Stock fact sheet · data as of
Kodiak Gas Services, Inc. (KGS): fair value, margin of safety and Wheel Score
Energy · Oil & Gas Equipment & Services · United States · High Growth
Is KGS undervalued?
Kodiak Gas Services, Inc. (KGS) closed at 47.81 on 16 Oct 2026, 75% above the GLS average fair value of 27.34. 7 of the 9 models that produced a number value the shares below the current price. A gap this wide usually means the market is paying for growth or a story the trailing numbers do not show yet; the models work from filed results, not forecasts, so they are conservative by design.
There is a wide gap between Payback Time (2.08) and GLS Growth (51.56). When the models are this far apart the "fair value" is really a range, and the margin of safety above should be read with that range in mind.
The nightly engine files KGS under High Growth: revenue and earnings growing fast enough that the growth-based models carry the valuation.
Nine valuation models for KGS
Each model turns the latest filed numbers into a value per share; the GLS fair value is the simple average of the ones that produce a positive number. The last two rows are shown for reference and never enter the average. The Quote page lets you switch any model off and add your own margin of safety.
| Model | Value | vs price | What it measures |
|---|---|---|---|
| DCF | 26.78 | -44% | Present value of the projected free cash flows, discounted at the cost of capital |
| Graham Number | 20.73 | -57% | The most a defensive investor pays for the earnings and book value per share |
| Graham Growth | 48.17 | +1% | Graham's growth formula: EPS × (8.5 + 2 × growth), adjusted for bond yields |
| Lynch | 21.05 | -56% | EPS × the earnings growth rate (PEG of 1), growth capped at 25% |
| GLS Growth | 51.56 | +8% | EPS compounded ten years at the blended growth rate, discounted back at 15% a year |
| 10 Cap | 37.48 | -22% | Owner's earnings (operating cash flow less maintenance capex) capitalised at 10% |
| Payback Time | 2.08 | -96% | Eight years of compounded free cash flow: the price at which the business pays for itself |
| DDM | 28.84 | -40% | Dividend discount model: next year's dividend ÷ (10% − 3% growth); needs a dividend |
| EPV | 9.36 | -80% | Earnings power value: current EPS capitalised at 9% with no growth |
| Zombie (liquidation) | -27.57 | -158% | Current assets less all liabilities, per share: the balance-sheet floor. Not in the average |
| Wall St target | 80.38 | +68% | Analysts' average 12-month price target. Not in the average |
Quality and financial health
Kodiak Gas Services, Inc. scores 7 of 9 on the Piotroski F-score, the nine yes/no tests of profitability, leverage and efficiency on the latest annual accounts - a strong reading that passes the Sunday Scan's "6 or more" rule with room to spare. A GLS Moat score of 4.9/10 is a weak reading: the ten-year history the score grades (revenue, EPS, book value, margins, cash flow, share count, ROIC) has not been steady, so the Moat part of the Wheel Score contributes little.
Returns on capital are moderate - ROIC 6.4%, ROE 6.7%, ROA 1.9% - with debt at 0.04 times equity and a free-cash-flow yield of 0.1%.
The dividend yield is high at 4.10% (payout ratio 218%) - a payout above 100% of earnings, which is not covered by profits. A yield this size is often the market's way of pricing a risk to the payout, so the health score and cash flow matter more than usual. Revenue comes mainly from Service, Other 100% (quarter Q2 FY2026).
Institutional ownership scores 10/10, insider activity 1/10 and Congressional trading 5/10 on the GLS smart-money scales.
| Piotroski F-score | 7 / 9 | ROIC | 6.4% |
|---|---|---|---|
| GLS Moat | 4.9 / 10 | ROE | 6.7% |
| Debt / equity | 0.04 | ROA | 1.9% |
| Free-cash-flow yield | 0.1% | Payout ratio | 218% |
| Institutions | 10 / 10 | Insiders · Congress | 1 · 5 / 10 |
Wheel Score 62: Fair
A Wheel Score of 62 puts Kodiak Gas Services, Inc. in the Fair band - below the 70 the Sunday Scan requires. Value 0/25, Health 16/20, Moat 7/15, Premium 20/20 and Stability 19/20; the weakest part is Value (0/25).
Implied volatility is 56% on the near-the-money contracts 20-60 days out - inside the 35-60% range the Wheel Score pays full marks for: enough premium to be worth selling, not so much that the risk is unpaid. Chain open interest is 19,792 contracts across all expiries - enough for the wheel at normal size.
Volume runs at 2.1M shares a day on a market cap of $4.8B, with a beta of 0.94; the Stability part of the Wheel Score gives that 19 of 20.
| Part | Points | From | |
|---|---|---|---|
| Value | 0 / 25 | -75% margin of safety | |
| Health | 16 / 20 | Piotroski 7/9 | |
| Moat | 7 / 15 | moat 4.9/10 | |
| Premium | 20 / 20 | implied volatility 56% | |
| Stability | 19 / 20 | 2.1M shares/day, $4.8B cap, beta 0.94 |
The Wheel Score ranks ~7,400 US stocks for selling cash-secured puts and covered calls; it is updated nightly and is not a recommendation. The walkthrough lesson shows how the score fits into a trade, start to finish.
Upcoming events
The next earnings report is due on 3 Nov 2026 (after the close), 18 days away; a 30-45-day put sold today would expire after it, which is worth weighing against the premium.
Earnings, dividend, IPO, split and economic calendars for the whole market, filterable to your watchlists.
Similar stocks in Oil & Gas Equipment & Services
The 12 companies below are the closest to Kodiak Gas Services, Inc. by market cap within the Oil & Gas Equipment & Services industry, each with its own fact sheet; the Compare page puts up to eight of them side by side.
| Stock | Close | Fair value | MoS | Wheel | Mkt cap |
|---|---|---|---|---|---|
| SEI Solaris Energy Infrastructure, Inc. | 69.37 | 27.99 | -148% | 48Weak | $4.6B |
| AROC Archrock, Inc. | 29.25 | 47.33 | +38% | 91Prime | $5.1B |
| WHD Cactus, Inc. | 62.52 | 48.58 | -29% | 51Fair | $4.4B |
| WFRD Weatherford International plc | 75.45 | 171.67 | +56% | 86Prime | $5.4B |
| OII Oceaneering International, Inc. | 43.05 | 76.59 | +44% | 83Prime | $4.3B |
| TDW Tidewater Inc. | 82.78 | 174.18 | +52% | 80Prime | $4.1B |
| NOV NOV Inc. | 18.64 | 18.66 | +0% | 69Good | $6.6B |
| EFXT Enerflex Ltd. | 24.44 | 23.33 | -5% | 71Good | $3.0B |
| LBRT Liberty Energy Inc. | 16.70 | 17.28 | +3% | 65Good | $2.7B |
| WTTR Select Water Solutions, Inc. | 18.83 | 8.70 | -117% | 52Fair | $2.4B |
| EROK EagleRock Land LLC | 18.30 | 651.13 | +97% | 39No options | $2.0B |
| NESR National Energy Services Reunited Corp. | 19.11 | 42.83 | +55% | 81Prime | $1.9B |
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Start free See the Sunday ScanQuestions about KGS
Is KGS undervalued right now?
No: at 47.81 the stock trades 75% above the GLS average fair value of 27.34 (data as of 16 Oct 2026), well beyond what trailing earnings, cash flow and book value support.
What is the Wheel Score of KGS and what does it mean?
KGS scores 62 out of 100 (Fair). The Wheel Score blends the margin of safety (25 points), Piotroski health (20), the GLS moat (15), the option premium on offer (20) and trading stability (20) into one number that ranks stocks for the wheel strategy - selling cash-secured puts, then covered calls if assigned. 80 and above is Prime, 65-79 Good, 50-64 Fair, under 50 Weak.
What is the GLS fair value for KGS?
27.34 per share as of 16 Oct 2026 - the simple average of the 9 valuation models (out of nine: DCF, Graham Number, Graham Growth, Lynch, GLS Growth, 10 Cap, Payback Time, DDM and EPV) that produced a positive value. The models run every night on the latest filings; the Quote page lets you switch any of them off and add a margin of safety of your own.
When does Kodiak Gas Services, Inc. report earnings next?
The next earnings report is due on 3 Nov 2026 (after the close), 18 days from the data date of 16 Oct 2026. The Calendars page lists every upcoming report with its time of day.
Does KGS have listed options, and how liquid are they?
Yes. The nightly snapshot found 300 listed contracts with 19,792 open interest across all expiries and implied volatility of 56% on the near-the-money contracts. The Options scanner lists the cash-secured put and covered call set-ups with premium and annualised yield worked out.