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 208 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. 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.
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's Return On Assets of 3.75% is in line compared to the rest of the industry. KMI outperforms 52.40% of its industry peers.
Looking at the Return On Equity, with a value of 8.81%, KMI is in line with its industry, outperforming 53.85% of the companies in the same industry.
The Return On Invested Capital of KMI (5.15%) is comparable to the rest of the industry.
The Average Return On Invested Capital over the past 3 years for KMI is significantly below the industry average of 23.63%.
| 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
Looking at the Profit Margin, with a value of 16.98%, KMI is in the better half of the industry, outperforming 68.27% 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 (28.16%) is better than 65.87% of its industry peers.
KMI's Operating Margin has been stable in the last couple of years.
The Gross Margin of KMI (50.00%) is comparable to the rest of the industry.
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
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.
Compared to 1 year ago, KMI has an improved debt to assets ratio.
2.2 Solvency
KMI has a debt to FCF ratio of 15.28. This is a negative value and a sign of low solvency as KMI would need 15.28 years to pay back of all of its debts.
KMI's Debt to FCF ratio of 15.28 is in line compared to the rest of the industry. KMI outperforms 47.12% of its industry peers.
KMI has a Debt/Equity ratio of 1.04. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of KMI (1.04) is worse than 68.27% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.04 | ||
| Debt/FCF | 15.28 | ||
| Altman-Z | N/A |
ROIC/WACC0.59
WACC8.74%
2.3 Liquidity
A Current Ratio of 0.68 indicates that KMI may have some problems paying its short term obligations.
The Current ratio of KMI (0.68) is worse than 78.85% of its industry peers.
A Quick Ratio of 0.68 indicates that KMI may have some problems paying its short term obligations.
With a Quick ratio value of 0.68, KMI is not doing good in the industry: 70.67% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.68 | ||
| Quick Ratio | 0.68 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 7.21% 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 been growing slightly by 3.97% in the past year.
Measured over the past years, KMI shows a small growth in Revenue. The Revenue has been growing by 2.71% on average per year.
EPS 1Y (TTM)7.21%
EPS 3Y-4.22%
EPS 5Y4.08%
EPS Q2Q%12%
Revenue 1Y (TTM)3.97%
Revenue growth 3Y-3.13%
Revenue growth 5Y2.71%
Sales Q2Q%13.16%
3.2 Future
Based on estimates for the next years, KMI will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.40% on average per year.
Based on estimates for the next years, KMI will show a small growth in Revenue. The Revenue will grow by 4.58% on average per year.
EPS Next Y11.65%
EPS Next 2Y9.32%
EPS Next 3Y9.03%
EPS Next 5Y9.4%
Revenue Next Year6.93%
Revenue Next 2Y6.35%
Revenue Next 3Y6.51%
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
KMI is valuated rather expensively with a Price/Earnings ratio of 22.58.
KMI's Price/Earnings is on the same level as the industry average.
The average S&P500 Price/Earnings ratio is at 26.54. KMI is around the same levels.
The Price/Forward Earnings ratio is 19.39, which indicates a rather expensive current valuation of KMI.
KMI's Price/Forward Earnings ratio is in line with the industry average.
The average S&P500 Price/Forward Earnings ratio is at 35.28. KMI is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.58 | ||
| Fwd PE | 19.39 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, KMI is valued a bit more expensive than 63.46% 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 | 27.93 | ||
| EV/EBITDA | 13.33 |
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)1.94
PEG (5Y)5.54
EPS Next 2Y9.32%
EPS Next 3Y9.03%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.17%, KMI is a good candidate for dividend investing.
KMI's Dividend Yield is a higher than the industry average which is at 6.37.
KMI's Dividend Yield is rather good when compared to the S&P500 average which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.17% |
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
KMI pays out 95.17% of its income as dividend. This is not a sustainable payout ratio.
KMI's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP95.17%
EPS Next 2Y9.32%
EPS Next 3Y9.03%
NYSE:KMI (8/8/2025, 12:31:01 PM)
26.875
+0.11 (+0.43%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners67.27%
Inst Owner Change0.26%
Ins Owners12.72%
Ins Owner Change-0.04%
Market Cap59.72B
Analysts76.67
Price Target31.77 (18.21%)
Short Float %1.93%
Short Ratio2.73
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.17% |
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)0.83%
PT rev (3m)1.75%
EPS NQ rev (1m)-1.45%
EPS NQ rev (3m)-1.39%
EPS NY rev (1m)0.72%
EPS NY rev (3m)0.6%
Revenue NQ rev (1m)3.69%
Revenue NQ rev (3m)4.46%
Revenue NY rev (1m)1.12%
Revenue NY rev (3m)0.55%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.58 | ||
| Fwd PE | 19.39 | ||
| P/S | 3.74 | ||
| P/FCF | 27.93 | ||
| P/OCF | 10.72 | ||
| P/B | 1.94 | ||
| P/tB | 5.59 | ||
| EV/EBITDA | 13.33 |
EPS(TTM)1.19
EY4.43%
EPS(NY)1.39
Fwd EY5.16%
FCF(TTM)0.96
FCFY3.58%
OCF(TTM)2.51
OCFY9.33%
SpS7.19
BVpS13.85
TBVpS4.81
PEG (NY)1.94
PEG (5Y)5.54
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%
ROICexcg growth 3Y-1.55%
ROICexcg 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
WACC8.74%
ROIC/WACC0.59
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)7.21%
EPS 3Y-4.22%
EPS 5Y4.08%
EPS Q2Q%12%
EPS Next Y11.65%
EPS Next 2Y9.32%
EPS Next 3Y9.03%
EPS Next 5Y9.4%
Revenue 1Y (TTM)3.97%
Revenue growth 3Y-3.13%
Revenue growth 5Y2.71%
Sales Q2Q%13.16%
Revenue Next Year6.93%
Revenue Next 2Y6.35%
Revenue Next 3Y6.51%
Revenue Next 5Y4.58%
EBIT growth 1Y6.54%
EBIT growth 3Y0.38%
EBIT growth 5Y2.18%
EBIT Next Year69.64%
EBIT Next 3Y22.13%
EBIT Next 5Y15.4%
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%