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%)
We assign a fundamental rating of 4 out of 10 to KMI. KMI was compared to 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 quite expensive at the moment. It does show a decent growth rate. Finally 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.
Each year in the past 5 years KMI has 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 3.75%. This is comparable to the rest of the industry: KMI outperforms 53.81% of its industry peers.
KMI has a Return On Equity of 8.83%. This is comparable to the rest of the industry: KMI outperforms 59.05% of its industry peers.
KMI has a Return On Invested Capital of 5.23%. This is comparable to the rest of the industry: KMI outperforms 44.29% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for KMI is significantly below the industry average of 21.41%.
The last Return On Invested Capital (5.23%) for KMI is above the 3 year average (5.16%), which is a sign of increasing profitability.
| 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
The Profit Margin of KMI (16.54%) is better than 68.10% 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 27.68%, KMI is doing good in the industry, outperforming 68.10% of the companies in the same industry.
KMI's Operating Margin has been stable in the last couple of years.
Looking at the Gross Margin, with a value of 49.12%, KMI is in line with its industry, outperforming 59.05% 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
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.
Compared to 5 years ago, KMI has less shares outstanding
KMI has a better debt/assets ratio than last year.
2.2 Solvency
KMI has an Altman-Z score of 1.07. This is a bad value and indicates that KMI is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of KMI (1.07) is comparable to the rest of the 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.
The Debt to FCF ratio of KMI (15.03) is comparable to the rest of the industry.
A Debt/Equity ratio of 1.02 is on the high side and indicates that KMI has dependencies on debt financing.
KMI has a Debt to Equity ratio of 1.02. This is in the lower half of the industry: KMI underperforms 70.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.02 | ||
| Debt/FCF | 15.03 | ||
| Altman-Z | 1.07 |
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.
Looking at the Current ratio, with a value of 0.63, KMI is doing worse than 78.10% of the companies in the same industry.
A Quick Ratio of 0.49 indicates that KMI may have some problems paying its short term obligations.
KMI has a worse Quick ratio (0.49) than 85.24% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.63 | ||
| Quick Ratio | 0.49 |
3. Growth
3.1 Past
KMI shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 10.81%, which is quite good.
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 quite strong growth in Revenue. The Revenue has grown by 8.35% in the last 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)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 8.33% on average over the next years. This is quite good.
The Revenue is expected to grow by 6.77% on average over the next years.
EPS Next Y12.2%
EPS Next 2Y9.15%
EPS Next 3Y8.61%
EPS Next 5Y8.33%
Revenue Next Year8.27%
Revenue Next 2Y6.84%
Revenue Next 3Y6.65%
Revenue Next 5Y6.77%
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 22.21 indicates a rather expensive 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's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 26.31.
A Price/Forward Earnings ratio of 19.77 indicates a rather expensive valuation of KMI.
The rest of the industry has a similar Price/Forward Earnings ratio as KMI.
KMI is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 36.59, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.21 | ||
| Fwd PE | 19.77 |
4.2 Price Multiples
65.24% of the companies in the same industry are cheaper than KMI, based on the Enterprise Value to EBITDA ratio.
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 | 28.01 | ||
| EV/EBITDA | 13.25 |
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)1.82
PEG (5Y)5.45
EPS Next 2Y9.15%
EPS Next 3Y8.61%
5. Dividend
5.1 Amount
KMI has a Yearly Dividend Yield of 4.34%, which is a nice return.
KMI's Dividend Yield is a higher than the industry average which is at 5.90.
Compared to an average S&P500 Dividend Yield of 2.40, 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.
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
95.47% of the earnings are spent on dividend by KMI. This is not a sustainable payout ratio.
KMI's earnings are growing more than its dividend. This makes the dividend growth 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 Change1.23%
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)-0.36%
PT rev (3m)-0.41%
EPS NQ rev (1m)0.54%
EPS NQ rev (3m)1.02%
EPS NY rev (1m)0.21%
EPS NY rev (3m)0.64%
Revenue NQ rev (1m)-0.31%
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 | 28.01 | ||
| P/OCF | 10.59 | ||
| P/B | 1.97 | ||
| P/tB | 6.83 | ||
| EV/EBITDA | 13.25 |
EPS(TTM)1.23
EY4.5%
EPS(NY)1.38
Fwd EY5.06%
FCF(TTM)0.98
FCFY3.57%
OCF(TTM)2.58
OCFY9.45%
SpS7.39
BVpS13.83
TBVpS4
PEG (NY)1.82
PEG (5Y)5.45
Graham Number19.57
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 | 1.07 |
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 5Y8.33%
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 5Y6.77%
EBIT growth 1Y5.63%
EBIT growth 3Y0.38%
EBIT growth 5Y2.18%
EBIT Next Year69.76%
EBIT Next 3Y22.55%
EBIT Next 5Y15.04%
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 1.97.
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%.