KINDER MORGAN INC (KMI) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:KMI - US49456B1017 - Common Stock
27.77 USD
-0.07 (-0.25%)
27.77 USD
0 (0%)
We assign a fundamental rating of 4 out of 10 to KMI. KMI was compared to 209 industry peers in the Oil, Gas & Consumable Fuels industry. While KMI is still in line with the averages on profitability rating, there are concerns on its financial health. KMI is quite expensive at the moment. It does show a decent growth rate. KMI also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year KMI was profitable.
KMI had a positive operating cash flow in the past year.
Each year in the past 5 years KMI has been profitable.
KMI had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a Return On Assets value of 3.75%, KMI perfoms like the industry average, outperforming 54.07% of the companies in the same industry.
KMI's Return On Equity of 8.83% is in line compared to the rest of the industry. KMI outperforms 59.33% of its industry peers.
KMI has a Return On Invested Capital of 5.23%. This is comparable to the rest of the industry: KMI outperforms 44.50% of its industry peers.
The Average Return On Invested Capital over the past 3 years for KMI is significantly below the industry average of 21.47%.
The 3 year average ROIC (5.16%) for KMI is below the current ROIC(5.23%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.75% | ||
| ROE | 8.83% | ||
| ROIC | 5.23% |
ROA(3y)3.53%
ROA(5y)2.65%
ROE(3y)8.2%
ROE(5y)6.14%
ROIC(3y)5.16%
ROIC(5y)4.97%
1.3 Margins
KMI's Profit Margin of 16.54% is fine compared to the rest of the industry. KMI outperforms 68.42% of its industry peers.
In the last couple of years the Profit Margin of KMI has remained more or less at the same level.
KMI has a Operating Margin of 27.68%. This is in the better half of the industry: KMI outperforms 68.42% of its industry peers.
KMI's Operating Margin has been stable in the last couple of years.
With a decent Gross Margin value of 49.12%, KMI is doing good in the industry, outperforming 60.29% of the companies in the same industry.
KMI's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 27.68% | ||
| PM (TTM) | 16.54% | ||
| GM | 49.12% |
OM growth 3Y3.62%
OM growth 5Y-0.52%
PM growth 3Y17.31%
PM growth 5Y0.85%
GM growth 3Y3.41%
GM growth 5Y-1.53%
2. Health
2.1 Basic Checks
KMI has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for KMI remains at a similar level compared to 1 year ago.
KMI has less shares outstanding than it did 5 years ago.
The debt/assets ratio for KMI has been reduced compared to a year ago.
2.2 Solvency
KMI has an Altman-Z score of 1.10. This is a bad value and indicates that KMI is not financially healthy and even has some risk of bankruptcy.
KMI has a Altman-Z score (1.10) which is comparable to the rest of the industry.
The Debt to FCF ratio of KMI is 15.03, which is on the high side as it means it would take KMI, 15.03 years of fcf income to pay off all of its debts.
KMI's Debt to FCF ratio of 15.03 is in line compared to the rest of the industry. KMI outperforms 49.76% of its industry peers.
KMI has a Debt/Equity ratio of 1.02. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 1.02, KMI is not doing good in the industry: 69.86% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.02 | ||
| Debt/FCF | 15.03 | ||
| Altman-Z | 1.1 |
ROIC/WACC0.63
WACC8.27%
2.3 Liquidity
A Current Ratio of 0.63 indicates that KMI may have some problems paying its short term obligations.
KMI has a Current ratio of 0.63. This is in the lower half of the industry: KMI underperforms 77.51% of its industry peers.
KMI has a Quick Ratio of 0.63. This is a bad value and indicates that KMI is not financially healthy enough and could expect problems in meeting its short term obligations.
KMI has a worse Quick ratio (0.49) than 84.69% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.63 | ||
| Quick Ratio | 0.49 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 10.81% over the past year.
Measured over the past 5 years, KMI shows a small growth in Earnings Per Share. The EPS has been growing by 4.08% on average per year.
The Revenue has grown by 8.35% in the past year. This is quite good.
The Revenue has been growing slightly by 2.71% on average over the past years.
EPS 1Y (TTM)10.81%
EPS 3Y-4.22%
EPS 5Y4.08%
EPS Q2Q%16%
Revenue 1Y (TTM)8.35%
Revenue growth 3Y-3.13%
Revenue growth 5Y2.71%
Sales Q2Q%12.08%
3.2 Future
Based on estimates for the next years, KMI will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.01% on average per year.
The Revenue is expected to grow by 5.84% on average over the next years.
EPS Next Y12.2%
EPS Next 2Y9.15%
EPS Next 3Y8.61%
EPS Next 5Y8.01%
Revenue Next Year8.27%
Revenue Next 2Y6.84%
Revenue Next 3Y6.65%
Revenue Next 5Y5.84%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
KMI is valuated rather expensively with a Price/Earnings ratio of 22.58.
The rest of the industry has a similar Price/Earnings ratio as KMI.
KMI's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 26.46.
With a Price/Forward Earnings ratio of 20.10, KMI is valued on the expensive side.
KMI's Price/Forward Earnings is on the same level as the industry average.
The average S&P500 Price/Forward Earnings ratio is at 36.10. KMI is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.58 | ||
| Fwd PE | 20.1 |
4.2 Price Multiples
65.07% of the companies in the same industry are cheaper than KMI, based on the Enterprise Value to EBITDA ratio.
The rest of the industry has a similar Price/Free Cash Flow ratio as KMI.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 28.51 | ||
| EV/EBITDA | 13.54 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates KMI does not grow enough to justify the current Price/Earnings ratio.
The decent profitability rating of KMI may justify a higher PE ratio.
PEG (NY)1.85
PEG (5Y)5.54
EPS Next 2Y9.15%
EPS Next 3Y8.61%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.34%, KMI is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 5.91, KMI pays a bit more dividend than its industry peers.
KMI's Dividend Yield is rather good when compared to the S&P500 average which is at 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.34% |
5.2 History
The dividend of KMI has a limited annual growth rate of 3.80%.
KMI has been paying a dividend for at least 10 years, so it has a reliable track record.
KMI has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.
Dividend Growth(5Y)3.8%
Div Incr Years7
Div Non Decr Years8
5.3 Sustainability
95.47% of the earnings are spent on dividend by KMI. This is not a sustainable payout ratio.
KMI's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP95.47%
EPS Next 2Y9.15%
EPS Next 3Y8.61%
27.77
-0.07 (-0.25%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners68.14%
Inst Owner Change1.26%
Ins Owners12.75%
Ins Owner Change0.56%
Market Cap61.78B
Revenue(TTM)16.42B
Net Income(TTM)2.71B
Analysts77.04
Price Target31.81 (14.55%)
Short Float %1.88%
Short Ratio2.52
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.34% |
Yearly Dividend1.15
Dividend Growth(5Y)3.8%
DP95.47%
Div Incr Years7
Div Non Decr Years8
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-1.03%
Min EPS beat(2)-1.67%
Max EPS beat(2)-0.4%
EPS beat(4)0
Avg EPS beat(4)-2.79%
Min EPS beat(4)-4.98%
Max EPS beat(4)-0.4%
EPS beat(8)0
Avg EPS beat(8)-4.18%
EPS beat(12)2
Avg EPS beat(12)-2.81%
EPS beat(16)4
Avg EPS beat(16)-2.18%
Revenue beat(2)2
Avg Revenue beat(2)2.79%
Min Revenue beat(2)1.05%
Max Revenue beat(2)4.53%
Revenue beat(4)3
Avg Revenue beat(4)0.49%
Min Revenue beat(4)-6.63%
Max Revenue beat(4)4.53%
Revenue beat(8)3
Avg Revenue beat(8)-5.47%
Revenue beat(12)3
Avg Revenue beat(12)-9.38%
Revenue beat(16)7
Avg Revenue beat(16)-1.94%
PT rev (1m)0.31%
PT rev (3m)-0.41%
EPS NQ rev (1m)-0.73%
EPS NQ rev (3m)1.35%
EPS NY rev (1m)0.21%
EPS NY rev (3m)0.64%
Revenue NQ rev (1m)-0.07%
Revenue NQ rev (3m)-0.86%
Revenue NY rev (1m)0.68%
Revenue NY rev (3m)0.96%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.58 | ||
| Fwd PE | 20.1 | ||
| P/S | 3.76 | ||
| P/FCF | 28.51 | ||
| P/OCF | 10.77 | ||
| P/B | 2.01 | ||
| P/tB | 6.96 | ||
| EV/EBITDA | 13.54 |
EPS(TTM)1.23
EY4.43%
EPS(NY)1.38
Fwd EY4.98%
FCF(TTM)0.97
FCFY3.51%
OCF(TTM)2.58
OCFY9.28%
SpS7.38
BVpS13.82
TBVpS3.99
PEG (NY)1.85
PEG (5Y)5.54
Graham Number19.55
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.75% | ||
| ROE | 8.83% | ||
| ROCE | 6.64% | ||
| ROIC | 5.23% | ||
| ROICexc | 5.23% | ||
| ROICexgc | 7.69% | ||
| OM | 27.68% | ||
| PM (TTM) | 16.54% | ||
| GM | 49.12% | ||
| FCFM | 13.2% |
ROA(3y)3.53%
ROA(5y)2.65%
ROE(3y)8.2%
ROE(5y)6.14%
ROIC(3y)5.16%
ROIC(5y)4.97%
ROICexc(3y)5.18%
ROICexc(5y)5.02%
ROICexgc(3y)7.88%
ROICexgc(5y)7.62%
ROCE(3y)6.55%
ROCE(5y)6.32%
ROICexgc growth 3Y-1.55%
ROICexgc growth 5Y1.92%
ROICexc growth 3Y-1.03%
ROICexc growth 5Y2.71%
OM growth 3Y3.62%
OM growth 5Y-0.52%
PM growth 3Y17.31%
PM growth 5Y0.85%
GM growth 3Y3.41%
GM growth 5Y-1.53%
F-Score6
Asset Turnover0.23
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.02 | ||
| Debt/FCF | 15.03 | ||
| Debt/EBITDA | 4.52 | ||
| Cap/Depr | 146.77% | ||
| Cap/Sales | 21.73% | ||
| Interest Coverage | 2.51 | ||
| Cash Conversion | 82.22% | ||
| Profit Quality | 79.82% | ||
| Current Ratio | 0.63 | ||
| Quick Ratio | 0.49 | ||
| Altman-Z | 1.1 |
F-Score6
WACC8.27%
ROIC/WACC0.63
Cap/Depr(3y)96.27%
Cap/Depr(5y)85.54%
Cap/Sales(3y)13.65%
Cap/Sales(5y)12.65%
Profit Quality(3y)141.1%
Profit Quality(5y)671.1%
High Growth Momentum
Growth
EPS 1Y (TTM)10.81%
EPS 3Y-4.22%
EPS 5Y4.08%
EPS Q2Q%16%
EPS Next Y12.2%
EPS Next 2Y9.15%
EPS Next 3Y8.61%
EPS Next 5Y8.01%
Revenue 1Y (TTM)8.35%
Revenue growth 3Y-3.13%
Revenue growth 5Y2.71%
Sales Q2Q%12.08%
Revenue Next Year8.27%
Revenue Next 2Y6.84%
Revenue Next 3Y6.65%
Revenue Next 5Y5.84%
EBIT growth 1Y5.63%
EBIT growth 3Y0.38%
EBIT growth 5Y2.18%
EBIT Next Year69.76%
EBIT Next 3Y22.55%
EBIT Next 5Y15.05%
FCF growth 1Y-36.15%
FCF growth 3Y-12.11%
FCF growth 5Y3.94%
OCF growth 1Y2.91%
OCF growth 3Y-0.43%
OCF growth 5Y3.48%
KINDER MORGAN INC / KMI FAQ
What is the fundamental rating for KMI stock?
ChartMill assigns a fundamental rating of 4 / 10 to KMI.
What is the valuation status for KMI stock?
ChartMill assigns a valuation rating of 2 / 10 to KINDER MORGAN INC (KMI). This can be considered as Overvalued.
How profitable is KINDER MORGAN INC (KMI) stock?
KINDER MORGAN INC (KMI) has a profitability rating of 6 / 10.
What are the PE and PB ratios of KINDER MORGAN INC (KMI) stock?
The Price/Earnings (PE) ratio for KINDER MORGAN INC (KMI) is 22.58 and the Price/Book (PB) ratio is 2.01.
Can you provide the dividend sustainability for KMI stock?
The dividend rating of KINDER MORGAN INC (KMI) is 7 / 10 and the dividend payout ratio is 95.47%.