KINDER MORGAN INC (KMI) Stock Fundamental Analysis
USA - NYSE:KMI - US49456B1017 - Common Stock
27.56 USD
+0.06 (+0.22%)
27.59 USD
+0.03 (+0.11%)
Overall KMI gets a fundamental rating of 4 out of 10. We evaluated KMI against 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. 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.
KMI had positive earnings in each of the past 5 years.
Each year in the past 5 years KMI had a positive operating cash flow.
1.2 Ratios
The Return On Assets of KMI (3.75%) is comparable to the rest of the industry.
KMI has a Return On Equity (8.81%) which is in line with its industry peers.
With a Return On Invested Capital value of 5.15%, KMI perfoms like the industry average, outperforming 46.45% 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 21.53%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.75% | ||
| ROE | 8.81% | ||
| ROIC | 5.15% |
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 16.98%. This is in the better half of the industry: KMI outperforms 70.62% 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 28.16%, KMI is doing good in the industry, outperforming 68.25% of the companies in the same industry.
KMI's Operating Margin has been stable in the last couple of years.
KMI has a Gross Margin of 50.00%. This is comparable to the rest of the industry: KMI outperforms 59.72% of its industry peers.
In the last couple of years the Gross Margin of KMI has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 28.16% | ||
| PM (TTM) | 16.98% | ||
| GM | 50% |
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.
KMI has about the same amout of shares outstanding than it did 1 year ago.
Compared to 5 years ago, KMI has less shares outstanding
Compared to 1 year ago, KMI has an improved debt to assets ratio.
2.2 Solvency
The Debt to FCF ratio of KMI is 15.28, which is on the high side as it means it would take KMI, 15.28 years of fcf income to pay off all of its debts.
KMI has a Debt to FCF ratio (15.28) which is comparable to the rest of the industry.
KMI has a Debt/Equity ratio of 1.04. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 1.04, KMI is not doing good in the industry: 69.67% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.04 | ||
| Debt/FCF | 15.28 | ||
| Altman-Z | N/A |
ROIC/WACC0.64
WACC8.01%
2.3 Liquidity
KMI has a Current Ratio of 0.68. This is a bad value and indicates that KMI is not financially healthy enough and could expect problems in meeting its short term obligations.
KMI's Current ratio of 0.68 is on the low side compared to the rest of the industry. KMI is outperformed by 77.73% of its industry peers.
A Quick Ratio of 0.68 indicates that KMI may have some problems paying its short term obligations.
KMI has a Quick ratio of 0.68. This is in the lower half of the industry: KMI underperforms 70.62% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.68 | ||
| Quick Ratio | 0.68 |
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 decreased by -1.53% in the past 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)10.81%
EPS 3Y-4.22%
EPS 5Y4.08%
EPS Q2Q%16%
Revenue 1Y (TTM)-1.53%
Revenue growth 3Y-3.13%
Revenue growth 5Y2.71%
Sales Q2Q%12.08%
3.2 Future
KMI is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.60% yearly.
Based on estimates for the next years, KMI will show a small growth in Revenue. The Revenue will grow by 6.53% on average per year.
EPS Next Y11.97%
EPS Next 2Y8.68%
EPS Next 3Y8.72%
EPS Next 5Y8.6%
Revenue Next Year7.55%
Revenue Next 2Y6.32%
Revenue Next 3Y6.36%
Revenue Next 5Y6.53%
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
KMI is valuated rather expensively with a Price/Earnings ratio of 22.41.
KMI's Price/Earnings is on the same level as the industry average.
KMI is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.57, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 20.12, the valuation of KMI can be described as rather expensive.
KMI's Price/Forward Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.09, KMI is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.41 | ||
| Fwd PE | 20.12 |
4.2 Price Multiples
62.56% 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 | 28.64 | ||
| EV/EBITDA | 13.58 |
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)1.87
PEG (5Y)5.5
EPS Next 2Y8.68%
EPS Next 3Y8.72%
5. Dividend
5.1 Amount
KMI has a Yearly Dividend Yield of 4.25%, which is a nice return.
Compared to an average industry Dividend Yield of 6.30, KMI pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.32, KMI pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.25% |
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
95.17% of the earnings are spent on dividend by KMI. This is not a sustainable payout ratio.
The dividend of KMI is growing, but earnings are growing more, so the dividend growth is sustainable.
DP95.17%
EPS Next 2Y8.68%
EPS Next 3Y8.72%
27.56
+0.06 (+0.22%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners68.14%
Inst Owner Change-0.28%
Ins Owners12.75%
Ins Owner Change0.21%
Market Cap61.24B
Revenue(TTM)15.10B
Net Income(TTM)2.71B
Analysts78.46
Price Target31.92 (15.82%)
Short Float %1.91%
Short Ratio2.59
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.25% |
Yearly Dividend1.15
Dividend Growth(5Y)3.8%
DP95.17%
Div Incr Years7
Div Non Decr Years8
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-2.26%
Min EPS beat(2)-4.12%
Max EPS beat(2)-0.4%
EPS beat(4)0
Avg EPS beat(4)-4.38%
Min EPS beat(4)-8.01%
Max EPS beat(4)-0.4%
EPS beat(8)0
Avg EPS beat(8)-4.44%
EPS beat(12)2
Avg EPS beat(12)-3.79%
EPS beat(16)4
Avg EPS beat(16)-2.65%
Revenue beat(2)2
Avg Revenue beat(2)3.77%
Min Revenue beat(2)3.01%
Max Revenue beat(2)4.53%
Revenue beat(4)2
Avg Revenue beat(4)-1.74%
Min Revenue beat(4)-7.85%
Max Revenue beat(4)4.53%
Revenue beat(8)2
Avg Revenue beat(8)-7.85%
Revenue beat(12)3
Avg Revenue beat(12)-8.56%
Revenue beat(16)7
Avg Revenue beat(16)-0.98%
PT rev (1m)-0.06%
PT rev (3m)0.48%
EPS NQ rev (1m)-0.21%
EPS NQ rev (3m)-3.53%
EPS NY rev (1m)0.77%
EPS NY rev (3m)0.62%
Revenue NQ rev (1m)0.1%
Revenue NQ rev (3m)0.86%
Revenue NY rev (1m)0.09%
Revenue NY rev (3m)0.34%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.41 | ||
| Fwd PE | 20.12 | ||
| P/S | 3.83 | ||
| P/FCF | 28.64 | ||
| P/OCF | 10.99 | ||
| P/B | 1.99 | ||
| P/tB | 5.73 | ||
| EV/EBITDA | 13.58 |
EPS(TTM)1.23
EY4.46%
EPS(NY)1.37
Fwd EY4.97%
FCF(TTM)0.96
FCFY3.49%
OCF(TTM)2.51
OCFY9.1%
SpS7.19
BVpS13.85
TBVpS4.81
PEG (NY)1.87
PEG (5Y)5.5
Graham Number19.58
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.75% | ||
| ROE | 8.81% | ||
| ROCE | 6.54% | ||
| ROIC | 5.15% | ||
| ROICexc | 5.16% | ||
| ROICexgc | 7.29% | ||
| OM | 28.16% | ||
| PM (TTM) | 16.98% | ||
| GM | 50% | ||
| FCFM | 13.39% |
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-Score7
Asset Turnover0.22
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.04 | ||
| Debt/FCF | 15.28 | ||
| Debt/EBITDA | 4.61 | ||
| Cap/Depr | 142.47% | ||
| Cap/Sales | 21.49% | ||
| Interest Coverage | 2.46 | ||
| Cash Conversion | 80.65% | ||
| Profit Quality | 78.83% | ||
| Current Ratio | 0.68 | ||
| Quick Ratio | 0.68 | ||
| Altman-Z | N/A |
F-Score7
WACC8.01%
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 Y11.97%
EPS Next 2Y8.68%
EPS Next 3Y8.72%
EPS Next 5Y8.6%
Revenue 1Y (TTM)-1.53%
Revenue growth 3Y-3.13%
Revenue growth 5Y2.71%
Sales Q2Q%12.08%
Revenue Next Year7.55%
Revenue Next 2Y6.32%
Revenue Next 3Y6.36%
Revenue Next 5Y6.53%
EBIT growth 1Y6.54%
EBIT growth 3Y0.38%
EBIT growth 5Y2.18%
EBIT Next Year69.76%
EBIT Next 3Y22.55%
EBIT Next 5Y15.21%
FCF growth 1Y-35.29%
FCF growth 3Y-12.11%
FCF growth 5Y3.94%
OCF growth 1Y7.07%
OCF growth 3Y-0.43%
OCF growth 5Y3.48%