KINDER MORGAN INC (KMI) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:KMI - US49456B1017 - Common Stock
26.82 USD
+0.23 (+0.86%)
26.759 USD
-0.06 (-0.23%)
Overall KMI gets a fundamental rating of 4 out of 10. We evaluated KMI against 209 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 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
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.
Each year in the past 5 years KMI had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 3.75%, KMI is in line with its industry, outperforming 55.02% of the companies in the same industry.
KMI has a Return On Equity of 8.83%. This is comparable to the rest of the industry: KMI outperforms 59.33% of its industry peers.
KMI has a Return On Invested Capital (5.23%) which is in line with its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for KMI is significantly below the industry average of 20.87%.
The last Return On Invested Capital (5.23%) for KMI is above the 3 year average (5.16%), which is a sign of increasing profitability.
| 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
Looking at the Profit Margin, with a value of 16.54%, KMI is in the better half of the industry, outperforming 68.90% of the companies in the same industry.
In the last couple of years the Profit Margin of KMI has remained more or less at the same level.
The Operating Margin of KMI (27.68%) is better than 68.42% of its industry peers.
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 49.12% is in line compared to the rest of the industry. KMI outperforms 59.33% of its industry peers.
In the last couple of years the Gross Margin of KMI has declined.
| 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), KMI is destroying value.
The number of shares outstanding for KMI remains at a similar level compared to 1 year ago.
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
KMI has an Altman-Z score of 1.06. This is a bad value and indicates that KMI is not financially healthy and even has some risk of bankruptcy.
With a Altman-Z score value of 1.06, KMI perfoms like the industry average, outperforming 46.41% of the companies in the same industry.
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.
The Debt to FCF ratio of KMI (15.03) is comparable to the rest of the industry.
A Debt/Equity ratio of 1.02 is on the high side and indicates that KMI has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 1.02, KMI is doing worse than 69.86% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.02 | ||
| Debt/FCF | 15.03 | ||
| Altman-Z | 1.06 |
ROIC/WACC0.64
WACC8.16%
2.3 Liquidity
A Current Ratio of 0.63 indicates that KMI may have some problems paying its short term obligations.
KMI has a worse Current ratio (0.63) than 77.51% of its industry peers.
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's Quick ratio of 0.49 is on the low side compared to the rest of the industry. KMI is outperformed by 84.69% 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 10.81% over the past year.
The Earnings Per Share has been growing slightly by 4.08% on average over the past years.
Looking at the last year, KMI shows a quite strong growth in Revenue. The Revenue has grown by 8.35% in the last year.
The Revenue has been growing slightly by 2.71% on average over the past years.
EPS 1Y (TTM)10.81%
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
The Earnings Per Share is expected to grow by 8.01% on average over the next years. This is quite good.
The Revenue is expected to grow by 5.84% on average over the next years.
EPS Next Y11.98%
EPS Next 2Y9.43%
EPS Next 3Y8.84%
EPS Next 5Y8.01%
Revenue Next Year8.21%
Revenue Next 2Y6.42%
Revenue Next 3Y6.23%
Revenue Next 5Y5.84%
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.
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
KMI is valuated rather expensively with a Price/Earnings ratio of 21.80.
KMI's Price/Earnings is on the same level as the industry average.
The average S&P500 Price/Earnings ratio is at 26.76. KMI is around the same levels.
Based on the Price/Forward Earnings ratio of 19.31, the valuation of KMI can be described as rather expensive.
The rest of the industry has a similar Price/Forward Earnings ratio as KMI.
KMI is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 23.96, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.8 | ||
| Fwd PE | 19.31 |
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 64.11% of the companies listed in the same industry.
KMI's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 27.53 | ||
| EV/EBITDA | 13.14 |
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)1.82
PEG (5Y)5.35
EPS Next 2Y9.43%
EPS Next 3Y8.84%
5. Dividend
5.1 Amount
KMI has a Yearly Dividend Yield of 4.20%, which is a nice return.
Compared to an average industry Dividend Yield of 5.71, KMI pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.31, KMI pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.2% |
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.
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
95.47% 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.
DP95.47%
EPS Next 2Y9.43%
EPS Next 3Y8.84%
26.82
+0.23 (+0.86%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners68.76%
Inst Owner Change1.37%
Ins Owners12.78%
Ins Owner Change0.57%
Market Cap59.67B
Revenue(TTM)16.42B
Net Income(TTM)2.71B
Analysts77.04
Price Target31.81 (18.61%)
Short Float %1.88%
Short Ratio2.52
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.2% |
Yearly Dividend1.15
Dividend Growth(5Y)3.8%
DP95.47%
Div Incr Years7
Div Non Decr Years8
Ex-Date
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)-4.18%
EPS beat(12)2
Avg EPS beat(12)-2.81%
EPS beat(16)4
Avg EPS beat(16)-2.18%
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)0.31%
PT rev (3m)-0.41%
EPS NQ rev (1m)0.12%
EPS NQ rev (3m)1.35%
EPS NY rev (1m)-0.2%
EPS NY rev (3m)0.44%
Revenue NQ rev (1m)-0.97%
Revenue NQ rev (3m)-0.86%
Revenue NY rev (1m)-0.06%
Revenue NY rev (3m)0.9%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.8 | ||
| Fwd PE | 19.31 | ||
| P/S | 3.63 | ||
| P/FCF | 27.53 | ||
| P/OCF | 10.4 | ||
| P/B | 1.94 | ||
| P/tB | 6.72 | ||
| EV/EBITDA | 13.14 |
EPS(TTM)1.23
EY4.59%
EPS(NY)1.39
Fwd EY5.18%
FCF(TTM)0.97
FCFY3.63%
OCF(TTM)2.58
OCFY9.61%
SpS7.38
BVpS13.82
TBVpS3.99
PEG (NY)1.82
PEG (5Y)5.35
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 | 1.06 |
F-Score6
WACC8.16%
ROIC/WACC0.64
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)10.81%
EPS 3Y-4.22%
EPS 5Y4.08%
EPS Q2Q%16%
EPS Next Y11.98%
EPS Next 2Y9.43%
EPS Next 3Y8.84%
EPS Next 5Y8.01%
Revenue 1Y (TTM)8.35%
Revenue growth 3Y-3.13%
Revenue growth 5Y2.71%
Sales Q2Q%12.08%
Revenue Next Year8.21%
Revenue Next 2Y6.42%
Revenue Next 3Y6.23%
Revenue Next 5Y5.84%
EBIT growth 1Y5.63%
EBIT growth 3Y0.38%
EBIT growth 5Y2.18%
EBIT Next Year69.62%
EBIT Next 3Y22.45%
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 for 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 5 / 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 21.8 and the Price/Book (PB) ratio is 1.94.
Can you provide the dividend sustainability for KMI stock?
The dividend rating of KINDER MORGAN INC (KMI) is 7 / 10 and the dividend payout ratio is 95.47%.