Kodiak Gas Services, Inc. (KGS) Stock

Kodiak Gas Services, Inc. (KGS) is a Utilities stock trading at $57.70 (as of 2026-09-15), with a market capitalization of $5.83B and a trailing P/E of 72.6. 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 operates and leases compression units that move natural gas and oil through pipelines, billing gas operators on contracted per-horsepower-month rates. Nearly all revenue comes from multi-year compression contracts with midstream clients, making the deployed fleet the recurring revenue base.

Every deployed horsepower is a contracted revenue line; the fleet compounds and revenue grows in lockstep with connected capacity.

Revenue by segment (latest quarter)
Contract Services$0.3B
Other Services$0.0B

Business quality (Solid): Solid: 32% operating margin on contracted, fuel-indexed fees with 98% fleet utilization. The recurring-fee model insulates from spot gas prices, though continuous capex is required to grow the asset base.

Valuation: At 81× earnings, KGS trades 302% above the Utilities average (20×).

Bull case

  • Backlog locks multi-year revenue: Management states contracted backlog provides visibility through 2027 and that customers are discussing seven- and ten-year renewals, meaning the 32% operating margin runs on a largely pre-sold asset base with limited churn risk.
  • Tech cuts maintenance costs: Management flagged that technology is reducing maintenance costs and supporting margin expansion, a structural tailwind layered on top of the current 32% operating margin.
  • Twenty-one percent top-line growth: Quarterly revenue of $400M grew 21% year over year, driven by fleet expansion and new unit deployments that compound the contracted horsepower base.

Bear case

  • Valuation prices in perfection: The stock trades at 81.2x earnings versus a 20x Utilities industry average (302% above peers), leaving almost no room for a cyclical miss or execution slip.
  • Lead times cap deployment: Equipment lead times above 100 weeks could delay growth deployment, and the longer cycles force more speculative equipment ordering that ties up capital before customer contracts are signed.
  • Repricing pipeline is thinning: Fewer fleet contracts are scheduled for repricing in 2026, limiting near-term upside from rate resets on the existing installed base and capping organic margin gains.
Valuation — source: SEC EDGAR (first-party)
Price$57.70
Market Cap$5.83B
P/E Ratio72.6
EV / EBITDA8.5
Price / Book2.70
Price / Sales4.19
Dividend Yield3.0%
FCF Yield0.1%
DCF Value (model)$10.86
DCF Upside vs Price-81.2%
Profitability & Growth — source: SEC EDGAR
Revenue (TTM)$1.31B
Net Margin6.2%
Return on Equity3.7%
Current Ratio1.45
Revenue Growth (YoY)21.1%
EPS Growth (YoY)22.7%
FCF Growth (YoY)-206.5%
Financial Health — source: SEC EDGAR
Altman Z-Score1.51 (distress)
Piotroski F-Score7/9 (strong)
Valuation vs Sector & Industry
Stock P/E72.6
Sector P/E (Utilities)20.6
Industry P/E (Utilities)20.4
vs Sector251.9%
vs Industry255.2%
Smart-Money Activity — SEC Form 4 / 13F / Congressional disclosures
Top Institutional HolderBlackRock, Inc. ($1.14B)
Institutional Holders Tracked10
Company
SectorUtilities
IndustryUtilities
CEORobert McKee
Employees1,300
CountryUS
IPO Date2023-06-29

Kodiak Gas Services, Inc. earnings call transcripts

  • KGS Q4 FY25 earnings call transcript (reported 2026-02-25) · analysis

All KGS earnings calls

Related Companies (Utilities; 8 comparable utilities)

  • Archrock, Inc. (AROC)
  • BKV Corporation (BKV)
  • DT Midstream, Inc. (DTM)
  • Kinetik Holdings Inc. (KNTK)
  • Antero Midstream Corporation (AM)
  • Summit Midstream Corporation (SMC)
  • EQT Corporation (EQT)
  • Williams Companies, Inc. (The) (WMB)
KGS earnings history · KGS institutional & insider holders · KGS KPIs & operating metrics · KGS financials · KGS filings, presentations & press releases · KGS investor presentations & press releases · KGS SEC filings · KGS peers · Congress trades · Insider trades · Short interest · Stock screener

Data as of 2026-09-15.

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