KINDER MORGAN INC (KMI)
US49456B1017 - Common Stock
Taking everything into account, KMI scores 3 out of 10 in our fundamental rating. KMI was compared to 204 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. While showing a medium growth rate, KMI is valued expensive at the moment. Finally KMI also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
KMI had positive earnings in the past year.
KMI had a positive operating cash flow in the past year.
KMI had positive earnings in each of the past 5 years.
KMI had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of KMI (3.56%) is worse than 63.55% of its industry peers.
With a Return On Equity value of 8.31%, KMI is not doing good in the industry: 62.07% of the companies in the same industry are doing better.
KMI's Return On Invested Capital of 5.08% is on the low side compared to the rest of the industry. KMI is outperformed by 64.04% of its industry peers.
KMI had an Average Return On Invested Capital over the past 3 years of 5.15%. This is significantly below the industry average of 22.54%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.56% | ||
| ROE | 8.31% | ||
| ROIC | 5.08% |
ROA(3y)3.16%
ROA(5y)2.51%
ROE(3y)7.28%
ROE(5y)5.72%
ROIC(3y)5.15%
ROIC(5y)4.8%
1.3 Margins
The Profit Margin of KMI (16.67%) is comparable to the rest of the industry.
In the last couple of years the Profit Margin of KMI has grown nicely.
With a Operating Margin value of 28.39%, KMI perfoms like the industry average, outperforming 59.11% of the companies in the same industry.
In the last couple of years the Operating Margin of KMI has remained more or less at the same level.
The Gross Margin of KMI (51.15%) is comparable to the rest of the industry.
KMI's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 28.39% | ||
| PM (TTM) | 16.67% | ||
| GM | 51.15% |
OM growth 3Y-2.45%
OM growth 5Y-0.22%
PM growth 3Y157.68%
PM growth 5Y8.28%
GM growth 3Y-4.65%
GM growth 5Y-0.56%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), KMI is destroying value.
The number of shares outstanding for KMI has been reduced compared to 1 year ago.
KMI has less shares outstanding than it did 5 years ago.
KMI has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.08, we must say that KMI is in the distress zone and has some risk of bankruptcy.
KMI has a Altman-Z score (1.08) which is comparable to the rest of the industry.
KMI has a debt to FCF ratio of 8.18. This is a slightly negative value and a sign of low solvency as KMI would need 8.18 years to pay back of all of its debts.
KMI has a Debt to FCF ratio (8.18) which is comparable to the rest of the industry.
KMI has a Debt/Equity ratio of 0.99. This is a neutral value indicating KMI is somewhat dependend on debt financing.
KMI has a Debt to Equity ratio of 0.99. This is in the lower half of the industry: KMI underperforms 73.40% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.99 | ||
| Debt/FCF | 8.18 | ||
| Altman-Z | 1.08 |
ROIC/WACC0.64
WACC7.89%
2.3 Liquidity
A Current Ratio of 0.46 indicates that KMI may have some problems paying its short term obligations.
With a Current ratio value of 0.46, KMI is not doing good in the industry: 89.66% of the companies in the same industry are doing better.
A Quick Ratio of 0.35 indicates that KMI may have some problems paying its short term obligations.
With a Quick ratio value of 0.35, KMI is not doing good in the industry: 91.13% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.46 | ||
| Quick Ratio | 0.35 |
3. Growth
3.1 Past
KMI shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 0.91%.
KMI shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 3.67% yearly.
KMI shows a decrease in Revenue. In the last year, the revenue decreased by -4.56%.
KMI shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 1.63% yearly.
EPS 1Y (TTM)0.91%
EPS 3Y6%
EPS 5Y3.67%
EPS Q2Q%0%
Revenue 1Y (TTM)-4.56%
Revenue growth 3Y9.44%
Revenue growth 5Y1.63%
Sales Q2Q%-5.32%
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 9.60% on average per year.
The Revenue is expected to grow by 5.66% on average over the next years.
EPS Next Y12.84%
EPS Next 2Y9.8%
EPS Next 3Y9.65%
EPS Next 5Y9.6%
Revenue Next Year-4.68%
Revenue Next 2Y0.74%
Revenue Next 3Y1.4%
Revenue Next 5Y5.66%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 25.71, which means the current valuation is very expensive for KMI.
67.98% of the companies in the same industry are cheaper than KMI, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of KMI to the average of the S&P500 Index (28.96), we can say KMI is valued inline with the index average.
Based on the Price/Forward Earnings ratio of 22.33, the valuation of KMI can be described as rather expensive.
KMI's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. KMI is more expensive than 64.53% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.82. KMI is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.71 | ||
| Fwd PE | 22.33 |
4.2 Price Multiples
72.41% 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 | 16.19 | ||
| EV/EBITDA | 14.2 |
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.
PEG (NY)2
PEG (5Y)7
EPS Next 2Y9.8%
EPS Next 3Y9.65%
5. Dividend
5.1 Amount
KMI has a Yearly Dividend Yield of 4.30%, which is a nice return.
KMI's Dividend Yield is a higher than the industry average which is at 6.45.
KMI's Dividend Yield is rather good when compared to the S&P500 average which is at 2.23.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.3% |
5.2 History
On average, the dividend of KMI grows each year by 7.40%, which is quite nice.
KMI has paid a dividend for at least 10 years, which is 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)7.4%
Div Incr Years6
Div Non Decr Years7
5.3 Sustainability
KMI pays out 100.79% of its income as dividend. This is not a sustainable payout ratio.
The dividend of KMI is growing, but earnings are growing more, so the dividend growth is sustainable.
DP100.79%
EPS Next 2Y9.8%
EPS Next 3Y9.65%
KINDER MORGAN INC
NYSE:KMI (11/21/2024, 5:26:45 PM)
After market: 28.63 +0.09 (+0.32%)28.54
+0.54 (+1.93%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap63.41B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.3% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.71 | ||
| Fwd PE | 22.33 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)2
PEG (5Y)7
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.56% | ||
| ROE | 8.31% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 28.39% | ||
| PM (TTM) | 16.67% | ||
| GM | 51.15% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.21
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.99 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.46 | ||
| Quick Ratio | 0.35 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)0.91%
EPS 3Y6%
EPS 5Y
EPS Q2Q%
EPS Next Y12.84%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-4.56%
Revenue growth 3Y9.44%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y