KINDER MORGAN INC (KMI) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:KMI - US49456B1017 - Common Stock
27.32 USD
+0.37 (+1.37%)
27.32 USD
0 (0%)
Taking everything into account, KMI scores 4 out of 10 in our fundamental rating. KMI was compared to 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 quite expensive at the moment. 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.
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
The Return On Assets of KMI (3.75%) is comparable to the rest of the industry.
With a Return On Equity value of 8.83%, KMI perfoms like the industry average, outperforming 59.33% of the companies in the same industry.
With a Return On Invested Capital value of 5.23%, KMI perfoms like the industry average, outperforming 44.50% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for KMI is significantly below the industry average of 21.49%.
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
With a decent Profit Margin value of 16.54%, KMI is doing good in the industry, outperforming 68.42% of the companies in the same industry.
In the last couple of years the Profit Margin of KMI has remained more or less at the same level.
Looking at the Operating Margin, with a value of 27.68%, KMI is in the better half of 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.
With a decent Gross Margin value of 49.12%, KMI is doing good in the industry, outperforming 60.29% 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 | 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
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
The debt/assets ratio for KMI has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.08, we must say that KMI is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of 1.08, KMI perfoms like the industry average, outperforming 46.41% of the companies in the same industry.
The Debt to FCF ratio of KMI is 15.03, which is on the high side as it means it would take KMI, 15.03 years of fcf income to pay off all of its debts.
KMI's Debt to FCF ratio of 15.03 is in line compared to the rest of the industry. KMI outperforms 49.76% of its industry peers.
KMI has a Debt/Equity ratio of 1.02. This is a high value indicating a heavy dependency on external 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 69.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.02 | ||
| Debt/FCF | 15.03 | ||
| Altman-Z | 1.08 |
ROIC/WACC0.64
WACC8.2%
2.3 Liquidity
A Current Ratio of 0.63 indicates that KMI may have some problems paying its short term obligations.
KMI's Current ratio of 0.63 is on the low side compared to the rest of the industry. KMI is outperformed by 77.51% of its industry peers.
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 84.69% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.63 | ||
| Quick Ratio | 0.49 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 10.81% over the past year.
The Earnings Per Share has been growing slightly by 4.08% on average over the past years.
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)10.81%
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
The Earnings Per Share is expected to grow by 8.01% on average over the next years. This is quite good.
Based on estimates for the next years, KMI will show a small growth in Revenue. The Revenue will grow by 5.84% on average per year.
EPS Next Y12.2%
EPS Next 2Y9.15%
EPS Next 3Y8.61%
EPS Next 5Y8.01%
Revenue Next Year8.27%
Revenue Next 2Y6.84%
Revenue Next 3Y6.65%
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.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
KMI is valuated rather expensively with a Price/Earnings ratio of 22.21.
KMI's Price/Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Earnings ratio of 26.31, KMI is valued at the same level.
A Price/Forward Earnings ratio of 19.77 indicates a rather expensive valuation of KMI.
KMI's Price/Forward Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 36.59, KMI is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.21 | ||
| Fwd PE | 19.77 |
4.2 Price Multiples
65.07% 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 | 28.05 | ||
| EV/EBITDA | 13.37 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of KMI may justify a higher PE ratio.
PEG (NY)1.82
PEG (5Y)5.45
EPS Next 2Y9.15%
EPS Next 3Y8.61%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.34%, KMI is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 5.93, 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 | 4.34% |
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.
The dividend of KMI is growing, but earnings are growing more, so the dividend growth is sustainable.
DP95.47%
EPS Next 2Y9.15%
EPS Next 3Y8.61%
27.32
+0.37 (+1.37%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners68.14%
Inst Owner Change1.26%
Ins Owners12.75%
Ins Owner Change0.56%
Market Cap60.78B
Revenue(TTM)16.42B
Net Income(TTM)2.71B
Analysts77.04
Price Target31.81 (16.43%)
Short Float %1.92%
Short Ratio2.69
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.34% |
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)-4.18%
EPS beat(12)2
Avg EPS beat(12)-2.81%
EPS beat(16)4
Avg EPS beat(16)-2.18%
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)0.31%
PT rev (3m)-0.41%
EPS NQ rev (1m)-0.73%
EPS NQ rev (3m)1.35%
EPS NY rev (1m)0.21%
EPS NY rev (3m)0.64%
Revenue NQ rev (1m)-0.07%
Revenue NQ rev (3m)-0.86%
Revenue NY rev (1m)0.68%
Revenue NY rev (3m)0.96%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.21 | ||
| Fwd PE | 19.77 | ||
| P/S | 3.7 | ||
| P/FCF | 28.05 | ||
| P/OCF | 10.6 | ||
| P/B | 1.98 | ||
| P/tB | 6.84 | ||
| EV/EBITDA | 13.37 |
EPS(TTM)1.23
EY4.5%
EPS(NY)1.38
Fwd EY5.06%
FCF(TTM)0.97
FCFY3.57%
OCF(TTM)2.58
OCFY9.44%
SpS7.38
BVpS13.82
TBVpS3.99
PEG (NY)1.82
PEG (5Y)5.45
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 | 1.08 |
F-Score6
WACC8.2%
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 Y12.2%
EPS Next 2Y9.15%
EPS Next 3Y8.61%
EPS Next 5Y8.01%
Revenue 1Y (TTM)8.35%
Revenue growth 3Y-3.13%
Revenue growth 5Y2.71%
Sales Q2Q%12.08%
Revenue Next Year8.27%
Revenue Next 2Y6.84%
Revenue Next 3Y6.65%
Revenue Next 5Y5.84%
EBIT growth 1Y5.63%
EBIT growth 3Y0.38%
EBIT growth 5Y2.18%
EBIT Next Year69.76%
EBIT Next 3Y22.55%
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 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 22.21 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%.