KINDER MORGAN INC (KMI) Stock Fundamental Analysis
NYSE:KMI - New York Stock Exchange, Inc. - US49456B1017 - Common Stock
Taking everything into account, KMI scores 3 out of 10 in our fundamental rating. KMI was compared to 210 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. KMI is valied quite expensively at the moment, while it does show a decent growth rate.
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.
Each year in the past 5 years KMI has been profitable.
KMI had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of KMI (3.56%) is worse than 61.16% of its industry peers.
KMI has a worse Return On Equity (8.31%) than 60.19% of its industry peers.
KMI has a worse Return On Invested Capital (5.08%) than 62.62% of its industry peers.
The Average Return On Invested Capital over the past 3 years for KMI is significantly below the industry average of 28.71%.
| 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
Looking at the Profit Margin, with a value of 16.67%, KMI is in line with its industry, outperforming 58.25% of the companies in the same 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 in the better half of the industry: KMI outperforms 60.19% of its industry peers.
KMI's Operating Margin has been stable in the last couple of years.
KMI has a Gross Margin (51.15%) which 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
KMI has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, KMI has less 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
KMI has an Altman-Z score of 1.19. This is a bad value and indicates that KMI is not financially healthy and even has some risk of bankruptcy.
KMI has a Altman-Z score (1.19) which is comparable to the rest of the industry.
KMI has a debt to FCF ratio of 8.18. This is a slightly negative value and a sign of low solvency as KMI would need 8.18 years to pay back of all of its debts.
The Debt to FCF ratio of KMI (8.18) is comparable to the rest of the industry.
KMI has a Debt/Equity ratio of 0.99. This is a neutral value indicating KMI is somewhat dependend on debt financing.
KMI has a Debt to Equity ratio of 0.99. This is in the lower half of the industry: KMI underperforms 72.82% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.99 | ||
| Debt/FCF | 8.18 | ||
| Altman-Z | 1.19 |
ROIC/WACC0.61
WACC8.27%
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.
Looking at the Current ratio, with a value of 0.46, KMI is doing worse than 88.84% of the companies in the same industry.
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 92.72% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.46 | ||
| Quick Ratio | 0.35 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 0.91% over the past year.
Measured over the past 5 years, KMI shows a small growth in Earnings Per Share. The EPS has been growing by 3.67% on average per year.
The Revenue has decreased by -4.56% in the past year.
The Revenue has been growing slightly by 1.63% on average over the past years.
EPS 1Y (TTM)0.91%
EPS 3Y6%
EPS 5Y3.67%
EPS Q2Q%0%
Revenue 1Y (TTM)-4.56%
Revenue growth 3Y9.44%
Revenue growth 5Y1.63%
Sales Q2Q%-5.32%
3.2 Future
The Earnings Per Share is expected to grow by 9.67% on average over the next years. This is quite good.
The Revenue is expected to grow by 4.92% on average over the next years.
EPS Next Y13.98%
EPS Next 2Y10.22%
EPS Next 3Y9.41%
EPS Next 5Y9.67%
Revenue Next Year-3.03%
Revenue Next 2Y1.41%
Revenue Next 3Y1.82%
Revenue Next 5Y4.92%
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
The Price/Earnings ratio is 27.81, which means the current valuation is very expensive for KMI.
66.50% of the companies in the same industry are cheaper than KMI, based on the Price/Earnings ratio.
KMI is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 28.29, which is the current average of the S&P500 Index.
KMI is valuated rather expensively with a Price/Forward Earnings ratio of 23.97.
Based on the Price/Forward Earnings ratio, KMI is valued a bit more expensive than the industry average as 65.05% of the companies are valued more cheaply.
When comparing the Price/Forward Earnings ratio of KMI to the average of the S&P500 Index (24.44), we can say KMI is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.81 | ||
| Fwd PE | 23.97 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, KMI is valued a bit more expensive than 70.87% of the companies in the same industry.
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 | 17.51 | ||
| EV/EBITDA | 15.28 |
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)1.99
PEG (5Y)7.57
EPS Next 2Y10.22%
EPS Next 3Y9.41%
5. Dividend
5.1 Amount
KMI has a Yearly Dividend Yield of 3.83%.
KMI's Dividend Yield is comparable with the industry average which is at 6.39.
KMI's Dividend Yield is rather good when compared to the S&P500 average which is at 2.28.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.83% |
5.2 History
On average, the dividend of KMI grows each year by 7.40%, which is quite nice.
KMI has paid a dividend for at least 10 years, which is 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)7.4%
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 more than its dividend. This makes the dividend growth sustainable.
DP100.79%
EPS Next 2Y10.22%
EPS Next 3Y9.41%
KINDER MORGAN INC
NYSE:KMI (1/22/2025, 10:20:09 AM)
30.87
-0.35 (-1.12%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners66.98%
Inst Owner Change-0.33%
Ins Owners12.81%
Ins Owner Change0.04%
Market Cap68.58B
Analysts73.91
Price Target27.7 (-10.27%)
Short Float %2.21%
Short Ratio3.27
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.83% |
Yearly Dividend1.13
Dividend Growth(5Y)7.4%
DP100.79%
Div Incr Years7
Div Non Decr Years8
Ex-DateN/A
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)2.52%
PT rev (3m)20.71%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-2.01%
EPS NY rev (1m)0%
EPS NY rev (3m)-1.46%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-5.67%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.26%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.81 | ||
| Fwd PE | 23.97 | ||
| P/S | 4.53 | ||
| P/FCF | 17.51 | ||
| P/OCF | 10.64 | ||
| P/B | 2.26 | ||
| P/tB | 8.06 | ||
| EV/EBITDA | 15.28 |
EPS(TTM)1.11
EY3.6%
EPS(NY)1.29
Fwd EY4.17%
FCF(TTM)1.76
FCFY5.71%
OCF(TTM)2.9
OCFY9.4%
SpS6.82
BVpS13.69
TBVpS3.83
PEG (NY)1.99
PEG (5Y)7.57
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 | 1.19 |
F-Score7
WACC8.27%
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)0.91%
EPS 3Y6%
EPS 5Y3.67%
EPS Q2Q%0%
EPS Next Y13.98%
EPS Next 2Y10.22%
EPS Next 3Y9.41%
EPS Next 5Y9.67%
Revenue 1Y (TTM)-4.56%
Revenue growth 3Y9.44%
Revenue growth 5Y1.63%
Sales Q2Q%-5.32%
Revenue Next Year-3.03%
Revenue Next 2Y1.41%
Revenue Next 3Y1.82%
Revenue Next 5Y4.92%
EBIT growth 1Y1.27%
EBIT growth 3Y6.75%
EBIT growth 5Y1.41%
EBIT Next Year70.85%
EBIT Next 3Y22.35%
EBIT Next 5Y15.2%
FCF growth 1Y18.7%
FCF growth 3Y13.66%
FCF growth 5Y14.52%
OCF growth 1Y33.45%
OCF growth 3Y12.57%
OCF growth 5Y5.18%