Kodiak Gas Services Inc. Common Stock (KGS)

FairStock Score: 37/100 — MIXED

Key Financials

AI Analysis

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

I see Kodiak as a capital-intensive contract compression business tied to oil and gas activity. The operating trend is better: in fiscal Q2 2026, the quarter ended 2026-06-30, revenue was $391.1 million and net income $52.0 million, versus $322.8 million and $39.5 million in fiscal Q2 2025, the quarter ended 2025-06-30 — about 21% revenue and 32% net income growth. Filed annual net income rose from $20.1 million in FY2023, ended 2023-12-31, to $80.5 million in FY2025, ended 2025-12-31, though fiscal Q3 2025, the quarter ended 2025-09-30, had a $14.0 million net loss, showing cyclicality. FairStock's Lynch category is cyclical, which fits. Quality is mixed: ROE 4.59% and ROCE 5.85% are low, D/E is 1.30, Altman Z is 0.99, and TTM FCF is only $5.0 million, a 0.1% FCF yield. The dividend yield is 3.34%, but cash generation is thin. At the 2026-10-26 close of $45.45, FairStock's P/E is 51.65 and P/B is 2.12; its Graham Number is $20.59, so price is far above that conservative value. FairStock Score 37/100 and Piotroski 6/9 suggest no bargain. I would need evidence of durable free cash flow, lower leverage, and a wider margin of safety before calling this compelling.

In plain English: Kodiak owns and operates natural gas compression equipment and related services for oil and gas producers. The latest quarter showed higher sales and profit, but the company generates little spare cash after spending and carries meaningful debt. At the recent share price, the stock looks expensive compared with its earnings, accounting value, and a conservative asset-based estimate.

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Data as of 2026-10-26 close · note generated 2026-10-28 · 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 (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (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