KINDER MORGAN INC (KMI)
US49456B1017 - Common Stock
We assign a fundamental rating of 3 out of 10 to KMI. KMI was compared to 205 industry peers in the Oil, Gas & Consumable Fuels industry. While KMI is still in line with the averages on profitability rating, there are concerns on its financial health. KMI is valied quite expensively at the moment, while 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.
KMI had a positive operating cash flow in the past year.
KMI had positive earnings in each of the past 5 years.
In the past 5 years KMI always reported a positive cash flow from operatings.
1.2 Ratios
With a Return On Assets value of 3.56%, KMI is not doing good in the industry: 61.76% of the companies in the same industry are doing better.
With a Return On Equity value of 8.31%, KMI is not doing good in the industry: 60.78% of the companies in the same industry are doing better.
KMI has a worse Return On Invested Capital (5.08%) than 62.25% of its industry peers.
The Average Return On Invested Capital over the past 3 years for KMI is significantly below the industry average of 29.02%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.56% | ||
| ROE | 8.31% | ||
| ROIC | 5.08% |
ROA(3y)3.16%
ROA(5y)2.51%
ROE(3y)7.28%
ROE(5y)5.72%
ROIC(3y)5.15%
ROIC(5y)4.8%
1.3 Margins
With a Profit Margin value of 16.67%, KMI perfoms like the industry average, outperforming 57.35% of the companies in the same industry.
KMI's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 28.39%, KMI is in the better half of the industry, outperforming 60.29% 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.
The Gross Margin of KMI (51.15%) is comparable to the rest of the industry.
In the last couple of years the Gross Margin of KMI has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 28.39% | ||
| PM (TTM) | 16.67% | ||
| GM | 51.15% |
OM growth 3Y-2.45%
OM growth 5Y-0.22%
PM growth 3Y157.68%
PM growth 5Y8.28%
GM growth 3Y-4.65%
GM growth 5Y-0.56%
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 less shares outstanding
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
Based on the Altman-Z score of 1.04, we must say that KMI is in the distress zone and has some risk of bankruptcy.
KMI's Altman-Z score of 1.04 is in line compared to the rest of the industry. KMI outperforms 41.18% of its industry peers.
KMI has a debt to FCF ratio of 8.18. This is a slightly negative value and a sign of low solvency as KMI would need 8.18 years to pay back of all of its debts.
With a Debt to FCF ratio value of 8.18, KMI perfoms like the industry average, outperforming 49.51% of the companies in the same industry.
A Debt/Equity ratio of 0.99 indicates that KMI is somewhat dependend on debt financing.
KMI has a worse Debt to Equity ratio (0.99) than 73.04% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.99 | ||
| Debt/FCF | 8.18 | ||
| Altman-Z | 1.04 |
ROIC/WACC0.64
WACC7.99%
2.3 Liquidity
KMI has a Current Ratio of 0.46. 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 0.46, KMI is doing worse than 88.73% of the companies in the same industry.
A Quick Ratio of 0.35 indicates that KMI may have some problems paying its short term obligations.
KMI's Quick ratio of 0.35 is on the low side compared to the rest of the industry. KMI is outperformed by 91.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.46 | ||
| Quick Ratio | 0.35 |
3. Growth
3.1 Past
KMI shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 0.91%.
Measured over the past 5 years, KMI shows a small growth in Earnings Per Share. The EPS has been growing by 3.67% on average per year.
KMI shows a decrease in Revenue. In the last year, the revenue decreased by -4.56%.
The Revenue has been growing slightly by 1.63% on average over the past years.
EPS 1Y (TTM)0.91%
EPS 3Y6%
EPS 5Y3.67%
EPS Q2Q%0%
Revenue 1Y (TTM)-4.56%
Revenue growth 3Y9.44%
Revenue growth 5Y1.63%
Sales Q2Q%-5.32%
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 9.60% on average per year.
The Revenue is expected to grow by 4.92% on average over the next years.
EPS Next Y13.98%
EPS Next 2Y10.22%
EPS Next 3Y9.41%
EPS Next 5Y9.6%
Revenue Next Year-3.03%
Revenue Next 2Y1.57%
Revenue Next 3Y1.98%
Revenue Next 5Y4.92%
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 24.19, the valuation of KMI can be described as rather expensive.
Based on the Price/Earnings ratio, KMI is valued a bit more expensive than 67.65% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.73. KMI is around the same levels.
A Price/Forward Earnings ratio of 20.85 indicates a rather expensive valuation of KMI.
Based on the Price/Forward Earnings ratio, KMI is valued a bit more expensive than the industry average as 64.71% of the companies are valued more cheaply.
The average S&P500 Price/Forward Earnings ratio is at 22.83. KMI is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.19 | ||
| Fwd PE | 20.85 |
4.2 Price Multiples
72.55% 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 | 15.23 | ||
| EV/EBITDA | 13.82 |
4.3 Compensation for Growth
KMI's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
PEG (NY)1.73
PEG (5Y)6.58
EPS Next 2Y10.22%
EPS Next 3Y9.41%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.38%, KMI is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 7.08, KMI pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.34, KMI pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.38% |
5.2 History
On average, the dividend of KMI grows each year by 7.40%, which is quite nice.
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)7.4%
Div Incr Years7
Div Non Decr Years8
5.3 Sustainability
KMI pays out 100.79% 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.
DP100.79%
EPS Next 2Y10.22%
EPS Next 3Y9.41%
KINDER MORGAN INC
NYSE:KMI (12/20/2024, 8:21:20 PM)
After market: 27 +0.15 (+0.56%)26.85
+0.61 (+2.32%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners66.98%
Inst Owner Change-0.45%
Ins Owners12.81%
Ins Owner Change0.04%
Market Cap59.65B
Analysts73.91
Price Target27.02 (0.63%)
Short Float %2.17%
Short Ratio3.03
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.38% |
Dividend Growth(5Y)7.4%
DP100.79%
Div Incr Years7
Div Non Decr Years8
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-5.65%
Min EPS beat(2)-8.01%
Max EPS beat(2)-3.28%
EPS beat(4)0
Avg EPS beat(4)-5.57%
Min EPS beat(4)-9.81%
Max EPS beat(4)-1.17%
EPS beat(8)2
Avg EPS beat(8)-2.82%
EPS beat(12)4
Avg EPS beat(12)-1.97%
EPS beat(16)7
Avg EPS beat(16)8.78%
Revenue beat(2)0
Avg Revenue beat(2)-11.06%
Min Revenue beat(2)-14.28%
Max Revenue beat(2)-7.85%
Revenue beat(4)0
Avg Revenue beat(4)-11.43%
Min Revenue beat(4)-14.28%
Max Revenue beat(4)-7.85%
Revenue beat(8)0
Avg Revenue beat(8)-14.32%
Revenue beat(12)4
Avg Revenue beat(12)-2.74%
Revenue beat(16)8
Avg Revenue beat(16)3.88%
PT rev (1m)9.41%
PT rev (3m)19.26%
EPS NQ rev (1m)-0.28%
EPS NQ rev (3m)-2.01%
EPS NY rev (1m)1.01%
EPS NY rev (3m)-1.46%
Revenue NQ rev (1m)0.05%
Revenue NQ rev (3m)-5.67%
Revenue NY rev (1m)1.74%
Revenue NY rev (3m)-3.1%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.19 | ||
| Fwd PE | 20.85 | ||
| P/S | 3.94 | ||
| P/FCF | 15.23 | ||
| P/OCF | 9.25 | ||
| P/B | 1.96 | ||
| P/tB | 7.01 | ||
| EV/EBITDA | 13.82 |
EPS(TTM)1.11
EY4.13%
EPS(NY)1.29
Fwd EY4.8%
FCF(TTM)1.76
FCFY6.57%
OCF(TTM)2.9
OCFY10.81%
SpS6.82
BVpS13.69
TBVpS3.83
PEG (NY)1.73
PEG (5Y)6.58
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.56% | ||
| ROE | 8.31% | ||
| ROCE | 6.5% | ||
| ROIC | 5.08% | ||
| ROICexc | 5.09% | ||
| ROICexgc | 7.62% | ||
| OM | 28.39% | ||
| PM (TTM) | 16.67% | ||
| GM | 51.15% | ||
| FCFM | 25.85% |
ROA(3y)3.16%
ROA(5y)2.51%
ROE(3y)7.28%
ROE(5y)5.72%
ROIC(3y)5.15%
ROIC(5y)4.8%
ROICexc(3y)5.2%
ROICexc(5y)4.86%
ROICexgc(3y)7.94%
ROICexgc(5y)7.43%
ROCE(3y)6.58%
ROCE(5y)6.13%
ROICexcg growth 3Y8.24%
ROICexcg growth 5Y2.15%
ROICexc growth 3Y7.86%
ROICexc growth 5Y2.75%
OM growth 3Y-2.45%
OM growth 5Y-0.22%
PM growth 3Y157.68%
PM growth 5Y8.28%
GM growth 3Y-4.65%
GM growth 5Y-0.56%
F-Score7
Asset Turnover0.21
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.99 | ||
| Debt/FCF | 8.18 | ||
| Debt/EBITDA | 4.53 | ||
| Cap/Depr | 108.82% | ||
| Cap/Sales | 16.7% | ||
| Interest Coverage | 2.29 | ||
| Cash Conversion | 97.28% | ||
| Profit Quality | 155.07% | ||
| Current Ratio | 0.46 | ||
| Quick Ratio | 0.35 | ||
| Altman-Z | 1.04 |
F-Score7
WACC7.99%
ROIC/WACC0.64
Cap/Depr(3y)79.04%
Cap/Depr(5y)82.03%
Cap/Sales(3y)10.42%
Cap/Sales(5y)12.61%
Profit Quality(3y)185.9%
Profit Quality(5y)670.71%
High Growth Momentum
Growth
EPS 1Y (TTM)0.91%
EPS 3Y6%
EPS 5Y3.67%
EPS Q2Q%0%
EPS Next Y13.98%
EPS Next 2Y10.22%
EPS Next 3Y9.41%
EPS Next 5Y9.6%
Revenue 1Y (TTM)-4.56%
Revenue growth 3Y9.44%
Revenue growth 5Y1.63%
Sales Q2Q%-5.32%
Revenue Next Year-3.03%
Revenue Next 2Y1.57%
Revenue Next 3Y1.98%
Revenue Next 5Y4.92%
EBIT growth 1Y1.27%
EBIT growth 3Y6.75%
EBIT growth 5Y1.41%
EBIT Next Year70.45%
EBIT Next 3Y22.28%
EBIT Next 5Y14.95%
FCF growth 1Y18.7%
FCF growth 3Y13.66%
FCF growth 5Y14.52%
OCF growth 1Y33.45%
OCF growth 3Y12.57%
OCF growth 5Y5.18%