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. There are concerns on the financial health of KMI while its profitability can be described as average. KMI is quite expensive at the moment. It does show a decent growth rate.

Quickly go to:

1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

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.
KMI had a positive operating cash flow in 4 of the past 5 years.

1.2 Ratios

Looking at the Return On Assets, with a value of 3.75%, KMI is in line with its industry, outperforming 54.59% of the companies in the same industry.
KMI has a Return On Equity (8.83%) which is comparable to the rest of the industry.
The Return On Invested Capital of KMI (5.28%) is comparable to the rest of the industry.
KMI had an Average Return On Invested Capital over the past 3 years of 5.35%. This is significantly below the industry average of 21.94%.

		Industry Rank	Sector Rank
ROA	3.75%
ROE	8.83%
ROIC	5.28%

ROA(3y)3.72%

ROA(5y)3.46%

ROE(3y)8.7%

ROE(5y)8.02%

ROIC(3y)5.35%

ROIC(5y)5.29%

1.3 Margins

With a decent Profit Margin value of 16.54%, KMI is doing good in the industry, outperforming 69.57% of the companies in the same industry.
KMI's Profit Margin has improved in the last couple of years.
With a decent Operating Margin value of 27.68%, KMI is doing good in the industry, outperforming 69.08% of the companies in the same industry.
KMI's Operating Margin has been stable in the last couple of years.
The Gross Margin of KMI (49.12%) is better than 60.39% of its industry peers.
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 3Y9.91%

OM growth 5Y-1.35%

PM growth 3Y10.79%

PM growth 5Y81.72%

GM growth 3Y9.1%

GM growth 5Y-2.89%

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ROA

ROE

ROIC

Operating and Profit Margin

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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.
Compared to 5 years ago, KMI has less shares outstanding
Compared to 1 year ago, KMI has an improved debt to assets ratio.

2.2 Solvency

Based on the Altman-Z score of 1.17, we must say that KMI is in the distress zone and has some risk of bankruptcy.
KMI has a Altman-Z score of 1.17. This is comparable to the rest of the industry: KMI outperforms 46.38% of its industry peers.
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.
The Debt to FCF ratio of KMI (15.03) is comparable to the rest of the industry.
A Debt/Equity ratio of 1.02 is on the high side and indicates that KMI has dependencies on debt financing.
KMI's Debt to Equity ratio of 1.02 is on the low side compared to the rest of the industry. KMI is outperformed by 69.08% of its industry peers.

		Industry Rank	Sector Rank
Debt/Equity	1.02
Debt/FCF	15.03
Altman-Z	1.17

ROIC/WACC0.63

WACC8.34%

2.3 Liquidity

A Current Ratio of 0.63 indicates that KMI may have some problems paying 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.
A Quick Ratio of 0.49 indicates that KMI may have some problems paying its short term obligations.
KMI has a worse Quick ratio (0.49) than 83.57% of its industry peers.

		Industry Rank	Sector Rank
Current Ratio	0.63
Quick Ratio	0.49

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WACC

Debt/Equity

How to determine the health of a company

Altman-Z score

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3. Growth

3.1 Past

The Earnings Per Share has grown by an nice 12.07% over the past year.
KMI shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 7.87% yearly.
The Revenue has grown by 12.17% in the past year. This is quite good.
The Revenue has been growing slightly by 7.68% on average over the past years.

EPS 1Y (TTM)12.07%

EPS 3Y4.17%

EPS 5Y7.87%

EPS Q2Q%21.88%

Revenue 1Y (TTM)12.17%

Revenue growth 3Y-4.09%

Revenue growth 5Y7.68%

Sales Q2Q%14.39%

3.2 Future

The Earnings Per Share is expected to grow by 7.58% on average over the next years.
The Revenue is expected to grow by 5.80% on average over the next years.

EPS Next Y6.62%

EPS Next 2Y7.42%

EPS Next 3Y5.93%

EPS Next 5Y7.58%

Revenue Next Year4.57%

Revenue Next 2Y5.12%

Revenue Next 3Y5.1%

Revenue Next 5Y5.8%

3.3 Evolution

The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.

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4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 23.13, KMI is valued on the expensive side.
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 28.60, KMI is valued at the same level.
Based on the Price/Forward Earnings ratio of 21.70, the valuation of KMI can be described as rather expensive.
KMI's Price/Forward Earnings is on the same level as the industry average.
KMI is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 25.83, which is the current average of the S&P500 Index.

		Industry Rank	Sector Rank
PE	23.13
Fwd PE	21.7

4.2 Price Multiples

64.25% 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	30.87
EV/EBITDA	14.25

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.

PEG (NY)3.5

PEG (5Y)2.94

EPS Next 2Y7.42%

EPS Next 3Y5.93%

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5. Dividend

5.1 Amount

KMI has a Yearly Dividend Yield of 3.95%. Purely for dividend investing, there may be better candidates out there.
KMI's Dividend Yield is a higher than the industry average which is at 3.73.
KMI's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.

		Industry Rank	Sector Rank
Dividend Yield	3.95%

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.
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

95.47% 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.

DP95.47%

EPS Next 2Y7.42%

EPS Next 3Y5.93%

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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 5 / 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 23.13 and the Price/Book (PB) ratio is 2.18.

What is the financial health of KINDER MORGAN INC (KMI) stock?

The financial health rating of KINDER MORGAN INC (KMI) is 2 / 10.