KINDER MORGAN INC (KMI) Stock Fundamental Analysis
USA - NYSE:KMI - US49456B1017 - Common Stock
27.36 USD
-0.22 (-0.8%)
27.36 USD
0 (0%)
KMI gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 210 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
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.
In the past 5 years KMI always reported a positive cash flow from operatings.
1.2 Ratios
KMI has a Return On Assets (3.75%) which is in line with its industry peers.
KMI has a Return On Equity of 8.81%. This is comparable to the rest of the industry: KMI outperforms 56.19% of its industry peers.
KMI has a Return On Invested Capital (5.15%) which is in line with its industry peers.
The Average Return On Invested Capital over the past 3 years for KMI is significantly below the industry average of 21.90%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.75% | ||
| ROE | 8.81% | ||
| ROIC | 5.15% |
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 16.98%. This is in the better half of the industry: KMI outperforms 70.00% of its industry peers.
KMI's Profit Margin has been stable in the last couple of years.
With a decent Operating Margin value of 28.16%, KMI is doing good in the industry, outperforming 68.10% 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 Gross Margin value of 50.00%, KMI perfoms like the industry average, outperforming 60.00% 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 | 28.16% | ||
| PM (TTM) | 16.98% | ||
| GM | 50% |
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
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 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
The Debt to FCF ratio of KMI is 15.28, which is on the high side as it means it would take KMI, 15.28 years of fcf income to pay off all of its debts.
KMI has a Debt to FCF ratio (15.28) which is comparable to the rest of the industry.
KMI has a Debt/Equity ratio of 1.04. This is a high value indicating a heavy dependency on external financing.
KMI's Debt to Equity ratio of 1.04 is on the low side compared to the rest of the industry. KMI is outperformed by 68.57% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.04 | ||
| Debt/FCF | 15.28 | ||
| Altman-Z | N/A |
ROIC/WACC0.63
WACC8.24%
2.3 Liquidity
KMI has a Current Ratio of 0.68. 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 0.68, KMI is doing worse than 77.62% of the companies in the same industry.
KMI has a Quick Ratio of 0.68. 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 0.68. This is in the lower half of the industry: KMI underperforms 70.48% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.68 | ||
| Quick Ratio | 0.68 |
3. Growth
3.1 Past
KMI shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 7.21%.
The Earnings Per Share has been growing slightly by 4.08% on average over the past years.
The Revenue has been growing slightly by 3.97% in the past year.
The Revenue has been growing slightly by 2.71% on average over the past years.
EPS 1Y (TTM)7.21%
EPS 3Y-4.22%
EPS 5Y4.08%
EPS Q2Q%12%
Revenue 1Y (TTM)3.97%
Revenue growth 3Y-3.13%
Revenue growth 5Y2.71%
Sales Q2Q%13.16%
3.2 Future
KMI is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.24% yearly.
The Revenue is expected to grow by 7.46% on average over the next years.
EPS Next Y11.49%
EPS Next 2Y8.36%
EPS Next 3Y8.63%
EPS Next 5Y9.24%
Revenue Next Year7.36%
Revenue Next 2Y6.41%
Revenue Next 3Y6.55%
Revenue Next 5Y7.46%
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
KMI is valuated rather expensively with a Price/Earnings ratio of 22.99.
KMI's Price/Earnings ratio is in line with the industry average.
When comparing the Price/Earnings ratio of KMI to the average of the S&P500 Index (27.27), we can say KMI is valued inline with the index average.
With a Price/Forward Earnings ratio of 20.09, KMI is valued on the expensive side.
Compared to the rest of the industry, the Price/Forward Earnings ratio of KMI is on the same level as its industry peers.
When comparing the Price/Forward Earnings ratio of KMI to the average of the S&P500 Index (22.77), we can say KMI is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.99 | ||
| Fwd PE | 20.09 |
4.2 Price Multiples
63.81% of the companies in the same industry are cheaper than KMI, based on the Enterprise Value to EBITDA ratio.
The rest of the industry has a similar Price/Free Cash Flow ratio as KMI.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 28.44 | ||
| EV/EBITDA | 13.59 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
PEG (NY)2
PEG (5Y)5.64
EPS Next 2Y8.36%
EPS Next 3Y8.63%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.24%, KMI is a good candidate for dividend investing.
KMI's Dividend Yield is a higher than the industry average which is at 6.15.
Compared to an average S&P500 Dividend Yield of 2.38, KMI pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.24% |
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 95.17% 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.
DP95.17%
EPS Next 2Y8.36%
EPS Next 3Y8.63%
27.36
-0.22 (-0.8%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners67.36%
Inst Owner Change-0.15%
Ins Owners12.73%
Ins Owner Change0.22%
Market Cap60.80B
Analysts78.4
Price Target31.94 (16.74%)
Short Float %1.83%
Short Ratio2.33
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.24% |
Yearly Dividend1.15
Dividend Growth(5Y)3.8%
DP95.17%
Div Incr Years7
Div Non Decr Years8
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-2.26%
Min EPS beat(2)-4.12%
Max EPS beat(2)-0.4%
EPS beat(4)0
Avg EPS beat(4)-4.38%
Min EPS beat(4)-8.01%
Max EPS beat(4)-0.4%
EPS beat(8)0
Avg EPS beat(8)-4.44%
EPS beat(12)2
Avg EPS beat(12)-3.79%
EPS beat(16)4
Avg EPS beat(16)-2.65%
Revenue beat(2)2
Avg Revenue beat(2)3.77%
Min Revenue beat(2)3.01%
Max Revenue beat(2)4.53%
Revenue beat(4)2
Avg Revenue beat(4)-1.74%
Min Revenue beat(4)-7.85%
Max Revenue beat(4)4.53%
Revenue beat(8)2
Avg Revenue beat(8)-7.85%
Revenue beat(12)3
Avg Revenue beat(12)-8.56%
Revenue beat(16)7
Avg Revenue beat(16)-0.98%
PT rev (1m)0.19%
PT rev (3m)2.26%
EPS NQ rev (1m)-0.27%
EPS NQ rev (3m)-1.5%
EPS NY rev (1m)-0.14%
EPS NY rev (3m)0.42%
Revenue NQ rev (1m)-0.1%
Revenue NQ rev (3m)3.56%
Revenue NY rev (1m)0.4%
Revenue NY rev (3m)1.42%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.99 | ||
| Fwd PE | 20.09 | ||
| P/S | 3.81 | ||
| P/FCF | 28.44 | ||
| P/OCF | 10.91 | ||
| P/B | 1.98 | ||
| P/tB | 5.69 | ||
| EV/EBITDA | 13.59 |
EPS(TTM)1.19
EY4.35%
EPS(NY)1.36
Fwd EY4.98%
FCF(TTM)0.96
FCFY3.52%
OCF(TTM)2.51
OCFY9.16%
SpS7.19
BVpS13.85
TBVpS4.81
PEG (NY)2
PEG (5Y)5.64
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.75% | ||
| ROE | 8.81% | ||
| ROCE | 6.54% | ||
| ROIC | 5.15% | ||
| ROICexc | 5.16% | ||
| ROICexgc | 7.29% | ||
| OM | 28.16% | ||
| PM (TTM) | 16.98% | ||
| GM | 50% | ||
| FCFM | 13.39% |
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%
ROICexcg growth 3Y-1.55%
ROICexcg 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-Score7
Asset Turnover0.22
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.04 | ||
| Debt/FCF | 15.28 | ||
| Debt/EBITDA | 4.61 | ||
| Cap/Depr | 142.47% | ||
| Cap/Sales | 21.49% | ||
| Interest Coverage | 2.46 | ||
| Cash Conversion | 80.65% | ||
| Profit Quality | 78.83% | ||
| Current Ratio | 0.68 | ||
| Quick Ratio | 0.68 | ||
| Altman-Z | N/A |
F-Score7
WACC8.24%
ROIC/WACC0.63
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)7.21%
EPS 3Y-4.22%
EPS 5Y4.08%
EPS Q2Q%12%
EPS Next Y11.49%
EPS Next 2Y8.36%
EPS Next 3Y8.63%
EPS Next 5Y9.24%
Revenue 1Y (TTM)3.97%
Revenue growth 3Y-3.13%
Revenue growth 5Y2.71%
Sales Q2Q%13.16%
Revenue Next Year7.36%
Revenue Next 2Y6.41%
Revenue Next 3Y6.55%
Revenue Next 5Y7.46%
EBIT growth 1Y6.54%
EBIT growth 3Y0.38%
EBIT growth 5Y2.18%
EBIT Next Year69.8%
EBIT Next 3Y22.57%
EBIT Next 5Y15.25%
FCF growth 1Y-35.29%
FCF growth 3Y-12.11%
FCF growth 5Y3.94%
OCF growth 1Y7.07%
OCF growth 3Y-0.43%
OCF growth 5Y3.48%