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 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. 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.
KMI had positive earnings in each of the past 5 years.
In the past 5 years KMI always reported a positive cash flow from operatings.
1.2 Ratios
KMI has a Return On Assets (3.55%) which is comparable to the rest of the industry.
With a Return On Equity value of 8.39%, KMI perfoms like the industry average, outperforming 53.05% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 5.13%, KMI is in line with its industry, outperforming 42.72% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for KMI is significantly below the industry average of 23.55%.
| 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
The Profit Margin of KMI (16.58%) is better than 67.14% of its industry peers.
KMI's Profit Margin has been stable in the last couple of years.
Looking at the Operating Margin, with a value of 27.99%, KMI is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
KMI's Operating Margin has been stable in the last couple of years.
Looking at the Gross Margin, with a value of 50.26%, KMI is in line with its industry, outperforming 58.69% of the companies in the same industry.
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so KMI is destroying value.
Compared to 1 year ago, KMI has about the same amount of shares outstanding.
KMI has less shares outstanding than it did 5 years ago.
KMI has a better debt/assets ratio than last year.
2.2 Solvency
KMI has an Altman-Z score of 1.04. 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 (1.04) which is in line with 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 (15.11) which is comparable to the rest of the industry.
KMI has a Debt/Equity ratio of 0.98. This is a neutral value indicating 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: 68.54% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.98 | ||
| Debt/FCF | 15.11 | ||
| Altman-Z | 1.04 |
ROIC/WACC0.69
WACC7.48%
2.3 Liquidity
A Current Ratio of 0.45 indicates that KMI may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.45, KMI is doing worse than 87.32% of the companies in the same industry.
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.
Looking at the Quick ratio, with a value of 0.35, KMI is doing worse than 91.08% of the companies in the same industry.
| 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.
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 a small growth in Revenue. In the last year, the Revenue has grown by 1.38%.
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)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
The Earnings Per Share is expected to grow by 9.40% on average over the next years. This is quite good.
The Revenue is expected to grow by 4.58% on average over the next years.
EPS Next Y11.02%
EPS Next 2Y8.54%
EPS Next 3Y8.08%
EPS Next 5Y9.4%
Revenue Next Year5.86%
Revenue Next 2Y4.96%
Revenue Next 3Y4.59%
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
A Price/Earnings ratio of 23.99 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 (26.57), we can say KMI is valued inline with the index average.
The Price/Forward Earnings ratio is 20.37, which indicates a rather expensive current valuation of KMI.
KMI's Price/Forward 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/Forward Earnings ratio to 22.41, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.99 | ||
| Fwd PE | 20.37 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, KMI is valued a bit more expensive than the industry average as 61.97% of the companies are valued more cheaply.
KMI's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 28.31 | ||
| EV/EBITDA | 14.06 |
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)2.18
PEG (5Y)5.89
EPS Next 2Y8.54%
EPS Next 3Y8.08%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.23%, KMI is a good candidate for dividend investing.
KMI's Dividend Yield is a higher than the industry average which is at 6.56.
Compared to an average S&P500 Dividend Yield of 2.40, KMI pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.23% |
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.
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
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%
NYSE:KMI (6/17/2025, 1:31:06 PM)
27.83
+0.17 (+0.61%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners67.27%
Inst Owner Change-0.14%
Ins Owners12.72%
Ins Owner Change0.04%
Market Cap61.84B
Analysts76.67
Price Target31.23 (12.22%)
Short Float %2.08%
Short Ratio2.86
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.23% |
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)-0.08%
PT rev (3m)0.84%
EPS NQ rev (1m)0.6%
EPS NQ rev (3m)1.01%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.33%
Revenue NQ rev (1m)0.72%
Revenue NQ rev (3m)-0.53%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.6%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.99 | ||
| Fwd PE | 20.37 | ||
| P/S | 3.99 | ||
| P/FCF | 28.31 | ||
| P/OCF | 11.03 | ||
| P/B | 2.02 | ||
| P/tB | 7.15 | ||
| EV/EBITDA | 14.06 |
EPS(TTM)1.16
EY4.17%
EPS(NY)1.37
Fwd EY4.91%
FCF(TTM)0.98
FCFY3.53%
OCF(TTM)2.52
OCFY9.07%
SpS6.98
BVpS13.77
TBVpS3.89
PEG (NY)2.18
PEG (5Y)5.89
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
WACC7.48%
ROIC/WACC0.69
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 5Y9.4%
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 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%