KINDER MORGAN INC (KMI) Stock Fundamental Analysis
USA - NYSE:KMI - US49456B1017 - Common Stock
27.14 USD
-0.28 (-1.02%)
27.013 USD
-0.13 (-0.47%)
Taking everything into account, KMI scores 4 out of 10 in our fundamental rating. 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. While showing a medium growth rate, KMI is valued expensive at the moment. KMI also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
KMI had positive earnings in the past year.
KMI had a positive operating cash flow in the past year.
In the past 5 years KMI has always been profitable.
Each year in the past 5 years KMI had a positive operating cash flow.
1.2 Ratios
KMI has a Return On Assets (3.75%) which is comparable to the rest of the industry.
KMI's Return On Equity of 8.83% is in line compared to the rest of the industry. KMI outperforms 58.10% of its industry peers.
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.
The Average Return On Invested Capital over the past 3 years for KMI is significantly below the industry average of 21.72%.
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
KMI's Profit Margin of 16.54% is fine compared to the rest of the industry. KMI outperforms 68.10% of its industry peers.
KMI's Profit Margin has been stable in the last couple of years.
With a decent Operating Margin value of 27.68%, KMI is doing good in the industry, outperforming 67.14% 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 Gross Margin value of 49.12%, KMI perfoms like the industry average, outperforming 59.52% 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.
The number of shares outstanding for KMI remains at a similar level compared to 1 year ago.
The number of shares outstanding for KMI has been reduced compared to 5 years ago.
The debt/assets ratio for KMI has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.09, 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.
KMI has a Debt to FCF ratio (15.03) which 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.
KMI has a Debt to Equity ratio of 1.02. This is in the lower half of the industry: KMI underperforms 69.52% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.02 | ||
| Debt/FCF | 15.03 | ||
| Altman-Z | 1.09 |
ROIC/WACC0.63
WACC8.29%
2.3 Liquidity
A Current Ratio of 0.63 indicates that KMI may have some problems paying its short term obligations.
The Current ratio of KMI (0.63) is worse 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.
With a Quick ratio value of 0.49, KMI is not doing good in the industry: 85.24% of the companies in the same industry are doing better.
| 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.
KMI shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 8.35%.
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 8.33% 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.
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 22.07.
Compared to the rest of the industry, the Price/Earnings ratio of KMI is on the same level as its industry peers.
The average S&P500 Price/Earnings ratio is at 25.89. KMI is around the same levels.
The Price/Forward Earnings ratio is 19.64, which indicates a rather expensive current valuation of KMI.
KMI's Price/Forward Earnings is on the same level as the industry average.
The average S&P500 Price/Forward Earnings ratio is at 34.59. KMI is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.07 | ||
| Fwd PE | 19.64 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, KMI is valued a bit more expensive than 63.81% 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 | 27.83 | ||
| EV/EBITDA | 13.4 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates KMI does not grow enough to justify the current Price/Earnings ratio.
PEG (NY)1.81
PEG (5Y)5.41
EPS Next 2Y9.15%
EPS Next 3Y8.61%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.35%, KMI is a good candidate for dividend investing.
KMI's Dividend Yield is a higher than the industry average which is at 5.87.
KMI's Dividend Yield is rather good when compared to the S&P500 average which is at 2.44.
| 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 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
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%
27.14
-0.28 (-1.02%)
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 Cap60.31B
Revenue(TTM)16.42B
Net Income(TTM)2.71B
Analysts77.04
Price Target31.71 (16.84%)
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 | 22.07 | ||
| Fwd PE | 19.64 | ||
| P/S | 3.67 | ||
| P/FCF | 27.83 | ||
| P/OCF | 10.52 | ||
| P/B | 1.96 | ||
| P/tB | 6.79 | ||
| EV/EBITDA | 13.4 |
EPS(TTM)1.23
EY4.53%
EPS(NY)1.38
Fwd EY5.09%
FCF(TTM)0.98
FCFY3.59%
OCF(TTM)2.58
OCFY9.51%
SpS7.39
BVpS13.83
TBVpS4
PEG (NY)1.81
PEG (5Y)5.41
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
WACC8.29%
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 22.07 and the Price/Book (PB) ratio is 1.96.
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%.