Kosmos Energy Ltd. Common Shares (DE) (KOS)

FairStock Score: 25/100 — RISKY

Key Financials

AI Analysis

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

I look first for durable economics and a balance sheet that can survive mistakes. Kosmos Energy is a deepwater oil and gas explorer and producer with assets offshore Ghana, Equatorial Guinea, Mauritania, Senegal, and the Gulf of America. That is a capital-intensive, commodity-price-taking business; its 216 employees do not give it a wide moat. The filed record is volatile. In fiscal 2025, the year ended 2025-12-31, revenue was $1.3B and net income was -$699.8M, or -$1.47 per diluted share, after profits of $189.9M in fiscal 2024 and $213.5M in fiscal 2023. More recently, fiscal Q2 2026, the quarter ended 2026-06-30, showed revenue of $607.3M and net income of $184.8M, or $0.31 per diluted share, versus a net loss of $87.7M in fiscal Q2 2025. That is a real turnaround signal, but one quarter does not erase fiscal Q1 2026's -$225.6M loss. The provided figures show debt-to-equity of 3.91; FairStock's calculations show an Altman Z-Score of -0.03, negative trailing free cash flow of -$15.8M, an FCF yield of -1.0%, and a Piotroski F-Score of 5/9. At $2.78 on 2026-10-13, the market cap is $1.7B; FairStock's P/B is 2.34, P/E is -2.48, and EV/EBITDA is 12.15. Its Lynch category is TURNAROUND: a loss in the latest year after earlier profits. I would call this a speculative, asset-heavy turnaround, not a Graham bargain. The price may reflect optimism about recent production, but the margin of safety is thin until debt falls, free cash flow turns positive, and earnings persist.

In plain English: Kosmos Energy is a deepwater oil and gas producer with projects off West Africa and in the Gulf of America. The business looks weak overall: it lost a lot of money in its latest full year and carries heavy debt, though its most recent quarter was profitable. At $2.78, the stock does not look clearly cheap given those losses and the financial risk.

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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 (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