Kosmos Energy Ltd. [KOS] is following downward trend in the market concluded with the last trading session. The shares of the Basic Materials sector company has a current value of $6.39 after KOS shares went down by -1.24% during the last trading session. One of the reasons why Basic Materials stocks may go bearish is decreased momentum in the press.

Kosmos Energy Ltd. [NYSE:KOS]: Analyst Rating and Earnings

Its stock price has been found in the range of 3.53 to 9.75. This is compared to its latest closing price of $6.47.

Keep an eye out for the next scheduled publication date for this company’s financial results, which are expected to be released on Mon 4 Nov (In 54 Days).

Fundamental Analysis of Kosmos Energy Ltd. [KOS]

Now let’s turn to look at profitability: with a current Operating Margin for Kosmos Energy Ltd. [KOS] sitting at -8.39 and its Gross Margin at +3.67, this company’s Net Margin is now 1.90%. These metrics indicate that this company is not generating as much profit, after accounting for expenses, compared to its market peers.

This company’s Return on Total Capital is -2.84, and its Return on Invested Capital has reached -3.80%. Its Return on Equity is -10.22, and its Return on Assets is -2.58. These metrics suggest that this Kosmos Energy Ltd. does a poor job of managing its assets, and likely won’t be able to provide successful business outcomes for its investors in the near term.

Turning to investigate this organization’s capital structure, Kosmos Energy Ltd. [KOS] has generated a Total Debt to Total Equity ratio of 225.24. Similarly, its Total Debt to Total Capital is 69.25, while its Total Debt to Total Assets stands at 51.87. Looking toward the future, this publicly-traded company’s Long-Term Debt to Equity is -0.61, and its Long-Term Debt to Total Capital is 225.24.

What about valuation? This company’s Enterprise Value to EBITDA is 17.50 and its Total Debt to EBITDA Value is 8.31. The Enterprise Value to Sales for this firm is now 4.24, and its Total Debt to Enterprise Value stands at 0.59. Kosmos Energy Ltd. [KOS] has a Price to Book Ratio of 1.72, a Price to Cash Flow Ratio of 7.42 and P/E Ratio of 196.92. These metrics show that this company has a mixed appeal, and ROI could be a gain or a loss.

Shifting the focus to workforce efficiency, Kosmos Energy Ltd. [KOS] earns $2,338,497 for each employee under its payroll. Similarly, this company’s Receivables Turnover is 5.91 and its Total Asset Turnover is 0.24. This publicly-traded organization’s liquidity data is also interesting: its Quick Ratio is 1.11 and its Current Ratio is 1.33. This company, considering these metrics, has a healthy ratio between its short-term liquid assets and its short-term liabilities, making it a less risky investment.

Kosmos Energy Ltd. [KOS] has 408.61M shares outstanding, amounting to a total market cap of $2.64B. Its stock price has been found in the range of 3.53 to 9.75. At its current price, it has moved down by -34.46% from its 52-week high, and it has moved up 81.02% from its 52-week low.

This stock’s Beta value is currently 1.97, which indicates that it is 3.35% more volatile that the wider market. This stock’s Relative Strength Index (RSI) is at 55.96. This RSI score is good, suggesting this stock is neither overbought or oversold.

Conclusion: Is Kosmos Energy Ltd. [KOS] a Reliable Buy?

Shares of Kosmos Energy Ltd. [KOS], on the whole, present investors with both positive and negative signals. Wall Street analysts have mixed reviews when it comes to the 12-month price outlook, and this company’s financials show a combination of strengths and weaknesses. Based on the price performance, this investment is somewhat risky while presenting reasonable potential for ROI.