KINDER MORGAN INC (KMI) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:KMI - US49456B1017 - Common Stock
27.38 USD
+0.19 (+0.7%)
27.55 USD
+0.17 (+0.62%)
Overall KMI gets a fundamental rating of 4 out of 10. We evaluated KMI 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 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.
In the past 5 years KMI has always been profitable.
Each year in the past 5 years KMI had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 3.75%, KMI is in line with its industry, outperforming 55.02% of the companies in the same 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.
Looking at the Return On Invested Capital, with a value of 5.23%, KMI is in line with its industry, outperforming 45.45% of the companies in the same industry.
KMI had an Average Return On Invested Capital over the past 3 years of 5.16%. This is significantly below the industry average of 21.18%.
The 3 year average ROIC (5.16%) for KMI is below the current ROIC(5.23%), indicating increased profibility in the last year.
| 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 better Profit Margin (16.54%) than 68.90% of its industry peers.
KMI's Profit Margin has been stable in the last couple of years.
With a decent Operating Margin value of 27.68%, KMI is doing good in the industry, outperforming 68.42% 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.
KMI has a better Gross Margin (49.12%) than 60.29% of its industry peers.
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.
KMI has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, KMI has an improved debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.09, we must say that KMI is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of 1.09, KMI perfoms like the industry average, outperforming 48.33% of the companies in the same industry.
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.
Looking at the Debt to FCF ratio, with a value of 15.03, KMI is in line with its industry, outperforming 49.28% of the companies in the same 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 69.38% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.02 | ||
| Debt/FCF | 15.03 | ||
| Altman-Z | 1.09 |
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.
With a Current ratio value of 0.63, KMI is not doing good in the industry: 76.08% of the companies in the same industry are doing better.
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.
The Quick ratio of KMI (0.49) is worse than 83.25% 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 9.82%, which is quite good.
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.
KMI shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.71% yearly.
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
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 Y12.17%
EPS Next 2Y9.37%
EPS Next 3Y9.09%
EPS Next 5Y8.01%
Revenue Next Year8.22%
Revenue Next 2Y6.49%
Revenue Next 3Y6.37%
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
With a Price/Earnings ratio of 22.26, 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.
KMI is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 26.84, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 19.73 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 23.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.26 | ||
| Fwd PE | 19.73 |
4.2 Price Multiples
64.59% 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 is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 28.11 | ||
| EV/EBITDA | 13.39 |
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 4.30%, KMI is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 3.93, KMI pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.00, KMI pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.3% |
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.
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
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 2Y9.37%
EPS Next 3Y9.09%
27.38
+0.19 (+0.7%)
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 Cap60.91B
Revenue(TTM)16.42B
Net Income(TTM)2.71B
Analysts77.04
Price Target31.76 (16%)
Short Float %1.76%
Short Ratio2.45
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.3% |
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)-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)-0.57%
EPS NQ rev (1m)0.19%
EPS NQ rev (3m)0.89%
EPS NY rev (1m)-0.03%
EPS NY rev (3m)-0.15%
Revenue NQ rev (1m)-0.02%
Revenue NQ rev (3m)-1.23%
Revenue NY rev (1m)-0.05%
Revenue NY rev (3m)0.8%
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 | 13.39 |
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 | 1.09 |
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)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 5Y8.01%
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 5Y5.84%
EBIT growth 1Y5.63%
EBIT growth 3Y0.38%
EBIT growth 5Y2.18%
EBIT Next Year69.56%
EBIT Next 3Y22.68%
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 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.
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%.