NYSE:KMI

Stock Analysis Report

Executive Summary

Kinder Morgan, Inc. operates as an energy infrastructure company in North America.

Snowflake

Fundamentals

Questionable track record unattractive dividend payer.


Similar Companies

Share Price & News

How has Kinder Morgan's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

1.5%

KMI

1.0%

US Oil and Gas

0.07%

US Market


1 Year Return

23.1%

KMI

-16.7%

US Oil and Gas

8.9%

US Market

Return vs Industry: KMI exceeded the US Oil and Gas industry which returned -16.7% over the past year.

Return vs Market: KMI exceeded the US Market which returned 8.9% over the past year.


Shareholder returns

KMIIndustryMarket
7 Day1.5%1.0%0.07%
30 Day-2.2%-4.3%-0.3%
90 Day-1.3%-7.3%-1.6%
1 Year29.1%23.1%-13.5%-16.7%11.3%8.9%
3 Year5.4%-5.4%-5.8%-14.4%46.3%36.8%
5 Year-36.2%-47.0%-23.1%-34.1%62.1%44.3%

Price Volatility Vs. Market

How volatile is Kinder Morgan's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Kinder Morgan undervalued compared to its fair value and its price relative to the market?

22.34x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: KMI ($20.32) is trading above our estimate of fair value ($11.8)

Significantly Below Fair Value: KMI is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: KMI is poor value based on its PE Ratio (22.3x) compared to the Oil and Gas industry average (9.9x).

PE vs Market: KMI is poor value based on its PE Ratio (22.3x) compared to the US market (17.8x).


Price to Earnings Growth Ratio

PEG Ratio: KMI is poor value based on its PEG Ratio (7x)


Price to Book Ratio

PB vs Industry: KMI is overvalued based on its PB Ratio (1.4x) compared to the US Oil and Gas industry average (0.9x).


Next Steps

Future Growth

How is Kinder Morgan forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?

3.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: KMI's forecast earnings growth (3.2% per year) is above the savings rate (2.7%).

Earnings vs Market: KMI's earnings (3.2% per year) are forecast to grow slower than the US market (14.5% per year).

High Growth Earnings: KMI's earnings are forecast to grow, but not significantly.

Revenue vs Market: KMI's revenue (2.7% per year) is forecast to grow slower than the US market (7.2% per year).

High Growth Revenue: KMI's revenue (2.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: KMI's Return on Equity is forecast to be low in 3 years time (8%).


Next Steps

Past Performance

How has Kinder Morgan performed over the past 5 years?

11.1%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: KMI's earnings have grown by 11.1% per year over the past 5 years.

Accelerating Growth: KMI has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: KMI has become profitable in the last year, making it difficult to compare its past year earnings growth to the Oil and Gas industry (20.6%).


Return on Equity

High ROE: KMI's Return on Equity (6%) is considered low.


Return on Assets

ROA vs Industry: KMI's Return on Assets is below or equal to the Oil and Gas industry average last year.


Return on Capital Employed

ROCE Improving: KMI has improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is Kinder Morgan's financial position?


Financial Position Analysis

Short Term Liabilities: KMI's short term assets ($2.4B) do not cover its short term liabilities ($6.8B)

Long Term Liabilities: KMI's short term assets (2.4B) do not cover its long term liabilities (34.8B)


Debt to Equity History and Analysis

Debt Level: KMI's debt to equity ratio (101.5%) is considered high

Reducing Debt: KMI's debt to equity ratio has reduced from 132% to 101.5% over the past 5 years.

Debt Coverage: KMI's debt is not well covered by operating cash flow (13.1%).

Interest Coverage: KMI's interest payments on its debt are not well covered by EBIT (2.2x coverage).


Balance Sheet

Inventory Level: KMI has a high level of physical assets or inventory.

Debt Coverage by Assets: KMI's debt is not covered by short term assets (assets are 0.1x debt).


Next Steps

Dividend

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

4.92%

Current Dividend Yield


Upcoming Dividend Payment

Purchase Kinder Morgan before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield vs Market

company4.9%marketbottom25%1.4%markettop25%3.7%industryaverage4.2%forecastin3Years6.0%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: KMI's dividend (4.92%) is higher than the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: KMI's dividend (4.92%) is in the top 25% of dividend payers in the US market (3.68%)

Stable Dividend: KMI has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: KMI has only been paying a dividend for 9 years, and since then payments have fallen.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (104.5%), KMI's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: KMI's dividends in 3 years are not forecast to be well covered by earnings (122.7% payout ratio).


Next Steps

Management

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

1.5yrs

Average management tenure


CEO

Steve Kean (57yo)

4.3yrs

Tenure

US$16,908,961

Compensation

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 Ex ...


CEO Compensation Analysis

Compensation vs. Market: Steve's total compensation ($USD16.91M) is about average for companies of similar size in the US market ($USD11.18M).

Compensation vs Earnings: Steve's compensation has been consistent with company performance over the past year.


Management Age and Tenure

1.5yrs

Average Tenure

55yo

Average Age

Experienced Management: KMI's management team is not considered experienced ( 1.5 years average tenure), which suggests a new team.


Board Age and Tenure

8.5yrs

Average Tenure

64yo

Average Age

Experienced Board: KMI's board of directors are considered experienced (8.5 years average tenure).


Insider Trading

Insider Buying: KMI insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

SellUS$1,398,90930 Aug 19
Jesse Arenivas
EntityIndividual
Shares68,578
Max PriceUS$20.40
SellUS$1,442,16130 Aug 19
Dax Sanders
EntityIndividual
Role
Senior Key Executive
Executive VP & Chief Strategy Officer
Shares71,944
Max PriceUS$20.05
BuyUS$5,927,46027 Aug 19
Richard Kinder
EntityIndividual
Role
Chairman of the Board
Executive Chairman of the Board
Shares300,000
Max PriceUS$19.76
BuyUS$99,55026 Aug 19
Deborah Macdonald
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares5,000
Max PriceUS$19.91
BuyUS$7,979,76026 Aug 19
Richard Kinder
EntityIndividual
Role
Chairman of the Board
Executive Chairman of the Board
Shares400,000
Max PriceUS$19.95
BuyUS$5,903,91030 May 19
Richard Kinder
EntityIndividual
Role
Chairman of the Board
Executive Chairman of the Board
Shares300,000
Max PriceUS$19.68
BuyUS$5,858,61014 May 19
Richard Kinder
EntityIndividual
Role
Chairman of the Board
Executive Chairman of the Board
Shares300,000
Max PriceUS$19.53
BuyUS$3,449,09113 May 19
Richard Kinder
EntityIndividual
Role
Chairman of the Board
Executive Chairman of the Board
Shares177,542
Max PriceUS$19.43
BuyUS$3,894,02008 May 19
Richard Kinder
EntityIndividual
Role
Chairman of the Board
Executive Chairman of the Board
Shares200,000
Max PriceUS$19.47
BuyUS$7,812,12003 May 19
Richard Kinder
EntityIndividual
Role
Chairman of the Board
Executive Chairman of the Board
Shares400,000
Max PriceUS$19.53
BuyUS$3,977,90030 Apr 19
Richard Kinder
EntityIndividual
Role
Chairman of the Board
Executive Chairman of the Board
Shares200,000
Max PriceUS$19.89
BuyUS$589,47524 Apr 19
Richard Kinder
EntityIndividual
Role
Chairman of the Board
Executive Chairman of the Board
Shares29,622
Max PriceUS$19.90
BuyUS$49,73713 Mar 19
Deborah Macdonald
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares2,500
Max PriceUS$19.89
SellUS$1,061,98311 Mar 19
John Schlosser
EntityIndividual
Role
Senior Key Executive
VP & President of Terminals
Shares54,100
Max PriceUS$19.63
BuyUS$5,897,55011 Mar 19
Richard Kinder
EntityIndividual
Role
Chairman of the Board
Executive Chairman of the Board
Shares300,000
Max PriceUS$19.66
BuyUS$234,41806 Mar 19
Richard Kinder
EntityIndividual
Role
Chairman of the Board
Executive Chairman of the Board
Shares11,900
Max PriceUS$19.70
BuyUS$3,922,50005 Mar 19
Richard Kinder
EntityIndividual
Role
Chairman of the Board
Executive Chairman of the Board
Shares200,000
Max PriceUS$19.61
BuyUS$1,482,92704 Mar 19
Richard Kinder
EntityIndividual
Role
Chairman of the Board
Executive Chairman of the Board
Shares76,836
Max PriceUS$19.30
BuyUS$5,768,10001 Mar 19
Richard Kinder
EntityIndividual
Role
Chairman of the Board
Executive Chairman of the Board
Shares300,000
Max PriceUS$19.23
BuyUS$5,800,08027 Feb 19
Richard Kinder
EntityIndividual
Role
Chairman of the Board
Executive Chairman of the Board
Shares300,000
Max PriceUS$19.33
BuyUS$5,786,31025 Feb 19
Richard Kinder
EntityIndividual
Role
Chairman of the Board
Executive Chairman of the Board
Shares300,000
Max PriceUS$19.29
BuyUS$5,745,12022 Feb 19
Richard Kinder
EntityIndividual
Role
Chairman of the Board
Executive Chairman of the Board
Shares300,000
Max PriceUS$19.15
BuyUS$359,14320 Feb 19
Richard Kinder
EntityIndividual
Role
Chairman of the Board
Executive Chairman of the Board
Shares19,112
Max PriceUS$18.79
BuyUS$3,785,68019 Feb 19
Richard Kinder
EntityIndividual
Role
Chairman of the Board
Executive Chairman of the Board
Shares200,000
Max PriceUS$18.93
BuyUS$3,678,86012 Feb 19
Richard Kinder
EntityIndividual
Role
Chairman of the Board
Executive Chairman of the Board
Shares200,000
Max PriceUS$18.39
BuyUS$2,048,95011 Feb 19
Richard Kinder
EntityIndividual
Role
Chairman of the Board
Executive Chairman of the Board
Shares114,932
Max PriceUS$17.83
BuyUS$7,194,00008 Feb 19
Richard Kinder
EntityIndividual
Role
Chairman of the Board
Executive Chairman of the Board
Shares400,000
Max PriceUS$17.99
BuyUS$3,666,80006 Feb 19
Richard Kinder
EntityIndividual
Role
Chairman of the Board
Executive Chairman of the Board
Shares200,000
Max PriceUS$18.33
BuyUS$2,746,89005 Feb 19
Richard Kinder
EntityIndividual
Role
Chairman of the Board
Executive Chairman of the Board
Shares150,000
Max PriceUS$18.31
BuyUS$1,805,28001 Feb 19
Richard Kinder
EntityIndividual
Role
Chairman of the Board
Executive Chairman of the Board
Shares100,000
Max PriceUS$18.05
BuyUS$1,171,41031 Jan 19
Richard Kinder
EntityIndividual
Role
Chairman of the Board
Executive Chairman of the Board
Shares65,260
Max PriceUS$17.95
BuyUS$896,07529 Jan 19
Richard Kinder
EntityIndividual
Role
Chairman of the Board
Executive Chairman of the Board
Shares50,000
Max PriceUS$17.92

Ownership Breakdown


Management Team

  • Rich Kinder (74yo)

    Executive Chairman of the Board

    • Tenure: 8.7yrs
    • Compensation: US$1.00
  • Kim Dang (49yo)

    President & Director

    • Tenure: 2.8yrs
    • Compensation: US$4.16m
  • Steve Kean (57yo)

    CEO & Director

    • Tenure: 4.3yrs
    • Compensation: US$16.91m
  • Dax Sanders (44yo)

    Executive VP & Chief Strategy Officer

    • Tenure: 1.5yrs
    • Compensation: US$4.58m
  • John Schlosser (56yo)

    VP & President of Terminals

    • Tenure: 4.8yrs
    • Compensation: US$9.76m
  • Catherine B. James (54yo)

    VP & General Counsel

    • Tenure: 0.7yrs
  • Anthony Ashley

    VP of Investor Relations & Treasurer

    • Tenure: 1.5yrs
  • David Michels (40yo)

    VP & CFO

    • Tenure: 1.5yrs
    • Compensation: US$1.50m
  • Mark Huse

    VP & Chief Information Officer

    • Tenure: 6.8yrs
  • Denise Mathews (63yo)

    Vice President of Human Resources

    • Tenure: 1.8yrs

Board Members

  • Ted Gardner (61yo)

    Director

    • Tenure: 4.8yrs
    • Compensation: US$200.00k
  • Joel Staff (75yo)

    Independent Director

    • Tenure: 8.5yrs
    • Compensation: US$203.46k
  • Rich Kinder (74yo)

    Executive Chairman of the Board

    • Tenure: 8.7yrs
    • Compensation: US$1.00
  • Mike Morgan (50yo)

    Lead Director

    • Tenure: 0yrs
    • Compensation: US$200.00k
  • Deb Macdonald (67yo)

    Independent Director

    • Tenure: 8.5yrs
    • Compensation: US$201.68k
  • C. Shaper (50yo)

    Independent Director

    • Tenure: 12.4yrs
    • Compensation: US$200.00k
  • Fayez Sarofim (90yo)

    Independent Director

    • Tenure: 12.4yrs
    • Compensation: US$203.46k
  • Robert Vagt (72yo)

    Director

    • Tenure: 7.4yrs
    • Compensation: US$200.00k
  • Kim Dang (49yo)

    President & Director

    • Tenure: 2.8yrs
    • Compensation: US$4.16m
  • Steve Kean (57yo)

    CEO & Director

    • Tenure: 4.3yrs
    • Compensation: US$16.91m

Company Information

Kinder Morgan, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Kinder Morgan, Inc.
  • Ticker: KMI
  • Exchange: NYSE
  • Founded: 1936
  • Industry: Oil and Gas Storage and Transportation
  • Sector: Energy
  • Market Cap: US$46.024b
  • Shares outstanding: 2.26b
  • Website: https://www.kindermorgan.com

Number of Employees


Location

  • Kinder Morgan, Inc.
  • 1001 Louisiana Street
  • Suite 1000
  • Houston
  • Texas
  • 77002
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
KMINYSE (New York Stock Exchange)YesClass P Common StockUSUSDFeb 2011
2KDDB (Deutsche Boerse AG)YesClass P Common StockDEEURFeb 2011
0JR2LSE (London Stock Exchange)YesClass P Common StockGBUSDFeb 2011
KMIWBAG (Wiener Boerse AG)YesClass P Common StockATEURFeb 2011
KMI *BMV (Bolsa Mexicana de Valores)YesClass P Common StockMXMXNFeb 2011

Biography

Kinder Morgan, Inc. operates as an energy infrastructure company in North America. The company operates through Natural Gas Pipelines, Products Pipelines, Terminals, and CO2 segments. The Natural Gas Pipel ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/23 00:19
End of Day Share Price2019/10/22 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


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.