Kodiak Gas Services Inc.
We are a leading provider and operator of large horsepower contract compression infrastructure in the U.S, supporting the critical movement and processing of natural gas across key production regions. Through our wholly-owned subsidiary, Kodiak Services, formed in 2011, we have built and operated a substantial fleet of high-reliability compression assets for more than a decade.
$49.02
+$1.59 (+3.35%)
EOD Oct 21, 2026
25.99% operating margin is above average. ROIC at 7.86%. Note that capital returns lag the margin, the business may be capital-intensive despite high margins.
Revenue up 12.8% YoY with margins expanding 4.5pp.
At 57x earnings, the current multiple leaves limited room for execution misses or growth deceleration. Net debt of $2.61B represents 9.2x FCF, leverage limits flexibility.
57.0x earnings, 989.8x FCF. The market is pricing in years of above-average growth. If that thesis breaks, downside from multiple compression alone could be 30%+. This is a stock where you're paying for the future, not the present.
Price History
Valuation & Multiples
Based on TTM earnings · Diluted shares
Profitability & Returns
Revenue (TTM)
$1.39B
▲ +12.8% YoY
Net Income (TTM)
$79M
▲ +61.4% YoY
Op. Margin
27.44%
▲ +4.5pp YoY
ROIC
8.38%
▲ +1.5pp YoY
Cash Flow & Balance Sheet
FCF (TTM)
$5M
▲ +3269.5% YoY
Op. Cash Flow (TTM)
$479M
▲ +82.9% YoY
Net Debt
$2.68B
Cash & Equiv.
$138M
3Y CAGR: +22.7%
Continue Research
SourceComputed from the 10-Q filed 3 Aug 2026, covering the period ending 30 Jun 2026, as reported to the SEC. Data last refreshed 2 Oct 2026. How this is calculated.
Price from market data, last close as of 21 Oct 2026. Fiscal year ends Dec. Sector medians are approximate S&P 500 benchmarks and update periodically.
Is Kodiak Gas Services (KGS) overvalued?
At a P/E of 57.0 and a price-to-free-cash-flow of 989.8, Kodiak Gas Services (KGS) trades above a two-stage DCF intrinsic value of about $-26.79 per share, so at $49.02 the stock looks overvalued (154.6% above estimated intrinsic value). A high multiple is not the same as overvalued: fast-growing, high-quality businesses can deserve a premium. See the general approach in how to tell if a stock is overvalued.
On quality, Kodiak Gas Services scores 29/100 on Intrinsiqq's quality scorecard (a lower-quality business on these measures), weighing growth, margins, returns on capital, share count, and balance-sheet strength. It currently yields about 3.5%; see dividend safety for coverage and history. All figures are computed from SEC filings; read the full methodology, or see how the market compares in our US profitability statistics. This is analysis, not investment advice.
Frequently asked
What is Kodiak Gas Services's fair value?+
Intrinsiqq's two-stage DCF estimates an intrinsic value of about $-26.79 per share for KGS, projecting its recent free cash flow forward with a growth rate that fades toward a long-run rate and discounting it back to today. Applying a 25% margin of safety gives a more conservative fair-value entry around $-20.09. At today's $49.02, that puts the stock about 154.6% above estimated intrinsic value. The result is sensitive to the growth and discount-rate inputs, so it is best to run conservative, base and optimistic cases. You can adjust all of them yourself with the sliders on the DCF tab.
Is Kodiak Gas Services a high-quality business?+
Kodiak Gas Services scores 29 out of 100 on Intrinsiqq's quality score, a weighted blend of 8 metrics each scored 0 to 100, which makes it a lower-quality business on these measures. Recent fundamentals include a 27.4% operating margin and a 8.4% return on invested capital. The score weighs revenue and free-cash-flow growth, operating margins, return on invested capital, share-count change, and balance-sheet strength, all computed from SEC filings, not opinion. Because valuation only means something relative to quality, the full metric-by-metric breakdown is on the quality scorecard.
Does Kodiak Gas Services (KGS) pay a dividend, and how much?+
Yes, Kodiak Gas Services pays a regular dividend of about $1.81 per share per year (typically in quarterly installments), a yield of roughly 3.5% at the current price. That is a payout ratio of about 221.5% of earnings, so the dividend is stretched at this level. A low headline yield is not the same as a weak dividend: what matters is how well earnings and free cash flow cover the payout and whether it is growing, not the percentage alone. For KGS's full payout history, growth streak and dividend-safety score, see the dividends tab.
Is Kodiak Gas Services a good stock to buy right now?+
That depends on valuation and quality together, not either alone. KGS currently trades above its estimated intrinsic value and scores 29/100 on quality (lower-quality). It also yields about 3.5%. A cheap price is only a bargain if the business is durable, and a premium can be justified by genuine quality, so the two questions, "is it cheap?" and "is it good?", only make sense side by side. Read the valuation against the quality scorecard, run the DCF on your own assumptions, and decide for yourself. This is analysis from SEC filings, not investment advice.
Related stocks: Natural Gas Transmission
Spot a number that looks wrong? Check it in KGS's SEC filings or
Download this analysis as a PDF (Pro)
Data sourced from SEC EDGAR filings and third-party price providers. Scores, valuations, and metrics are algorithmic estimates. This is not investment advice. See our Terms and Methodology.
Keep analysing KGS
Create a free account and get 14 days of Premium: every stock and every tool.
- Unlimited stocks
- Stock screener
- Portfolio tracker
- Editable DCF
- Compare side by side
- Unlimited alerts
No card. Moves to Free after, unless you upgrade.
Already have an account?
Or come back tomorrow. Stocks on your watchlist are always free to view.