KINDER MORGAN INC (KMI) Stock Fundamental Analysis
NYSE:KMI - US49456B1017 - Common Stock
26.59 USD
-0.12 (-0.45%)
26.7 USD
+0.11 (+0.41%)
We assign a fundamental rating of 4 out of 10 to KMI. KMI was compared to 210 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. While showing a medium growth rate, KMI is valued expensive at the moment. Finally 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 has a Return On Assets (3.75%) which is in line with its industry peers.
The Return On Equity of KMI (8.81%) is comparable to the rest of the industry.
KMI has a Return On Invested Capital (5.15%) which is in line with its industry peers.
The Average Return On Invested Capital over the past 3 years for KMI is significantly below the industry average of 21.91%.
| 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
The Profit Margin of KMI (16.98%) is better than 70.00% of its industry peers.
In the last couple of years the Profit Margin of KMI has remained more or less at the same level.
With a decent Operating Margin value of 28.16%, KMI is doing good in the industry, outperforming 67.62% of the companies in the same industry.
KMI's Operating Margin has been stable in the last couple of years.
With a Gross Margin value of 50.00%, KMI perfoms like the industry average, outperforming 60.00% 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 | 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), 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.
The debt/assets ratio for KMI has been reduced compared to a year ago.
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.
With a Debt to FCF ratio value of 15.28, KMI perfoms like the industry average, outperforming 47.62% of the companies in the same industry.
KMI has a Debt/Equity ratio of 1.04. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 1.04, KMI is doing worse than 68.57% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.04 | ||
| Debt/FCF | 15.28 | ||
| Altman-Z | N/A |
ROIC/WACC0.61
WACC8.47%
2.3 Liquidity
KMI has a Current Ratio of 0.68. 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 Current ratio of 0.68 is on the low side compared to the rest of the industry. KMI is outperformed by 77.62% of its industry peers.
A Quick Ratio of 0.68 indicates that KMI may have some problems paying its short term obligations.
The Quick ratio of KMI (0.68) is worse than 70.48% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.68 | ||
| Quick Ratio | 0.68 |
3. Growth
3.1 Past
KMI shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 7.21%.
KMI shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 4.08% yearly.
Looking at the last year, KMI shows a small growth in Revenue. The Revenue has grown by 3.97% in the last year.
The Revenue has been growing slightly by 2.71% on average over the past years.
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
The Earnings Per Share is expected to grow by 9.24% on average over the next years. This is quite good.
Based on estimates for the next years, KMI will show a small growth in Revenue. The Revenue will grow by 7.46% on average per year.
EPS Next Y11.49%
EPS Next 2Y8.36%
EPS Next 3Y8.63%
EPS Next 5Y9.24%
Revenue Next Year7.25%
Revenue Next 2Y6.35%
Revenue Next 3Y6.5%
Revenue Next 5Y7.46%
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
A Price/Earnings ratio of 22.34 indicates a rather expensive valuation of KMI.
KMI's Price/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/Earnings ratio to 27.06, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 19.52 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 22.69, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.34 | ||
| Fwd PE | 19.52 |
4.2 Price Multiples
62.86% 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 is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 27.64 | ||
| EV/EBITDA | 13.27 |
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)1.95
PEG (5Y)5.48
EPS Next 2Y8.36%
EPS Next 3Y8.63%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.38%, KMI is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 6.02, KMI pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.45, KMI pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.38% |
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
95.17% of the earnings are spent on dividend by KMI. 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 2Y8.36%
EPS Next 3Y8.63%
26.59
-0.12 (-0.45%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners67.36%
Inst Owner Change-0.15%
Ins Owners12.73%
Ins Owner Change0.22%
Market Cap59.09B
Analysts78.4
Price Target31.94 (20.12%)
Short Float %1.83%
Short Ratio2.33
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.38% |
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)0.54%
PT rev (3m)2.26%
EPS NQ rev (1m)-0.42%
EPS NQ rev (3m)-1.81%
EPS NY rev (1m)-0.14%
EPS NY rev (3m)0.42%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)4.46%
Revenue NY rev (1m)0.29%
Revenue NY rev (3m)1.31%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.34 | ||
| Fwd PE | 19.52 | ||
| P/S | 3.7 | ||
| P/FCF | 27.64 | ||
| P/OCF | 10.61 | ||
| P/B | 1.92 | ||
| P/tB | 5.53 | ||
| EV/EBITDA | 13.27 |
EPS(TTM)1.19
EY4.48%
EPS(NY)1.36
Fwd EY5.12%
FCF(TTM)0.96
FCFY3.62%
OCF(TTM)2.51
OCFY9.43%
SpS7.19
BVpS13.85
TBVpS4.81
PEG (NY)1.95
PEG (5Y)5.48
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
WACC8.47%
ROIC/WACC0.61
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 Y11.49%
EPS Next 2Y8.36%
EPS Next 3Y8.63%
EPS Next 5Y9.24%
Revenue 1Y (TTM)3.97%
Revenue growth 3Y-3.13%
Revenue growth 5Y2.71%
Sales Q2Q%13.16%
Revenue Next Year7.25%
Revenue Next 2Y6.35%
Revenue Next 3Y6.5%
Revenue Next 5Y7.46%
EBIT growth 1Y6.54%
EBIT growth 3Y0.38%
EBIT growth 5Y2.18%
EBIT Next Year69.8%
EBIT Next 3Y22.57%
EBIT Next 5Y15.25%
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%