KINDER MORGAN INC (KMI) Stock Fundamental Analysis
USA - NYSE:KMI - US49456B1017 - Common Stock
26.55 USD
+0.43 (+1.65%)
26.345 USD
-0.21 (-0.77%)
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. KMI has a medium profitability rating, but doesn't score so well on its financial health evaluation. 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
In the past year KMI was profitable.
KMI had a positive operating cash flow in the past year.
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
KMI has a Return On Assets of 3.75%. This is comparable to the rest of the industry: KMI outperforms 53.33% of its industry peers.
With a Return On Equity value of 8.81%, KMI perfoms like the industry average, outperforming 58.10% of the companies in the same industry.
KMI's Return On Invested Capital of 5.15% is in line compared to the rest of the industry. KMI outperforms 45.71% of its industry peers.
KMI had an Average Return On Invested Capital over the past 3 years of 5.16%. This is significantly below the industry average of 21.78%.
| 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
With a decent Profit Margin value of 16.98%, KMI is doing good in the industry, outperforming 70.00% of the companies in the same industry.
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 68.57% 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 Gross Margin (50.00%) which is in line with its industry peers.
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so KMI is destroying value.
KMI has about the same amout of shares outstanding than it did 1 year ago.
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.
A Debt/Equity ratio of 1.04 is on the high side and indicates that KMI has dependencies on debt financing.
With a Debt to Equity ratio value of 1.04, KMI is not doing good in the industry: 69.52% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.04 | ||
| Debt/FCF | 15.28 | ||
| Altman-Z | N/A |
ROIC/WACC0.64
WACC8.08%
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 77.14% of its industry peers.
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 70.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.68 | ||
| Quick Ratio | 0.68 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 10.81% over the past year.
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 decreased by -1.53% in the past year.
The Revenue has been growing slightly by 2.71% on average over the past years.
EPS 1Y (TTM)10.81%
EPS 3Y-4.22%
EPS 5Y4.08%
EPS Q2Q%16%
Revenue 1Y (TTM)-1.53%
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 8.60% on average per year.
KMI is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.53% yearly.
EPS Next Y11.97%
EPS Next 2Y8.68%
EPS Next 3Y8.72%
EPS Next 5Y8.6%
Revenue Next Year7.55%
Revenue Next 2Y6.32%
Revenue Next 3Y6.36%
Revenue Next 5Y6.53%
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
A Price/Earnings ratio of 21.59 indicates a rather expensive valuation of KMI.
KMI's Price/Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Earnings ratio of 25.83, KMI is valued at the same level.
The Price/Forward Earnings ratio is 19.38, which indicates a rather expensive current valuation of KMI.
KMI's Price/Forward Earnings ratio is in line with the industry average.
When comparing the Price/Forward Earnings ratio of KMI to the average of the S&P500 Index (32.68), we can say KMI is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.59 | ||
| Fwd PE | 19.38 |
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 62.38% of the companies in the same industry.
KMI's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 27.59 | ||
| EV/EBITDA | 13.12 |
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)1.8
PEG (5Y)5.3
EPS Next 2Y8.68%
EPS Next 3Y8.72%
5. Dividend
5.1 Amount
KMI has a Yearly Dividend Yield of 4.49%, which is a nice return.
Compared to an average industry Dividend Yield of 6.76, KMI pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.39, KMI pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.49% |
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.
The dividend of KMI is growing, but earnings are growing more, so the dividend growth is sustainable.
DP95.17%
EPS Next 2Y8.68%
EPS Next 3Y8.72%
26.55
+0.43 (+1.65%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners68.14%
Inst Owner Change-0.61%
Ins Owners12.75%
Ins Owner Change0.56%
Market Cap59.00B
Revenue(TTM)15.10B
Net Income(TTM)2.71B
Analysts78.46
Price Target31.71 (19.44%)
Short Float %1.86%
Short Ratio2.75
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.49% |
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)-0.72%
PT rev (3m)-0.18%
EPS NQ rev (1m)-1.3%
EPS NQ rev (3m)-0.39%
EPS NY rev (1m)-0.33%
EPS NY rev (3m)0.29%
Revenue NQ rev (1m)-0.07%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0.08%
Revenue NY rev (3m)0.57%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.59 | ||
| Fwd PE | 19.38 | ||
| P/S | 3.69 | ||
| P/FCF | 27.59 | ||
| P/OCF | 10.59 | ||
| P/B | 1.92 | ||
| P/tB | 5.52 | ||
| EV/EBITDA | 13.12 |
EPS(TTM)1.23
EY4.63%
EPS(NY)1.37
Fwd EY5.16%
FCF(TTM)0.96
FCFY3.62%
OCF(TTM)2.51
OCFY9.44%
SpS7.19
BVpS13.85
TBVpS4.81
PEG (NY)1.8
PEG (5Y)5.3
Graham Number19.58
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%
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-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
WACC8.08%
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 Y11.97%
EPS Next 2Y8.68%
EPS Next 3Y8.72%
EPS Next 5Y8.6%
Revenue 1Y (TTM)-1.53%
Revenue growth 3Y-3.13%
Revenue growth 5Y2.71%
Sales Q2Q%12.08%
Revenue Next Year7.55%
Revenue Next 2Y6.32%
Revenue Next 3Y6.36%
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%
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 21.59 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 95.17%.