KGSKodiak Gas Services, Inc.
Is the business good?
The checks split: earnings fully cash-backed (1.7×), but margins compressing.
Operating profit is fully backed by cash. Conversion is worsening vs a year ago.
Positive operating leverage, operating profit is growing faster than sales, so margins widen as the business scales.
A balanced mix of margins, efficiency, and leverage. ROE 6% = margin × turnover × leverage.
Unless marked, from derived.
Against the whole market›
Percentile against every name Ryufin tracks. Higher is better; the tick marks the middle of the market. Context, not one of the checks above.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
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.
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
- 1.75×
Cash conversion · 1.99× a year ago · operating cash flow covers the operating profit after tax
- 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 is operating cash flow over operating profit after tax.
Customers and suppliers
Who buys from KGS and who it buys from, as the companies report it.
- One customer14%
Share of revenue · FY2025 10-K
- Four largest customers32%
Combined share of revenue · FY2025 10-K
None disclosed.
A company has to disclose every customer behind 10% or more of its revenue. Each share comes from the latest annual report of the company that states it and shows on both companies’ pages; KGS’s own figures are from its FY2025 10-K. Smaller customers and suppliers go unreported.
Oil & Gas Equipment & Services
Ranks #21 of 28 by RyuScore