Kosmos Energy Ltd. (KOS) AI Stock Analysis

Kosmos Energy Ltd. operates as an independent oil and gas exploration and production company, specializing in deep-water ventures across the Atlantic Margins. Its strategic focus covers key producing regions including offshore Ghana, Equatorial Guinea, and the U.S. Gulf of Mexico. The company is also developing a significant gas project offshore Mauritania and Senegal to expand its footprint. Founded in 2003 and based in Dallas, Texas, Kosmos Energy applies a basin exploration program alongside technological innovation and collaborative partnerships to discover and produce hydrocarbon reserves.

Kosmos Energy generated a five-year revenue CAGR of 10.0% from FY2020 to FY2025. After peaking at $2.25B in FY2022, annual revenue dropped to $1.70B in FY2023, $1.68B in FY2024, and fell 22.5% to $1.30B in FY2025. Margins swung negative in FY2025, with an operating margin of -20.9% and net income of -$699.8M, producing EPS of -$0.72. Operating cash flow totaled $134.0M in FY2025, but free cash flow stood at -$180.4M. For the trailing twelve months, revenue reached $1.58B with an operating margin of 53.8% and net margin of -34.2%. In the latest quarter ended June 30, 2026, revenue increased 54.6% year-over-year while quarterly earnings fell 50.0%.

As of June 30, 2026, Kosmos Energy held $125.6M in cash and short-term investments compared to total debt of $2.76B, leaving net debt at $2.63B. Shareholders' equity was $704.9M, resulting in a debt-to-equity ratio of 3.91 and a current ratio of 0.59 out of $4.31B in total assets. During FY2025, capital expenditures reached $314.4M, contributing to free cash flow of -$180.4M. Over five years, the company's share count expanded by 32.5%, with $3,000 in share issuance recorded in FY2025.

At a share price of $2.78, Kosmos Energy has a market cap of $1.66B and an enterprise value of $4.22B. The stock trades at a forward P/E of 4.7x, compared to 12.7x for the median of its US-listed Energy peers. Its price-to-sales ratio is 1.0x versus the peer median of 1.8x, and its EV/EBITDA stands at 12.1x compared to the peer median of 8.0x. Over the past year, KOS returned 90.4% compared to 16.8% for the S&P 500, though its five-year return was -27.0% against 83.0% for the S&P 500.

Wall Street analysts hold 5 Strong Buy, 1 Buy, 4 Hold, 1 Sell, and 2 Strong Sell ratings on Kosmos Energy. The mean price target is $3.00, representing an 8.1% premium over the last close of $2.78. For the fiscal year ending December 31, 2026, consensus estimates project EPS of $0.27 and revenue of $1.77B. For the following fiscal year, 5 analysts project revenue of $1.62B and EPS of $0.32. Over the last four quarters, Kosmos Energy beat EPS estimates 1 time. The next earnings date is November 2, 2026.

This page is an AI-written research summary of Kosmos Energy Ltd. (KOS). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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