NYSE:KOS

Stock Analysis Report

Executive Summary

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


Snowflake Analysis

Fair value with moderate growth potential.


Similar Companies

Share Price & News

How has Kosmos Energy's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: KOS's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-8.9%

KOS

4.2%

US Oil and Gas

5.3%

US Market


1 Year Return

-86.1%

KOS

-56.1%

US Oil and Gas

-10.7%

US Market

Return vs Industry: KOS underperformed the US Oil and Gas industry which returned -56.4% over the past year.

Return vs Market: KOS underperformed the US Market which returned -10.4% over the past year.


Shareholder returns

KOSIndustryMarket
7 Day-8.9%4.2%5.3%
30 Day-69.2%-35.5%-13.6%
90 Day-84.1%-51.4%-19.8%
1 Year-85.5%-86.1%-54.3%-56.1%-8.9%-10.7%
3 Year-86.3%-86.9%-51.6%-56.3%15.5%8.0%
5 Year-88.8%-89.3%-54.7%-61.7%35.2%20.4%

Price Volatility Vs. Market

How volatile is Kosmos Energy's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Kosmos Energy undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: KOS ($0.86) is trading below our estimate of fair value ($2.11)

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


Price To Earnings Ratio

PE vs Industry: KOS is unprofitable, so we can't compare its PE Ratio to the Oil and Gas industry average.

PE vs Market: KOS is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate KOS's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: KOS is good value based on its PB Ratio (0.4x) compared to the US Oil and Gas industry average (0.5x).


Next Steps

Future Growth

How is Kosmos Energy forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

45.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: KOS is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.7%).

Earnings vs Market: KOS is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: KOS's is expected to become profitable in the next 3 years.

Revenue vs Market: KOS's revenue is expected to decline over the next 3 years (-0.4% per year).

High Growth Revenue: KOS's revenue is forecast to decline over the next 3 years (-0.4% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: KOS's Return on Equity is forecast to be low in 3 years time (7.9%).


Next Steps

Past Performance

How has Kosmos Energy performed over the past 5 years?

-21.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: KOS is currently unprofitable.

Growing Profit Margin: KOS is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: KOS is unprofitable, and losses have increased over the past 5 years at a rate of -21% per year.

Accelerating Growth: Unable to compare KOS's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: KOS is unprofitable, making it difficult to compare its past year earnings growth to the Oil and Gas industry (-11.4%).


Return on Equity

High ROE: KOS has a negative Return on Equity (-6.63%), as it is currently unprofitable.


Next Steps

Financial Health

How is Kosmos Energy's financial position?


Financial Position Analysis

Short Term Liabilities: KOS's short term assets ($566.6M) exceed its short term liabilities ($539.1M).

Long Term Liabilities: KOS's short term assets ($566.6M) do not cover its long term liabilities ($2.9B).


Debt to Equity History and Analysis

Debt Level: KOS's debt to equity ratio (238.6%) is considered high.

Reducing Debt: KOS's debt to equity ratio has increased from 56% to 238.6% over the past 5 years.


Balance Sheet

Inventory Level: KOS has a high level of physical assets or inventory.

Debt Coverage by Assets: KOS's debt is not covered by short term assets (assets are 0.3x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: Whilst unprofitable KOS has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: KOS is unprofitable but has sufficient cash runway for more than 3 years, even with free cash flow being positive and shrinking by -18.9% per year.


Next Steps

Dividend

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

20.19%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: KOS's dividend (21.08%) is higher than the bottom 25% of dividend payers in the US market (1.95%).

High Dividend: KOS's dividend (21.08%) is in the top 25% of dividend payers in the US market (5.4%)


Stability and Growth of Payments

Stable Dividend: Too early to tell whether KOS's dividend payments have been stable as they only just started paying a dividend.

Growing Dividend: Too early to tell if KOS's dividend payments are increasing as they only just started paying a dividend.


Current Payout to Shareholders

Dividend Coverage: KOS is paying a dividend but the company is unprofitable.


Future Payout to Shareholders

Future Dividend Coverage: KOS's dividends in 3 years are forecast to be covered by earnings (73.6% payout ratio).


Next Steps

Management

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

6.3yrs

Average management tenure


CEO

Andy Inglis (60yo)

6.08s

Tenure

US$6,361,722

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 ($USD6.36M) is above average for companies of similar size in the US market ($USD2.12M).

Compensation vs Earnings: Andy's compensation has increased whilst the company is unprofitable.


Leadership Team

NamePositionTenureCompensationOwnership
Andrew Inglis
Chairman & CEO6.08yrsUS$6.36m0.46% $1.7m
Thomas Chambers
Senior VP & CFO5.42yrsUS$3.56m0.15% $541.9k
Christopher Ball
Senior VP & Chief Commercial Officer6.67yrsUS$3.10m0.17% $633.9k
Richard Clark
SVP & Head of Gulf of Mexico Business Unitno dataUS$2.96m0.11% $396.4k
Ronald Glass
Controller0.42yrno data0.020% $72.3k
Jamie Buckland
Vice President of Investor Relationsno datano datano data
Jason Doughty
Senior VP8.58yrsUS$2.44m0.18% $664.3k
Amy Wynn Steffek
SVP & Chief Human Resources Officerno datano datano data
Marvin Garrett
Senior Vice President of Drilling10.25yrsno datano data
Eric Haas
Senior Vice President of Production & Development6.25yrsUS$2.37m0.091% $331.2k

6.3yrs

Average Tenure

58yo

Average Age

Experienced Management: KOS's management team is seasoned and experienced (6.2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Andrew Inglis
Chairman & CEO6.08yrsUS$6.36m0.46% $1.7m
Adebayo Ogunlesi
Independent Director9.25yrsUS$225.00k0.36% $1.3m
Richard Dearlove
Independent Director7.33yrsUS$260.00k0.026% $96.1k
Steven Sterin
Director0.75yrno data0.018% $66.8k
Deanna Goodwin
Independent Director1.83yrsUS$182.86k0.0044% $16.0k
Lisa Davis
Director0.42yrno datano data

4.0yrs

Average Tenure

58yo

Average Age

Experienced Board: KOS's board of directors are considered experienced (3.8 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: KOS insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Kosmos Energy Ltd.'s company bio, 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
  • Market Cap: US$362.806m
  • Shares outstanding: 405.10m
  • Website: https://www.kosmosenergy.com

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
KOSNYSE (New York Stock Exchange)YesCommon SharesUSUSDMay 2011
KOS1DB (Deutsche Boerse AG)YesCommon SharesDEEURMay 2011
KOSLSE (London Stock Exchange)YesCommon SharesGBGBPMay 2011
KOSLBATS-CHIXE (BATS 'Chi-X Europe')YesCommon SharesGBGBPMay 2011

Biography

Kosmos Energy Ltd., a deepwater 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 U.S. Gulf of Mexico, as well as a gas development offshore Mauritania and Senegal. It also maintains an exploration program balanced between proven basin infrastructure-led exploration, emerging basins, and frontier basins. The company was founded in 2003 and is headquartered in Dallas, Texas. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/01 10:36
End of Day Share Price2020/03/31 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.