KINDER MORGAN INC (2KD.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:2KD - US49456B1017 - Common Stock
25.375 EUR
+0.07 (+0.26%)
2KD gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 71 industry peers in the Oil, Gas & Consumable Fuels industry. There are concerns on the financial health of 2KD while its profitability can be described as average. 2KD has a expensive valuation and it also scores bad on growth.
1. Profitability
1.1 Basic Checks
- In the past year 2KD was profitable.
- In the past year 2KD had a positive cash flow from operations.
- Of the past 5 years 2KD 4 years were profitable.
- 2KD had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
- With a Return On Assets value of 3.75%, 2KD perfoms like the industry average, outperforming 54.67% of the companies in the same industry.
- With a Return On Equity value of 8.83%, 2KD perfoms like the industry average, outperforming 52.00% of the companies in the same industry.
- 2KD has a Return On Invested Capital of 5.23%. This is comparable to the rest of the industry: 2KD outperforms 44.00% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for 2KD is below the industry average of 8.91%.
- The last Return On Invested Capital (5.23%) for 2KD 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 2KD (16.54%) is better than 77.33% of its industry peers.
- 2KD's Profit Margin has been stable in the last couple of years.
- 2KD's Operating Margin of 27.68% is fine compared to the rest of the industry. 2KD outperforms 72.00% of its industry peers.
- 2KD's Operating Margin has been stable in the last couple of years.
- Looking at the Gross Margin, with a value of 49.12%, 2KD is in line with its industry, outperforming 57.33% of the companies in the same industry.
- 2KD'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 2KD is destroying value.
- 2KD has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
- Based on the Altman-Z score of 1.16, we must say that 2KD is in the distress zone and has some risk of bankruptcy.
- 2KD's Altman-Z score of 1.16 is on the low side compared to the rest of the industry. 2KD is outperformed by 73.33% of its industry peers.
- 2KD has a debt to FCF ratio of 15.03. This is a negative value and a sign of low solvency as 2KD would need 15.03 years to pay back of all of its debts.
- 2KD has a Debt to FCF ratio of 15.03. This is in the lower half of the industry: 2KD underperforms 65.33% of its industry peers.
- A Debt/Equity ratio of 1.02 is on the high side and indicates that 2KD has dependencies on debt financing.
- 2KD has a Debt to Equity ratio of 1.02. This is in the lower half of the industry: 2KD underperforms 73.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.02 | ||
| Debt/FCF | 15.03 | ||
| Altman-Z | 1.16 |
ROIC/WACC0.64
WACC8.15%
2.3 Liquidity
- 2KD has a Current Ratio of 0.63. This is a bad value and indicates that 2KD is not financially healthy enough and could expect problems in meeting its short term obligations.
- With a Current ratio value of 0.63, 2KD is not doing good in the industry: 89.33% of the companies in the same industry are doing better.
- A Quick Ratio of 0.49 indicates that 2KD may have some problems paying its short term obligations.
- Looking at the Quick ratio, with a value of 0.49, 2KD is doing worse than 94.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.63 | ||
| Quick Ratio | 0.49 |
3. Growth
3.1 Past
- 2KD shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 12.07%, which is quite good.
- The Earnings Per Share has been growing slightly by 7.87% on average over the past years.
EPS 1Y (TTM)12.07%
EPS 3Y4.17%
EPS 5Y7.87%
EPS Q2Q%21.88%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%13.07%
3.2 Future
- Based on estimates for the next years, 2KD will show a small growth in Earnings Per Share. The EPS will grow by 7.58% on average per year.
- The Revenue is expected to grow by 5.80% on average over the next years.
EPS Next Y6.62%
EPS Next 2Y7.42%
EPS Next 3Y5.93%
EPS Next 5Y7.58%
Revenue Next Year4.57%
Revenue Next 2Y5.12%
Revenue Next 3Y5.1%
Revenue Next 5Y5.8%
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 stable.
4. Valuation
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 22.86, which indicates a rather expensive current valuation of 2KD.
- 60.00% of the companies in the same industry are cheaper than 2KD, based on the Price/Earnings ratio.
- When comparing the Price/Earnings ratio of 2KD to the average of the S&P500 Index (27.21), we can say 2KD is valued inline with the index average.
- The Price/Forward Earnings ratio is 21.50, which indicates a rather expensive current valuation of 2KD.
- 65.33% of the companies in the same industry are cheaper than 2KD, based on the Price/Forward Earnings ratio.
- 2KD is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 25.98, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.86 | ||
| Fwd PE | 21.5 |
4.2 Price Multiples
- 77.33% of the companies in the same industry are cheaper than 2KD, based on the Enterprise Value to EBITDA ratio.
- Based on the Price/Free Cash Flow ratio, 2KD is valued a bit more expensive than 68.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 30.59 | ||
| EV/EBITDA | 14.16 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates 2KD does not grow enough to justify the current Price/Earnings ratio.
PEG (NY)3.46
PEG (5Y)2.9
EPS Next 2Y7.42%
EPS Next 3Y5.93%
5. Dividend
5.1 Amount
- 2KD has a Yearly Dividend Yield of 3.94%.
- 2KD's Dividend Yield is comparable with the industry average which is at 5.24.
- 2KD's Dividend Yield is rather good when compared to the S&P500 average which is at 1.81.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.94% |
5.2 History
- The dividend of 2KD has a limited annual growth rate of 3.80%.
Dividend Growth(5Y)3.8%
Div Incr YearsN/A
Div Non Decr YearsN/A
5.3 Sustainability
- 95.47% of the earnings are spent on dividend by 2KD. This is not a sustainable payout ratio.
- The dividend of 2KD is growing, but earnings are growing more, so the dividend growth is sustainable.
DP95.47%
EPS Next 2Y7.42%
EPS Next 3Y5.93%
KINDER MORGAN INC / 2KD.DE FAQ
Can you provide the ChartMill fundamental rating for KINDER MORGAN INC?
ChartMill assigns a fundamental rating of 3 / 10 to 2KD.DE.
What is the valuation status of KINDER MORGAN INC (2KD.DE) stock?
ChartMill assigns a valuation rating of 1 / 10 to KINDER MORGAN INC (2KD.DE). This can be considered as Overvalued.
What is the profitability of 2KD stock?
KINDER MORGAN INC (2KD.DE) has a profitability rating of 5 / 10.
Can you provide the financial health for 2KD stock?
The financial health rating of KINDER MORGAN INC (2KD.DE) is 1 / 10.
Can you provide the dividend sustainability for 2KD stock?
The dividend rating of KINDER MORGAN INC (2KD.DE) is 6 / 10 and the dividend payout ratio is 95.47%.