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

Fundamentals

Moderate growth potential and slightly overvalued.


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


Market Performance


7 Day Return

-0.9%

KOS

-0.2%

US Oil and Gas

1.8%

US Market


1 Year Return

-27.8%

KOS

-21.5%

US Oil and Gas

7.3%

US Market

Return vs Industry: KOS underperformed the US Oil and Gas industry which returned -21.5% over the past year.

Return vs Market: KOS underperformed the US Market which returned 7.3% over the past year.


Shareholder returns

KOSIndustryMarket
7 Day-0.9%-0.2%1.8%
30 Day-15.5%-6.4%-0.7%
90 Day-3.0%-8.5%0.06%
1 Year-26.2%-27.8%-18.6%-21.5%9.7%7.3%
3 Year-7.9%-9.9%-8.1%-16.3%46.3%36.9%
5 Year-38.3%-39.7%-24.9%-35.3%64.5%46.5%

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

Undervalued: KOS ($5.55) is trading below our estimate of fair value ($11.41)

Significantly Undervalued: KOS is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: KOS is poor value based on its PE Ratio (96.4x) compared to the Oil and Gas industry average (9.8x).

PE vs Market: KOS is poor value based on its PE Ratio (96.4x) compared to the US market (17.7x).


Price to Earnings Growth Ratio

Low PEG Ratio: KOS is poor value based on its PEG Ratio (3x)


Price to Book Ratio

PB vs Industry: KOS is overvalued based on its PB Ratio (2.5x) compared to the US Oil and Gas industry average (0.9x).


Next Steps

Future Growth

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

32.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: KOS's forecast earnings growth (32% per year) is above the savings rate (2.7%).

Earnings vs Market: KOS's earnings (32% per year) are forecast to grow faster than the US market (14.6% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: KOS's revenue (4.6% per year) is forecast to grow slower than the US market (7.3% per year).

High Growth Revenue: KOS's revenue (4.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: KOS's Return on Equity is forecast to be low in 3 years time (9.9%).


Next Steps

Past Performance

How has Kosmos Energy performed over the past 5 years?

-45.6%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: KOS's earnings have declined by -45.6% per year over the past 5 years.

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 (22.6%).


Return on Equity

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


Return on Assets

ROA vs Industry: KOS's Return on Assets is below or equal to the Oil and Gas industry average last year.


Return on Capital Employed

ROCE Improving: KOS has significantly improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is Kosmos Energy's financial position?


Financial Position Analysis

Short Term Liabilities: KOS's short term assets ($499.7M) exceeds its short term liabilities ($442.6M)

Long Term Liabilities: KOS's short term assets (499.7M) do not cover its long term liabilities (3.1B)


Debt to Equity History and Analysis

Debt Level: KOS's debt to equity ratio (240.8%) is considered high

Reducing Debt: KOS's debt to equity ratio has increased from 69.5% to 240.8% over the past 5 years.

Debt Coverage: KOS's debt is well covered by operating cash flow (22.7%).

Interest Coverage: KOS's interest payments on its debt are not well covered by EBIT (1.5x coverage).


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 0.2x debt).


Next Steps

Dividend

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

3.26%

Current Dividend Yield


Dividend Yield vs Market

company3.3%marketbottom25%1.5%markettop25%3.7%industryaverage4.2%forecastin3Years3.2%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: KOS's dividend (3.26%) is higher than the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: KOS's dividend (3.26%) is low compared to the top 25% of dividend payers in the US market (3.72%).

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: With its high payout ratio (157%), KOS's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: KOS's dividends in 3 years are forecast to be covered by earnings (59% payout ratio).


Next Steps

Management

What is the CEO of Kosmos Energy's salary, the management and board of directors tenure and is there insider trading?

6.2yrs

Average management tenure


CEO

Andy Inglis (60yo)

5.6yrs

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 ($USD6.36M) is about average for companies of similar size in the US market ($USD4.07M).

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


Management Age and Tenure

6.2yrs

Average Tenure

60yo

Average Age

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


Board Age and Tenure

6.2yrs

Average Tenure

60.5yo

Average Age

Experienced Board: KOS's board of directors are considered experienced (6.2 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

SellUS$179,025,00001 Mar 19
Warburg Pincus LLC
EntityCompany
Shares27,500,000
Max PriceUS$6.51
SellUS$146,475,00001 Mar 19
The Blackstone Group Inc.
EntityCompany
Shares22,500,000
Max PriceUS$6.51
SellUS$271,763,26128 Nov 18
Warburg Pincus LLC
EntityCompany
Shares50,359,103
Max PriceUS$5.43

Ownership Breakdown


Management Team

  • Brian Maxted (61yo)

    Special Advisor & Director

    • Tenure: 8.8yrs
    • Compensation: US$3.31m
  • Richard Clark (63yo)

    Senior Vice President of Gulf of Mexico

    • Tenure: 0yrs
    • Compensation: US$2.96m
  • Tom Chambers (64yo)

    Senior VP & CFO

    • Tenure: 4.9yrs
    • Compensation: US$3.56m
  • Andy Inglis (60yo)

    Chairman & CEO

    • Tenure: 5.6yrs
    • Compensation: US$6.36m
  • Paul Nobel (51yo)

    Senior VP & Chief Accounting Officer

    • Tenure: 7.3yrs
    • Compensation: US$1.53m
  • Marvin Garrett (63yo)

    Senior Vice President of Drilling

    • Tenure: 9.8yrs
  • Jason Doughty (54yo)

    Senior VP

    • Tenure: 8.1yrs
    • Compensation: US$2.44m
  • Eric Haas (56yo)

    Senior Vice President of Production & Development

    • Tenure: 5.8yrs
    • Compensation: US$2.37m
  • Chris Ball (51yo)

    Senior VP & Chief Commercial Officer

    • Tenure: 6.2yrs
    • Compensation: US$3.10m
  • Jamie Buckland

    Vice President of Investor Relations

    • Tenure: 0yrs

Board Members

  • Brian Maxted (61yo)

    Special Advisor & Director

    • Tenure: 8.8yrs
    • Compensation: US$3.31m
  • Bayo Ogunlesi (65yo)

    Independent Director

    • Tenure: 8.8yrs
    • Compensation: US$225.00k
  • Andy Inglis (60yo)

    Chairman & CEO

    • Tenure: 5.6yrs
    • Compensation: US$6.36m
  • Richard Dearlove (74yo)

    Independent Director

    • Tenure: 6.8yrs
    • Compensation: US$260.00k
  • Steven Sterin (47yo)

    Director

    • Tenure: 0.3yrs
  • Deanna Goodwin (54yo)

    Independent Director

    • Tenure: 1.3yrs
    • Compensation: US$182.86k

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$2.228b
  • Shares outstanding: 401.46m
  • 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. Its primary assets include production offshore Ghana, Equatorial Guinea, and  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/18 00:25
End of Day Share Price2019/10/17 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.