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Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue.
Kodiak Gas Services's Degree of Operating Leverage for the quarter that ended in Jun. 2026 was -0.13. The higher Degree of Operating Leverage, the higher operating risk the company will take.
The industry rank for Kodiak Gas Services's Degree of Operating Leverage or its related term are showing as below:
KGS's Degree of Operating Leverage is ranked better than 61.47% of 898
companies
in the Oil & Gas industry
Industry Median: 0.85
vs KGS: -0.13
Kodiak Gas Services (NYSE:KGS) Degree of Operating Leverage Explanation
Degree of Operating Leverage (DOL) is a leverage ratio that measures the sensitivity of a company’s operting income, also referred to as Earnings Before Interest and Taxes (EBIT), to fluctuations in its Revenue. DOL is a method used to quantify a company’s operating risk. This risk is related to the company's structure of variable costs and fixed costs. Since the fixed costs do not allow the company to adjust the operating costs, the operating risk rises with a higher fixed-to-variable costs proportion.
A high Degree of Operating Leverage indicates that the company’s fixed costs exceed its variable costs. By increasing the sales, the company can earn more profits. In addition, the company must be able to maintain relatively high sales to cover all fixed costs.
Be Aware
The use of operating leverage varies across different industries and business sectors, and the application of Degree of Operating Leverage (DOL) should be adjusted accordingly.
Kodiak Gas Services Degree of Operating Leverage Related Terms
Kodiak Gas Services Degree of Operating Leverage Historical Data
* Premium members only.
The historical data trend for Kodiak Gas Services's Degree of Operating Leverage can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Kodiak Gas Services Degree of Operating Leverage Chart
KGS vs WHD, AROC, OII: Degree of Operating Leverage Comparison
For the Oil & Gas Equipment & Services subindustry, Kodiak Gas Services's Degree of Operating Leverage, along with its competitors' market caps and Degree of Operating Leverage data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Kodiak Gas Services Degree of Operating Leverage vs Oil & Gas Industry
For the Oil & Gas industry and Energy sector, Kodiak Gas Services's Degree of Operating Leverage distribution charts can be found below:
* The bar in red indicates where Kodiak Gas Services's Degree of Operating Leverage falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
** TTM data of EBIT and Revenue was used to calculate Degree of Operating Leverage.
*** Please be aware that the Degree of Operating Leverage calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.
What does a Degree of Operating Leverage of -0.13 mean?
Kodiak Gas Services (KGS) has a Degree of Operating Leverage of -0.13 as of Jun. 2026. Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. View historical data for Kodiak Gas Services and its competitors. According to the industry distribution chart, Kodiak Gas Services ranks #346 out of 898 companies in the Oil & Gas industry, placing it in the top 38.5%.
Is Kodiak Gas Services' Degree of Operating Leverage too high?
Kodiak Gas Services' current Degree of Operating Leverage is -0.13. Based on the distribution chart, Kodiak Gas Services ranks #346 out of 898 companies in the Oil & Gas industry, which is above the industry midpoint. Overall, Kodiak Gas Services has a GF Score™ of 54/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Kodiak Gas Services' Degree of Operating Leverage compare to WHD and AROC?
According to the Oil & Gas industry distribution chart, Kodiak Gas Services ranks #346 out of 898 companies for Degree of Operating Leverage. This puts Kodiak Gas Services in the upper half of its industry. The industry median Degree of Operating Leverage is 0.85. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Degree of Operating Leverage for an Oil & Gas company?
The median Degree of Operating Leverage among Oil & Gas companies is 0.85, based on 898 companies in the industry. Companies in the top quartile (top 25%) have a Degree of Operating Leverage significantly above this median, while those in the bottom quartile fall well below. However, Degree of Operating Leverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Degree of Operating Leverage mean?
A high Degree of Operating Leverage can signal that a stock is expensive relative to its fundamentals. Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. View historical data for Kodiak Gas Services and its competitors. For the Oil & Gas industry, the median Degree of Operating Leverage is 0.85 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Kodiak Gas Services's current Degree of Operating Leverage is -0.13. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Kodiak Gas Services stock overvalued right now?
Based on GuruFocus' analysis, Kodiak Gas Services (KGS) is currently considered Significantly Overvalued. The stock's GF Value™ is $38.01, compared to a current price of $63.85 — trading 68% above its estimated fair value. The current Degree of Operating Leverage is -0.13. Kodiak Gas Services' overall GF Score™ is 54/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Degree of Operating Leverage calculated?
Degree of Operating Leverage is calculated from a company's financial statements. For Kodiak Gas Services (KGS), the current Degree of Operating Leverage is -0.13 as of Jun. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Kodiak Gas Services (KGS) Overvalued in 2026?
Based on GuruFocus' analysis, Kodiak Gas Services stock appears to be overvalued.
The current stock price of $63.85 is trading 68% above its estimated GF Value™ of $38.01.
GuruFocus considers Kodiak Gas Services to be Significantly Overvalued.
Key valuation signals for KGS:
Degree of Operating Leverage: -0.13
GF Value™: $38.01 vs. price of $63.85 (68% above fair value)
No single metric tells the full story. See the KGS stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Kodiak Gas Services Inc is an operator of contract compression infrastructure in the United States. The company manages its business through two operating segments: Contract Services and Other Services. Contract Services consists of operating company-owned and customer-owned compression, gas treating, and cooling infrastructure, pursuant to fixed-revenue contracts to enable the production and gathering of natural gas and oil. Other Services consist of a full range of contract services to support the ancillary needs of customers, including station construction, maintenance and overhaul, freight and crane charges, and other time and material-based offerings. Maximum revenue for the company is generated from its Contract Services segment.
54GF Score
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