KINDER MORGAN INC (KMI) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:KMI - US49456B1017 - Common Stock
26.59 USD
-0.73 (-2.67%)
26.62 USD
+0.03 (+0.11%)
KMI gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 209 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. Finally KMI also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year KMI was profitable.
KMI had a positive operating cash flow in the past year.
Each year in the past 5 years KMI has been profitable.
Each year in the past 5 years KMI had a positive operating cash flow.
1.2 Ratios
The Return On Assets of KMI (3.75%) is comparable to the rest of the industry.
KMI's Return On Equity of 8.83% is in line compared to the rest of the industry. KMI outperforms 59.33% 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 20.87%.
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
With a decent Profit Margin value of 16.54%, KMI is doing good in the industry, outperforming 68.90% of the companies in the same industry.
In the last couple of years the Profit Margin of KMI has remained more or less at the same level.
KMI has a better Operating Margin (27.68%) than 68.42% of its industry peers.
In the last couple of years the Operating Margin of KMI has remained more or less at the same level.
The Gross Margin of KMI (49.12%) 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 | 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), 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
KMI has an Altman-Z score of 1.06. This is a bad value and indicates that KMI is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.06, KMI is in line with its industry, outperforming 46.41% of the companies in the same industry.
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.
Looking at the Debt to FCF ratio, with a value of 15.03, KMI is in line with its industry, outperforming 49.76% 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.
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 69.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.02 | ||
| Debt/FCF | 15.03 | ||
| Altman-Z | 1.06 |
ROIC/WACC0.64
WACC8.19%
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 77.51% of its industry peers.
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's Quick ratio of 0.49 is on the low side compared to the rest of the industry. KMI is outperformed by 84.69% 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 10.81%, which is quite good.
Measured over the past 5 years, KMI shows a small growth in Earnings Per Share. The EPS has been growing by 4.08% on average per year.
Looking at the last year, KMI shows a quite strong growth in Revenue. The Revenue has grown by 8.35% in the last year.
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)10.81%
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 8.01% on average per year.
KMI is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.84% yearly.
EPS Next Y11.98%
EPS Next 2Y9.43%
EPS Next 3Y8.84%
EPS Next 5Y8.01%
Revenue Next Year8.21%
Revenue Next 2Y6.42%
Revenue Next 3Y6.23%
Revenue Next 5Y5.84%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better 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 accelerating.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 21.62, the valuation of KMI can be described as rather expensive.
KMI's Price/Earnings ratio is in line with the industry average.
KMI's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 26.59.
A Price/Forward Earnings ratio of 19.14 indicates a rather expensive valuation of KMI.
KMI's Price/Forward Earnings ratio is in line with the industry average.
KMI's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 23.80.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.62 | ||
| Fwd PE | 19.14 |
4.2 Price Multiples
64.11% 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 | 27.3 | ||
| EV/EBITDA | 13.14 |
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)1.8
PEG (5Y)5.3
EPS Next 2Y9.43%
EPS Next 3Y8.84%
5. Dividend
5.1 Amount
KMI has a Yearly Dividend Yield of 4.20%, which is a nice return.
Compared to an average industry Dividend Yield of 5.71, KMI pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.31, KMI pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.2% |
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.
KMI's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP95.47%
EPS Next 2Y9.43%
EPS Next 3Y8.84%
26.59
-0.73 (-2.67%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners68.76%
Inst Owner Change1.37%
Ins Owners12.78%
Ins Owner Change0.57%
Market Cap59.16B
Revenue(TTM)16.42B
Net Income(TTM)2.71B
Analysts77.04
Price Target31.81 (19.63%)
Short Float %1.88%
Short Ratio2.52
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.2% |
Yearly Dividend1.15
Dividend Growth(5Y)3.8%
DP95.47%
Div Incr Years7
Div Non Decr Years8
Ex-Date
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)-4.18%
EPS beat(12)2
Avg EPS beat(12)-2.81%
EPS beat(16)4
Avg EPS beat(16)-2.18%
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)0.31%
PT rev (3m)-0.41%
EPS NQ rev (1m)0.12%
EPS NQ rev (3m)1.35%
EPS NY rev (1m)-0.2%
EPS NY rev (3m)0.44%
Revenue NQ rev (1m)-0.97%
Revenue NQ rev (3m)-0.86%
Revenue NY rev (1m)-0.06%
Revenue NY rev (3m)0.9%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.62 | ||
| Fwd PE | 19.14 | ||
| P/S | 3.6 | ||
| P/FCF | 27.3 | ||
| P/OCF | 10.31 | ||
| P/B | 1.92 | ||
| P/tB | 6.66 | ||
| EV/EBITDA | 13.14 |
EPS(TTM)1.23
EY4.63%
EPS(NY)1.39
Fwd EY5.22%
FCF(TTM)0.97
FCFY3.66%
OCF(TTM)2.58
OCFY9.69%
SpS7.38
BVpS13.82
TBVpS3.99
PEG (NY)1.8
PEG (5Y)5.3
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 | 1.06 |
F-Score6
WACC8.19%
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)10.81%
EPS 3Y-4.22%
EPS 5Y4.08%
EPS Q2Q%16%
EPS Next Y11.98%
EPS Next 2Y9.43%
EPS Next 3Y8.84%
EPS Next 5Y8.01%
Revenue 1Y (TTM)8.35%
Revenue growth 3Y-3.13%
Revenue growth 5Y2.71%
Sales Q2Q%12.08%
Revenue Next Year8.21%
Revenue Next 2Y6.42%
Revenue Next 3Y6.23%
Revenue Next 5Y5.84%
EBIT growth 1Y5.63%
EBIT growth 3Y0.38%
EBIT growth 5Y2.18%
EBIT Next Year69.62%
EBIT Next 3Y22.45%
EBIT Next 5Y15.05%
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 for 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 21.62 and the Price/Book (PB) ratio is 1.92.
Can you provide the dividend sustainability for KMI stock?
The dividend rating of KINDER MORGAN INC (KMI) is 7 / 10 and the dividend payout ratio is 95.47%.