KINDER MORGAN INC (KMI) Stock Fundamental Analysis
NYSE:KMI - New York Stock Exchange, Inc. - US49456B1017 - Common Stock - Currency: USD
Overall KMI gets a fundamental rating of 3 out of 10. We evaluated KMI against 211 industry peers in the Oil, Gas & Consumable Fuels industry. KMI has a medium profitability rating, but doesn't score so well on its financial health evaluation. KMI does not seem to be growing, but still is valued expensively. Finally 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.
KMI had positive earnings in 4 of the past 5 years.
KMI had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
KMI has a worse Return On Assets (3.56%) than 61.27% of its industry peers.
KMI has a Return On Equity (8.31%) which is in line with its industry peers.
The Return On Invested Capital of KMI (5.08%) is worse than 62.75% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for KMI is significantly below the industry average of 28.75%.
| 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
KMI has a Profit Margin (16.67%) which is comparable to the rest of the industry.
In the last couple of years the Profit Margin of KMI has grown nicely.
KMI has a Operating Margin of 28.39%. This is comparable to the rest of the industry: KMI outperforms 59.80% of its industry peers.
KMI's Operating Margin has been stable in the last couple of years.
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.
Compared to 1 year ago, KMI has about the same amount of shares outstanding.
Compared to 5 years ago, KMI has less shares outstanding
The debt/assets ratio for KMI has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.04, we must say that KMI is in the distress zone and has some risk of bankruptcy.
KMI has a Altman-Z score (1.04) which is comparable to the rest of the industry.
The Debt to FCF ratio of KMI is 8.18, which is on the high side as it means it would take KMI, 8.18 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 8.18, KMI is in line with its industry, outperforming 48.04% of the companies in the same industry.
KMI has a Debt/Equity ratio of 0.99. This is a neutral value indicating KMI is somewhat dependend on debt financing.
The Debt to Equity ratio of KMI (0.99) is worse than 72.55% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.99 | ||
| Debt/FCF | 8.18 | ||
| Altman-Z | 1.04 |
ROIC/WACC0.61
WACC8.3%
2.3 Liquidity
KMI has a Current Ratio of 0.46. 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 Current ratio (0.46) than 89.22% of its industry peers.
A Quick Ratio of 0.35 indicates that KMI may have some problems paying its short term obligations.
The Quick ratio of KMI (0.35) is worse than 92.65% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.46 | ||
| Quick Ratio | 0.35 |
3. Growth
3.1 Past
KMI shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 9.43%, which is quite good.
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.
EPS 1Y (TTM)9.43%
EPS 3Y-4.22%
EPS 5Y4.08%
EPS Q2Q%18.52%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%0.55%
3.2 Future
KMI is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.79% yearly.
Based on estimates for the next years, KMI will show a small growth in Revenue. The Revenue will grow by 6.64% on average per year.
EPS Next Y11.44%
EPS Next 2Y10.8%
EPS Next 3Y8.68%
EPS Next 5Y8.79%
Revenue Next Year10.86%
Revenue Next 2Y7.49%
Revenue Next 3Y9.62%
Revenue Next 5Y6.64%
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.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 22.77, which indicates a rather expensive current valuation of KMI.
Based on the Price/Earnings ratio, KMI is valued a bit more expensive than 65.20% of the companies in the same industry.
KMI's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 29.63.
With a Price/Forward Earnings ratio of 20.43, KMI is valued on the expensive side.
Based on the Price/Forward Earnings ratio, KMI is valued a bit more expensive than the industry average as 60.29% of the companies are valued more cheaply.
The average S&P500 Price/Forward Earnings ratio is at 22.68. KMI is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.77 | ||
| Fwd PE | 20.43 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, KMI is valued a bit more expensive than 68.14% of the companies in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as KMI.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.98 | ||
| EV/EBITDA | 13.73 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
PEG (NY)1.99
PEG (5Y)5.59
EPS Next 2Y10.8%
EPS Next 3Y8.68%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.32%, KMI is a good candidate for dividend investing.
KMI's Dividend Yield is a higher than the industry average which is at 6.75.
Compared to an average S&P500 Dividend Yield of 2.29, KMI pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.32% |
5.2 History
On average, the dividend of KMI grows each year by 7.41%, which is quite nice.
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)7.41%
Div Incr Years7
Div Non Decr Years8
5.3 Sustainability
KMI pays out 100.79% of its income as dividend. This is not a sustainable payout ratio.
KMI's earnings are growing around the same pace than its dividend. As long as the earnings growth is kept the dividend growth is sustainable.
DP100.79%
EPS Next 2Y10.8%
EPS Next 3Y8.68%
26.41
-0.18 (-0.68%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners67.49%
Inst Owner Change2.01%
Ins Owners12.8%
Ins Owner Change0.07%
Market Cap58.67B
Analysts73.6
Price Target30.97 (17.27%)
Short Float %2.42%
Short Ratio3.24
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.32% |
Yearly Dividend1.13
Dividend Growth(5Y)7.41%
DP100.79%
Div Incr Years7
Div Non Decr Years8
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-5.65%
Min EPS beat(2)-8.01%
Max EPS beat(2)-3.28%
EPS beat(4)0
Avg EPS beat(4)-5.57%
Min EPS beat(4)-9.81%
Max EPS beat(4)-1.17%
EPS beat(8)2
Avg EPS beat(8)-2.82%
EPS beat(12)4
Avg EPS beat(12)-1.97%
EPS beat(16)7
Avg EPS beat(16)8.78%
Revenue beat(2)0
Avg Revenue beat(2)-11.06%
Min Revenue beat(2)-14.28%
Max Revenue beat(2)-7.85%
Revenue beat(4)0
Avg Revenue beat(4)-11.43%
Min Revenue beat(4)-14.28%
Max Revenue beat(4)-7.85%
Revenue beat(8)0
Avg Revenue beat(8)-14.32%
Revenue beat(12)4
Avg Revenue beat(12)-2.74%
Revenue beat(16)8
Avg Revenue beat(16)3.88%
PT rev (1m)12.09%
PT rev (3m)25.72%
EPS NQ rev (1m)1.53%
EPS NQ rev (3m)0.9%
EPS NY rev (1m)-0.05%
EPS NY rev (3m)0.97%
Revenue NQ rev (1m)1.42%
Revenue NQ rev (3m)1.44%
Revenue NY rev (1m)-0.31%
Revenue NY rev (3m)1.42%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.77 | ||
| Fwd PE | 20.43 | ||
| P/S | 3.87 | ||
| P/FCF | 14.98 | ||
| P/OCF | 9.1 | ||
| P/B | 1.93 | ||
| P/tB | 6.89 | ||
| EV/EBITDA | 13.73 |
EPS(TTM)1.16
EY4.39%
EPS(NY)1.29
Fwd EY4.89%
FCF(TTM)1.76
FCFY6.68%
OCF(TTM)2.9
OCFY10.99%
SpS6.82
BVpS13.69
TBVpS3.83
PEG (NY)1.99
PEG (5Y)5.59
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.56% | ||
| ROE | 8.31% | ||
| ROCE | 6.5% | ||
| ROIC | 5.08% | ||
| ROICexc | 5.09% | ||
| ROICexgc | 7.62% | ||
| OM | 28.39% | ||
| PM (TTM) | 16.67% | ||
| GM | 51.15% | ||
| FCFM | 25.85% |
ROA(3y)3.16%
ROA(5y)2.51%
ROE(3y)7.28%
ROE(5y)5.72%
ROIC(3y)5.15%
ROIC(5y)4.8%
ROICexc(3y)5.2%
ROICexc(5y)4.86%
ROICexgc(3y)7.94%
ROICexgc(5y)7.43%
ROCE(3y)6.58%
ROCE(5y)6.13%
ROICexcg growth 3Y8.24%
ROICexcg growth 5Y2.15%
ROICexc growth 3Y7.86%
ROICexc growth 5Y2.75%
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%
F-Score7
Asset Turnover0.21
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.99 | ||
| Debt/FCF | 8.18 | ||
| Debt/EBITDA | 4.53 | ||
| Cap/Depr | 108.82% | ||
| Cap/Sales | 16.7% | ||
| Interest Coverage | 2.29 | ||
| Cash Conversion | 97.28% | ||
| Profit Quality | 155.07% | ||
| Current Ratio | 0.46 | ||
| Quick Ratio | 0.35 | ||
| Altman-Z | 1.04 |
F-Score7
WACC8.3%
ROIC/WACC0.61
Cap/Depr(3y)79.04%
Cap/Depr(5y)82.03%
Cap/Sales(3y)10.42%
Cap/Sales(5y)12.61%
Profit Quality(3y)185.9%
Profit Quality(5y)670.71%
High Growth Momentum
Growth
EPS 1Y (TTM)9.43%
EPS 3Y-4.22%
EPS 5Y4.08%
EPS Q2Q%18.52%
EPS Next Y11.44%
EPS Next 2Y10.8%
EPS Next 3Y8.68%
EPS Next 5Y8.79%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%0.55%
Revenue Next Year10.86%
Revenue Next 2Y7.49%
Revenue Next 3Y9.62%
Revenue Next 5Y6.64%
EBIT growth 1Y1.27%
EBIT growth 3Y6.75%
EBIT growth 5Y1.41%
EBIT Next Year70.58%
EBIT Next 3Y22.64%
EBIT Next 5Y15.18%
FCF growth 1Y18.7%
FCF growth 3Y13.66%
FCF growth 5Y14.52%
OCF growth 1Y33.45%
OCF growth 3Y12.57%
OCF growth 5Y5.18%