KINDER MORGAN INC (KMI) Stock Fundamental Analysis
USA - NYSE:KMI - US49456B1017 - Common Stock
27.42 USD
+0.53 (+1.97%)
27.4 USD
-0.02 (-0.07%)
Overall KMI gets a fundamental rating of 4 out of 10. We evaluated KMI against 210 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 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.
In the past year KMI had a positive cash flow from operations.
Each year in the past 5 years KMI has been profitable.
In the past 5 years KMI always reported a positive cash flow from operatings.
1.2 Ratios
KMI's Return On Assets of 3.75% is in line compared to the rest of the industry. KMI outperforms 53.81% of its industry peers.
Looking at the Return On Equity, with a value of 8.83%, KMI is in line with its industry, outperforming 58.10% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 5.23%, KMI is in line with its industry, outperforming 45.24% 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 21.72%.
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
Looking at the Profit Margin, with a value of 16.54%, KMI is in the better half of the industry, outperforming 68.10% of the companies in the same industry.
KMI's Profit Margin has been stable in the last couple of years.
The Operating Margin of KMI (27.68%) is better than 67.14% of its industry peers.
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 (49.12%) which is in line with its industry peers.
KMI's Gross Margin has declined in the last couple of years.
| 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.
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.
Compared to 1 year ago, KMI has an improved debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.09, we must say that KMI is in the distress zone and has some risk of bankruptcy.
KMI has a Altman-Z score of 1.09. This is comparable to the rest of the industry: KMI outperforms 46.67% of its industry peers.
KMI has a debt to FCF ratio of 15.03. This is a negative value and a sign of low solvency as KMI would need 15.03 years to pay back of all of its debts.
The Debt to FCF ratio of KMI (15.03) is comparable to the rest of the industry.
KMI has a Debt/Equity ratio of 1.02. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 1.02, 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 | 1.02 | ||
| Debt/FCF | 15.03 | ||
| Altman-Z | 1.09 |
ROIC/WACC0.63
WACC8.3%
2.3 Liquidity
A Current Ratio of 0.63 indicates that KMI may have some problems paying its short term obligations.
KMI has a worse Current ratio (0.63) than 78.10% of its industry peers.
A Quick Ratio of 0.49 indicates that KMI may have some problems paying its short term obligations.
The Quick ratio of KMI (0.49) is worse than 85.24% 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.
Measured over the past 5 years, KMI shows a small growth in Earnings Per Share. The EPS has been growing by 4.08% on average per year.
The Revenue has grown by 8.35% in the past year. This is quite good.
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.
KMI is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.77% yearly.
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.
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
A Price/Earnings ratio of 22.29 indicates a rather expensive valuation of KMI.
KMI's Price/Earnings is on the same level as the industry average.
KMI's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 25.89.
KMI is valuated rather expensively with a Price/Forward Earnings ratio of 19.84.
Compared to the rest of the industry, the Price/Forward Earnings ratio of KMI is on the same level as its industry peers.
When comparing the Price/Forward Earnings ratio of KMI to the average of the S&P500 Index (34.59), we can say KMI is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.29 | ||
| Fwd PE | 19.84 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of KMI indicates a slightly more expensive valuation: KMI is more expensive than 63.81% of the companies listed in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as KMI.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 28.12 | ||
| EV/EBITDA | 13.4 |
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)1.83
PEG (5Y)5.47
EPS Next 2Y9.15%
EPS Next 3Y8.61%
5. Dividend
5.1 Amount
KMI has a Yearly Dividend Yield of 4.35%, which is a nice return.
KMI's Dividend Yield is a higher than the industry average which is at 5.87.
Compared to an average S&P500 Dividend Yield of 2.44, KMI pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.35% |
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 95.47% 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.
DP95.47%
EPS Next 2Y9.15%
EPS Next 3Y8.61%
27.42
+0.53 (+1.97%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners68.14%
Inst Owner Change1.24%
Ins Owners12.75%
Ins Owner Change0.63%
Market Cap60.93B
Revenue(TTM)16.42B
Net Income(TTM)2.71B
Analysts77.04
Price Target31.71 (15.65%)
Short Float %1.86%
Short Ratio2.75
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.35% |
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)-0.67%
PT rev (3m)-0.53%
EPS NQ rev (1m)0.26%
EPS NQ rev (3m)0.53%
EPS NY rev (1m)-0.12%
EPS NY rev (3m)0.5%
Revenue NQ rev (1m)0.66%
Revenue NQ rev (3m)0.11%
Revenue NY rev (1m)0.76%
Revenue NY rev (3m)1.25%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.29 | ||
| Fwd PE | 19.84 | ||
| P/S | 3.71 | ||
| P/FCF | 28.12 | ||
| P/OCF | 10.62 | ||
| P/B | 1.98 | ||
| P/tB | 6.86 | ||
| EV/EBITDA | 13.4 |
EPS(TTM)1.23
EY4.49%
EPS(NY)1.38
Fwd EY5.04%
FCF(TTM)0.98
FCFY3.56%
OCF(TTM)2.58
OCFY9.41%
SpS7.39
BVpS13.83
TBVpS4
PEG (NY)1.83
PEG (5Y)5.47
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 | 1.09 |
F-Score6
WACC8.3%
ROIC/WACC0.63
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 22.29 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%.