KINDER MORGAN INC (KMI) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:KMI - US49456B1017 - Common Stock
27.96 USD
+0.55 (+2.01%)
27.91 USD
-0.05 (-0.18%)
Taking everything into account, KMI scores 4 out of 10 in our fundamental rating. KMI was compared to 207 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.
- In the past 5 years KMI always reported a positive cash flow from operatings.
1.2 Ratios
- The Return On Assets of KMI (3.75%) is comparable to the rest of the industry.
- KMI has a Return On Equity of 8.83%. This is comparable to the rest of the industry: KMI outperforms 58.45% of its industry peers.
- The Return On Invested Capital of KMI (5.23%) is comparable to the rest of the industry.
- Measured over the past 3 years, the Average Return On Invested Capital for KMI is significantly below the industry average of 21.94%.
- 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 has a Profit Margin of 16.54%. This is in the better half of the industry: KMI outperforms 69.57% of its industry peers.
- 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 69.08% 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 60.39% 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.
- Compared to 1 year ago, KMI has about the same amount of shares outstanding.
- The number of shares outstanding for KMI has been reduced compared to 5 years ago.
- The debt/assets ratio for KMI has been reduced compared to a year ago.
2.2 Solvency
- Based on the Altman-Z score of 1.10, we must say that KMI is in the distress zone and has some risk of bankruptcy.
- KMI has a Altman-Z score (1.10) which is comparable to the rest of the 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 49.28% of the companies in the same industry.
- KMI has a Debt/Equity ratio of 1.02. This is a high value indicating a heavy dependency on external financing.
- The Debt to Equity ratio of KMI (1.02) is worse than 69.08% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.02 | ||
| Debt/FCF | 15.03 | ||
| Altman-Z | 1.1 |
ROIC/WACC0.64
WACC8.14%
2.3 Liquidity
- KMI has a Current 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.
- With a Current ratio value of 0.63, KMI is not doing good in the industry: 76.33% of the companies in the same industry are doing better.
- 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 Quick ratio of 0.49. This is amonst the worse of the industry: KMI underperforms 83.57% of its industry peers.
| 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 9.82%, 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%.
- KMI shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.71% yearly.
EPS 1Y (TTM)9.82%
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 8.18% on average per year.
- The Revenue is expected to grow by 5.86% on average over the next years.
EPS Next Y12.17%
EPS Next 2Y9.37%
EPS Next 3Y9.09%
EPS Next 5Y8.18%
Revenue Next Year8.27%
Revenue Next 2Y6.5%
Revenue Next 3Y6.35%
Revenue Next 5Y5.86%
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
- KMI is valuated rather expensively with a Price/Earnings ratio of 22.73.
- 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 27.38.
- KMI is valuated rather expensively with a Price/Forward Earnings ratio of 20.15.
- KMI's Price/Forward Earnings ratio is in line with the industry average.
- Compared to an average S&P500 Price/Forward Earnings ratio of 24.29, KMI is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.73 | ||
| Fwd PE | 20.15 |
4.2 Price Multiples
- 65.22% of the companies in the same industry are cheaper than KMI, based on the Enterprise Value to EBITDA ratio.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of KMI is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 28.71 | ||
| EV/EBITDA | 13.58 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
- The decent profitability rating of KMI may justify a higher PE ratio.
PEG (NY)1.87
PEG (5Y)5.58
EPS Next 2Y9.37%
EPS Next 3Y9.09%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 4.27%, KMI is a good candidate for dividend investing.
- KMI's Dividend Yield is a higher than the industry average which is at 3.75.
- Compared to an average S&P500 Dividend Yield of 1.84, KMI pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.27% |
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
- KMI pays out 95.47% 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.
DP95.47%
EPS Next 2Y9.37%
EPS Next 3Y9.09%
27.96
+0.55 (+2.01%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)10-22 2025-10-22/amc
Earnings (Next)01-21 2026-01-21/amc
Inst Owners68.74%
Inst Owner Change0.11%
Ins Owners12.78%
Ins Owner Change0.56%
Market Cap62.20B
Revenue(TTM)16.42B
Net Income(TTM)2.71B
Analysts76.92
Price Target31.7 (13.38%)
Short Float %1.76%
Short Ratio2.45
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.27% |
Yearly Dividend1.15
Dividend Growth(5Y)3.8%
DP95.47%
Div Incr Years7
Div Non Decr Years8
Ex-DateN/A
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)-3.76%
EPS beat(12)2
Avg EPS beat(12)-2.53%
EPS beat(16)4
Avg EPS beat(16)-1.97%
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)-0.32%
PT rev (3m)-0.68%
EPS NQ rev (1m)0.25%
EPS NQ rev (3m)0.57%
EPS NY rev (1m)0.17%
EPS NY rev (3m)-0.15%
Revenue NQ rev (1m)-3.48%
Revenue NQ rev (3m)-3.69%
Revenue NY rev (1m)0.06%
Revenue NY rev (3m)0.76%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.73 | ||
| Fwd PE | 20.15 | ||
| P/S | 3.79 | ||
| P/FCF | 28.71 | ||
| P/OCF | 10.85 | ||
| P/B | 2.02 | ||
| P/tB | 7 | ||
| EV/EBITDA | 13.58 |
EPS(TTM)1.23
EY4.4%
EPS(NY)1.39
Fwd EY4.96%
FCF(TTM)0.97
FCFY3.48%
OCF(TTM)2.58
OCFY9.22%
SpS7.38
BVpS13.82
TBVpS3.99
PEG (NY)1.87
PEG (5Y)5.58
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
WACC8.14%
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)9.82%
EPS 3Y-4.22%
EPS 5Y4.08%
EPS Q2Q%16%
EPS Next Y12.17%
EPS Next 2Y9.37%
EPS Next 3Y9.09%
EPS Next 5Y8.18%
Revenue 1Y (TTM)8.35%
Revenue growth 3Y-3.13%
Revenue growth 5Y2.71%
Sales Q2Q%12.08%
Revenue Next Year8.27%
Revenue Next 2Y6.5%
Revenue Next 3Y6.35%
Revenue Next 5Y5.86%
EBIT growth 1Y5.63%
EBIT growth 3Y0.38%
EBIT growth 5Y2.18%
EBIT Next Year69.56%
EBIT Next 3Y22.68%
EBIT Next 5Y15.11%
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 of KINDER MORGAN INC (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 22.73 and the Price/Book (PB) ratio is 2.02.
What is the financial health of KINDER MORGAN INC (KMI) stock?
The financial health rating of KINDER MORGAN INC (KMI) is 2 / 10.