Kodiak Gas ServicesKGS +4.83%47 Gross Margin % is 44.60% as of Mar. 2026, which is 17% above its 10-year median of 38.01. GuruFocus rates KGS with a GF Score™ of 47/100 and a GF Value™ of $37.21 (Significantly Overvalued). The stock has 10 warning signs investors should review. Among 867 Oil & Gas companies, Kodiak Gas Services ranks better than 72.66% on this metric.
The historical rank and industry rank for Kodiak Gas Services's Gross Margin % or its related term are showing as below:
KGS'
s Gross Margin % Range Over the Past 10 Years
Min: 37.24 Med: 38.01 Max: 43.46
Current: 43.46
During the past 5 years, the highestGross Margin % of Kodiak Gas Services was 43.46%. The lowest was 37.24%. And the median was 38.01%.
KGS's Gross Margin % is ranked better than 72.66% of 867
companies
in the Oil & Gas industry
Industry Median: 25.7
vs KGS: 43.46
Kodiak Gas Services had a gross margin of 44.60% for the quarter that ended in Mar. 2026 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Kodiak Gas Services was 0.00% per year.
Kodiak Gas Services (NYSE:KGS) Gross Margin % Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Kodiak Gas Services had a gross margin of 44.60% for the quarter that ended in Mar. 2026 => Durable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Kodiak Gas Services Gross Margin % Related Terms
Kodiak Gas Services Gross Margin % Historical Data
* Premium members only.
The historical data trend for Kodiak Gas Services's Gross Margin % 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.
For the Oil & Gas Equipment & Services subindustry, Kodiak Gas Services's Gross Margin %, along with its competitors' market caps and Gross Margin % 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 Gross Margin % vs Oil & Gas Industry
For the Oil & Gas industry and Energy sector, Kodiak Gas Services's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Kodiak Gas Services's Gross Margin % 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.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Kodiak Gas Services (KGS) has a Gross Margin % of 44.60% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Kodiak Gas Services and its competitors. This is 17% above median its historical median of 38.01. Over the past decade, Kodiak Gas Services' Gross Margin % has ranged from 37.24 to 43.46. According to the industry distribution chart, Kodiak Gas Services ranks #237 out of 867 companies in the Oil & Gas industry, placing it in the top 27.3%.
Is Kodiak Gas Services' Gross Margin % too high?
Kodiak Gas Services' current Gross Margin % of 44.60% is 17% above median its 10-year median of 38.01. Over the past 10 years, this metric has ranged from a low of 37.24 to a high of 43.46. The Oil & Gas industry median Gross Margin % is 25.70. Kodiak Gas Services' value of 44.60% is 73.5% above this industry median. Based on the distribution chart, Kodiak Gas Services ranks #237 out of 867 companies in the Oil & Gas industry, which is above the industry midpoint. Overall, Kodiak Gas Services has a GF Score™ of 47/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Kodiak Gas Services' Gross Margin % compare to NOV and WFRD?
According to the Oil & Gas industry distribution chart, Kodiak Gas Services ranks #237 out of 867 companies for Gross Margin %. This puts Kodiak Gas Services in the upper half of its industry. The industry median Gross Margin % is 25.70. Kodiak Gas Services' value of 44.60% is 73.5% above this benchmark. Historically, Kodiak Gas Services' own Gross Margin % has ranged from 37.24 to 43.46 over the past decade. While the company's 10-year median is 38.01 vs. the industry median of 25.70, Kodiak Gas Services has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for an Oil & Gas company?
The median Gross Margin % among Oil & Gas companies is 25.70, based on 867 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Kodiak Gas Services's current Gross Margin % of 44.60% is 73.5% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Kodiak Gas Services and its competitors. For the Oil & Gas industry, the median Gross Margin % is 25.70 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Kodiak Gas Services's current Gross Margin % is 44.60%, which is 17% above median its own 10-year median of 38.01. 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 $37.21, compared to a current price of $74.06 — trading 99% above its estimated fair value. The current Gross Margin % is 44.60%, which is 17% above median its 10-year median of 38.01 and 73.5% above the Oil & Gas industry median of 25.70. Kodiak Gas Services' overall GF Score™ is 47/100 with 10 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Kodiak Gas Services (KGS), the current Gross Margin % is 44.60% as of Mar. 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 $74.06 is trading 99% above its estimated GF Value™ of $37.21.
GuruFocus considers Kodiak Gas Services to be Significantly Overvalued.
Key valuation signals for KGS:
Gross Margin %: 44.60% (17% above median its 10-year median of 38.01)
GF Value™: $37.21 vs. price of $74.06 (99% above fair value)
Industry Position: 73.5% above the Oil & Gas median (#237 of 867)
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.
47GF Score
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