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Kinder Morgan Canada

TSX:KML
Snowflake Description

Moderate growth potential and slightly overvalued.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
KML
TSX
CA$413M
Market Cap
  1. Home
  2. CA
  3. Energy
Company description

Kinder Morgan Canada Limited owns and operates pipeline systems and terminal facilities in Canada. The last earnings update was 51 days ago. More info.


Add to Portfolio Compare Print
  • Kinder Morgan Canada has significant price volatility in the past 3 months.
KML Share Price and Events
7 Day Returns
1.9%
TSX:KML
-0.7%
CA Oil and Gas
0.1%
CA Market
1 Year Returns
-75.2%
TSX:KML
-13.6%
CA Oil and Gas
-2.8%
CA Market
KML Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Kinder Morgan Canada (KML) 1.9% -2.8% -25.7% -75.2% - -
CA Oil and Gas -0.7% -5.9% -5.5% -13.6% -12.5% -40.3%
CA Market 0.1% -1.1% -0.4% -2.8% 11.5% 0.9%
1 Year Return vs Industry and Market
  • KML underperformed the Oil and Gas industry which returned -13.6% over the past year.
  • KML underperformed the Market in Canada which returned -2.8% over the past year.
Price Volatility
KML
Industry
5yr Volatility vs Market

KML Value

 Is Kinder Morgan Canada undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Kinder Morgan Canada to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Kinder Morgan Canada.

TSX:KML Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 5 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 11.2%
Perpetual Growth Rate 10-Year CA Government Bond Rate 1.9%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for TSX:KML
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year CA Govt Bond Rate 1.9%
Equity Risk Premium S&P Global 6%
Oil and Gas Unlevered Beta Simply Wall St/ S&P Global 0.91
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.908 (1 + (1- 26.5%) (136.56%))
1.549
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.55
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 1.95% + (1.549 * 5.96%)
11.18%

Discounted Cash Flow Calculation for TSX:KML using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Kinder Morgan Canada is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

TSX:KML DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (CAD, Millions) Source Present Value
Discounted (@ 11.18%)
2019 -19.00 Analyst x3 -17.09
2020 110.33 Analyst x3 89.26
2021 99.00 Analyst x2 72.03
2022 92.07 Est @ -7% 60.25
2023 88.10 Est @ -4.32% 51.86
2024 85.95 Est @ -2.44% 45.50
2025 84.98 Est @ -1.12% 40.47
2026 84.81 Est @ -0.2% 36.32
2027 85.19 Est @ 0.44% 32.82
2028 85.95 Est @ 0.89% 29.78
Present value of next 10 years cash flows CA$441.20
TSX:KML DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= CA$85.95 × (1 + 1.95%) ÷ (11.18% – 1.95%)
CA$948.88
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= CA$948.88 ÷ (1 + 11.18%)10
CA$328.77
TSX:KML Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= CA$441.20 + CA$328.77
CA$769.97
Equity Value per Share
(CAD)
= Total value / Shares Outstanding
= CA$769.97 / 34.94
CA$22.03
TSX:KML Discount to Share Price
Calculation Result
Value per share (CAD) From above. CA$22.03
Current discount Discount to share price of CA$11.81
= -1 x (CA$11.81 - CA$22.03) / CA$22.03
46.4%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Kinder Morgan Canada is available for.
Intrinsic value
46%
Share price is CA$11.81 vs Future cash flow value of CA$22.03
Current Discount Checks
For Kinder Morgan Canada to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Kinder Morgan Canada's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Kinder Morgan Canada's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Kinder Morgan Canada's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Kinder Morgan Canada's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
TSX:KML PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in CAD CA$-25.24
TSX:KML Share Price ** TSX (2019-06-14) in CAD CA$11.81
Canada Oil and Gas Industry PE Ratio Median Figure of 59 Publicly-Listed Oil and Gas Companies 12.33x
Canada Market PE Ratio Median Figure of 546 Publicly-Listed Companies 15.02x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Kinder Morgan Canada.

TSX:KML PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= TSX:KML Share Price ÷ EPS (both in CAD)

= 11.81 ÷ -25.24

-0.47x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Kinder Morgan Canada is loss making, we can't compare its value to the CA Oil and Gas industry average.
  • Kinder Morgan Canada is loss making, we can't compare the value of its earnings to the Canada market.
Price based on expected Growth
Does Kinder Morgan Canada's expected growth come at a high price?
Raw Data
TSX:KML PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section -0.47x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 5 Analysts
122%per year
Canada Oil and Gas Industry PEG Ratio Median Figure of 36 Publicly-Listed Oil and Gas Companies 0.79x
Canada Market PEG Ratio Median Figure of 247 Publicly-Listed Companies 1.15x

*Line of best fit is calculated by linear regression .

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to calculate PEG ratio for Kinder Morgan Canada, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Kinder Morgan Canada's assets?
Raw Data
TSX:KML PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in CAD CA$3.18
TSX:KML Share Price * TSX (2019-06-14) in CAD CA$11.81
Canada Oil and Gas Industry PB Ratio Median Figure of 224 Publicly-Listed Oil and Gas Companies 0.76x
Canada Market PB Ratio Median Figure of 2,420 Publicly-Listed Companies 1.41x
TSX:KML PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= TSX:KML Share Price ÷ Book Value per Share (both in CAD)

= 11.81 ÷ 3.18

3.71x

* Primary Listing of Kinder Morgan Canada.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Kinder Morgan Canada is overvalued based on assets compared to the CA Oil and Gas industry average.
X
Value checks
We assess Kinder Morgan Canada's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Oil and Gas industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Oil and Gas industry average (and greater than 0)? (1 check)
  5. Kinder Morgan Canada has a total score of 2/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

KML Future Performance

 How is Kinder Morgan Canada expected to perform in the next 1 to 3 years based on estimates from 5 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
122%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Kinder Morgan Canada expected to grow at an attractive rate?
  • Kinder Morgan Canada's earnings growth is expected to exceed the low risk savings rate of 1.9%.
Growth vs Market Checks
  • Kinder Morgan Canada's earnings growth is expected to exceed the Canada market average.
  • Kinder Morgan Canada's revenues are expected to decrease over the next 1-3 years, this is below the Canada market average.
Annual Growth Rates Comparison
Raw Data
TSX:KML Future Growth Rates Data Sources
Data Point Source Value (per year)
TSX:KML Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 5 Analysts 122%
TSX:KML Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 5 Analysts -8.7%
Canada Oil and Gas Industry Earnings Growth Rate Market Cap Weighted Average 7.9%
Canada Oil and Gas Industry Revenue Growth Rate Market Cap Weighted Average 4.4%
Canada Market Earnings Growth Rate Market Cap Weighted Average 14.6%
Canada Market Revenue Growth Rate Market Cap Weighted Average 5.9%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
TSX:KML Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 5 Analyst Estimates (S&P Global) See Below
All numbers in CAD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
TSX:KML Future Estimates Data
Date (Data in CAD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-12-31 158
2022-12-31 156
2021-12-31 312 144 1
2020-12-31 359 159 53 2
2019-12-31 392 8 73 2
TSX:KML Past Financials Data
Date (Data in CAD Millions) Revenue Cash Flow Net Income *
2019-03-31 397 -5 -878
2018-12-31 384 382 -902
2018-09-30 699 397 -835
2018-06-30 690 367 69
2018-03-31 283 296 -102
2017-12-31 359 251 -82
2017-09-30 438 207 -70
2017-06-30 522 203 -50
2017-03-31 674 280 0
2016-12-31 348 310 -131

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Kinder Morgan Canada's earnings are expected to grow significantly at over 20% yearly.
  • Kinder Morgan Canada's revenue is expected to decrease over the next 1-3 years, this is not considered high growth.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
TSX:KML Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 5 Analyst Estimates (S&P Global) See Below

All data from Kinder Morgan Canada Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

TSX:KML Future Estimates Data
Date (Data in CAD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-12-31
2022-12-31
2021-12-31 0.57 0.57 0.57 1.00
2020-12-31 0.42 0.55 0.28 2.00
2019-12-31 0.60 0.60 0.60 1.00
TSX:KML Past Financials Data
Date (Data in CAD Millions) EPS *
2019-03-31 -25.24
2018-12-31 -25.99
2018-09-30 -23.50
2018-06-30 1.96
2018-03-31 -3.09
2017-12-31 -2.98
2017-09-30 -2.05
2017-06-30 -1.44
2017-03-31
2016-12-31

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if Kinder Morgan Canada will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
X
Future performance checks
We assess Kinder Morgan Canada's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Canada market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Canada market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Kinder Morgan Canada has a total score of 3/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

KML Past Performance

  How has Kinder Morgan Canada performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Kinder Morgan Canada's growth in the last year to its industry (Oil and Gas).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Kinder Morgan Canada does not make a profit and their year on year earnings growth rate was negative over the past 5 years.
  • Unable to compare Kinder Morgan Canada's 1-year earnings growth to the 5-year average as it is not currently profitable.
  • Unable to compare Kinder Morgan Canada's 1-year growth to the CA Oil and Gas industry average as it is not currently profitable.
Earnings and Revenue History
Kinder Morgan Canada's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Kinder Morgan Canada Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

TSX:KML Past Revenue, Cash Flow and Net Income Data
Date (Data in CAD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-31 397.20 -878.20 41.20
2018-12-31 383.80 -902.00 39.00
2018-09-30 698.50 -835.40 72.60
2018-06-30 690.10 69.40 73.10
2018-03-31 283.00 -101.90 22.80
2017-12-31 358.90 -82.30 30.90
2017-09-30 438.10 -70.40 34.40
2017-06-30 521.70 -49.50 42.00
2017-03-31 674.00 0.00 58.80
2016-12-31 347.80 -131.40 25.70
2015-12-31 645.90 0.00 61.30
2014-12-31 505.20 19.53 59.17

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Kinder Morgan Canada has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • It is difficult to establish if Kinder Morgan Canada has efficiently used its assets last year compared to the CA Oil and Gas industry average (Return on Assets) as it is loss-making.
  • It is difficult to establish if Kinder Morgan Canada improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.
X
Past performance checks
We assess Kinder Morgan Canada's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Oil and Gas industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Kinder Morgan Canada has a total score of 0/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

KML Health

 How is Kinder Morgan Canada's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Kinder Morgan Canada's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Kinder Morgan Canada's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
  • Kinder Morgan Canada's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Kinder Morgan Canada's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 2x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Kinder Morgan Canada Company Filings, last reported 2 months ago.

TSX:KML Past Debt and Equity Data
Date (Data in CAD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 888.10 563.60 46.60
2018-12-31 892.50 0.00 4,338.10
2018-09-30 4,918.90 0.00 4,350.10
2018-06-30 3,603.50 247.10 227.20
2018-03-31 3,636.30 100.00 210.30
2017-12-31 3,637.60 0.00 110.70
2017-09-30 3,392.80 165.00 330.30
2017-06-30 3,071.10 189.20 193.70
2017-03-31 1,482.67 1,352.34 170.15
2016-12-31 1,436.00 1,362.10 159.00
2015-12-31 1,250.99 1,320.42 72.72
2014-12-31
  • Kinder Morgan Canada's level of debt (5.6%) compared to net worth is satisfactory (less than 40%).
  • Unable to establish if Kinder Morgan Canada's debt level has increased without past 5-year debt data.
CASH RUNWAY ANALYSIS

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

  • Kinder Morgan Canada has less than a year of cash runway based on current free cash flow.
  • Kinder Morgan Canada has less than a year of cash runway if free cash flow continues to grow at historical rates of 58% each year.
X
Financial health checks
We assess Kinder Morgan Canada's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Kinder Morgan Canada has a total score of 1/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

KML Dividends

 What is Kinder Morgan Canada's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
5.5%
Current annual income from Kinder Morgan Canada dividends. Estimated to be 6.46% next year.
If you bought CA$2,000 of Kinder Morgan Canada shares you are expected to receive CA$110 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Kinder Morgan Canada's pays a higher dividend yield than the bottom 25% of dividend payers in Canada (2.12%).
  • Kinder Morgan Canada's dividend is below the markets top 25% of dividend payers in Canada (5.78%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
TSX:KML Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 5 Analyst Estimates (S&P Global) See Below
Canada Oil and Gas Industry Average Dividend Yield Market Cap Weighted Average of 37 Stocks 4.7%
Canada Market Average Dividend Yield Market Cap Weighted Average of 335 Stocks 3.6%
Canada Minimum Threshold Dividend Yield 10th Percentile 1.2%
Canada Bottom 25% Dividend Yield 25th Percentile 2.1%
Canada Top 25% Dividend Yield 75th Percentile 5.8%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

TSX:KML Future Dividends Estimate Data
Date (Data in CA$) Dividend per Share (annual) Avg. No. Analysts
2023-12-31 0.65 2.00
2022-12-31 0.65 2.00
2021-12-31 0.67 4.00
2020-12-31 0.82 8.00
2019-12-31 0.81 8.00
TSX:KML Past Annualized Dividends Data
Date (Data in CA$) Dividend per share (annual) Avg. Yield (%)
2019-04-26 0.650 5.138
2019-04-17 0.650 4.280
2019-02-19 1.950 12.451
2019-01-16 1.950 13.285
2018-10-24 1.950 5.551
2018-10-17 1.950 3.970
2018-07-18 1.950 3.868
2018-04-25 1.950 4.001
2018-04-18 1.950 3.764
2018-01-17 1.950 3.598
2017-10-24 1.950 3.870
2017-10-18 1.950 3.821
2017-07-19 1.950 3.773

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Whilst dividend payments have been stable, Kinder Morgan Canada has been paying a dividend for less than 10 years.
  • Kinder Morgan Canada has only been paying a dividend for 2 years, and since then dividends per share have fallen.
Current Payout to shareholders
What portion of Kinder Morgan Canada's earnings are paid to the shareholders as a dividend.
  • The company is paying a dividend however it is incurring a loss.
Future Payout to shareholders
  • Dividends after 3 years are not well covered by earnings (0.6x coverage).
X
Income/ dividend checks
We assess Kinder Morgan Canada's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.2%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Kinder Morgan Canada afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Kinder Morgan Canada has a total score of 1/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

KML Management

 What is the CEO of Kinder Morgan Canada's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Steve Kean
COMPENSATION CA$1,476,944
AGE 56
TENURE AS CEO 2.2 years
CEO Bio

Mr. Steven J. Kean, also known as Steve, has been Chief Executive Officer at Kinder Morgan, Inc., since June 1, 2015 and was its President since March 31, 2013 until April 18, 2018. Mr. Kean has been an Executive Vice President of Colorado Interstate Gas Company L.L.C. since May 2012. Mr. Kean has been Chief Operating Officer of Kinder Morgan G.P., Inc. (General Partner of Kinder Morgan Energy Partners LP) since January 2006 and serves as its President and Director. He joined Kinder Morgan Canada Limited in 2002. He serves as the Non-Independent Chair of the Board and Chief Executive Officer at Kinder Morgan Canada Limited and has been its Director since April 21, 2017. He served as Executive Vice President of Kinder Morgan GP Inc. He has been the Chief Operating Officer of Kinder Morgan Management LLC since January 2006 and its President since March 31, 2013. Mr. Kean served as Chief Operating Officer of Kinder Morgan, Inc. since February 2011. He served as the President of El Paso Pipeline GP Company, L.L.C., the general Partner of El Paso Pipeline Partners, L.P. since March 31, 2013 until March 2013 and has been its Chief Operating Officer since May 25, 2012. He served as Executive Vice President of Kinder Morgan Management LLC from January 2006 to March 31, 2013. He served as Executive Vice President of El Paso Pipeline GP Company, L.L.C. since May 25, 2012 until March 2013. He served as President of Natural Gas Pipelines of Kinder Morgan Management LLC since July 2008. He served as the President of Natural Gas Pipelines of Kinder Morgan Energy Partners LP. He served as Chief Operating Officer and a member of the Board of Managers of Kinder Morgan Holdco LLC (a/k/a Knight Holdco LLC) since May 2007 until February, 2011. Mr. Kean served as an Executive Vice President and Chief Operating Officer of Kinder Morgan Kansas, Inc. (formerly, Knight Inc.) since May 4, 2005 and January 2006, respectively. He served as an Executive Vice President of Operations at Kinder Morgan Management, LLC, Kinder Morgan G.P., Inc. and Kinder Morgan, Inc. from May 2005 to January 2006. He served as a Member of the Office of the Chairman of Kinder Morgan Kansas, Inc. and Kinder Morgan G P Inc., since May 4, 2005 and Executive Vice President of Operations from May 2, 2005 to January 2006. He served as a Member of the Office of the Chairman of Kinder Morgan Management LLC from May 4, 2005 to January 2006. Mr. Kean served as Vice President (President - Texas Intrastate Natural Gas Pipelines) of Kinder Morgan Management, LLC and Kinder Morgan G.P., Inc. from June 2002 to May 2005. He served as Vice President of Strategic Planning for Kinder Morgan Natural Gas Group from January 2002 to June 2002. He served as an Executive Vice President and Chief of Staff of Enron Creditors Recovery Corp. (formerly, Enron Corp.) from July 1999 to December 2001. He served as Senior Vice President, Government Affairs, Enron Corp. from 1997 to 1999. He has been Director at Kinder Morgan, Inc. since May 2007. He serves as a Director of Colorado Interstate Gas Company L.L.C. He has been Director of El Paso Pipeline GP Company, L.L.C., the general Partner of El Paso Pipeline Partners, L.P. since May 2012. He serves as Director of Kinder Morgan Holdco LLC. He served as Manager of Kinder Morgan Holdco LLC and Kinder Morgan, Inc. since May 2007. Mr. Kean holds Juris Doctor from the University of Iowa in May 1985 and Bachelor of Arts degree from Iowa State University in May 1982.

CEO Compensation
  • Steve's compensation has increased whilst company is loss making.
  • Steve's remuneration is about average for companies of similar size in Canada.
Management Team Tenure

Average tenure and age of the Kinder Morgan Canada management team in years:

0.8
Average Tenure
55.5
Average Age
  • The average tenure for the Kinder Morgan Canada management team is less than 2 years, this suggests a new team.
Management Team

Steve Kean

TITLE
CEO & Chairman
COMPENSATION
CA$1M
AGE
56
TENURE
2.2 yrs

Dax Sanders

TITLE
CFO & Director
COMPENSATION
CA$2M
AGE
43
TENURE
2.2 yrs

John Schlosser

TITLE
President
AGE
55
TENURE
0.8 yrs

Hugh Harden

TITLE
Vice President of Operations
AGE
64

Denise Mathews

TITLE
Vice President of Human Resources
AGE
62

Anthony Ashley

TITLE
Treasurer & VP of Investor Relations

James Holland

TITLE
President of Pipelines
AGE
55
TENURE
0.8 yrs

Adam Forman

TITLE
VP & Secretary
AGE
50
TENURE
0.8 yrs

David Safari

TITLE
Vice President of TMEP
COMPENSATION
CA$2M
AGE
64
Board of Directors Tenure

Average tenure and age of the Kinder Morgan Canada board of directors in years:

2.2
Average Tenure
60.5
Average Age
  • The average tenure for the Kinder Morgan Canada board of directors is less than 3 years, this suggests a new board.
Board of Directors

Steve Kean

TITLE
CEO & Chairman
COMPENSATION
CA$1M
AGE
56
TENURE
2.2 yrs

Dax Sanders

TITLE
CFO & Director
COMPENSATION
CA$2M
AGE
43
TENURE
2.2 yrs

Dan Fournier

TITLE
Independent Director
COMPENSATION
CA$175K
AGE
65
TENURE
2.2 yrs

Gordon Ritchie

TITLE
Lead Director
COMPENSATION
CA$178K
AGE
65

Brooke Wade

TITLE
Independent Director
COMPENSATION
CA$178K
AGE
65
TENURE
2.2 yrs

Kim Dang

TITLE
Director
AGE
48
TENURE
2.2 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (CA$) Value (CA$)
11. Jan 19 Sell Grosvenor Capital Management L.P. Company 08. Jan 19 09. Jan 19 -253,900 CA$14.99 CA$-3,793,600
X
Management checks
We assess Kinder Morgan Canada's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Kinder Morgan Canada has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

KML News

Simply Wall St News

Is Kinder Morgan Canada Limited (TSE:KML) An Attractive Dividend Stock?

Last year, Kinder Morgan Canada paid a dividend while reporting negative free cash flow. … Dividend Growth Potential The other half of the dividend investing equation is evaluating whether earnings per share (EPS) are growing. Over the long term, dividends need to grow at or above the rate of inflation, in order to maintain the recipient's purchasing power. Kinder Morgan Canada's earnings per share have fallen -717% over the past year. This is a pretty serious concern, and it would be worth investigating whether something fundamental in the business has changed - or broken. We do note though, one year is too short a time to be drawing strong conclusions about a company's future prospects. Conclusion Dividend investors should always want to know if a) a company's dividends are affordable, b) if there is a track record of consistent payments, and c) if the dividend is capable of growing. … Earnings per share are down, and to our mind Kinder Morgan Canada has not been paying a dividend long enough to demonstrate its resilience across economic cycles.

Simply Wall St -

Is Kinder Morgan Canada Limited (TSE:KML) A Financially Sound Company?

Help shape the future of investing tools and you could win a $250 gift card! … Investors are always looking for growth in small-cap stocks like Kinder Morgan Canada Limited (TSE:KML), with a market cap of CA$522m. … However, an important fact which most ignore is: how financially healthy is the business?

Simply Wall St -

Is Kinder Morgan Canada Limited (TSE:KML) Trading At A 37% Discount?

by taking the expected future cash flows and discounting them to their present value. … Anyone interested in learning a bit more about intrinsic value should have a read of the Simply Wall St analysis model. … We use what is known as a 2-stage model, which simply means we have two different periods of growth rates for the company's cash flows

Simply Wall St -

Have Insiders Been Buying Kinder Morgan Canada Limited (TSE:KML) Shares?

So we'll take a look at whether insiders have been buying or selling shares in Kinder Morgan Canada Limited (TSE:KML). … But logic dictates you should pay some attention to whether insiders are buying or selling shares. … The Last 12 Months Of Insider Transactions At Kinder Morgan Canada.

Simply Wall St -

Is Kinder Morgan Canada Limited's (TSE:KML) Balance Sheet A Threat To Its Future?

The direct benefit for Kinder Morgan Canada Limited (TSE:KML), which sports a zero-debt capital structure, to include debt in its capital structure is the reduced cost of capital. … However, the trade-off is KML will have to adhere to stricter debt covenants and have less financial flexibility. … Is financial flexibility worth the lower cost of capital.

Simply Wall St -

Can We See Significant Institutional Ownership On The Kinder Morgan Canada Limited (TSE:KML) Share Register?

Every investor in Kinder Morgan Canada Limited (TSE:KML) should be aware of the most powerful shareholder groups. … Institutions often own shares in more established companies, while it's not unusual to see insiders own a fair bit of smaller companies. … Kinder Morgan Canada isn't enormous, but it's not particularly small either.

Simply Wall St -

Should You Buy Kinder Morgan Canada Limited (TSE:KML) For Its 3.9% Dividend?

A large part of investment returns can be generated by dividend-paying stock given their role in compounding returns over time. … Recently, Kinder Morgan Canada Limited (TSE:KML) has started paying dividends to shareholders. … See our latest analysis for Kinder Morgan Canada

Simply Wall St -

Kinder Morgan Canada Limited (TSE:KML): Can It Deliver A Superior ROE To The Industry?

and want to learn about Return on Equity using a real-life example. … Kinder Morgan Canada Limited (TSE:KML) performed in line with its oil and gas storage and transportation industry on the basis of its ROE – producing a return of 4.35% relative to the peer average of 5.90% over the past 12 months. … But what is more interesting is whether KML can sustain or improve on this level of return.

Simply Wall St -

Is Kinder Morgan Canada Limited (TSE:KML) A Smart Pick For Income Investors?

Kinder Morgan Canada Limited (TSE:KML) has returned an average dividend yield of 4.00% annually to shareholders. … Does Kinder Morgan Canada tick all the boxes of a great dividend stock? … Check out our latest analysis for Kinder Morgan Canada

Simply Wall St -

Is Kinder Morgan Canada Limited (TSE:KML) A Good Dividend Stock?

Kinder Morgan Canada Limited (TSX:KML) has returned an average dividend yield of 4.00% annually to shareholders. … See our latest analysis for Kinder Morgan Canada 5 checks you should use to assess a dividend stock When assessing a stock as a potential addition to my dividend Portfolio, I look at these five areas: Is it paying an annual yield above 75% of dividend payers? … TSX:KML Historical Dividend Yield May 11th 18 Does Kinder Morgan Canada pass our checks?

Simply Wall St -

KML Company Info

Description

Kinder Morgan Canada Limited owns and operates pipeline systems and terminal facilities in Canada. It operates through two segments, Pipelines and Terminals. The Pipelines segment operates Canadian portion of the Cochin pipeline system, a 12-inch diameter multi-product pipeline that comprises of 1000-kilometers of pipeline, and 38 block valves and 10 pump stations for transporting light hydrocarbon liquids between Kankakee, Illinois and Fort Saskatchewan, Alberta; and Jet Fuel pipeline serving Vancouver International Airport. The Terminals segment operates terminal facilities that provide liquid product merchant storage and rail terminals in Edmonton, Alberta, as well as dry cargo import/export facility in Vancouver, British Colombia. The company was incorporated in 2017 and is based in Calgary, Canada. Kinder Morgan Canada Limited is a subsidiary of Kinder Morgan, Inc.

Details
Name: Kinder Morgan Canada Limited
KML
Exchange: TSX
Founded: 2017
CA$412,700,367
34,944,993
Website: http://www.kindermorgancanadalimited.com
Address: Kinder Morgan Canada Limited
300 - 5th Avenue S.W.,
Suite 3000,
Calgary,
Alberta, T2P 5J2,
Canada
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
TSX KML Restricted Voting Shares The Toronto Stock Exchange CA CAD 30. May 2017
OTCPK KMLG.F Restricted Voting Shares Pink Sheets LLC US USD 30. May 2017
DB KM51 Restricted Voting Shares Deutsche Boerse AG DE EUR 30. May 2017
TSX KML.PRC PFD SER 3 The Toronto Stock Exchange CA CAD 15. Dec 2017
TSX KML.PRA PFD SHS SER 1 The Toronto Stock Exchange CA CAD 15. Aug 2017
Number of employees
Current staff
Staff numbers
153
Kinder Morgan Canada employees.
Industry
Oil and Gas Storage and Transportation
Energy
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/06/16 00:50
End of day share price update: 2019/06/14 00:00
Last estimates confirmation: 2019/06/10
Last earnings filing: 2019/04/26
Last earnings reported: 2019/03/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.