Koil Energy Solutions (KLNG) AI Stock Analysis

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Koil Energy Solutions

(OTC:KLNG)

67Neutral

Koil Energy Solutions shows strong financial recovery and positive momentum in stock performance, driven by improved profitability and efficient operations. The technical indicators suggest continued positive trends. However, the stock's valuation appears high, and reliance on liabilities could pose risks. The strategic focus on international expansion and growth initiatives provides a solid foundation for future performance, but careful management of leverage and operational challenges remains essential.

Koil Energy Solutions (KLNG) vs. S&P 500 (SPY)

Market Cap

$22.79M

Dividend YieldN/A

Average Volume (3M)23.03K

Price to Earnings (P/E)8.6

Beta (1Y)0.95

Revenue Growth39.03%

EPS GrowthN/A

CountryUS

Employees63

SectorEnergy

Sector Strength52

IndustryOil & Gas Equipment & Services

Share Statistics

EPS (TTM)0.21

Shares Outstanding12,388,202

10 Day Avg. Volume21,278

30 Day Avg. Volume23,028

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)1.20

Price to Cash Flow (P/CF)3.30

P/FCF Ratio3.30

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price TargetN/A

Price Target UpsideN/A

Rating ConsensusN/A

Number of Analyst Covering0

Koil Energy Solutions Business Overview & Revenue Model

Company DescriptionKoil Energy Solutions (KLNG) is a company operating within the energy sector, focusing on providing innovative solutions and technologies to enhance the efficiency and sustainability of energy systems. The company specializes in delivering products and services that cater to the needs of energy infrastructure, including but not limited to, energy management systems, renewable energy solutions, and technological advancements for energy optimization.

How the Company Makes MoneyKoil Energy Solutions makes money through a diversified revenue model that includes the sale of energy management systems, renewable energy solutions, and consultancy services aimed at optimizing energy usage. The company's key revenue streams are derived from contracts with utility companies, industrial clients, and government projects that require advanced energy solutions. Additionally, Koil Energy Solutions leverages strategic partnerships with technology providers and energy firms to expand their market reach and enhance their product offerings, significantly contributing to their earnings.

Koil Energy Solutions Financial Statement Overview

Summary

Koil Energy Solutions has shown a significant improvement in its financial performance, marked by enhanced profitability and cash flow generation. The income statement exhibits healthy gross and net profit margins, with substantial revenue growth. The balance sheet, however, reveals moderate leverage and a high reliance on liabilities. The cash flow statement indicates robust free cash flow growth, reflecting efficient operations and financial flexibility. Overall, the company has demonstrated notable recovery and growth, but maintaining profitability and managing leverage remain crucial.

Income Statement

Positive

Koil Energy Solutions showed a significant improvement in its income statement for the TTM period. The gross profit margin is healthy at approximately 31.52%, and the net profit margin has turned positive to about 5.78%, indicating improved profitability. Revenue growth from the previous year is impressive, with an increase of 35.54%. The EBIT and EBITDA margins have also turned positive, reflecting better operational efficiency. However, historical volatility in net income remains a concern.

Balance Sheet

Neutral

The balance sheet presents a mixed picture. The debt-to-equity ratio is moderate at 0.80, indicating a balanced approach to leverage. The return on equity is approximately 15.24%, showing good use of equity capital. However, the equity ratio is under 42.45%, suggesting a relatively high reliance on liabilities to finance assets. The improvement in equity over the year is a positive sign, but past fluctuations pose risks.

Cash Flow

Positive

The cash flow statement shows robust free cash flow growth and a strong operating cash flow to net income ratio, indicating efficient cash generation relative to profit. Free cash flow improved significantly, bolstering financial flexibility. However, the company needs to maintain consistent cash flow performance to mitigate potential risks from past negative cash flows.

TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Breakdown
Income Statement		Total Revenue
20.80M	15.34M	12.98M	17.23M	12.98M	18.91M
	Gross Profit
6.56M	4.85M	4.68M	5.84M	4.92M	6.80M
	EBIT
1.14M	-1.61M	-3.01M	-343.00K	-6.04M	-2.80M
	EBITDA
2.11M	-996.00K	-1.00M	3.40M	-4.95M	-1.02M
	Net Income Common Stockholders
1.20M	-1.55M	-2.93M	2.33M	-6.06M	-2.77M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
3.05M	2.03M	2.35M	3.68M	3.75M	3.52M
	Total Assets
20.12M	17.06M	16.61M	14.73M	14.94M	21.55M
	Total Debt
56.00K	6.71M	7.66M	1.89M	248.00K	4.36M
	Net Debt
-1.96M	4.68M	5.30M	-1.78M	-3.50M	838.00K
	Total Liabilities
3.01M	11.44M	9.51M	4.45M	7.04M	7.19M
	Stockholders Equity
17.11M	5.62M	7.11M	10.27M	7.90M	14.36M
Cash Flow		Free Cash Flow
1.98M	-27.00K	-1.29M	-1.42M	-377.00K	146.00K
	Operating Cash Flow
2.11M	203.00K	1.24M	-1.07M	-206.00K	237.00K
	Investing Cash Flow
-125.00K	-226.00K	-2.26M	-113.00K	-158.00K	1.55M
	Financing Cash Flow
6.00K	-300.00K	-303.00K	1.11M	586.00K	-278.00K

Koil Energy Solutions Technical Analysis

Technical Analysis Sentiment

Neutral

Last Price1.84

Price Trends

50DMA

2.06

Negative

100DMA

2.09

Negative

200DMA

1.74

Positive

Market Momentum

MACD

-0.07

Negative

RSI

46.49

Neutral

STOCH

77.78

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For KLNG, the sentiment is Neutral. The current price of 1.84 is below the 20-day moving average (MA) of 1.88, below the 50-day MA of 2.06, and above the 200-day MA of 1.74, indicating a neutral trend. The MACD of -0.07 indicates Negative momentum. The RSI at 46.49 is Neutral, neither overbought nor oversold. The STOCH value of 77.78 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for KLNG.

Koil Energy Solutions Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HLX	70 Outperform	$987.98M	18.30	3.68%	―	5.34%	―
KLNG	67 Neutral	$22.79M	8.61	36.84%	―	39.03%	―
WFRD	66 Neutral	$3.23B	6.56	45.81%	1.69%	7.36%	19.68%
FET	55 Neutral	$186.29M	―	-36.95%	―	10.50%	-493.15%
Sector *	55 Neutral	$7.05B	3.40	-6.09%	6.09%	-0.43%	-51.04%
OIS	49 Neutral	$217.68M	―	-1.62%	―	-11.47%	-187.17%
NINE	42 Neutral	$31.91M	―	73.91%	―	-9.09%	-15.47%

* Energy Sector Average

Performance Comparison

KLNG

Koil Energy Solutions

1.84

1.37

291.49%

FET

Forum Energy Tech

15.06

-4.39

-22.57%

HLX

Helix Energy

6.52

-4.49

-40.78%

OIS

Oil States International

3.51

-1.74

-33.14%

WFRD

Weatherford International

44.97

-78.93

-63.70%

NINE

Nine Energy Service

0.75

-1.55

-67.39%

Koil Energy Solutions Earnings Call Summary

Earnings Call Date: Apr 15, 2025 | % Change Since: 8.24% | Next Earnings Date: May 12, 2025

Earnings Call Sentiment Positive

Koil Energy reported a strong year with record-breaking revenue and EBITDA growth, significant contract wins, and a solid cash position. However, challenges in internal controls, potential supply chain risks, and limited order book visibility were noted. The overall sentiment is positive due to the outweighing highlights.

Highlights

Record Revenue and EBITDA Growth

Koil Energy achieved a 48% increase in revenue year-over-year, reaching $23 million for the full year 2024. EBITDA improved from a loss in 2023 to $3.5 million, marking a historic profitability record for the company.

Significant Contract Wins

During the fourth quarter, Koil Energy secured a significant contract to deliver subsea distribution equipment for a project in West Africa and a major contract for advanced maintenance services.

Strong Cash Position and Working Capital

At year-end, Koil Energy reported a cash balance of $3.4 million and working capital of $5.7 million, up from $2.6 million the previous year.

Geographic Expansion and Strategic Alliances

Koil Energy expanded into Brazil with a new facility and formed a strategic alliance with SubseaDesign AS to advance subsea technology.

Lowlights

Material Weakness in Internal Controls

A mistake was identified in equity accounting, leading to a delay in the earnings report. Although it did not have a material adverse impact, it highlighted weaknesses in internal controls.

Impact of Tariffs and Supply Chain Risks

Potential risks from tariffs on raw materials like super duplex steel could affect supply chain stability and cost structures, though mitigated by contract clauses.

Limited Visibility on Order Book

The company reported limited visibility on its order book beyond a couple of quarters, making it difficult to forecast long-term revenue accurately.

Company Guidance

During Koil Energy's fourth quarter and full-year 2024 earnings call, CEO Erik Wiik highlighted the company's impressive financial performance, with a notable 48% year-over-year increase in revenue, reaching $23 million for the full year. The fourth quarter alone saw revenue of $6 million, a 14% sequential increase, and EBITDA of $1 million, translating to a 16% margin. The gross margin remained stable at 40%, while selling, general, and administrative expenses slightly rose to $1.7 million due to increased staffing. Koil Energy reported a net income of $537,000 for Q4, a significant turnaround from a net loss of $890,000 the previous year. The company also generated $1.4 million in free cash flow, bolstering its cash position to $3.4 million by year-end. With $5.7 million in working capital, Koil Energy is positioned for further growth, driven by its strategic roadmap and increased market demand in key subsea basins like the Gulf of America and the North Sea. Despite challenges related to supplier delays, the company remains optimistic about its future, supported by expanding service offerings and a strong presence in international markets, including a new facility in Brazil.

Koil Energy Solutions Corporate Events

Executive/Board ChangesBusiness Operations and Strategy

Koil Energy Solutions Announces Leadership Changes

Neutral

Jan 15, 2025

On January 10, 2025, Trevor Ashurst resigned from his role as Vice President of Finance and Administration at KOIL Energy Solutions, effective February 1, 2025. His departure was amicable, and he was acknowledged for his contributions during a transformative period for the company, including rebranding efforts and profitability enhancements. To support its growth, KOIL is working with SNRG Corporation to hire a new Chief Financial Officer and Human Resources Manager.

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.