Kosmos Energy Ltd. — Earnings Quality Grade F
KOS · Energy
Major red flags
Screening Summary
Management Signals
Financial Trends
Revenue & Net Income ($B)
Margins (%)
18-Point Screening
Revenue Quality
DSO 21 days, change -6 days YoY
AR growth -39.8% vs revenue growth -23.1%
Revenue -23.1%, CFFO -80.2%. Cash follows revenue
Expense Quality
Inventory 1.0% vs COGS 28.2%. Normal
CapEx growth -66.3% vs revenue -23.1%. Normal
SG&A/Gross Profit = 335.7%, exceeds 70%
Gross margin swung -39.3pp (41.1% → 1.8%)
Cash Flow Quality
CFFO/NI = -0.19. Below 1.0
FCF < 50% of Net Income for 2 years
Accruals ratio = -17.8%. Low accruals
Cash $0.1B covers only 3% of debt $3.1B
Balance Sheet Health
No goodwill. Clean balance sheet
Debt/EBITDA = 17.3x (>4x). Interest coverage = -1.1x (<2x). Financial stress
Other assets grew 148.9% vs revenue -23.1%
No write-off data
Acquisition Risk
FCF after acquisitions negative for 3 years
Small-cap context: A single acquisition on a small balance sheet can trip serial-acquirer logic.
No goodwill
Manipulation Score
M-Score = 8.20 (> -1.78). LIKELY MANIPULATOR
Small-cap context: Beneish M-Score was calibrated on large-caps; small-cap DSO/inventory volatility mechanically inflates it.
Beneish M-Score
Altman Z-Score
Generated from public financial data using forensic accounting frameworks. Not investment advice. Data: Yahoo Finance · 2026-04-25