Kodiak Gas Services, Inc. (KGS): a likely value trap?

Avoid — no credible reason found for today's 11% crash, and the "insider selling" story cited by the press doesn't add up.

⚠ TRAP Fundamentals61/100

Fell 11% in 1 trading day(s) — now $56.62

Why KGS dropped

News wires attributed the drop to a single insider transaction, but that sale was tiny — the COO sold just 1,000 shares for about $63,000, which cannot plausibly explain an 11% single-day collapse on 1.8x normal volume; no earnings miss, guidance cut, lawsuit, or regulatory action was found to explain the move.

Fwd P/E 17.5Op margin 34.2%Rev growth 21.1%Debt/equity 130.3%Analyst upside 46.8%

How this scored 61/100

✅ Passes all 4 hard checks — profitable, cash-generative, and financially survivable.

✅ Makes money Net profit margin 5.8%

✅ Generates cash Free cash flow $16M

✅ Not drowning in debt Debt/equity 130.3% (limit 200%)

✅ Can pay its bills Current ratio 1.4 (needs 1+)

Bar length shows how much each metric is worth — a 10-point metric is twice as wide as a 5-point one. Hover any row for what it means.

Profitability Does it actually make money? 11/25

Operating margin 34.2% 9/9

Net profit margin 5.8% 2/8

Return on equity 4.6% 0/8

Growth Is it getting bigger, or dying? 22/25

Revenue growth 21.1% 8/9

Earnings growth 23.3% 7/8

Expected profit change 267.9% 8/8

Value Is it cheap right now? 15/25

Forward P/E 17.5 7/10

PEG ratio unknown 2/8

Analyst target upside 46.8% 5/7

Balance sheet Will it survive? 13/25

Debt / equity 130.3% 4/10

Current ratio 1.4 2/8

Free cash flow $16M 7/7

🔒 Read the full AI analysis

Create a free account to unlock the bull case and the risks for KGS — plus today's other picks.

Analysis generated by SmartStonks's AI from public fundamentals and news, first flagged 2026-09-15. Research only — not financial advice.