Is the business good?
How good a business is KGS?
Kodiak Gas Services, Inc. earns 6.4% on the capital it employs against a 9.0% cost of capital, so growth costs more than it returns.
6.4%
Return on invested capital · cost of capital 9.0% · 2.6 points below what the capital costs: growth destroys value
- Operating margin
- 27%
Operating margin · Oil & Gas Equipment & Services median 10% · 12 months to Q2 2026
- Cash conversion
- 0.06×
Cash conversion · 1.52× a year ago · some of the reported profit has not turned into cash yet
- Share count, year on year
- +7.5%
Share count, year on year · shareholders own a smaller slice than a year ago
| Year | Operating margin |
|---|---|
| FY2021 | 31% |
| FY2022 | 31% |
| FY2023 | 29% |
| FY2024 | 22% |
| FY2025 | 26% |
Details›
- Gross margin12 months to Q2 2026
- 64%
- Operating margin12 months to Q2 2026
- 27%
- Net margin12 months to Q2 2026
- 5.8%
- Free cash flow margin
- 0.36%
- Revenue, trailing twelve months
- $1.39B
- Free cash flow, trailing twelve months
- $5.0M
- Net income, trailing twelve months
- $80M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 6.4%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion from the cash flow statement.
Oil & Gas Equipment & Services
Ranks #13 of 27 by Smart Score