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KMI

Kinder MorganNYSE:KMI Stock Report

Market Cap

US$42.3b

7D

3.8%

1Y

48.8%

Updated

20 Oct, 2021

Data

Company Financials +
KMI fundamental analysis
Snowflake Score
Valuation2/6
Future Growth3/6
Past Performance4/6
Financial Health1/6
Dividends2/6

KMI Overview

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

Kinder Morgan Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Kinder Morgan
Historical stock prices
Current Share PriceUS$18.65
52 Week HighUS$11.45
52 Week LowUS$19.29
Beta1.07
1 Month Change18.94%
3 Month Change6.75%
1 Year Change48.84%
3 Year Change12.96%
5 Year Change-13.22%
Change since IPO-39.94%

Recent News & Updates

Oct 12

Kinder Morgan: Dividend Growth Is Set To Accelerate In 2022

Kinder Morgan was forced to shelve their planned large dividend increase back at the start of 2020 due to the onset of the Covid-19 pandemic and its resulting severe downturn. At the time management said they remained committed to increasing their annual dividends to their previously planned $1.25 per share, which remains well above their current $1.08 per share. Now that operating conditions are improving, it provides a stable backdrop to make good on this commitment in early 2022 when they normally increase their dividends. This should be further helped by their capital expenditure coming down even further and thereby providing ample free cash flow, as indicated by their project backlog. This means that their dividend growth is set to accelerate in 2022 and thus I believe that maintaining my bullish rating is appropriate.

Oct 12
Is Now The Time To Put Kinder Morgan (NYSE:KMI) On Your Watchlist?

Is Now The Time To Put Kinder Morgan (NYSE:KMI) On Your Watchlist?

It's only natural that many investors, especially those who are new to the game, prefer to buy shares in 'sexy' stocks...

Sep 29
Estimating The Intrinsic Value Of Kinder Morgan, Inc. (NYSE:KMI)

Estimating The Intrinsic Value Of Kinder Morgan, Inc. (NYSE:KMI)

Does the September share price for Kinder Morgan, Inc. ( NYSE:KMI ) reflect what it's really worth? Today, we will...

Sep 19

Kinder Morgan: Your Second Chance Is Knocking

Kinder Morgan has seen material share price weakness in recent months, giving value investors another chance to buy into this quality name. It maintains strong business fundamentals, and has a head start in the growing RNG space. Management has significant alignment of interest with shareholders, and maintains a self-funding model.

Sep 05

Kinder Morgan: A Strong Value Prospect

Kinder Morgan has a history of consistency from a cash flow perspective. Though the company has not seen any real growth in profitability, the consistency is a net positive for investors. Shares are also cheap, even if adjusted for the good year 2021 is set to be.

Aug 27

Buy Kinder Morgan's 6.6% Yield Before It's Too Late

Kinder Morgan generates stable returns and cash flow from its energy business. High percentage of contracted cash flows generate distribution stability. Large debt repayments and a low valuation make Kinder Morgan attractive on the dip.

Shareholder Returns

KMIUS Oil and GasUS Market
7D3.8%3.6%3.8%
1Y48.8%97.5%31.5%

Return vs Industry: KMI underperformed the US Oil and Gas industry which returned 92.2% over the past year.

Return vs Market: KMI exceeded the US Market which returned 30.5% over the past year.

Price Volatility

Is KMI's price volatile compared to industry and market?
KMI volatility
KMI Beta1.07
Industry Beta1.74
Market Beta1

Stable Share Price: KMI is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: KMI's weekly volatility (3%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
n/a10,524Steve Keanhttps://www.kindermorgan.com

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 Pipelines segment owns and operates interstate and intrastate natural gas pipeline, and underground storage systems; natural gas gathering systems and natural gas processing and treating facilities; natural gas liquids fractionation facilities and transportation systems; and liquefied natural gas liquefaction and storage facilities.

Kinder Morgan Fundamentals Summary

How do Kinder Morgan's earnings and revenue compare to its market cap?
KMI fundamental statistics
Market CapUS$42.27b
Earnings (TTM)US$1.70b
Revenue (TTM)US$14.40b

24.9x

P/E Ratio

2.9x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
KMI income statement (TTM)
RevenueUS$14.40b
Cost of RevenueUS$6.73b
Gross ProfitUS$7.66b
ExpensesUS$5.96b
EarningsUS$1.70b

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

Oct 20, 2021

Earnings per share (EPS)0.75
Gross Margin53.24%
Net Profit Margin11.82%
Debt/Equity Ratio104.6%

How did KMI perform over the long term?

See historical performance and comparison

Dividends

5.8%

Current Dividend Yield

142%

Payout Ratio

Valuation

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

10.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: KMI ($18.65) is trading below our estimate of fair value ($20.89)

Significantly Below Fair Value: KMI is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: KMI is poor value based on its PE Ratio (24.9x) compared to the US Oil and Gas industry average (19.3x).

PE vs Market: KMI is poor value based on its PE Ratio (24.9x) compared to the US market (18.1x).


Price to Earnings Growth Ratio

PEG Ratio: KMI is poor value based on its PEG Ratio (1.1x)


Price to Book Ratio

PB vs Industry: KMI is good value based on its PB Ratio (1.4x) compared to the US Oil and Gas industry average (2x).


Future Growth

How is Kinder Morgan forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?

22.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: KMI's forecast earnings growth (22.1% per year) is above the savings rate (2%).

Earnings vs Market: KMI's earnings (22.1% per year) are forecast to grow faster than the US market (15.1% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: KMI's revenue is expected to decline over the next 3 years (-5.7% per year).

High Growth Revenue: KMI's revenue is forecast to decline over the next 3 years (-5.7% 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 (7.4%).


Past Performance

How has Kinder Morgan performed over the past 5 years?

27.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: KMI has a large one-off loss of $1.4B impacting its June 30 2021 financial results.

Growing Profit Margin: KMI's current net profit margins (11.8%) are higher than last year (1.3%).


Past Earnings Growth Analysis

Earnings Trend: KMI's earnings have grown significantly by 27.2% per year over the past 5 years.

Accelerating Growth: KMI's earnings growth over the past year (956.5%) exceeds its 5-year average (27.2% per year).

Earnings vs Industry: KMI earnings growth over the past year (956.5%) exceeded the Oil and Gas industry -18.6%.


Return on Equity

High ROE: KMI's Return on Equity (5.6%) is considered low.


Financial Health

How is Kinder Morgan's financial position?


Financial Position Analysis

Short Term Liabilities: KMI's short term assets ($4.3B) do not cover its short term liabilities ($5.1B).

Long Term Liabilities: KMI's short term assets ($4.3B) do not cover its long term liabilities ($33.3B).


Debt to Equity History and Analysis

Debt Level: KMI's debt to equity ratio (104.6%) is considered high.

Reducing Debt: KMI's debt to equity ratio has reduced from 123% to 104.6% over the past 5 years.

Debt Coverage: KMI's debt is not well covered by operating cash flow (16.9%).

Interest Coverage: KMI's interest payments on its debt are not well covered by EBIT (2.9x coverage).


Balance Sheet


Dividend

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

5.79%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: KMI's dividend (5.79%) is higher than the bottom 25% of dividend payers in the US market (1.29%).

High Dividend: KMI's dividend (5.79%) is in the top 25% of dividend payers in the US market (3.49%)


Stability and Growth of Payments

Stable Dividend: KMI's dividend payments have been volatile in the past 10 years.

Growing Dividend: KMI's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (141.7%), 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 (114.1% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.5yrs

Average management tenure


CEO

Steve Kean (59 yo)

6.33yrs

Tenure

US$1

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 ($USD1.00) is below average for companies of similar size in the US market ($USD11.17M).

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


Leadership Team

Experienced Management: KMI's management team is considered experienced (3.5 years average tenure).


Board Members

Experienced Board: KMI's board of directors are considered experienced (9.4 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: KMI insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

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


Key Information

  • Name: Kinder Morgan, Inc.
  • Ticker: KMI
  • Exchange: NYSE
  • Founded: NaN
  • Industry: Oil and Gas Storage and Transportation
  • Sector: Energy
  • Market Cap: US$42.271b
  • Shares outstanding: 2.27b
  • Website: https://www.kindermorgan.com

Number of Employees


Location

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

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/20 23:23
End of Day Share Price2021/10/20 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


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.