KINDER MORGAN INC (KMI) Stock Fundamental Analysis
NYSE:KMI - New York Stock Exchange, Inc. - US49456B1017 - Common Stock - Currency: USD
We assign a fundamental rating of 4 out of 10 to KMI. KMI was compared to 213 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 quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year KMI was profitable.
KMI had a positive operating cash flow in the past year.
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 (3.55%) which is in line with its industry peers.
Looking at the Return On Equity, with a value of 8.39%, KMI is in line with its industry, outperforming 51.64% of the companies in the same industry.
The Return On Invested Capital of KMI (5.13%) is comparable to the rest of the industry.
KMI had an Average Return On Invested Capital over the past 3 years of 5.16%. This is significantly below the industry average of 25.88%.
| 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 67.61% of its industry peers.
KMI's Profit Margin has been stable in the last couple of years.
KMI has a better Operating Margin (27.99%) than 64.32% of its industry peers.
KMI's Operating Margin has been stable in the last couple of years.
KMI has a Gross Margin (50.26%) which is in line with its industry peers.
In the last couple of years the Gross Margin of KMI has declined.
| 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
KMI has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it 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.
KMI has a better debt/assets ratio than last year.
2.2 Solvency
KMI has an Altman-Z score of 1.05. This is a bad value and indicates that KMI is not financially healthy and even has some risk of bankruptcy.
KMI has a Altman-Z score of 1.05. This is comparable to the rest of the industry: KMI outperforms 46.01% 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.
Looking at the Debt to FCF ratio, with a value of 15.11, KMI is in line with its industry, outperforming 46.95% of the companies in the same industry.
A Debt/Equity ratio of 0.98 indicates that KMI is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.98, KMI is not doing good in the industry: 69.48% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.98 | ||
| Debt/FCF | 15.11 | ||
| Altman-Z | 1.05 |
ROIC/WACC0.52
WACC9.93%
2.3 Liquidity
A Current Ratio of 0.45 indicates that KMI may have some problems paying its short term obligations.
KMI has a Current ratio of 0.45. This is amonst the worse of the industry: KMI underperforms 86.39% 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 89.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.45 | ||
| Quick Ratio | 0.35 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 5.45% 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.
Looking at the last year, KMI shows a small growth in Revenue. The Revenue has grown by 1.38% in the last year.
The Revenue has been growing slightly by 2.71% on average over the past years.
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 8.66% yearly.
Based on estimates for the next years, KMI will show a small growth in Revenue. The Revenue will grow by 6.64% on average per year.
EPS Next Y11.02%
EPS Next 2Y8.54%
EPS Next 3Y8.08%
EPS Next 5Y8.66%
Revenue Next Year5.86%
Revenue Next 2Y4.96%
Revenue Next 3Y4.59%
Revenue Next 5Y6.64%
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
With a Price/Earnings ratio of 24.12, KMI is valued on the expensive side.
Compared to the rest of the industry, the Price/Earnings ratio of KMI is on the same level as its industry peers.
When comparing the Price/Earnings ratio of KMI to the average of the S&P500 Index (26.60), we can say KMI is valued inline with the index average.
A Price/Forward Earnings ratio of 20.48 indicates a rather expensive 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 at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 22.43, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.12 | ||
| Fwd PE | 20.48 |
4.2 Price Multiples
63.85% of the companies in the same industry are cheaper than KMI, based on the Enterprise Value to EBITDA ratio.
KMI's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 28.47 | ||
| EV/EBITDA | 14.17 |
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)2.19
PEG (5Y)5.92
EPS Next 2Y8.54%
EPS Next 3Y8.08%
5. Dividend
5.1 Amount
KMI has a Yearly Dividend Yield of 4.18%, which is a nice return.
KMI's Dividend Yield is comparable with the industry average which is at 7.05.
KMI's Dividend Yield is rather good when compared to the S&P500 average which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.18% |
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
99.96% 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.
DP99.96%
EPS Next 2Y8.54%
EPS Next 3Y8.08%
27.98
-0.02 (-0.07%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners67.49%
Inst Owner Change-0.31%
Ins Owners12.8%
Ins Owner Change0.04%
Market Cap62.17B
Analysts76
Price Target31.26 (11.72%)
Short Float %1.95%
Short Ratio2.68
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.18% |
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)-0.62%
PT rev (3m)0.66%
EPS NQ rev (1m)0.72%
EPS NQ rev (3m)2.19%
EPS NY rev (1m)0.04%
EPS NY rev (3m)-0.38%
Revenue NQ rev (1m)-1%
Revenue NQ rev (3m)0.43%
Revenue NY rev (1m)-0.82%
Revenue NY rev (3m)-4.51%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.12 | ||
| Fwd PE | 20.48 | ||
| P/S | 4.01 | ||
| P/FCF | 28.47 | ||
| P/OCF | 11.09 | ||
| P/B | 2.03 | ||
| P/tB | 7.19 | ||
| EV/EBITDA | 14.17 |
EPS(TTM)1.16
EY4.15%
EPS(NY)1.37
Fwd EY4.88%
FCF(TTM)0.98
FCFY3.51%
OCF(TTM)2.52
OCFY9.02%
SpS6.98
BVpS13.77
TBVpS3.89
PEG (NY)2.19
PEG (5Y)5.92
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 | 1.05 |
F-Score6
WACC9.93%
ROIC/WACC0.52
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 Y11.02%
EPS Next 2Y8.54%
EPS Next 3Y8.08%
EPS Next 5Y8.66%
Revenue 1Y (TTM)1.38%
Revenue growth 3Y-3.13%
Revenue growth 5Y2.71%
Sales Q2Q%10.39%
Revenue Next Year5.86%
Revenue Next 2Y4.96%
Revenue Next 3Y4.59%
Revenue Next 5Y6.64%
EBIT growth 1Y2.19%
EBIT growth 3Y0.38%
EBIT growth 5Y2.18%
EBIT Next Year69.86%
EBIT Next 3Y22.49%
EBIT Next 5Y15.36%
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%