The Street FACTOR SCORE: = Growth 4.5 out of 5 stars Measures the growth of both the company's income statement and cash flow. On this factor, KOG has a growth score better than 80% of the stocks we rate.
RECOMMENDATION We rate KODIAK OIL & GAS CORP (KOG) a BUY. This is driven by a few notable strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, compelling growth in net income, expanding profit margins and good cash flow from operations. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook. HIGHLIGHTS KOG's very impressive revenue growth greatly exceeded the industry average of 35.7%. Since the same quarter one year prior, revenues leaped by 592.2%. Growth in the company's revenue appears to have helped boost the earnings per share. KOG's debt-to-equity ratio is very low at 0.11 and is currently below that of the industry average, implying that there has been very successful management of debt levels. To add to this, KOG has a quick ratio of 2.03, which demonstrates the ability of the company to cover short-term liquidity needs. KODIAK OIL & GAS CORP has shown improvement in its earnings for its most recently reported quarter when compared with the same quarter a year earlier. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, KODIAK OIL & GAS CORP continued to lose money by earning -$0.01 versus -$0.03 in the prior year. This year, the market expects an improvement in earnings ($0.24 versus -$0.01). The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Oil, Gas & Consumable Fuels industry. The net income increased by 8444.3% when compared to the same quarter one year prior, rising from $0.36 million to $30.85 million. The gross profit margin for KODIAK OIL & GAS CORP is currently very high, coming in at 86.50%. It has increased significantly from the same period last year. Along with this, the net profit margin of 63.80% significantly outperformed against the industry average.