BKV Corporation Common Stock (BKV)

FairStock Score: 69/100 — STEADY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look for businesses that can earn above-average returns on capital and buy them at a sensible price. BKV is a natural gas producer in the Barnett and Marcellus shales, with some gathering, processing, power and carbon-capture activity. It does not possess a wide moat; natural gas is a commodity, and BKV is largely a price taker. But the turnaround is real. In fiscal 2024, the year ended 2024-12-31, it reported revenue of $805.7M and a net loss of $138.7M, or diluted EPS of -$1.94. In fiscal 2025, the year ended 2025-12-31, it reported revenue of $1.1B, net income of $179.2M, and diluted EPS of $2.05. In fiscal Q2 2026, the quarter ended 2026-06-30, revenue was $322.5M and net income $75.8M. At the 2026-10-13 close of $24.44, FairStock calculates a P/E of 8.76, P/B of 1.16, and a Graham Number of $36.30, leaving a 32.67% margin of safety. Those are attractive headline numbers. Yet the quality checks are mixed: ROE is 14.05% but ROCE is only 7.63%, Piotroski is 5/9, and Altman Z is 1.04, which flags distress risk. More troubling, trailing free cash flow is -$473.8M and FCF yield is -19.0%. Cheapness on earnings is not enough if cash is flowing out the door. I would want evidence that the profit turnaround converts into durable free cash flow before trusting the margin of safety. The computed Lynch category is TURNAROUND, because it returned to profit after a loss within the last three years.

In plain English: BKV produces natural gas in Texas and Pennsylvania and also does some processing and carbon capture work. It swung from a loss in fiscal 2024 to a profit in fiscal 2025, and its latest filed quarter also showed a profit. Based on the 2026-10-13 close, the shares look inexpensive compared with the company's profits, but the business spends more cash than it brings in over the last year.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K/A (period ended 2025-12-31) · FY2024 10-K/A (period ended 2024-12-31) · FY2023 10-K/A (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer