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

• Market Cap: $3.05B
• Dividend Yield: 4.87%
• Average Volume (3M): 1.90M
• Price to Earnings (P/E): 38.6
• Beta (1Y): 0.90
• Revenue Growth: 31.01%
• EPS Growth: 39.51%
• Country: US
• Employees: 1,300
• Sector: Energy
• Sector Strength: 57
• Industry: Oil & Gas Equipment & Services
• EPS (TTM): 0.43
• Shares Outstanding: 87,752,250
• 10 Day Avg. Volume: 1,497,756
• 30 Day Avg. Volume: 1,898,302
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.87
• Enterprise Value/Revenue: 4.43
• Enterprise Value/Gross Profit: 11.07
• Enterprise Value/Ebitda: 9.38
• 1Y Price Target: $42.50
• Price Target Upside: 20.36% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4

• Rating: 67 Neutral
• Price Target: $39.00 ▲(10.45% Upside)

Kodiak Gas Services, Inc. has a solid overall stock score driven by strong financial performance and strategic corporate actions. The bullish technical indicators and positive earnings call further support the stock's potential. However, high leverage and a high P/E ratio suggest caution regarding valuation.

Positive Factors

Analyst Rating

Analyst maintains a Buy rating on Kodiak Gas Services despite recent market volatility, supported by strong growth expectations.

Financial Performance

Kodiak Gas Services achieved higher contract services gross margin than expected in the fourth quarter.

Market Demand

Kodiak Gas Services is expected to continue benefiting from tight supply, strong demand tailwinds, and margin expansion.

Negative Factors

Guidance and Expectations

KGS reported a slight miss on its FY25 outlook compared to Mizuho estimates.

Market Volatility

Kodiak Gas Services has underperformed recently due to oil macro concerns and broader market volatility.

Operational Challenges

Gross margin outlook for FY25 may have been underwhelming due to one-time operational expenses.

Kodiak Gas Services, Inc. Business Overview & Revenue Model

Company Description

Kodiak Gas Services, Inc. (KGS) is a leading provider in the oil and gas sector, specializing in the supply and maintenance of natural gas compression services. The company focuses on optimizing the efficiency and reliability of its clients' gas production and transportation processes. With a commitment to sustainability and technological innovation, Kodiak Gas Services offers a range of service packages tailored to meet the needs of both large and small-scale operations.

How the Company Makes Money

Kodiak Gas Services, Inc. generates revenue primarily through its service contracts with oil and gas companies. The company offers long-term agreements for the provision of natural gas compression services, which include the rental, operation, and maintenance of compression equipment. These contracts often include performance-based incentives, aligning Kodiak's interests with those of its clients to ensure optimal equipment uptime and efficiency. Additionally, Kodiak may have strategic partnerships with equipment manufacturers and technology providers to enhance its service offerings, although specific details on partnerships are not publicly available.

Kodiak Gas Services, Inc. Financial Statement Overview

Summary

Kodiak Gas Services, Inc. exhibits strong revenue growth and operational efficiency, with solid profitability margins. The balance sheet is healthy, characterized by low leverage and a strong equity base, contributing to financial stability. Cash flow generation is robust, though improvements in converting net income to free cash flow would enhance liquidity further.

Income Statement

Kodiak Gas Services, Inc. has demonstrated strong revenue growth with a Revenue Growth Rate of 9.86% in TTM compared to the previous year. The Gross Profit Margin is robust at 38.19%, indicating effective cost management. While the Net Profit Margin is modest at 3.97%, the company shows a healthy EBIT Margin of 23.13% and an EBITDA Margin of 44.43%, reflecting solid operational efficiency. However, there is room for improvement in net profitability.

Balance Sheet

The company's Debt-to-Equity Ratio is low at 0.04, showcasing a strong equity base relative to debt, which is positive for financial stability. Return on Equity is moderate at 3.73%, suggesting reasonable returns for shareholders. The Equity Ratio of 30.56% indicates a balanced capital structure, though there is potential for enhancing asset efficiency.

Cash Flow

Kodiak Gas Services, Inc. has shown positive Free Cash Flow Growth at TTM, and the Operating Cash Flow to Net Income Ratio stands at 7.73, highlighting strong cash generation relative to earnings. However, the Free Cash Flow to Net Income Ratio is lower at 0.72, suggesting some constraints in converting profits into free cash flow, which could be an area for improvement.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.29B	1.16B	850.38M	707.91M	606.38M	532.42M
Gross Profit	514.87M	440.66M	316.64M	440.56M	396.20M	207.47M
EBITDA	607.67M	533.32M	440.52M	483.93M	389.73M	314.06M
Net Income	83.34M	49.90M	20.07M	106.27M	180.96M	-2.19M
Balance Sheet
Total Assets	4.38B	4.44B	3.24B	3.21B	3.01B	3.30B
Cash, Cash Equivalents and Short-Term Investments	5.43M	4.75M	5.56M	20.43M	28.80M	24.11M
Total Debt	2.59B	2.65B	1.83B	2.73B	1.85B	1.90B
Total Liabilities	3.03B	3.06B	2.10B	2.98B	2.05B	2.54B
Stockholders Equity	1.35B	1.36B	1.14B	229.09M	960.07M	755.29M
Cash Flow
Free Cash Flow	126.92M	-8.97M	46.53M	-39.50M	48.04M	-53.41M
Operating Cash Flow	446.86M	327.99M	266.33M	219.85M	249.98M	243.98M
Investing Cash Flow	-267.68M	-292.47M	-218.42M	-251.38M	-202.03M	-296.38M
Financing Cash Flow	-177.61M	-36.33M	-62.77M	23.17M	-43.25M	73.71M

Kodiak Gas Services, Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 35.31
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 35.31 is above the 20-day moving average (MA) of 33.97, above the 50-day MA of 33.01, and below the 200-day MA of 36.71, indicating a neutral trend. The MACD of 0.84 indicates Negative momentum. The RSI at 58.57 is Neutral, neither overbought nor oversold. The STOCH value of 23.15 is Neutral, 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
NGS	74 Outperform	$318.32M	17.83	7.00%	0.38%	14.77%	34.74%
AROC	73 Outperform	$4.29B	18.18	19.85%	3.12%	28.22%	49.17%
INVX	72 Outperform	$1.15B	5.76	15.64%	―	82.86%	―
KGS	67 Neutral	$3.05B	38.61	6.16%	4.87%	31.01%	39.51%
Sector *	65 Neutral	$15.26B	7.31	3.02%	5.32%	4.27%	-62.52%
USAC	64 Neutral	$2.94B	36.26	314.74%	8.74%	8.22%	28.05%
HLX	64 Neutral	$928.95M	19.91	3.27%	―	-8.19%	―

Kodiak Gas Services, Inc. Corporate Events

Kodiak Gas Services Announces $50M Stock Buyback

On August 11, 2025, Kodiak Gas Services, Inc. announced a stock repurchase agreement to buy back 1,508,750 shares of its common stock from Frontier TopCo Partnership, L.P. for a total of $50 million, with the transaction expected to close on August 12, 2025. This repurchase, approved by a special committee of independent directors, is part of Kodiak’s capital allocation strategy to enhance shareholder value and results in the Selling Stockholder’s ownership dropping below 35%, triggering changes in the Stockholders’ Agreement, including reduced board representation and approval rights for the Selling Stockholder.

Kodiak Gas Services Announces Quarterly Dividend Payment

On July 24, 2025, Kodiak Gas Services, Inc. announced a quarterly cash dividend of $0.45 per share of common stock, payable on August 14, 2025, to stockholders of record as of August 4, 2025. Additionally, its subsidiary, Kodiak Gas Services, LLC, declared a similar distribution for its unitholders. This announcement highlights the company’s commitment to returning value to its shareholders and maintaining strong financial health, potentially reinforcing its position in the energy sector.