Kosmos Energy (KOS) AI Stock Analysis

• Market Cap: $1.14B
• Dividend Yield: N/A
• Average Volume (3M): 9.54M
• Price to Earnings (P/E): 4.0
• Beta (1Y): 1.09
• Revenue Growth: -11.11%
• EPS Growth: -105.10%
• Country: US
• Employees: 243
• Sector: Energy
• Sector Strength: 61
• Industry: Oil & Gas Exploration & Production
• EPS (TTM): -0.22
• Shares Outstanding: 478,009,060
• 10 Day Avg. Volume: 6,364,796
• 30 Day Avg. Volume: 9,542,866
• PEG Ratio: 0.73
• Price to Book (P/B): 0.86
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -3.12
• Enterprise Value/Market Cap: 3.28
• Enterprise Value/Revenue: 0.54
• Enterprise Value/Gross Profit: 8.33
• Enterprise Value/Ebitda: 1.07
• 1Y Price Target: $3.35
• Price Target Upside: 44.40% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6

• Rating: 61 Neutral
• Price Target: $2.50 ▲(7.76%Upside)

The overall score is primarily influenced by financial performance challenges, including high leverage and negative profitability. However, the positive sentiment from the earnings call and technical momentum provide some optimism. Valuation concerns due to the negative P/E ratio slightly dampen the outlook.

Positive Factors

Financial Stability

The MOU includes a guaranteed reimbursement mechanism for gas sales, reducing financial risk for the company.

Production Capabilities

The agreement includes a commitment to boost gas supply by 100 mmcfd, indicating an increase in production capabilities.

Negative Factors

Cost and Information Challenges

The recommendation has been downgraded to HOLD from BUY due to surprising cost increases and information lag from non-operator status.

Reserves and Resource Management

Reserves for 2024 have declined by 10%, which was unexpected as flat reserves were anticipated.

Valuation and Upside Potential

Remain HOLD rated on valuation, suggesting limited immediate upside potential.

Kosmos Energy Business Overview & Revenue Model

Company Description

Kosmos Energy (KOS) is a leading independent oil and gas exploration and production company focused on the Atlantic Margins. The company operates in key regions such as the Gulf of Mexico, West Africa, and South America. Kosmos Energy is engaged in the exploration, development, and production of oil and natural gas, leveraging its technical expertise and strategic partnerships to optimize these processes. Its core products include crude oil and natural gas, which are sold to various international markets.

How the Company Makes Money

Kosmos Energy generates revenue primarily through the exploration, development, and production of oil and natural gas. The company's key revenue streams include the sale of produced crude oil and natural gas to international markets. Kosmos Energy enters into production sharing contracts and joint ventures with national oil companies and other industry players to mitigate risks and share the costs associated with exploration and development. Additionally, its strategic acquisitions and partnerships in high-potential regions contribute to its earnings by expanding its asset base and production capacity. Kosmos also benefits from favorable market conditions and oil prices, which significantly impact its revenue and profitability.

Kosmos Energy Financial Statement Overview

Summary

Kosmos Energy faces financial challenges, including declining revenue, negative profitability, and high leverage. Operational efficiency and cash generation have been pressured, requiring strategic management to enhance stability and growth potential.

Income Statement

Kosmos Energy's revenue has shown volatility, with a decline in 2024 and 2025 compared to earlier years. The TTM period reflects a negative net income, affecting net profit margins adversely. EBIT and EBITDA margins have decreased over time, indicating pressure on operational efficiency. The revenue growth rate has been negative recently, highlighting challenges in maintaining top-line growth.

Balance Sheet

Kosmos Energy exhibits a high debt-to-equity ratio, suggesting significant leverage, which poses financial risk. The equity ratio shows a low proportion of equity financing, while return on equity has been inconsistent, impacted by fluctuating net income figures. The balance sheet indicates a need for careful management of debt levels to ensure financial stability.

Cash Flow

The company has experienced negative free cash flow in the recent TTM period, indicating challenges in generating surplus cash after capital expenditures. Operating cash flow relative to net income has weakened, reflecting inefficiencies in converting earnings into cash. These factors suggest limited financial flexibility and potential challenges in funding operations or growth initiatives.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.68B	1.70B	2.25B	1.33B	804.03M
Gross Profit	573.01M	866.58M	1.34B	518.79M	-20.31M
EBITDA	896.78M	930.52M	938.11M	531.63M	175.66M
Net Income	189.85M	213.52M	226.55M	-77.84M	-411.59M
Balance Sheet
Total Assets	5.31B	4.94B	4.58B	4.94B	3.87B
Cash, Cash Equivalents and Short-Term Investments	84.97M	95.34M	183.41M	131.62M	149.03M
Total Debt	2.74B	2.39B	2.23B	2.62B	2.11B
Total Liabilities	4.11B	3.91B	3.79B	4.41B	3.43B
Stockholders Equity	1.20B	1.03B	787.85M	529.24M	440.15M
Cash Flow
Free Cash Flow	-255.41M	-167.43M	321.10M	-563.65M	-183.45M
Operating Cash Flow	678.25M	765.17M	1.13B	374.34M	196.15M
Investing Cash Flow	-966.06M	-994.85M	-703.86M	-973.38M	-345.59M
Financing Cash Flow	274.32M	141.62M	-414.70M	624.16M	69.86M

Kosmos Energy Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2.32
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For KOS, the sentiment is Positive. The current price of 2.32 is above the 20-day moving average (MA) of 2.09, above the 50-day MA of 1.96, and below the 200-day MA of 2.74, indicating a neutral trend. The MACD of 0.08 indicates Negative momentum. The RSI at 61.43 is Neutral, neither overbought nor oversold. The STOCH value of 83.22 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for KOS.

Kosmos Energy Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
VTS	71 Outperform	$962.25M	32.00	4.24%	8.85%	4.15%	3.91%
INR	66 Neutral	$871.14M	―		―	―	―
GRNT	66 Neutral	$698.83M	57.13	1.86%	8.26%	5.67%	-79.53%
Sector *	63 Neutral	5.88B	17.03	1.38%	158.53%	33.60%	18.24%
KOS	61 Neutral	$1.14B	4.03	-1.15%	―	-11.11%	-105.10%
CLMT	57 Neutral	$1.46B	―	31.18%	―	0.67%	-6298.08%

Kosmos Energy Corporate Events

Kosmos Energy Holds Annual Stockholders Meeting

On June 5, 2025, Kosmos Energy Ltd. held its Annual Meeting of Stockholders, where 89.27% of the shares were represented. During the meeting, three Class III directors were elected to serve until 2028, Ernst & Young LLP was ratified as the independent accounting firm for 2025, and executive officer compensation was approved in a non-binding advisory vote. These decisions reflect the company’s ongoing governance and operational strategies, potentially impacting its future financial and strategic direction.

The most recent analyst rating on (KOS) stock is a Buy with a $4.80 price target. To see the full list of analyst forecasts on Kosmos Energy stock, see the KOS Stock Forecast page.