Return on Retained Earnings (RORE) is an indicator of a company's growth potential, it shows how much a company earns by reinvesting its retained earnings, i.e. profits after dividend payments.
Kodiak Gas Services's 3-Year RORE % for the quarter that ended in Mar. 2026 was 6.67%.
The industry rank for Kodiak Gas Services's 3-Year RORE % or its related term are showing as below:
KGS's 3-Year RORE % is ranked better than 55.14% of 925
companies
in the Oil & Gas industry
Industry Median: 1.25
vs KGS: 6.67
Kodiak Gas Services (NYSE:KGS) 3-Year RORE % Explanation
Return on Retained Earnings (RORE) is important to investors because it reveals a company's efficiency and growth potential. A higher RORE indicates a higher return. A high RORE indicates that the company should reinvest profits into the business. A lower RORE suggests that the company should distribute profits to shareholders by paying out dividends, since those dollars aren't generating much additional growth for the company.
There are a several different ways to arrive at the Return on Retained Earnings. The simplest way to calculate it is by using published information on Earnings per Share (EPS) and Dividend per Share (DPS) over a selected period. Here, 3-year period is chosen.
Be Aware
Please keep in mind that the RORE is relative to the nature of the business and its competitors. If another company in the same sector is producing a lower return on retained earnings, it doesn’t necessarily mean it’s a bad investment. It may just suggest the company is older and no longer in a high growth stage. At such a stage in the business cycle, it would be expected to see a lower RORE and higher dividend payout.
Kodiak Gas Services 3-Year RORE % Related Terms
Kodiak Gas Services 3-Year RORE % Historical Data
* Premium members only.
The historical data trend for Kodiak Gas Services's 3-Year RORE % 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 3-Year RORE %, along with its competitors' market caps and 3-Year RORE % 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 3-Year RORE % vs Oil & Gas Industry
For the Oil & Gas industry and Energy sector, Kodiak Gas Services's 3-Year RORE % distribution charts can be found below:
* The bar in red indicates where Kodiak Gas Services's 3-Year RORE % 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.
In the calculation of 3-Year RORE %, the most recent and first period EPS (Diluted) is the trailing twelve months (TTM) data ended in Mar. 2026 and 3-year before.
Kodiak Gas Services (KGS) has a 3-Year RORE % of 6.67 as of Mar. 2026. 3-Year RORE % shows how much a company earns by reinvesting its retained earnings in 3-year. View historical data on Kodiak Gas Services and its competitors. According to the industry distribution chart, Kodiak Gas Services ranks #415 out of 925 companies in the Oil & Gas industry, placing it in the top 44.9%.
Is Kodiak Gas Services' 3-Year RORE % too high?
Kodiak Gas Services' current 3-Year RORE % is 6.67. The Oil & Gas industry median 3-Year RORE % is 1.25. Kodiak Gas Services' value of 6.67 is 433.6% above this industry median. Based on the distribution chart, Kodiak Gas Services ranks #415 out of 925 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' 3-Year RORE % compare to AROC and NOV?
According to the Oil & Gas industry distribution chart, Kodiak Gas Services ranks #415 out of 925 companies for 3-Year RORE %. This puts Kodiak Gas Services in the upper half of its industry. The industry median 3-Year RORE % is 1.25. Kodiak Gas Services' value of 6.67 is 433.6% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good 3-Year RORE % for an Oil & Gas company?
The median 3-Year RORE % among Oil & Gas companies is 1.25, based on 925 companies in the industry. Companies in the top quartile (top 25%) have a 3-Year RORE % significantly above this median, while those in the bottom quartile fall well below. However, 3-Year RORE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Kodiak Gas Services's current 3-Year RORE % of 6.67 is 433.6% 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 3-Year RORE % mean?
A high 3-Year RORE % can signal that a stock is expensive relative to its fundamentals. 3-Year RORE % shows how much a company earns by reinvesting its retained earnings in 3-year. View historical data on Kodiak Gas Services and its competitors. For the Oil & Gas industry, the median 3-Year RORE % is 1.25 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Kodiak Gas Services's current 3-Year RORE % is 6.67. 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 $37.23, compared to a current price of $74.43 — trading 99.9% above its estimated fair value. The current 3-Year RORE % is 6.67 and 433.6% above the Oil & Gas industry median of 1.25. 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 3-Year RORE % calculated?
3-Year RORE % is calculated from a company's financial statements. For Kodiak Gas Services (KGS), the current 3-Year RORE % is 6.67 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 $74.43 is trading 99.9% above its estimated GF Value™ of $37.23.
GuruFocus considers Kodiak Gas Services to be Significantly Overvalued.
Key valuation signals for KGS:
3-Year RORE %: 6.67
GF Value™: $37.23 vs. price of $74.43 (99.9% above fair value)
Industry Position: 433.6% above the Oil & Gas median (#415 of 925)
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.
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