KINDER MORGAN INC (KMI) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:KMI - US49456B1017 - Common Stock
27.38 USD
+0.46 (+1.71%)
27.4392 USD
+0.06 (+0.22%)
Taking everything into account, KMI scores 4 out of 10 in our fundamental rating. KMI was compared to 208 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 valied quite expensively at the moment, while it does show a decent growth rate. 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.
KMI had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
KMI's Return On Assets of 3.75% is in line compared to the rest of the industry. KMI outperforms 54.81% of its industry peers.
With a Return On Equity value of 8.83%, KMI perfoms like the industry average, outperforming 58.65% of the companies in the same industry.
With a Return On Invested Capital value of 5.23%, KMI perfoms like the industry average, outperforming 45.67% 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 21.83%.
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
KMI has a Profit Margin of 16.54%. This is in the better half of the industry: KMI outperforms 69.23% of its industry peers.
In the last couple of years the Profit Margin of KMI has remained more or less at the same level.
The Operating Margin of KMI (27.68%) is better than 68.75% of its industry peers.
KMI's Operating Margin has been stable in the last couple of years.
With a decent Gross Margin value of 49.12%, KMI is doing good in the industry, outperforming 60.10% of the companies in the same industry.
In the last couple of years the Gross Margin of KMI has declined.
| 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.
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 1.07, we must say that KMI is in the distress zone and has some risk of bankruptcy.
KMI's Altman-Z score of 1.07 is in line compared to the rest of the industry. KMI outperforms 48.08% of its industry peers.
The Debt to FCF ratio of KMI is 15.03, which is on the high side as it means it would take KMI, 15.03 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of KMI (15.03) is comparable to the rest of the industry.
KMI has a Debt/Equity ratio of 1.02. This is a high value indicating a heavy dependency on external financing.
KMI has a Debt to Equity ratio of 1.02. This is in the lower half of the industry: KMI underperforms 68.27% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.02 | ||
| Debt/FCF | 15.03 | ||
| Altman-Z | 1.07 |
ROIC/WACC0.65
WACC7.99%
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.
KMI has a worse Current ratio (0.63) than 75.96% 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: 83.17% 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
The Earnings Per Share has grown by an nice 9.82% over the past year.
KMI shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 4.08% yearly.
The Revenue has grown by 8.35% in the past year. This is quite good.
Measured over the past years, KMI shows a small growth in Revenue. The Revenue has been growing by 2.71% on average per year.
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
The Earnings Per Share is expected to grow by 8.18% on average over the next years. This is quite good.
KMI is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.86% yearly.
EPS Next Y12.17%
EPS Next 2Y9.37%
EPS Next 3Y9.09%
EPS Next 5Y8.18%
Revenue Next Year8.22%
Revenue Next 2Y6.49%
Revenue Next 3Y6.37%
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.
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 22.26.
Compared to the rest of the industry, the Price/Earnings ratio of KMI is on the same level as its industry peers.
Compared to an average S&P500 Price/Earnings ratio of 27.30, KMI is valued at the same level.
KMI is valuated rather expensively with a Price/Forward Earnings ratio of 19.73.
KMI's Price/Forward Earnings ratio is in line with the industry average.
When comparing the Price/Forward Earnings ratio of KMI to the average of the S&P500 Index (24.04), we can say KMI is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.26 | ||
| Fwd PE | 19.73 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of KMI indicates a slightly more expensive valuation: KMI is more expensive than 65.38% of the companies listed 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 | 28.11 | ||
| EV/EBITDA | 13.25 |
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.
KMI has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)1.83
PEG (5Y)5.46
EPS Next 2Y9.37%
EPS Next 3Y9.09%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.29%, KMI is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 3.91, KMI pays a bit more dividend than its industry peers.
KMI's Dividend Yield is rather good when compared to the S&P500 average which is at 1.92.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.29% |
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
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%
27.38
+0.46 (+1.71%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners68.74%
Inst Owner Change0.09%
Ins Owners12.78%
Ins Owner Change0.56%
Market Cap60.91B
Revenue(TTM)16.42B
Net Income(TTM)2.71B
Analysts76.92
Price Target31.76 (16%)
Short Float %1.76%
Short Ratio2.45
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.29% |
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)-0.16%
PT rev (3m)-0.52%
EPS NQ rev (1m)0.19%
EPS NQ rev (3m)-0.01%
EPS NY rev (1m)0.17%
EPS NY rev (3m)-0.15%
Revenue NQ rev (1m)-0.02%
Revenue NQ rev (3m)-0.55%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)0.71%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.26 | ||
| Fwd PE | 19.73 | ||
| P/S | 3.71 | ||
| P/FCF | 28.11 | ||
| P/OCF | 10.62 | ||
| P/B | 1.98 | ||
| P/tB | 6.86 | ||
| EV/EBITDA | 13.25 |
EPS(TTM)1.23
EY4.49%
EPS(NY)1.39
Fwd EY5.07%
FCF(TTM)0.97
FCFY3.56%
OCF(TTM)2.58
OCFY9.41%
SpS7.38
BVpS13.82
TBVpS3.99
PEG (NY)1.83
PEG (5Y)5.46
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 | 1.07 |
F-Score6
WACC7.99%
ROIC/WACC0.65
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 Year8.22%
Revenue Next 2Y6.49%
Revenue Next 3Y6.37%
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 22.26 and the Price/Book (PB) ratio is 1.98.
What is the financial health of KINDER MORGAN INC (KMI) stock?
The financial health rating of KINDER MORGAN INC (KMI) is 2 / 10.