Kodiak Gas Services, Inc. (KGS) Stock

Kodiak Gas Services, Inc. (KGS) is a Utilities stock trading at $60.60 (as of 2026-08-20), with a market capitalization of $6.13B and a trailing P/E of 83.2. Figures are sourced from first-party U.S. SEC EDGAR filings and market data.

Kodiak Gas Services, Inc. provides contract compression infrastructure and related services for oil and gas customers in the United States. It operates through Compression Operations, using compression infrastructure to support natural gas and oil production and transportation, and Other Services, which include station construction, maintenance, and overhaul.

Understand Kodiak Gas Services, Inc.: how it makes money

Kodiak Gas Services provides contract compression infrastructure and related services for oil and gas producers in the United States, and it earns money by operating compression capacity and delivering time-and-material services tied to that equipment and customer needs.

The profit engine is scaling and keeping high utilization of the company’s compression capacity, measured through “Compression Fleet Utilization Rate” and “Revenue-Generating Horsepower,” then monetizing that capacity through contract services and related offerings.

Business quality (Solid): Operating margin is positive and high, with very high compression fleet utilization, which suggests the model can generate strong returns when equipment is well utilized.

Valuation: At 91× earnings, KGS trades 313% above the Utilities average (22×). Note: one-time items can distort reported P/E.

Bull case

Very high utilization: “Compression Fleet Utilization Rate” is 98.0 percent.
Large installed, revenue-relevant capacity: “Revenue-Generating Horsepower” is 4,400,000 count, indicating meaningful scale of monetizable compression capacity.
Strong profitability in the latest period: Operating margin for the period ended 2026-03-31 is 30.9 percent.

Bear case

Utilization can be cyclical: The business monetizes compression capacity, so any decline in equipment utilization (reflected in “Compression Fleet Utilization Rate”) can directly pressure results.
Revenue may be sensitive to contract mix: The company reports “Month-to-Month Operating Fleet” at 10.0 percent and “Horsepower on Month-to-Month Contracts” at 7.0 percent, which can imply more variability versus longer arrangements.
Dependence on deploying and redeploying horsepower: Key operating measures include “Deployed Horsepower in Compression Units” and “Horsepower Redeployed from Previously Idle Equipment,” so operational execution and demand for deployed units matter.

Valuation — source: SEC EDGAR (first-party)
Price	$60.60
Market Cap	$6.13B
P/E Ratio	83.2
EV / EBITDA	12.7
Price / Book	2.83
Price / Sales	4.36
FCF Yield	-1.6%
DCF Value (model)	$10.41
DCF Upside vs Price	-82.8%

Profitability & Growth — source: SEC EDGAR
Revenue (TTM)	$1.31B
Net Margin	6.2%
Revenue Growth (YoY)	12.8%
EPS Growth (YoY)	55.2%
FCF Growth (YoY)	-3269.5%

Financial Health — source: SEC EDGAR
Altman Z-Score	1.55 (distress)

Valuation vs Sector & Industry
Stock P/E	83.2
Sector P/E (Utilities)	21.3
Industry P/E (Utilities)	20.6
vs Sector	290.0%
vs Industry	303.2%

Smart-Money Activity — SEC Form 4 / 13F / Congressional disclosures
Top Institutional Holder	BlackRock, Inc. ($717.86M)
Institutional Holders Tracked	10

Company
Sector	Utilities
Industry	Utilities
CEO	Robert McKee
Employees	1,300
Country	US
IPO Date	2023-06-29

Related Companies (Business model: Refining & Midstream Energy; 8 closest by market cap; US-domiciled)

Data as of 2026-08-20.

Figures sourced from U.S. Securities and Exchange Commission (SEC EDGAR) filings and market data. Not personalized investment advice.