KINDER MORGAN INC (KMI) Stock Fundamental Analysis
NYSE:KMI - New York Stock Exchange, Inc. - US49456B1017 - Common Stock - Currency: USD
KMI gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 210 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. 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.
In the past year KMI had a positive cash flow from operations.
KMI had positive earnings in each of the past 5 years.
KMI had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
KMI has a Return On Assets (3.55%) which is comparable to the rest of the industry.
KMI has a Return On Equity of 8.39%. This is comparable to the rest of the industry: KMI outperforms 52.86% of its industry peers.
KMI's Return On Invested Capital of 5.13% is in line compared to the rest of the industry. KMI outperforms 42.86% of its industry peers.
The Average Return On Invested Capital over the past 3 years for KMI is significantly below the industry average of 23.80%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.55% | ||
| ROE | 8.39% | ||
| ROIC | 5.13% |
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 16.58% is fine compared to the rest of the industry. KMI outperforms 67.14% of its industry peers.
KMI's Profit Margin has been stable in the last couple of years.
With a decent Operating Margin value of 27.99%, KMI is doing good in the industry, outperforming 66.67% 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.
KMI's Gross Margin of 50.26% is in line compared to the rest of the industry. KMI outperforms 59.05% of its industry peers.
KMI's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 27.99% | ||
| PM (TTM) | 16.58% | ||
| GM | 50.26% |
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.
KMI has about the same amout of shares outstanding than it did 1 year ago.
KMI has less shares outstanding than it did 5 years ago.
KMI has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.04, we must say that KMI is in the distress zone and has some risk of bankruptcy.
KMI's Altman-Z score of 1.04 is in line compared to the rest of the industry. KMI outperforms 44.76% of its industry peers.
KMI has a debt to FCF ratio of 15.11. This is a negative value and a sign of low solvency as KMI would need 15.11 years to pay back of all of its debts.
KMI has a Debt to FCF ratio of 15.11. This is comparable to the rest of the industry: KMI outperforms 46.67% of its industry peers.
KMI has a Debt/Equity ratio of 0.98. This is a neutral value indicating KMI is somewhat dependend on debt financing.
KMI's Debt to Equity ratio of 0.98 is on the low side compared to the rest of the industry. KMI is outperformed by 68.10% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.98 | ||
| Debt/FCF | 15.11 | ||
| Altman-Z | 1.04 |
ROIC/WACC0.57
WACC8.95%
2.3 Liquidity
KMI has a Current Ratio of 0.45. 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 Current ratio of 0.45. This is amonst the worse of the industry: KMI underperforms 87.62% of its industry peers.
KMI has a Quick Ratio of 0.45. This is a bad value and indicates that KMI is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of KMI (0.35) is worse than 91.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.45 | ||
| Quick Ratio | 0.35 |
3. Growth
3.1 Past
KMI shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 5.45%.
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.
Looking at the last year, KMI shows a small growth in Revenue. The Revenue has grown by 1.38% in the last 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)5.45%
EPS 3Y-4.22%
EPS 5Y4.08%
EPS Q2Q%0%
Revenue 1Y (TTM)1.38%
Revenue growth 3Y-3.13%
Revenue growth 5Y2.71%
Sales Q2Q%10.39%
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 9.40% yearly.
KMI is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.58% yearly.
EPS Next Y11.65%
EPS Next 2Y9.32%
EPS Next 3Y9.03%
EPS Next 5Y9.4%
Revenue Next Year7.09%
Revenue Next 2Y6.63%
Revenue Next 3Y6.74%
Revenue Next 5Y4.58%
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
The Price/Earnings ratio is 24.41, which indicates a rather expensive current valuation of KMI.
The rest of the industry has a similar Price/Earnings ratio as KMI.
KMI is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.52, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 20.43, which indicates a rather expensive current valuation of KMI.
Compared to the rest of the industry, the Price/Forward Earnings ratio of KMI is on the same level as its industry peers.
KMI is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 35.58, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.41 | ||
| Fwd PE | 20.43 |
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 | 28.81 | ||
| EV/EBITDA | 14.12 |
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)2.1
PEG (5Y)5.99
EPS Next 2Y9.32%
EPS Next 3Y9.03%
5. Dividend
5.1 Amount
KMI has a Yearly Dividend Yield of 4.21%, which is a nice return.
KMI's Dividend Yield is a higher than the industry average which is at 6.41.
Compared to an average S&P500 Dividend Yield of 2.35, KMI pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.21% |
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.
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
99.96% 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.
DP99.96%
EPS Next 2Y9.32%
EPS Next 3Y9.03%
28.32
+0.48 (+1.72%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners67.27%
Inst Owner Change0.02%
Ins Owners12.72%
Ins Owner Change0.05%
Market Cap62.93B
Analysts76.67
Price Target31.51 (11.26%)
Short Float %2.05%
Short Ratio2.99
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.21% |
Yearly Dividend1.15
Dividend Growth(5Y)3.8%
DP99.96%
Div Incr Years7
Div Non Decr Years8
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-4.55%
Min EPS beat(2)-4.98%
Max EPS beat(2)-4.12%
EPS beat(4)0
Avg EPS beat(4)-5.1%
Min EPS beat(4)-8.01%
Max EPS beat(4)-3.28%
EPS beat(8)0
Avg EPS beat(8)-4.5%
EPS beat(12)2
Avg EPS beat(12)-3.94%
EPS beat(16)5
Avg EPS beat(16)-1.51%
Revenue beat(2)1
Avg Revenue beat(2)-1.81%
Min Revenue beat(2)-6.63%
Max Revenue beat(2)3.01%
Revenue beat(4)1
Avg Revenue beat(4)-6.44%
Min Revenue beat(4)-14.28%
Max Revenue beat(4)3.01%
Revenue beat(8)1
Avg Revenue beat(8)-11.4%
Revenue beat(12)3
Avg Revenue beat(12)-6.35%
Revenue beat(16)7
Avg Revenue beat(16)-0.83%
PT rev (1m)0.87%
PT rev (3m)0.17%
EPS NQ rev (1m)2.05%
EPS NQ rev (3m)3.4%
EPS NY rev (1m)0.56%
EPS NY rev (3m)0.03%
Revenue NQ rev (1m)2.11%
Revenue NQ rev (3m)1.5%
Revenue NY rev (1m)1.16%
Revenue NY rev (3m)0.33%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.41 | ||
| Fwd PE | 20.43 | ||
| P/S | 4.06 | ||
| P/FCF | 28.81 | ||
| P/OCF | 11.22 | ||
| P/B | 2.06 | ||
| P/tB | 7.27 | ||
| EV/EBITDA | 14.12 |
EPS(TTM)1.16
EY4.1%
EPS(NY)1.39
Fwd EY4.89%
FCF(TTM)0.98
FCFY3.47%
OCF(TTM)2.52
OCFY8.91%
SpS6.98
BVpS13.77
TBVpS3.89
PEG (NY)2.1
PEG (5Y)5.99
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.55% | ||
| ROE | 8.39% | ||
| ROCE | 6.52% | ||
| ROIC | 5.13% | ||
| ROICexc | 5.14% | ||
| ROICexgc | 7.68% | ||
| OM | 27.99% | ||
| PM (TTM) | 16.58% | ||
| GM | 50.26% | ||
| FCFM | 14.09% |
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)7.78%
ROICexgc(5y)7.56%
ROCE(3y)6.55%
ROCE(5y)6.32%
ROICexcg growth 3Y-2.82%
ROICexcg growth 5Y1.13%
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 Turnover0.21
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.98 | ||
| Debt/FCF | 15.11 | ||
| Debt/EBITDA | 4.46 | ||
| Cap/Depr | 144.05% | ||
| Cap/Sales | 22.09% | ||
| Interest Coverage | 2.32 | ||
| Cash Conversion | 83.51% | ||
| Profit Quality | 85.01% | ||
| Current Ratio | 0.45 | ||
| Quick Ratio | 0.35 | ||
| Altman-Z | 1.04 |
F-Score6
WACC8.95%
ROIC/WACC0.57
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)5.45%
EPS 3Y-4.22%
EPS 5Y4.08%
EPS Q2Q%0%
EPS Next Y11.65%
EPS Next 2Y9.32%
EPS Next 3Y9.03%
EPS Next 5Y9.4%
Revenue 1Y (TTM)1.38%
Revenue growth 3Y-3.13%
Revenue growth 5Y2.71%
Sales Q2Q%10.39%
Revenue Next Year7.09%
Revenue Next 2Y6.63%
Revenue Next 3Y6.74%
Revenue Next 5Y4.58%
EBIT growth 1Y2.19%
EBIT growth 3Y0.38%
EBIT growth 5Y2.18%
EBIT Next Year69.64%
EBIT Next 3Y22.13%
EBIT Next 5Y15.4%
FCF growth 1Y-37.51%
FCF growth 3Y-12.11%
FCF growth 5Y3.94%
OCF growth 1Y7.52%
OCF growth 3Y-0.43%
OCF growth 5Y3.48%