KINDER MORGAN INC (KMI) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:KMI - US49456B1017 - Common Stock
27.84 USD
+0.67 (+2.47%)
27.75 USD
-0.09 (-0.32%)
KMI gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 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. While showing a medium growth rate, KMI is valued expensive at the moment. KMI also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
KMI had positive earnings in the past year.
In the past year KMI had a positive cash flow from operations.
KMI had positive earnings in each of the past 5 years.
Each year in the past 5 years KMI had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 3.75%, KMI is in line with its industry, outperforming 54.07% of the companies in the same industry.
The Return On Equity of KMI (8.83%) is comparable to the rest of the industry.
With a Return On Invested Capital value of 5.23%, KMI perfoms like the industry average, outperforming 44.50% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for KMI is significantly below the industry average of 21.47%.
The last Return On Invested Capital (5.23%) for KMI is above the 3 year average (5.16%), which is a sign of increasing profitability.
| 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
Looking at the Profit Margin, with a value of 16.54%, KMI is in the better half of the industry, outperforming 68.42% of the companies in the same industry.
In the last couple of years the Profit Margin of KMI has remained more or less at the same level.
Looking at the Operating Margin, with a value of 27.68%, KMI is in the better half of the industry, outperforming 68.42% 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.
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so KMI is destroying value.
KMI has about the same amout of shares outstanding than it did 1 year ago.
The number of shares outstanding for KMI has been reduced compared to 5 years ago.
KMI has a better debt/assets ratio than last year.
2.2 Solvency
KMI has an Altman-Z score of 1.08. This is a bad value and indicates that KMI is not financially healthy and even has some risk of bankruptcy.
With a Altman-Z score value of 1.08, KMI perfoms like the industry average, outperforming 46.41% of the companies in the same industry.
KMI has a debt to FCF ratio of 15.03. This is a negative value and a sign of low solvency as KMI would need 15.03 years to pay back of all of its debts.
With a Debt to FCF ratio value of 15.03, KMI perfoms like the industry average, outperforming 49.76% of the companies in the same industry.
A Debt/Equity ratio of 1.02 is on the high side and indicates that KMI has dependencies on debt financing.
KMI's Debt to Equity ratio of 1.02 is on the low side compared to the rest of the industry. KMI is outperformed by 69.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.02 | ||
| Debt/FCF | 15.03 | ||
| Altman-Z | 1.08 |
ROIC/WACC0.64
WACC8.19%
2.3 Liquidity
A Current Ratio of 0.63 indicates that KMI may have some problems paying its short term obligations.
The Current ratio of KMI (0.63) is worse than 77.51% of its industry peers.
A Quick Ratio of 0.49 indicates that KMI may have some problems paying its short term obligations.
With a Quick ratio value of 0.49, KMI is not doing good in the industry: 84.69% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.63 | ||
| Quick Ratio | 0.49 |
3. Growth
3.1 Past
KMI shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 10.81%, which is quite good.
The Earnings Per Share has been growing slightly by 4.08% on average over the past years.
KMI shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 8.35%.
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.
KMI is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.84% yearly.
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
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
KMI is valuated rather expensively with a Price/Earnings ratio of 22.63.
KMI's Price/Earnings is on the same level as the industry average.
When comparing the Price/Earnings ratio of KMI to the average of the S&P500 Index (26.41), we can say KMI is valued inline with the index average.
Based on the Price/Forward Earnings ratio of 20.15, the valuation of KMI can be described as rather expensive.
The rest of the industry has a similar Price/Forward Earnings ratio as KMI.
KMI is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 35.40, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.63 | ||
| Fwd PE | 20.15 |
4.2 Price Multiples
KMI's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. KMI is more expensive than 65.07% of the companies in the same industry.
KMI's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 28.58 | ||
| EV/EBITDA | 13.33 |
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)5.55
EPS Next 2Y9.15%
EPS Next 3Y8.61%
5. Dividend
5.1 Amount
KMI has a Yearly Dividend Yield of 4.34%, which is a nice return.
KMI's Dividend Yield is a higher than the industry average which is at 5.92.
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 paid a dividend for at least 10 years, which is a reliable track record.
As KMI did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
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.
The dividend of KMI is growing, but earnings are growing more, so the dividend growth is sustainable.
DP95.47%
EPS Next 2Y9.15%
EPS Next 3Y8.61%
27.84
+0.67 (+2.47%)
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 Cap61.94B
Revenue(TTM)16.42B
Net Income(TTM)2.71B
Analysts77.04
Price Target31.81 (14.26%)
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 | 22.63 | ||
| Fwd PE | 20.15 | ||
| P/S | 3.77 | ||
| P/FCF | 28.58 | ||
| P/OCF | 10.8 | ||
| P/B | 2.01 | ||
| P/tB | 6.97 | ||
| EV/EBITDA | 13.33 |
EPS(TTM)1.23
EY4.42%
EPS(NY)1.38
Fwd EY4.96%
FCF(TTM)0.97
FCFY3.5%
OCF(TTM)2.58
OCFY9.26%
SpS7.38
BVpS13.82
TBVpS3.99
PEG (NY)1.85
PEG (5Y)5.55
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 | 1.08 |
F-Score6
WACC8.19%
ROIC/WACC0.64
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 22.63 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%.