KINDER MORGAN INC (KMI) Stock Fundamental Analysis
NYSE:KMI - New York Stock Exchange, Inc. - US49456B1017 - Common Stock - Currency: USD
Taking everything into account, KMI scores 4 out of 10 in our fundamental rating. KMI was compared to 212 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 is quite expensive at the moment. It does show a decent growth rate.
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.
In the past 5 years KMI has always been profitable.
In the past 5 years KMI always reported a positive cash flow from operatings.
1.2 Ratios
KMI has a Return On Assets (3.64%) which is in line with its industry peers.
With a Return On Equity value of 8.51%, KMI perfoms like the industry average, outperforming 49.53% of the companies in the same industry.
KMI has a Return On Invested Capital of 5.21%. This is comparable to the rest of the industry: KMI outperforms 41.51% 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 27.42%.
The last Return On Invested Capital (5.21%) for KMI is above the 3 year average (5.16%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.64% | ||
| ROE | 8.51% | ||
| ROIC | 5.21% |
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 has a better Profit Margin (17.21%) than 67.92% of its industry peers.
KMI's Profit Margin has been stable in the last couple of years.
With a decent Operating Margin value of 29.03%, KMI is doing good in the industry, outperforming 64.15% of the companies in the same industry.
KMI's Operating Margin has been stable in the last couple of years.
KMI has a Gross Margin (51.60%) which is comparable to the rest of the industry.
In the last couple of years the Gross Margin of KMI has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 29.03% | ||
| PM (TTM) | 17.21% | ||
| GM | 51.6% |
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), KMI is destroying value.
KMI has about the same amout of shares outstanding than it did 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 a debt to FCF ratio of 10.61. This is a negative value and a sign of low solvency as KMI would need 10.61 years to pay back of all of its debts.
The Debt to FCF ratio of KMI (10.61) is comparable to the rest of the industry.
A Debt/Equity ratio of 0.98 indicates that KMI is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.98, KMI is doing worse than 70.28% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.98 | ||
| Debt/FCF | 10.61 | ||
| Altman-Z | N/A |
ROIC/WACC0.52
WACC9.94%
2.3 Liquidity
KMI has a Current Ratio of 0.49. This is a bad value and indicates that KMI is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Current ratio value of 0.49, KMI is not doing good in the industry: 86.79% of the companies in the same industry are doing better.
KMI has a Quick Ratio of 0.49. This is a bad value and indicates that KMI is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of KMI (0.49) is worse than 82.55% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.49 | ||
| Quick Ratio | 0.49 |
3. Growth
3.1 Past
KMI shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 5.45%.
KMI shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 4.08% yearly.
Looking at the last year, KMI shows a small growth in Revenue. The Revenue has grown by 1.38% in the last year.
The Revenue has been growing slightly by 2.71% on average over the past years.
EPS 1Y (TTM)5.45%
EPS 3Y-4.22%
EPS 5Y4.08%
EPS Q2Q%0%
Revenue 1Y (TTM)1.38%
Revenue growth 3Y-3.13%
Revenue growth 5Y2.71%
Sales Q2Q%10.39%
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 8.66% on average per year.
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 Y10.98%
EPS Next 2Y9.75%
EPS Next 3Y9.43%
EPS Next 5Y8.66%
Revenue Next Year6.74%
Revenue Next 2Y5.95%
Revenue Next 3Y6.93%
Revenue Next 5Y6.64%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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 23.36.
KMI's Price/Earnings ratio is a bit more expensive when compared to the industry. KMI is more expensive than 60.85% of the companies in the same industry.
When comparing the Price/Earnings ratio of KMI to the average of the S&P500 Index (28.29), we can say KMI is valued inline with the index average.
KMI is valuated rather expensively with a Price/Forward Earnings ratio of 19.39.
The rest of the industry has a similar Price/Forward Earnings ratio as KMI.
The average S&P500 Price/Forward Earnings ratio is at 21.08. KMI is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.36 | ||
| Fwd PE | 19.39 |
4.2 Price Multiples
64.62% of the companies in the same industry are cheaper than KMI, based on the Enterprise Value to EBITDA ratio.
KMI's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.03 | ||
| EV/EBITDA | 13.66 |
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)2.13
PEG (5Y)5.73
EPS Next 2Y9.75%
EPS Next 3Y9.43%
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 comparable with the industry average which is at 7.52.
Compared to an average S&P500 Dividend Yield of 2.52, KMI pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.32% |
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
98.42% 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.
DP98.42%
EPS Next 2Y9.75%
EPS Next 3Y9.43%
27.1
+0.15 (+0.56%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners67.49%
Inst Owner Change0.36%
Ins Owners12.8%
Ins Owner Change0.03%
Market Cap60.22B
Analysts76
Price Target31.45 (16.05%)
Short Float %2.02%
Short Ratio2.59
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.32% |
Yearly Dividend1.15
Dividend Growth(5Y)3.8%
DP98.42%
Div Incr Years7
Div Non Decr Years8
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-6.49%
Min EPS beat(2)-8.01%
Max EPS beat(2)-4.98%
EPS beat(4)0
Avg EPS beat(4)-4.36%
Min EPS beat(4)-8.01%
Max EPS beat(4)-1.17%
EPS beat(8)1
Avg EPS beat(8)-3.67%
EPS beat(12)3
Avg EPS beat(12)-2.72%
EPS beat(16)6
Avg EPS beat(16)7.79%
Revenue beat(2)0
Avg Revenue beat(2)-7.24%
Min Revenue beat(2)-7.85%
Max Revenue beat(2)-6.63%
Revenue beat(4)0
Avg Revenue beat(4)-10.35%
Min Revenue beat(4)-14.28%
Max Revenue beat(4)-6.63%
Revenue beat(8)0
Avg Revenue beat(8)-14.18%
Revenue beat(12)3
Avg Revenue beat(12)-5.15%
Revenue beat(16)7
Avg Revenue beat(16)3.38%
PT rev (1m)1.54%
PT rev (3m)13.53%
EPS NQ rev (1m)-0.92%
EPS NQ rev (3m)1.04%
EPS NY rev (1m)-0.37%
EPS NY rev (3m)-0.03%
Revenue NQ rev (1m)-0.1%
Revenue NQ rev (3m)0.46%
Revenue NY rev (1m)0.22%
Revenue NY rev (3m)0.34%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.36 | ||
| Fwd PE | 19.39 | ||
| P/S | 3.99 | ||
| P/FCF | 20.03 | ||
| P/OCF | 10.69 | ||
| P/B | 1.97 | ||
| P/tB | 5.76 | ||
| EV/EBITDA | 13.66 |
EPS(TTM)1.16
EY4.28%
EPS(NY)1.4
Fwd EY5.16%
FCF(TTM)1.35
FCFY4.99%
OCF(TTM)2.54
OCFY9.36%
SpS6.8
BVpS13.74
TBVpS4.7
PEG (NY)2.13
PEG (5Y)5.73
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.64% | ||
| ROE | 8.51% | ||
| ROCE | 6.61% | ||
| ROIC | 5.21% | ||
| ROICexc | 5.21% | ||
| ROICexgc | 7.48% | ||
| OM | 29.03% | ||
| PM (TTM) | 17.21% | ||
| GM | 51.6% | ||
| FCFM | 19.91% |
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)7.78%
ROICexgc(5y)7.56%
ROCE(3y)6.55%
ROCE(5y)6.32%
ROICexcg growth 3Y-2.82%
ROICexcg growth 5Y1.13%
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-Score7
Asset Turnover0.21
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.98 | ||
| Debt/FCF | 10.61 | ||
| Debt/EBITDA | 4.43 | ||
| Cap/Depr | 111.68% | ||
| Cap/Sales | 17.41% | ||
| Interest Coverage | 2.41 | ||
| Cash Conversion | 83.63% | ||
| Profit Quality | 115.7% | ||
| Current Ratio | 0.49 | ||
| Quick Ratio | 0.49 | ||
| Altman-Z | N/A |
F-Score7
WACC9.94%
ROIC/WACC0.52
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)5.45%
EPS 3Y-4.22%
EPS 5Y4.08%
EPS Q2Q%0%
EPS Next Y10.98%
EPS Next 2Y9.75%
EPS Next 3Y9.43%
EPS Next 5Y8.66%
Revenue 1Y (TTM)1.38%
Revenue growth 3Y-3.13%
Revenue growth 5Y2.71%
Sales Q2Q%10.39%
Revenue Next Year6.74%
Revenue Next 2Y5.95%
Revenue Next 3Y6.93%
Revenue Next 5Y6.64%
EBIT growth 1Y3.2%
EBIT growth 3Y0.38%
EBIT growth 5Y2.18%
EBIT Next Year69.86%
EBIT Next 3Y22.49%
EBIT Next 5Y15.36%
FCF growth 1Y-27.98%
FCF growth 3Y-12.11%
FCF growth 5Y3.94%
OCF growth 1Y-13.19%
OCF growth 3Y-0.43%
OCF growth 5Y3.48%