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KOS

Kosmos Energy NYSE:KOS Stock Report

Last Price

US$6.19

Market Cap

US$2.8b

7D

2.7%

1Y

71.5%

Updated

30 Jun, 2022

Data

Company Financials +
KOS fundamental analysis
Snowflake Score
Valuation5/6
Future Growth2/6
Past Performance2/6
Financial Health1/6
Dividends0/6

KOS Stock Overview

Kosmos Energy Ltd., a deep-water independent oil and gas exploration and production company, focuses along the Atlantic Margins.

Kosmos Energy Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Kosmos Energy
Historical stock prices
Current Share PriceUS$6.19
52 Week HighUS$8.49
52 Week LowUS$1.80
Beta3.07
1 Month Change-20.03%
3 Month Change-21.75%
1 Year Change71.47%
3 Year Change3.86%
5 Year Change0%
Change since IPO-66.06%

Recent News & Updates

Jun 15
An Intrinsic Calculation For Kosmos Energy Ltd. (NYSE:KOS) Suggests It's 46% Undervalued

An Intrinsic Calculation For Kosmos Energy Ltd. (NYSE:KOS) Suggests It's 46% Undervalued

How far off is Kosmos Energy Ltd. ( NYSE:KOS ) from its intrinsic value? Using the most recent financial data, we'll...

Jun 07

Why Is Kosmos Energy Stock Rising And Will It Continue?

Kosmos Energy's stock price increased by +133% year-to-date, as it grew its free cash flow and lowered its financial leverage helped by rising energy prices. I don't expect KOS' positive share price momentum to continue, considering its mixed outlook and uncertainty over the timing of its shareholder capital return resumption. I have a Hold rating for Kosmos Energy, as I see KOS' shares staying range-bound in the near term.

Shareholder Returns

KOSUS Oil and GasUS Market
7D2.7%1.5%-0.6%
1Y71.5%26.6%-21.7%

Return vs Industry: KOS exceeded the US Oil and Gas industry which returned 31.4% over the past year.

Return vs Market: KOS exceeded the US Market which returned -20.8% over the past year.

Price Volatility

Is KOS's price volatile compared to industry and market?
KOS volatility
KOS Average Weekly Movement10.4%
Oil and Gas Industry Average Movement8.9%
Market Average Movement8.0%
10% most volatile stocks in US Market16.8%
10% least volatile stocks in US Market3.2%

Stable Share Price: KOS is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 10% a week.

Volatility Over Time: KOS's weekly volatility (10%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
2003229Andy Inglishttps://www.kosmosenergy.com

Kosmos Energy Ltd., a deep-water independent oil and gas exploration and production company, focuses along the Atlantic Margins. The company’s primary assets include production offshore Ghana, Equatorial Guinea, and the U.S. Gulf of Mexico, as well as a gas development offshore Mauritania and Senegal.

Kosmos Energy Fundamentals Summary

How do Kosmos Energy's earnings and revenue compare to its market cap?
KOS fundamental statistics
Market CapUS$2.82b
Earnings (TTM)US$14.33m
Revenue (TTM)US$1.81b

196.8x

P/E Ratio

1.6x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
KOS income statement (TTM)
RevenueUS$1.81b
Cost of RevenueUS$429.84m
Gross ProfitUS$1.38b
Other ExpensesUS$1.37b
EarningsUS$14.33m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)0.031
Gross Margin76.31%
Net Profit Margin0.79%
Debt/Equity Ratio469.1%

How did KOS perform over the long term?

See historical performance and comparison
We’ve recently updated our valuation analysis.

Valuation

Is KOS undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

  • Price-To-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for KOS?

Other financial metrics that can be useful for relative valuation.

KOS key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue2.8x
Enterprise Value/EBITDA6.5x
PEG Ratio32.5x

Price to Sales Ratio vs Peers

How does KOS's PS Ratio compare to its peers?

KOS PS Ratio vs Peers
The above table shows the PS ratio for KOS vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPSEstimated GrowthMarket Cap
Peer Average4.1x
HPK HighPeak Energy
9.8x84.6%US$2.8b
BSM Black Stone Minerals
5.2x7.7%US$2.9b
CRGY Crescent Energy
0.3x11.2%US$2.2b
CRC California Resources
1.1x-10.5%US$3.0b
KOS Kosmos Energy
1.6x2.2%US$2.8b

Price-To-Sales vs Peers: KOS is good value based on its Price-To-Sales Ratio (1.6x) compared to the peer average (4.1x).


Price to Earnings Ratio vs Industry

How does KOS's PE Ratio compare vs other companies in the US Oil and Gas Industry?

Price-To-Sales vs Industry: KOS is good value based on its Price-To-Sales Ratio (1.6x) compared to the US Oil and Gas industry average (1.9x)


Price to Sales Ratio vs Fair Ratio

What is KOS's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

KOS PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio1.6x
Fair PS Ratio3x

Price-To-Sales vs Fair Ratio: KOS is good value based on its Price-To-Sales Ratio (1.6x) compared to the estimated Fair Price-To-Sales Ratio (3x).


Share Price vs Fair Value

What is the Fair Price of KOS when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: KOS ($6.19) is trading below our estimate of fair value ($13.37)

Significantly Below Fair Value: KOS is trading below fair value by more than 20%.


Price to Earnings Growth Ratio

PEG Ratio: KOS is poor value based on its PEG Ratio (32.5x)


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Future Growth

How is Kosmos Energy forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

Future Growth Score

2/6

Future Growth Score 2/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


6.1%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: KOS's forecast earnings growth (6.1% per year) is above the savings rate (1.9%).

Earnings vs Market: KOS's earnings (6.1% per year) are forecast to grow slower than the US market (13.7% per year).

High Growth Earnings: KOS's earnings are forecast to grow, but not significantly.

Revenue vs Market: KOS's revenue (2.2% per year) is forecast to grow slower than the US market (8.3% per year).

High Growth Revenue: KOS's revenue (2.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: KOS's Return on Equity is forecast to be high in 3 years time (27.6%)


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Past Performance

How has Kosmos Energy performed over the past 5 years?

Past Performance Score

2/6

Past Performance Score 2/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


3.4%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: KOS has a large one-off loss of $26.8M impacting its March 31 2022 financial results.

Growing Profit Margin: KOS became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: KOS has become profitable over the past 5 years, growing earnings by 3.4% per year.

Accelerating Growth: KOS has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: KOS has become profitable in the last year, making it difficult to compare its past year earnings growth to the Oil and Gas industry (102.2%).


Return on Equity

High ROE: KOS's Return on Equity (2.7%) is considered low.


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Financial Health

How is Kosmos Energy's financial position?

Financial Health Score

1/6

Financial Health Score 1/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: KOS's short term assets ($794.2M) do not cover its short term liabilities ($933.1M).

Long Term Liabilities: KOS's short term assets ($794.2M) do not cover its long term liabilities ($3.6B).


Debt to Equity History and Analysis

Debt Level: KOS's net debt to equity ratio (406.1%) is considered high.

Reducing Debt: KOS's debt to equity ratio has increased from 110.6% to 469.1% over the past 5 years.

Debt Coverage: KOS's debt is well covered by operating cash flow (29.8%).

Interest Coverage: KOS's interest payments on its debt are not well covered by EBIT (2.2x coverage).


Balance Sheet


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Dividend

What is Kosmos Energy current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage


0.28%

Forecast Dividend Yield

Dividend Yield vs Market

Notable Dividend: Unable to evaluate KOS's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate KOS's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if KOS's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if KOS's dividend payments have been increasing.


Earnings Payout to Shareholders

Earnings Coverage: KOS is not paying a notable dividend for the US market.


Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as KOS has not reported any payouts.


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Management

How experienced are the management team and are they aligned to shareholders interests?

8.3yrs

Average management tenure


CEO

Andy Inglis (62 yo)

8.25yrs

Tenure

US$6,237,930

Compensation

Mr. Andrew G. Inglis, also known as Andy, has been the Chairman, Chief Executive Officer and Executive Director of Kosmos Energy Ltd. since March 1, 2014. Mr. Inglis served as the Chief Executive of Integr...


CEO Compensation Analysis

Compensation vs Market: Andy's total compensation ($USD6.24M) is about average for companies of similar size in the US market ($USD6.89M).

Compensation vs Earnings: Andy's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: KOS's management team is seasoned and experienced (8.3 years average tenure).


Board Members

Experienced Board: KOS's board of directors are considered experienced (6.1 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: KOS insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 11.5%.


Top Shareholders

Company Information

Kosmos Energy Ltd.'s employee growth, exchange listings and data sources


Key Information

  • Name: Kosmos Energy Ltd.
  • Ticker: KOS
  • Exchange: NYSE
  • Founded: 2003
  • Industry: Oil and Gas Exploration and Production
  • Sector: Energy
  • Implied Market Cap: US$2.819b
  • Shares outstanding: 455.44m
  • Website: https://www.kosmosenergy.com

Number of Employees


Location

  • Kosmos Energy Ltd.
  • 8176 Park Lane
  • Suite 500
  • Dallas
  • Texas
  • 75231
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/06/30 00:00
End of Day Share Price2022/06/30 00:00
Earnings2022/03/31
Annual Earnings2021/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.