KINDER MORGAN INC (KMI) Stock Fundamental Analysis
USA - NYSE:KMI - US49456B1017 - Common Stock
27.38 USD
+0.17 (+0.62%)
27.42 USD
+0.04 (+0.15%)
We assign a fundamental rating of 4 out of 10 to KMI. KMI was compared to 211 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. While showing a medium growth rate, KMI is valued expensive at the moment. 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.
KMI had positive earnings in each of the past 5 years.
KMI had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
KMI has a Return On Assets of 3.75%. This is comparable to the rest of the industry: KMI outperforms 54.03% of its industry peers.
KMI has a Return On Equity (8.81%) which is in line with its industry peers.
KMI's Return On Invested Capital of 5.15% is in line compared to the rest of the industry. KMI outperforms 46.45% of its industry peers.
The Average Return On Invested Capital over the past 3 years for KMI is significantly below the industry average of 21.53%.
| 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 better Profit Margin (16.98%) than 70.62% of its industry peers.
KMI's Profit Margin has been stable in the last couple of years.
Looking at the Operating Margin, with a value of 28.16%, KMI is in the better half of the industry, outperforming 68.25% 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 (50.00%) 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 | 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), KMI is destroying value.
KMI has about the same amout of shares outstanding than it did 1 year ago.
The number of shares outstanding for KMI has been reduced compared to 5 years ago.
KMI has a better debt/assets ratio than last year.
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.
Looking at the Debt to FCF ratio, with a value of 15.28, KMI is in line with its industry, outperforming 47.39% of the companies in the same industry.
KMI has a Debt/Equity ratio of 1.04. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 1.04, KMI is doing worse than 69.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.04 | ||
| Debt/FCF | 15.28 | ||
| Altman-Z | N/A |
ROIC/WACC0.63
WACC8.16%
2.3 Liquidity
A Current Ratio of 0.68 indicates that KMI may have some problems paying its short term obligations.
KMI's Current ratio of 0.68 is on the low side compared to the rest of the industry. KMI is outperformed by 77.73% of its industry peers.
A Quick Ratio of 0.68 indicates that KMI may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.68, KMI is doing worse than 70.62% of the companies in the same industry.
| 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%.
KMI shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 4.08% yearly.
Looking at the last year, KMI shows a small growth in Revenue. The Revenue has grown by 3.97% 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)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
Based on estimates for the next years, KMI will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.60% on average per year.
Based on estimates for the next years, KMI will show a small growth in Revenue. The Revenue will grow by 6.53% on average per year.
EPS Next Y12.34%
EPS Next 2Y9.04%
EPS Next 3Y8.51%
EPS Next 5Y8.6%
Revenue Next Year7.46%
Revenue Next 2Y6.27%
Revenue Next 3Y6.4%
Revenue Next 5Y6.53%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
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 23.01, the valuation of KMI can be described as rather expensive.
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 27.40, KMI is valued at the same level.
The Price/Forward Earnings ratio is 19.85, which indicates a rather expensive current valuation of KMI.
The rest of the industry has a similar Price/Forward Earnings ratio as KMI.
KMI's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 22.94.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.01 | ||
| Fwd PE | 19.85 |
4.2 Price Multiples
KMI's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. KMI is more expensive than 63.03% of the companies in the same industry.
KMI's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 28.46 | ||
| EV/EBITDA | 13.47 |
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)1.86
PEG (5Y)5.65
EPS Next 2Y9.04%
EPS Next 3Y8.51%
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.
KMI's Dividend Yield is rather good when compared to the S&P500 average which is at 2.38.
| 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 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 95.17% 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 2Y9.04%
EPS Next 3Y8.51%
27.38
+0.17 (+0.62%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners68.14%
Inst Owner Change-0.11%
Ins Owners12.75%
Ins Owner Change0.21%
Market Cap60.84B
Analysts78.46
Price Target31.92 (16.58%)
Short Float %1.91%
Short Ratio2.59
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)-0.06%
PT rev (3m)1.32%
EPS NQ rev (1m)1.11%
EPS NQ rev (3m)-2.25%
EPS NY rev (1m)0.77%
EPS NY rev (3m)0.62%
Revenue NQ rev (1m)0.17%
Revenue NQ rev (3m)0.93%
Revenue NY rev (1m)0.09%
Revenue NY rev (3m)0.34%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.01 | ||
| Fwd PE | 19.85 | ||
| P/S | 3.81 | ||
| P/FCF | 28.46 | ||
| P/OCF | 10.92 | ||
| P/B | 1.98 | ||
| P/tB | 5.69 | ||
| EV/EBITDA | 13.47 |
EPS(TTM)1.19
EY4.35%
EPS(NY)1.38
Fwd EY5.04%
FCF(TTM)0.96
FCFY3.51%
OCF(TTM)2.51
OCFY9.16%
SpS7.19
BVpS13.85
TBVpS4.81
PEG (NY)1.86
PEG (5Y)5.65
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
WACC8.16%
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 Y12.34%
EPS Next 2Y9.04%
EPS Next 3Y8.51%
EPS Next 5Y8.6%
Revenue 1Y (TTM)3.97%
Revenue growth 3Y-3.13%
Revenue growth 5Y2.71%
Sales Q2Q%13.16%
Revenue Next Year7.46%
Revenue Next 2Y6.27%
Revenue Next 3Y6.4%
Revenue Next 5Y6.53%
EBIT growth 1Y6.54%
EBIT growth 3Y0.38%
EBIT growth 5Y2.18%
EBIT Next Year69.76%
EBIT Next 3Y22.55%
EBIT Next 5Y15.21%
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%