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KOSKosmos Energy Ltd.
$2.65$1.6B
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  4. Financial Ratios

Kosmos Energy Ltd. (KOS) Financial Ratios

Latest Ratios: P/E Ratio -1.8x · EV/EBITDA 14.2x · ROE -80.9%. (2010–2025 historical series)

Income StatementBalance SheetCash FlowRatios
AnnualQuarterly

KOS Valuation Multiples

Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Market Cap$1.6B$434M$1.6B$3.2B$3.0B$1.4B$952M$2.3B$1.6B$2.7B$2.7B
Enterprise Value$4.6B$3.4B$4.3B$5.5B$5.1B$3.9B$2.9B$4.1B$3.6B$3.7B$3.8B
P/E Ratio →-1.80—8.5515.2513.25——————
P/S Ratio1.230.330.971.901.351.081.181.531.864.608.70
P/B Ratio2.400.821.363.133.832.732.162.721.752.972.50
P/FCF————9.41——8.29—28.53—
P/OCF11.963.242.404.222.673.854.853.646.3211.2451.88

P/E links to full P/E history page with 30-year chart

KOS EV Ratios

Enterprise-value multiples — capital-structure-neutral measures of total business value

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
EV / Revenue—2.632.573.252.252.953.622.724.056.4212.34
EV / EBITDA14.1710.554.604.713.144.7216.092.9214.1722.11—
EV / EBIT——10.0411.6111.0057.44—22.8989.69——
EV / FCF————15.77——14.74—39.78—

KOS Profitability

Margins and return-on-capital ratios measuring operating efficiency

Margins

Full margin charts and quarterly trend are on the Earnings History page

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Gross Margin-14.8%-14.8%41.1%50.9%59.6%38.9%-2.5%74.8%37.5%33.9%16.3%
Operating Margin-20.9%-20.9%28.1%42.2%49.3%26.7%—55.4%-8.6%-15.1%-81.9%
Net Profit Margin-53.9%-53.9%11.3%12.5%10.1%-5.8%-51.2%-3.7%-10.6%-38.5%-91.4%

Return on Capital

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
ROE-80.9%-80.9%17.0%23.5%34.4%-16.1%-64.2%-6.3%-10.2%-22.5%-23.6%
ROA-14.0%-14.0%3.7%4.5%4.8%-1.8%-10.1%-1.3%-2.6%-6.8%-8.7%
ROIC-5.5%-5.5%9.8%17.5%28.4%9.9%—22.6%-2.4%-3.2%-9.3%
ROCE-6.1%-6.1%10.4%17.1%26.3%9.1%—22.2%-2.4%-3.0%-8.9%

KOS Leverage & Debt

Solvency and debt-coverage ratios — lower is generally safer

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Debt / Equity5.805.802.302.322.834.954.782.392.251.431.22
Debt / EBITDA9.499.492.952.041.383.1411.641.448.367.65—
Net Debt / Equity—5.632.232.222.594.704.442.122.071.171.04
Net Debt / EBITDA9.219.212.861.961.262.9910.821.287.686.26—
Debt / FCF————6.36——6.46—11.25—
Interest Coverage-9.56-9.565.424.583.740.61-2.951.380.40-1.26-5.54

KOS Liquidity & Efficiency

Short-term solvency ratios and asset-utilisation metrics

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Current Ratio0.750.750.750.760.821.020.871.051.331.241.28
Quick Ratio0.450.450.460.490.580.710.590.841.111.081.08
Cash Ratio0.160.160.140.170.320.250.320.420.450.540.52
Asset Turnover—0.280.320.340.490.270.210.350.220.180.09
Inventory Turnover8.638.635.785.496.804.926.393.316.545.323.49
Days Sales Outstanding—29.1035.9425.9019.4648.6535.7842.4357.63101.62168.56

KOS Shareholder Yields

Earnings, FCF, buyback, and dividend yields — total returns to shareholders

Dividends

Full dividend history and growth charts are on the Dividend History page

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Dividend Yield———0.0%0.0%0.0%2.0%3.2%———
Payout Ratio———0.1%0.3%——————

Total Shareholder Return Metrics

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Earnings Yield——11.7%6.6%7.5%——————
FCF Yield————10.6%——12.1%—3.5%—
Buyback Yield0.0%0.0%0.0%0.0%0.0%0.0%0.5%0.1%12.5%0.1%0.1%
Total Shareholder Yield0.0%0.0%0.0%0.0%0.0%0.0%2.5%3.3%12.5%0.1%0.1%
Shares Outstanding—$478M$477M$481M$475M$417M$405M$401M$405M$388M$385M

Key Metrics

Growth RegimeMixed
ProfitabilityStrained
Balance SheetVulnerable
Cash FlowMixed
Top Statement Risk

Extreme leverage and negative margins

Verified Source

Metrics are mathematically derived from official filings.

SEC 10-K (2026Q2)

Margin Whiplash Masks Underlying Recovery

Gross margin swung from -51.0% in Q4 2025 to 70.5% in Q2 2026, per reported financials, yet TTM gross margin remains negative at -14.75%, indicating impairments and derivative losses distort the underlying trend.

The dramatic quarterly swings in gross and operating margins—from -51.0% to 70.5% and -57.0% to 44.9%, respectively—suggest that reported profitability is heavily influenced by non-cash items such as impairments and unrealized derivative losses. The Q2 2026 net margin of 30.4% appears to be a one-off recovery rather than a sustainable improvement, as the TTM net margin is still deeply negative. Investors should focus on cash-based metrics like EBITDAX to gauge true earning power, as the accounting noise obscures the operational trajectory.

Return on Capital: A Tale of Two Quarters

ROIC improved from -3.5% in Q4 2025 to 6.1% in Q2 2026, per the latest data, but the 10-quarter average remains near zero, indicating that capital efficiency is not yet consistently compounding.

The sharp recovery in ROIC to 6.1% in Q2 2026, following a -3.5% trough in Q4 2025, suggests that the company's capital base is beginning to generate returns as production stabilizes and impairments subside. However, the 10-quarter average ROIC is close to zero, and the negative ROE of -80.9% in Q1 2026 highlights the fragility of the equity base. The improvement appears driven by margin recovery rather than asset turnover, which remains low at 0.13, indicating that the capital-intensive nature of deepwater projects continues to weigh on returns.

Working Capital Efficiency Shows Signs of Strain

Cash conversion cycle turned positive to 8 days in Q2 2026, per reported data, from -50 days in Q2 2024, as DPO compressed from 136 to 91 days, indicating reduced supplier leverage and tighter liquidity.

The shift from a negative to a positive cash conversion cycle reflects a significant reduction in days payable outstanding, which fell from 136 days in Q2 2024 to 91 days in Q2 2026. This suggests that Kosmos is paying suppliers faster, possibly due to improved credit terms or a strategic decision to strengthen relationships, but it also reduces the company's ability to finance operations with supplier credit. Meanwhile, DSO improved from 26 to 17 days, indicating efficient collection of receivables, but the overall working capital position remains tight given the low current ratio of 0.59.

Leverage Eases but Remains Elevated

Debt-to-equity improved to 3.91 in Q2 2026 from 5.80 in Q1 2026, per the balance sheet, yet interest coverage of 6.26x is thin and total debt of $2.8B remains substantial relative to equity.

The reduction in debt-to-equity from 5.80 to 3.91 in Q2 2026 is a positive sign, but the ratio remains far above the peer average of around 0.6, indicating a highly leveraged capital structure. Interest coverage of 6.26x in Q2 2026 is an improvement from negative levels in prior quarters, but it is still modest and vulnerable to oil price volatility. The company's ability to service debt appears dependent on sustained production and commodity prices, and any further delays in the GTA project could strain cash flows and refinancing capacity.

Liquidity Cushion Thin and Deteriorating

Current ratio fell to 0.59 in Q2 2026 from 0.91 in Q1 2024, per reported balance sheets, with cash declining to $125.6M, indicating a shrinking buffer against operational shocks.

The current ratio of 0.59 and quick ratio of 0.38 in Q2 2026 suggest that Kosmos may struggle to meet short-term obligations without relying on cash flow from operations or additional borrowing. The decline in cash from $254.3M in Q1 2024 to $125.6M in Q2 2026, combined with negative working capital, points to a tight liquidity position. While the company has access to credit facilities, the high leverage and negative equity base could limit its ability to secure additional funding under stress, making the liquidity position a key risk to monitor.

Misapplied Debt-to-Equity Ratio

The debt-to-equity ratio of 3.91 in Q2 2026, per the balance sheet, is commonly used to assess leverage, but it overstates risk because equity is small and negative retained earnings distort the metric.

For Kosmos, the debt-to-equity ratio is misleading because the equity base is only $704.9M and includes accumulated losses of -$1.8B, making the ratio highly sensitive to small changes in equity. A more appropriate measure is debt-to-EBITDAX, which normalizes for non-cash items and better reflects the company's ability to service debt from operations. As of Q2 2026, D/EBITDA stood at 8.20x, which is still elevated but more meaningful than the raw D/E ratio. Investors should focus on cash flow-based leverage metrics and the trajectory of EBITDAX as GTA ramps up, rather than relying solely on the distorted D/E figure.

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Includes 30+ ratios · 16 years · Updated daily

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KOS — Frequently Asked Questions

Quick answers to the most common questions about buying KOS stock.

What is Kosmos Energy Ltd.'s P/E ratio?

Kosmos Energy Ltd.'s current P/E ratio is -1.8x. The historical average is 12.2x.

What is Kosmos Energy Ltd.'s EV/EBITDA?

Kosmos Energy Ltd.'s current EV/EBITDA is 14.2x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 12.7x.

What is Kosmos Energy Ltd.'s ROE?

Kosmos Energy Ltd.'s return on equity (ROE) is -80.9%. The historical average is -13.1%.

Is KOS stock overvalued?

Based on historical data, Kosmos Energy Ltd. is trading at a P/E of -1.8x. Compare with industry peers and growth rates for a complete picture.

What are Kosmos Energy Ltd.'s profit margins?

Kosmos Energy Ltd. has -14.8% gross margin and -20.9% operating margin.

How much debt does Kosmos Energy Ltd. have?

Kosmos Energy Ltd.'s Debt/EBITDA ratio is 9.5x, indicating high leverage. A ratio above 4x may signal elevated financial risk.