The business behind the dividend
| Measure | KGS | Median | Formula |
|---|---|---|---|
| Return on equity | 6.7% | 10.6% | Net income ÷ shareholders’ equity |
| Return on capital employed | 9.0% | 10.0% | Operating income ÷ (equity + total debt) |
| Owner earnings | $41.23m | $120.90m | Net income + depreciation & amortisation − capital expenditure |
| Free cash flow | $284.27m | $155.08m | Operating cash flow − capital expenditure |
| Operating margin | 26.0% | 14.3% | Operating income ÷ revenue |
| Net margin | 6.2% | 10.1% | Net income ÷ revenue |
| Debt to equity | 2.12x | 0.73x | Total debt ÷ shareholders’ equity |
| Interest cover | 2.02x | 4.22x | Operating income ÷ interest expense |
| Current ratio | 0.84x | 1.55x | Current assets ÷ current liabilities |
| Long-term debt to working capital | — | — | Long-term debt ÷ (current assets − current liabilities) |
| Cash conversion | 7.45x | 1.66x | Operating cash flow ÷ net income |
| Accruals | -12.0% | -3.1% | (Net income − operating cash flow) ÷ total assets |
Not computed here: Long-term debt to working capital — why a blank is not a zero.
Ten years of it
The same measures, for every year the filings support. One year is a fact; a row is a business.
| Measure | 2025 | 2024 | 2023 | 2022 | 2021 | Median |
|---|---|---|---|---|---|---|
| Return on equity | 6.7% | 3.6% | 1.8% | 46.4% | 18.8% | 6.7% |
| Return on capital employed | 9.0% | 6.3% | 8.3% | 7.5% | — | 8.3% |
| Operating margin | 26.0% | 21.5% | 28.7% | 31.4% | 31.2% | 28.7% |
| Net margin | 6.2% | 4.3% | 2.4% | 15.0% | 29.8% | 6.2% |
| Debt to equity | 2.12x | 1.88x | 1.57x | 11.87x | — | 2.12x |
| Current ratio | 0.84x | 1.20x | 1.10x | 1.08x | — | 1.10x |
| Cash conversion | 7.45x | 6.57x | 13.27x | 2.07x | 1.38x | 6.57x |
How it compares in utilities
Among the 76 utilities companies here measured on GAAP earnings, Kodiak Gas Services pays out less than 2 of them. The median for that group is 60.7%, against this company’s 202.2%.
Closest on GAAP earnings
- Kinetik Holdings (KNTK) 117.5%
- Algonquin Power & Utilities (AQN) 118.2%
- Clearway Energy (CWEN) 211.8%
- Global Water Resources (GWRS) 272.7%
Same sector and same denominator, so the figures are comparable. All 80 in utilities →