KINDER MORGAN INC (KMI) Stock Fundamental Analysis
NYSE:KMI - New York Stock Exchange, Inc. - US49456B1017 - Common Stock - Currency: USD
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. 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.
1. Profitability
1.1 Basic Checks
In the past year KMI was profitable.
In the past year KMI had a positive cash flow from operations.
In the past 5 years KMI has always been profitable.
KMI had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
KMI has a Return On Assets of 3.55%. This is comparable to the rest of the industry: KMI outperforms 51.66% of its industry peers.
The Return On Equity of KMI (8.39%) is comparable to the rest of the industry.
With a Return On Invested Capital value of 5.13%, KMI perfoms like the industry average, outperforming 42.65% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for KMI is significantly below the industry average of 23.70%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.55% | ||
| ROE | 8.39% | ||
| ROIC | 5.13% |
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 Profit Margin of 16.58%. This is in the better half of the industry: KMI outperforms 67.30% of its industry peers.
In the last couple of years the Profit Margin of KMI has remained more or less at the same level.
With a decent Operating Margin value of 27.99%, KMI is doing good in the industry, outperforming 66.82% 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 (50.26%) is comparable to the rest of the industry.
KMI's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 27.99% | ||
| PM (TTM) | 16.58% | ||
| GM | 50.26% |
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.
KMI has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.07, we must say that KMI is in the distress zone and has some risk of bankruptcy.
KMI's Altman-Z score of 1.07 is in line compared to the rest of the industry. KMI outperforms 45.02% of its industry peers.
The Debt to FCF ratio of KMI is 15.11, which is on the high side as it means it would take KMI, 15.11 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of KMI (15.11) is comparable to the rest of the industry.
A Debt/Equity ratio of 0.98 indicates that KMI is somewhat dependend on debt financing.
KMI's Debt to Equity ratio of 0.98 is on the low side compared to the rest of the industry. KMI is outperformed by 68.72% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.98 | ||
| Debt/FCF | 15.11 | ||
| Altman-Z | 1.07 |
ROIC/WACC0.62
WACC8.34%
2.3 Liquidity
KMI has a Current Ratio of 0.45. 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 Current ratio of KMI (0.45) is worse than 87.68% of its industry peers.
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 91.47% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.45 | ||
| Quick Ratio | 0.35 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 5.45% over the past year.
The Earnings Per Share has been growing slightly by 4.08% on average over the past years.
Looking at the last year, KMI shows a small growth in Revenue. The Revenue has grown by 1.38% in the last year.
KMI shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.71% yearly.
EPS 1Y (TTM)5.45%
EPS 3Y-4.22%
EPS 5Y4.08%
EPS Q2Q%0%
Revenue 1Y (TTM)1.38%
Revenue growth 3Y-3.13%
Revenue growth 5Y2.71%
Sales Q2Q%10.39%
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 9.40% on average per year.
The Revenue is expected to grow by 4.58% on average over the next years.
EPS Next Y10.85%
EPS Next 2Y8.97%
EPS Next 3Y8.63%
EPS Next 5Y9.4%
Revenue Next Year5.75%
Revenue Next 2Y5.24%
Revenue Next 3Y5.01%
Revenue Next 5Y4.58%
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.
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
The Price/Earnings ratio is 24.49, which indicates a rather expensive current valuation of KMI.
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 27.45, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 20.63, which indicates a rather expensive current valuation of KMI.
KMI's Price/Forward Earnings is on the same level as the industry average.
KMI's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 21.90.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.49 | ||
| Fwd PE | 20.63 |
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.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of KMI is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 28.9 | ||
| EV/EBITDA | 14.33 |
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)2.26
PEG (5Y)6.01
EPS Next 2Y8.97%
EPS Next 3Y8.63%
5. Dividend
5.1 Amount
KMI has a Yearly Dividend Yield of 4.05%, which is a nice return.
KMI's Dividend Yield is comparable with the industry average which is at 6.66.
KMI's Dividend Yield is rather good when compared to the S&P500 average which is at 2.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.05% |
5.2 History
The dividend of KMI has a limited annual growth rate of 3.80%.
KMI has been paying a dividend for at least 10 years, so it has 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 99.96% 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.
DP99.96%
EPS Next 2Y8.97%
EPS Next 3Y8.63%
28.41
-0.09 (-0.32%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners67.27%
Inst Owner Change-0.14%
Ins Owners12.72%
Ins Owner Change0.04%
Market Cap63.13B
Analysts76.67
Price Target31.51 (10.91%)
Short Float %2.05%
Short Ratio2.99
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.05% |
Yearly Dividend1.15
Dividend Growth(5Y)3.8%
DP99.96%
Div Incr Years7
Div Non Decr Years8
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-4.55%
Min EPS beat(2)-4.98%
Max EPS beat(2)-4.12%
EPS beat(4)0
Avg EPS beat(4)-5.1%
Min EPS beat(4)-8.01%
Max EPS beat(4)-3.28%
EPS beat(8)0
Avg EPS beat(8)-4.5%
EPS beat(12)2
Avg EPS beat(12)-3.94%
EPS beat(16)5
Avg EPS beat(16)-1.51%
Revenue beat(2)1
Avg Revenue beat(2)-1.81%
Min Revenue beat(2)-6.63%
Max Revenue beat(2)3.01%
Revenue beat(4)1
Avg Revenue beat(4)-6.44%
Min Revenue beat(4)-14.28%
Max Revenue beat(4)3.01%
Revenue beat(8)1
Avg Revenue beat(8)-11.4%
Revenue beat(12)3
Avg Revenue beat(12)-6.35%
Revenue beat(16)7
Avg Revenue beat(16)-0.83%
PT rev (1m)0.79%
PT rev (3m)1.64%
EPS NQ rev (1m)0.6%
EPS NQ rev (3m)1.01%
EPS NY rev (1m)-0.15%
EPS NY rev (3m)-0.69%
Revenue NQ rev (1m)0.72%
Revenue NQ rev (3m)-0.53%
Revenue NY rev (1m)-0.11%
Revenue NY rev (3m)-0.71%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.49 | ||
| Fwd PE | 20.63 | ||
| P/S | 4.07 | ||
| P/FCF | 28.9 | ||
| P/OCF | 11.26 | ||
| P/B | 2.06 | ||
| P/tB | 7.3 | ||
| EV/EBITDA | 14.33 |
EPS(TTM)1.16
EY4.08%
EPS(NY)1.38
Fwd EY4.85%
FCF(TTM)0.98
FCFY3.46%
OCF(TTM)2.52
OCFY8.88%
SpS6.98
BVpS13.77
TBVpS3.89
PEG (NY)2.26
PEG (5Y)6.01
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.55% | ||
| ROE | 8.39% | ||
| ROCE | 6.52% | ||
| ROIC | 5.13% | ||
| ROICexc | 5.14% | ||
| ROICexgc | 7.68% | ||
| OM | 27.99% | ||
| PM (TTM) | 16.58% | ||
| GM | 50.26% | ||
| FCFM | 14.09% |
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)7.78%
ROICexgc(5y)7.56%
ROCE(3y)6.55%
ROCE(5y)6.32%
ROICexcg growth 3Y-2.82%
ROICexcg growth 5Y1.13%
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 Turnover0.21
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.98 | ||
| Debt/FCF | 15.11 | ||
| Debt/EBITDA | 4.46 | ||
| Cap/Depr | 144.05% | ||
| Cap/Sales | 22.09% | ||
| Interest Coverage | 2.32 | ||
| Cash Conversion | 83.51% | ||
| Profit Quality | 85.01% | ||
| Current Ratio | 0.45 | ||
| Quick Ratio | 0.35 | ||
| Altman-Z | 1.07 |
F-Score6
WACC8.34%
ROIC/WACC0.62
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)5.45%
EPS 3Y-4.22%
EPS 5Y4.08%
EPS Q2Q%0%
EPS Next Y10.85%
EPS Next 2Y8.97%
EPS Next 3Y8.63%
EPS Next 5Y9.4%
Revenue 1Y (TTM)1.38%
Revenue growth 3Y-3.13%
Revenue growth 5Y2.71%
Sales Q2Q%10.39%
Revenue Next Year5.75%
Revenue Next 2Y5.24%
Revenue Next 3Y5.01%
Revenue Next 5Y4.58%
EBIT growth 1Y2.19%
EBIT growth 3Y0.38%
EBIT growth 5Y2.18%
EBIT Next Year69.64%
EBIT Next 3Y22.13%
EBIT Next 5Y15.4%
FCF growth 1Y-37.51%
FCF growth 3Y-12.11%
FCF growth 5Y3.94%
OCF growth 1Y7.52%
OCF growth 3Y-0.43%
OCF growth 5Y3.48%