KINDER MORGAN INC (KMI)
US49456B1017 - Common Stock
We assign a fundamental rating of 4 out of 10 to KMI. KMI was compared to 214 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 has a correct valuation and a medium 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.
In the past 5 years KMI has always been profitable.
In the past 5 years KMI always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 3.45%, KMI is doing worse than 67.29% of the companies in the same industry.
KMI has a Return On Equity of 8.04%. This is in the lower half of the industry: KMI underperforms 67.76% of its industry peers.
KMI has a Return On Invested Capital of 5.02%. This is in the lower half of the industry: KMI underperforms 68.22% of its industry peers.
The Average Return On Invested Capital over the past 3 years for KMI is significantly below the industry average of 44.69%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.45% | ||
| ROE | 8.04% | ||
| ROIC | 5.02% |
ROA(3y)3.16%
ROA(5y)2.51%
ROE(3y)7.28%
ROE(5y)5.72%
ROIC(3y)5.15%
ROIC(5y)4.8%
1.3 Margins
The Profit Margin of KMI (15.98%) is comparable to the rest of the industry.
In the last couple of years the Profit Margin of KMI has grown nicely.
With a Operating Margin value of 27.77%, KMI perfoms like the industry average, outperforming 54.67% 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 has a Gross Margin of 49.78%. This is comparable to the rest of the industry: KMI outperforms 49.53% of its industry peers.
In the last couple of years the Gross Margin of KMI has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 27.77% | ||
| PM (TTM) | 15.98% | ||
| GM | 49.78% |
OM growth 3Y-2.45%
OM growth 5Y-0.22%
PM growth 3Y157.68%
PM growth 5Y8.28%
GM growth 3Y-4.65%
GM growth 5Y-0.56%
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 has been reduced 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 0.78. 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 0.78, KMI is not doing good in the industry: 64.95% of the companies in the same industry are doing better.
The Debt to FCF ratio of KMI is 8.20, which is on the high side as it means it would take KMI, 8.20 years of fcf income to pay off all of its debts.
With a Debt to FCF ratio value of 8.20, KMI perfoms like the industry average, outperforming 46.73% of the companies in the same industry.
A Debt/Equity ratio of 0.99 indicates that KMI is somewhat dependend on debt financing.
KMI's Debt to Equity ratio of 0.99 is on the low side compared to the rest of the industry. KMI is outperformed by 71.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.99 | ||
| Debt/FCF | 8.2 | ||
| Altman-Z | 0.78 |
ROIC/WACC0.69
WACC7.22%
2.3 Liquidity
A Current Ratio of 0.50 indicates that KMI may have some problems paying its short term obligations.
KMI has a Current ratio of 0.50. This is amonst the worse of the industry: KMI underperforms 89.72% of its industry peers.
A Quick Ratio of 0.38 indicates that KMI may have some problems paying its short term obligations.
With a Quick ratio value of 0.38, KMI is not doing good in the industry: 89.72% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.5 | ||
| Quick Ratio | 0.38 |
3. Growth
3.1 Past
KMI shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -2.65%.
KMI shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 3.67% yearly.
KMI shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -18.66%.
The Revenue has been growing slightly by 1.63% on average over the past years.
EPS 1Y (TTM)-2.65%
EPS 3Y6%
EPS 5Y3.67%
EPS growth Q2Q13.33%
Revenue 1Y (TTM)-18.66%
Revenue growth 3Y9.44%
Revenue growth 5Y1.63%
Revenue growth Q2Q-1.18%
3.2 Future
The Earnings Per Share is expected to grow by 7.55% on average over the next years.
Based on estimates for the next years, KMI will show a small growth in Revenue. The Revenue will grow by 6.56% on average per year.
EPS Next Y16.47%
EPS Next 2Y9.83%
EPS Next 3Y7.37%
EPS Next 5Y7.55%
Revenue Next Year10.45%
Revenue Next 2Y7.05%
Revenue Next 3Y2.38%
Revenue Next 5Y6.56%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
The Price/Earnings ratio is 16.98, which indicates a correct valuation of KMI.
Compared to the rest of the industry, the Price/Earnings ratio of KMI indicates a slightly more expensive valuation: KMI is more expensive than 66.82% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 24.84, KMI is valued a bit cheaper.
With a Price/Forward Earnings ratio of 14.61, KMI is valued correctly.
The rest of the industry has a similar Price/Forward Earnings ratio as KMI.
The average S&P500 Price/Forward Earnings ratio is at 21.35. KMI is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.98 | ||
| Fwd PE | 14.61 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, KMI is valued a bit more expensive than the industry average as 69.16% of the companies are valued more cheaply.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of KMI indicates a somewhat cheap valuation: KMI is cheaper than 63.55% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.58 | ||
| EV/EBITDA | 11.28 |
4.3 Compensation for Growth
KMI's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
PEG (NY)1.03
PEG (5Y)4.62
EPS Next 2Y9.83%
EPS Next 3Y7.37%
5. Dividend
5.1 Amount
KMI has a Yearly Dividend Yield of 6.12%, which is a nice return.
Compared to an average industry Dividend Yield of 5.72, KMI pays a bit more dividend than its industry peers.
KMI's Dividend Yield is rather good when compared to the S&P500 average which is at 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.12% |
5.2 History
On average, the dividend of KMI grows each year by 7.40%, which is quite nice.
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)7.4%
Div Incr Years6
Div Non Decr Years7
5.3 Sustainability
KMI pays out 103.68% of its income as dividend. This is not a sustainable payout ratio.
The dividend of KMI is growing around the same rate as the earnings are growing. If this keeps up the dividend growth is sustainable.
DP103.68%
EPS Next 2Y9.83%
EPS Next 3Y7.37%
KINDER MORGAN INC
NYSE:KMI (4/26/2024, 7:04:00 PM)
After market: 18.69 +0.01 (+0.05%)18.68
-0.12 (-0.64%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap41.46B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.12% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
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Min Revenue beat(4)
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Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.98 | ||
| Fwd PE | 14.61 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)1.03
PEG (5Y)4.62
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.45% | ||
| ROE | 8.04% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 27.77% | ||
| PM (TTM) | 15.98% | ||
| GM | 49.78% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.22
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.99 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.5 | ||
| Quick Ratio | 0.38 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-2.65%
EPS 3Y6%
EPS 5Y
EPS growth Q2Q
EPS Next Y16.47%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-18.66%
Revenue growth 3Y9.44%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y