial structure and operations.

Kodiak Gas Services Enters Underwriting Agreement for Stock Sale

On September 8, 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 $34.40 per share. The company did not sell any shares or receive proceeds from this transaction, which closed on September 9, 2025. The agreement includes standard representations, warranties, and indemnification provisions, impacting the company’s financial structure and stakeholder relations.