Our viewpoint on Kinetik Holdings (USA Stocks:KNTK) and Crestwood Equity (USA Stocks:CEQP)?
 | By Raphi Shpitalnik | Macroaxis Story |
Kinetik Holdings (KNTK), a player in the Oil & Gas Midstream sector, offers intriguing possibilities for investors looking to explore the energy market. With a net asset value of $6.81 billion and a revenue of $1.6 billion, the company demonstrates a solid financial foundation. However, it's important to note the challenges it faces, such as a net interest income loss of $214.4 million, which could impact its financial flexibility. Despite these hurdles, Kinetik's operating margin of 0.04% and a net income of $244.2 million suggest that the company is managing to stay afloat in a competitive industry. With a probability of bankruptcy at 36.83%, potential investors should weigh these factors carefully when considering KNTK as part of their portfolio. While many investors are steering clear of the oil, gas, and consumable fuels sector, it's worth taking a closer look at Kinetik Holdings to see how it measures up against competitors like Crestwood Equity. We'll delve into the competitive strengths and weaknesses of both Kinetik and Crestwood to provide a clearer picture of their market positions.
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Reviewed by Rifka Kats
To compare how market fluctuations impact Kinetik Holdings and Crestwood, you can examine their basic indicators. This analysis helps determine if combining them in a portfolio might reduce market risk. A potential strategy is pair trading, where you take a long position in Crestwood and a short position in Kinetik Holdings. For more details, explore our [pair correlation module]( '/invest/pair-correlation/KNTK/CEQP/Kinetik-vs-Crestwood').
Now, let's look at asset utilization. This metric shows how much revenue a company generates per dollar of assets. Kinetik Holdings has an asset utilization ratio of 21.76%, meaning it earns $0.22 for every dollar of assets. A rising ratio indicates improved efficiency in using assets for daily operations.
Key Takeaways
Kinetik Holdings (KNTK) presents an intriguing opportunity for investors, particularly given its robust EBITDA of 374.23M and a significant institutional ownership of 90.38%. These factors suggest a solid operational foundation and strong institutional confidence, making KNTK a stock worth considering for those looking to invest in the Oil & Gas Midstream industry.Investment perspective, in general, refers to a viewpoint or opinion regarding investment opportunity in Kinetik Holdings. It encompasses the assessment of an investment's potential risks and rewards, and expectations for its performance over time. Several factors influence the investment perspective on Kinetik Holdings, including investment goals, risk tolerance, time horizon, market conditions, and research and analysis. Investors have varying goals, such as capital preservation, income generation, or long-term growth. Risk tolerance plays a significant role in shaping an investor's perspective, with some being more risk-averse and others willing to take on higher risks for potential returns.
How important is Kinetik Holdings's Liquidity
Kinetik Holdings financial leverage refers to using borrowed capital as a funding source to finance Kinetik Holdings ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Kinetik Holdings financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Financial leverage can amplify the potential profits to Kinetik Holdings' owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of Kinetik Holdings' financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the breakdown between Kinetik Holdings's total debt and its cash.
Kinetik Holdings Gross Profit
Kinetik Holdings Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Kinetik Holdings previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show Kinetik Holdings Gross Profit growth over the last 10 years. Please check Kinetik Holdings' gross profit and other fundamental indicators for more details.
Detailed Perspective On Kinetik Holdings
It's often said that knowledge is power in investing, and a deep dive into Kinetik Holdings (KNTK) reveals some intriguing insights. With a market capitalization of $2.76 billion and a substantial revenue of $1.48 billion, KNTK is a key player in the Oil & Gas Midstream industry. However, potential investors should note its high price-to-earnings ratio of 959.00X, which could suggest overvaluation. Despite this, the company's operating income stands at 179.2 million, showing it can generate profits despite tight margins. Additionally, with shares owned by institutions at 90.38%, Kinetik seems to have garnered significant trust from large investors, a factor that can often bring stability and long-term growth potential.
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This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Raphi Shpitalnik do not own shares of Kinetik Holdings. Please refer to our Terms of Use for any information regarding our disclosure principles.