Kosmos Energy's recent rally has caught the attention of investors looking for opportunities in the Oil & Gas E&P sector. From a valuation perspective, the company's market capitalization stands at
2.1B, with a price-to-earnings ratio of 6.89X, suggesting that the stock may be undervalued compared to its peers. The firm's robust operating margin of 38.23% indicates efficient management and a strong ability to convert revenue into profit. However, potential investors should weigh these factors against the company's net interest income loss of
94.4M and consider the implications of its relatively high short ratio of 7.14X, which could signal skepticism from the market.
Main Takeaways
Kosmos Energy carries $2.39 billion in debt, with a debt-to-equity ratio of 2.58. This indicates a strong reliance on borrowed funds for its operations. We offer an investment recommendation to enhance the latest expert consensus on Kosmos Energy. Our recommendation engine uses a sophisticated algorithm to assess the company's growth potential, considering all available technical and fundamental data.
We determine the current worth of Kosmos Energy using both absolute as well as relative valuation methodologies to arrive at its intrinsic value. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Kosmos Energy based exclusively on its
fundamental and basic
technical indicators. By analyzing Kosmos Energy's
financials, quarterly and monthly indicators, and related drivers such as
dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of
Kosmos Energy's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of Kosmos Energy. We calculate exposure to Kosmos Energy's
market risk, different
technical and
fundamental indicators, relevant financial multiples and ratios, and then
comparing them to Kosmos Energy's related companies.
Kosmos Energy Investment Alerts
Kosmos investment alerts and warnings help investors to get more proficient at understanding not only critical technical and fundamental signals but also the significant portfolio-centered indicators. These indicators include beta, alpha, and other risk-related measures that will help you in monitoring Kosmos Energy performance across your portfolios.Please check all
investment alerts for Kosmos
Kosmos Energy Valuation Ratios as Compared to Competition
Our valuation model uses many indicators to compare Kosmos value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Kosmos Energy competition to find
correlations between indicators driving the intrinsic value of Kosmos.
Kosmos Energy Gross Profit
Kosmos Energy Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Kosmos Energy previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show Kosmos Energy Gross Profit growth over the last 10 years. Please check Kosmos Energy's
gross profit and other
fundamental indicators for more details.
A Deeper look at Kosmos
The newest Kosmos Energy price drop may raise some interest from private investors. The stock closed today at a share price of
4.51 on very low momentum in trading volume. The company executives were unable to exploit market volatilities in
September. However, diversifying your overall positions with Kosmos Energy can protect your principal portfolio during market swings. The stock standard deviation of daily returns for 90 days investing horizon is currently 3.22. The above-average risk is mostly attributed to market volatility and speculations regarding some of the upcoming earning calls from Kosmos Energy partners.
Margins Breakdown
Kosmos profit margins show the degree to which it makes money. Margin indicators are used not only by investors but also by creditors or Kosmos Energy itself as indicators of financial health and management effectiveness. Please look more closely at the different varieties of Kosmos Energy profit margins.
0.23
Operating Profit Margin
| Pretax Profit Margin | 0.23 |
| Operating Profit Margin | 0.23 |
| Net Profit Margin | 0.13 |
| Gross Profit Margin | 0.53 |
Kosmos Energy Dividend Yield is decreasing over the last 6 years. The previous year's value of Kosmos Energy Dividend Yield was 0.000051. Kosmos Energy Enterprise Value is decreasing over the last 5 years.
The previous year's value of Kosmos Energy Enterprise Value was 6,160,906,300. Additionally, Kosmos Energy Price To Sales Ratio is comparatively stable at the moment. Kosmos Energy Dividend Yield is comparatively stable at the moment. Kosmos Energy Enterprise Value is decreasing over the last 5 years. Additionally, Kosmos Energy Price To Sales Ratio is decreasing over the last 8 years. The newest value of Kosmos Energy Price To Sales Ratio is 1.72. In the world of investing, fortune often favors the bold. Kosmos Energy has recently seen a surge in its stock price, prompting investors to consider whether it's time to capitalize on this momentum. With a robust EBITDA of $1.17 billion and a market capitalization of $2.13 billion, the company demonstrates solid financial health. However, its high beta of 2.43 suggests significant volatility, which could mean greater risk for investors. While the stock's price-to-earnings ratio of 6.89X indicates it might be undervalued, potential investors should weigh the risks against the potential rewards before jumping in..
Are Kosmos Energy technical ratios showing a recoup?
Kosmos Energy's recent stock performance, with an increase of over 11.04%, has caught the eye of investors hoping for a recovery. This rise suggests a potential turnaround, as technical indicators show a more positive outlook. Investors are watching closely to see if this momentum will continue, hinting at a possible rebound in the stock's value. As Kosmos Energy navigates these changes, the focus is on whether this trend can lead to long-term growth. The stock shows low volatility, with a skewness of -0.16 and kurtosis of -0.33. Understanding market volatility helps investors time their trades.
In bear markets, higher volatility can affect Kosmos Energy's stock price, prompting investors to adjust their portfolios by exploring other financial options as prices drop.Kosmos Energy's recent uptick has caught the attention of investors, but the question remains whether this momentum can be sustained. With an analyst target price estimated at $8.09 and a strong buy consensus from analysts, the stock appears to have room for growth. The highest estimated target price of $8.98 suggests potential upside, especially if market conditions remain favorable. However, investors should remain cautious and consider the company's fundamentals and market trends before making any decisions. As always, it's crucial to weigh the risks and rewards, keeping in mind that the energy sector can be volatile. With a fiscal year ending in December, upcoming financial reports could provide further insights into the company's trajectory..
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Aina Ster is a Member of Macroaxis Editorial Board. Aina delivers weekly perspective on ongoing market and economic trends, analysis and tips from predictive analysis to forecasting across various financial instruments.
View Profile This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Aina Ster do not own shares of Kosmos Energy. Please refer to our
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