KINDER MORGAN INC (KMI) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:KMI - US49456B1017 - Common Stock
27 USD
+0.18 (+0.67%)
26.99 USD
-0.01 (-0.04%)
Taking everything into account, KMI scores 4 out of 10 in our fundamental rating. KMI was compared to 208 industry peers in the Oil, Gas & Consumable Fuels industry. There are concerns on the financial health of KMI while its profitability can be described as average. While showing a medium growth rate, KMI is valued expensive at the moment. Finally KMI also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
KMI had positive earnings in the past year.
In the past year KMI had a positive cash flow from operations.
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 (3.75%) which is in line with its industry peers.
Looking at the Return On Equity, with a value of 8.83%, KMI is in line with its industry, outperforming 58.65% of the companies in the same industry.
KMI has a Return On Invested Capital (5.23%) which is in line with its industry peers.
The Average Return On Invested Capital over the past 3 years for KMI is significantly below the industry average of 21.28%.
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
With a decent Profit Margin value of 16.54%, KMI is doing good in the industry, outperforming 68.75% 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 68.75% of its industry peers.
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 the better half of the industry, outperforming 60.10% of the companies in the same industry.
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
KMI has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it 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
The debt/assets ratio for KMI has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.07, we must say that KMI is in the distress zone and has some risk of bankruptcy.
KMI has a Altman-Z score of 1.07. This is comparable to the rest of the industry: KMI outperforms 48.08% of its industry peers.
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.
KMI has a Debt to FCF ratio of 15.03. This is comparable to the rest of the industry: KMI outperforms 49.52% of its industry peers.
A Debt/Equity ratio of 1.02 is on the high side and indicates that KMI has dependencies on debt financing.
KMI's Debt to Equity ratio of 1.02 is on the low side compared to the rest of the industry. KMI is outperformed by 68.27% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.02 | ||
| Debt/FCF | 15.03 | ||
| Altman-Z | 1.07 |
ROIC/WACC0.65
WACC8.06%
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 75.96% of the companies in the same industry.
KMI has a Quick Ratio of 0.63. 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 has a Quick ratio of 0.49. This is amonst the worse of the industry: KMI underperforms 83.17% 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 9.82% over the past year.
KMI shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 4.08% yearly.
KMI shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 8.35%.
The Revenue has been growing slightly by 2.71% on average over the past years.
EPS 1Y (TTM)9.82%
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
KMI is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.01% yearly.
KMI is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.84% yearly.
EPS Next Y12.17%
EPS Next 2Y9.37%
EPS Next 3Y9.09%
EPS Next 5Y8.01%
Revenue Next Year8.22%
Revenue Next 2Y6.49%
Revenue Next 3Y6.37%
Revenue Next 5Y5.84%
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 21.95 indicates a rather expensive valuation of KMI.
KMI's Price/Earnings is on the same level as the industry average.
When comparing the Price/Earnings ratio of KMI to the average of the S&P500 Index (26.92), we can say KMI is valued inline with the index average.
With a Price/Forward Earnings ratio of 19.46, KMI is valued on the expensive side.
Compared to the rest of the industry, the Price/Forward Earnings ratio of KMI is on the same level as its industry peers.
The average S&P500 Price/Forward Earnings ratio is at 23.57. KMI is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.95 | ||
| Fwd PE | 19.46 |
4.2 Price Multiples
KMI's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. KMI is more expensive than 64.90% of the companies in the same industry.
KMI's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 27.72 | ||
| EV/EBITDA | 13.22 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of KMI may justify a higher PE ratio.
PEG (NY)1.8
PEG (5Y)5.39
EPS Next 2Y9.37%
EPS Next 3Y9.09%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.26%, KMI is a good candidate for dividend investing.
KMI's Dividend Yield is a higher than the industry average which is at 3.96.
KMI's Dividend Yield is rather good when compared to the S&P500 average which is at 1.94.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.26% |
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.
KMI has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.
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 2Y9.37%
EPS Next 3Y9.09%
27
+0.18 (+0.67%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners68.74%
Inst Owner Change0%
Ins Owners12.78%
Ins Owner Change0.57%
Market Cap60.07B
Revenue(TTM)16.42B
Net Income(TTM)2.71B
Analysts77.04
Price Target31.76 (17.63%)
Short Float %1.76%
Short Ratio2.45
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.26% |
Yearly Dividend1.15
Dividend Growth(5Y)3.8%
DP95.47%
Div Incr Years7
Div Non Decr Years8
Ex-DateN/A
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)-3.76%
EPS beat(12)2
Avg EPS beat(12)-2.53%
EPS beat(16)4
Avg EPS beat(16)-1.97%
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)-0.16%
PT rev (3m)-0.52%
EPS NQ rev (1m)0.19%
EPS NQ rev (3m)-0.01%
EPS NY rev (1m)0.17%
EPS NY rev (3m)-0.15%
Revenue NQ rev (1m)-0.02%
Revenue NQ rev (3m)-0.55%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)0.71%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.95 | ||
| Fwd PE | 19.46 | ||
| P/S | 3.66 | ||
| P/FCF | 27.72 | ||
| P/OCF | 10.47 | ||
| P/B | 1.95 | ||
| P/tB | 6.76 | ||
| EV/EBITDA | 13.22 |
EPS(TTM)1.23
EY4.56%
EPS(NY)1.39
Fwd EY5.14%
FCF(TTM)0.97
FCFY3.61%
OCF(TTM)2.58
OCFY9.55%
SpS7.38
BVpS13.82
TBVpS3.99
PEG (NY)1.8
PEG (5Y)5.39
Graham Number19.55
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
WACC8.06%
ROIC/WACC0.65
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)9.82%
EPS 3Y-4.22%
EPS 5Y4.08%
EPS Q2Q%16%
EPS Next Y12.17%
EPS Next 2Y9.37%
EPS Next 3Y9.09%
EPS Next 5Y8.01%
Revenue 1Y (TTM)8.35%
Revenue growth 3Y-3.13%
Revenue growth 5Y2.71%
Sales Q2Q%12.08%
Revenue Next Year8.22%
Revenue Next 2Y6.49%
Revenue Next 3Y6.37%
Revenue Next 5Y5.84%
EBIT growth 1Y5.63%
EBIT growth 3Y0.38%
EBIT growth 5Y2.18%
EBIT Next Year69.56%
EBIT Next 3Y22.68%
EBIT Next 5Y15.05%
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 of KINDER MORGAN INC (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 6 / 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 21.95 and the Price/Book (PB) ratio is 1.95.
What is the financial health of KINDER MORGAN INC (KMI) stock?
The financial health rating of KINDER MORGAN INC (KMI) is 2 / 10.