(KOS) Kosmos Energy - Overview
Sector: Energy | Industry: Oil & Gas E&P | Exchange: NYSE (USA) | Market Cap: 1.916m USD | Total Return: 84.6% in 12m
Industry Rotation: +21.7
Avg Turnover: 44.5M
EPS Trend: -81.5%
Qual. Beats: 0
Rev. Trend: -54.5%
Qual. Beats: 0
Warnings
High Debt/EBITDA (6.1) with thin interest coverage (-0.5)
High Debt while negative Cash Flow
Interest Coverage Ratio -0.5 is critical
Beneish M-Score -1.16 > -1.5 - likely earnings manipulation
Altman Z'' -2.42 < 1.0 - financial distress zone
Tailwinds
Leader, Tailwind, Avwap Ph Week
Kosmos Energy Ltd. (KOS) is a Dallas-based upstream energy firm focused on the exploration and production of deepwater oil and natural gas assets. Its operational portfolio is concentrated in the offshore regions of the U.S. Gulf of Mexico and West African basins, including Ghana, Equatorial Guinea, Mauritania, and Senegal.
The company operates within the high-capital-intensity E&P sector, where revenue is primarily driven by global commodity pricing and the successful execution of complex subsea drilling projects. Deepwater assets typically require significant upfront investment but offer the potential for high-margin production profiles over long-term lifecycles.
For a detailed breakdown of the companys underlying fundamentals, you may find it useful to cross-reference these operational locations with the valuation tools on ValueRay. This geographic diversification helps mitigate regional political risks while providing exposure to both established and emerging hydrocarbon provinces.
- Greater Tortue Ahmeyim Phase 1 startup drives long-term LNG revenue growth
- Ghana oil production volumes dictate quarterly cash flow and debt reduction
- Capital expenditure requirements for Senegal and Mauritania projects impact free cash flow
- Crude oil price volatility directly influences offshore exploration and production margins
- Regulatory and geopolitical stability in West African basins affects operational continuity
| Net Income: -814.8m TTM > 0 and > 6% of Revenue |
| FCF/TA: -0.01 > 0.02 and ΔFCF/TA 4.32 > 1.0 |
| NWC/Revenue: -21.34% < 20% (prev -8.42%; Δ -12.92% < -1%) |
| CFO/TA 0.05 > 3% & CFO 241.5m > Net Income -814.8m |
| Net Debt (2.86b) to EBITDA (468.6m): 6.10 < 3 |
| Current Ratio: 0.60 > 1.5 & < 3 |
| Outstanding Shares: last quarter (506.2m) vs 12m ago 6.42% < -2% |
| Gross Margin: 11.36% > 18% (prev 0.30%; Δ 1.11k% > 0.5%) |
| Asset Turnover: 28.31% > 50% (prev 29.35%; Δ -1.04% > 0%) |
| Interest Coverage Ratio: -0.47 > 6 (EBITDA TTM 468.6m / Interest Expense TTM 226.1m) |
| A: -0.06 (Total Current Assets 453.4m - Total Current Liabilities 757.1m) / Total Assets 4.78b |
| B: -0.42 (Retained Earnings -2.01b / Total Assets 4.78b) |
| C: -0.02 (EBIT TTM -106.6m / Avg Total Assets 5.03b) |
| D: -0.47 (Book Value of Equity -2.00b / Total Liabilities 4.27b) |
| Altman-Z'' Score: -2.42 = D |
| DSRI: 0.79 (Receivables 110.5m/152.5m, Revenue 1.42b/1.55b) |
| GMI: 2.65 (GM 11.36% / 30.11%) |
| AQI: 2.39 (AQ_t 0.20 / AQ_t-1 0.08) |
| SGI: 0.92 (Revenue 1.42b / 1.55b) |
| TATA: -0.22 (NI -814.8m - CFO 241.5m) / TA 4.78b) |
| Beneish M-Score: -1.16 (Cap -4..+1) = D |
Over the past week, the price has changed by +17.45%, over one month by +25.19%, over three months by +104.43% and over the past year by +84.57%.
- StrongBuy: 5
- Buy: 1
- Hold: 4
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 2.9 | -9.9% |
P/S = 1.3986
P/B = 3.1668
P/EG = -0.2
Revenue TTM = 1.42b USD
EBIT TTM = -106.6m USD
EBITDA TTM = 468.6m USD
Long Term Debt = 2.87b USD (from longTermDebt, last quarter)
Short Term Debt = 113.1m USD (from shortTermDebt, last quarter)
Debt = 2.99b USD (from shortLongTermDebtTotal, last quarter)
Net Debt = 2.86b USD (from netDebt column, last quarter)
Enterprise Value = 4.77b USD (1.92b + Debt 2.99b - CCE 130.0m)
Interest Coverage Ratio = -0.47 (Ebit TTM -106.6m / Interest Expense TTM 226.1m)
EV/FCF = -68.44x (Enterprise Value 4.77b / FCF TTM -69.8m)
FCF Yield = -1.46% (FCF TTM -69.8m / Enterprise Value 4.77b)
FCF Margin = -4.90% (FCF TTM -69.8m / Revenue TTM 1.42b)
Net Margin = -57.26% (Net Income TTM -814.8m / Revenue TTM 1.42b)
Gross Margin = 11.36% ((Revenue TTM 1.42b - Cost of Revenue TTM 1.26b) / Revenue TTM)
Gross Margin QoQ = 35.92% (prev -50.99%)
Tobins Q-Ratio = 1.00 (Enterprise Value 4.77b / Total Assets 4.78b)
Interest Expense / Debt = 1.98% (Interest Expense 59.1m / Debt 2.99b)
Taxrate = 21.0% (US default 21%)
NOPAT = -84.2m (EBIT -106.6m * (1 - 21.00%)) [loss with tax shield]
Current Ratio = 0.60 (Total Current Assets 453.4m / Total Current Liabilities 757.1m)
Debt / Equity = 5.80 (Debt 2.99b / totalStockholderEquity, last quarter 515.1m)
Debt / EBITDA = 6.10 (Net Debt 2.86b / EBITDA 468.6m)
Debt / FCF = -40.97 (negative FCF - burning cash) (Net Debt 2.86b / FCF TTM -69.8m)
Total Stockholder Equity = 740.1m (last 4 quarters mean from totalStockholderEquity)
RoA = -16.21% (Net Income -814.8m / Total Assets 4.78b)
RoE = -110.1% (Net Income TTM -814.8m / Total Stockholder Equity 740.1m)
RoCE = -2.96% (EBIT -106.6m / Capital Employed (Equity 740.1m + L.T.Debt 2.87b))
RoIC = -2.29% (negative operating profit) (NOPAT -84.2m / Invested Capital 3.68b)
WACC = 5.46% (E(1.92b)/V(4.90b) * Re(11.54%) + D(2.99b)/V(4.90b) * Rd(1.98%) * (1-Tc(0.21)))
Discount Rate = 11.54% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -15.56 | Cagr: 2.08%
[DCF] Fair Price = unknown (Cash Flow -69.8m)
EPS Correlation: -81.52 | EPS CAGR: -24.99% | SUE: -0.64 | # QB: 0
Revenue Correlation: -54.45 | Revenue CAGR: -9.78% | SUE: 0.54 | # QB: 0
EPS current Quarter (2026-06-30): EPS=0.07 | Chg30d=+3.45% | Revisions=+20% | Analysts=2
EPS next Quarter (2026-09-30): EPS=0.09 | Chg30d=+54.55% | Revisions=N/A | Analysts=2
EPS current Year (2026-12-31): EPS=0.12 | Chg30d=-5.31% | Revisions=+0% | GrowthEPS=+115.9% | GrowthRev=+35.1%
EPS next Year (2027-12-31): EPS=0.10 | Chg30d=+45.83% | Revisions=-20% | GrowthEPS=-9.5% | GrowthRev=-8.4%
[Analyst] Revisions Ratio: +20%