Is KGS a high-quality business?

AlphaMadera's AlphaQuality grade scores Kodiak Gas Services, Inc. on six pillars — profitability, capital efficiency, balance-sheet strength, growth durability, cash generation, and shareholder yield. The composite letter grade reflects how KGS compares to a Buffett-style quality bar.

What is Kodiak Gas Services, Inc.'s AlphaQuality grade?

AlphaQuality assigns a letter grade (A through F) to KGS based on a six-pillar quantitative model. The live page shows the composite grade plus each pillar's individual score with the underlying metrics.

What makes KGS a quality stock?

AlphaQuality looks at return on capital, free-cash-flow margins, debt-to-equity, revenue stability, dividend and buyback policy, and operating-margin trend. Stocks scoring well across all six pillars earn higher grades — the methodology favors compounders over cyclicals.

KGS - Kodiak Gas Services, Inc.

Price: -- -- | CONSENSUS: Buy DETAILS | PRICE TARGET: $75.20 DETAILS

AlphaQuality

Quantitative six-pillar business-quality grade

Oil & Gas E&P

AlphaQuality — archetype-weighted quantitative grade

B- 62.1 / 100 composite

Composite Grade

Composite of six pillars weighted for oil & gas e&p businesses. Purely quantitative — no stock price or analyst input.

Profitability

Weight: 15%

B- 65.9

5yr Avg ROIC 16.8% 84/100
Operating Margin Trend -0.88 pp/yr 23/100

Capital Efficiency

Weight: 10%

D 33.8

5yr Avg ROE 7.3% 46/100
5yr Share-Count CAGR 3.9% 11/100

Growth Quality

Weight: 5%

B- 65.0

5yr Revenue CAGR 21.2% 100/100
5yr EPS CAGR -22.0% 0/100
Revenue-Growth Years (5) 5/5 100/100

Cash Generation

Weight: 25%

B 73.3

5yr FCF Margin 5.8% 53/100
5yr FCF/NI Conversion 1.11x 98/100

Balance Sheet

Weight: 25%

C+ 61.6

Net Debt / EBITDA 0.06x 94/100
Interest Coverage (EBIT/Int) 2.09x 30/100
Altman Z-Score 1.98 40/100

Stability

Weight: 20%

C+ 59.5

EPS Volatility (σ/μ) 0.75 10/100
Piotroski F-Score 9 100/100
Negative-Revenue Years (5) 0/5 100/100

3 of 3 gurus held; 1 new buy; 2 trimmed; 1 full exit.

Holders: 3
Avg Δ position: -44.5%
New buys: 1
Full exits: 1

Cooperman new
Wood sold -100%
Dalio decreased -46%

How this is calculated

AlphaQuality grades six pillars from 0-100 and weights each by archetype:

Profitability (15%) — 5yr Avg ROIC, Operating Margin Trend
Capital Efficiency (10%) — 5yr Avg ROE, 5yr Share-Count CAGR
Growth Quality (5%) — 5yr Revenue CAGR, 5yr EPS CAGR, Revenue-Growth Years (5)
Cash Generation (25%) — 5yr FCF Margin, 5yr FCF/NI Conversion
Balance Sheet (25%) — Net Debt / EBITDA, Interest Coverage (EBIT/Int), Altman Z-Score
Stability (20%) — EPS Volatility (σ/μ), Piotroski F-Score, Negative-Revenue Years (5)

We deliberately ignore stock price, analyst targets, and consensus ratings so the grade is suitable for backtesting forward returns. A minimum of 5 fiscal years of audited statements is required; distressed and highly leveraged infrastructure businesses are declared ungradable rather than forced into a numeric score.