NYSE:KMI

Stock Analysis Report

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Executive Summary

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


Snowflake Analysis

Moderate growth potential and slightly overvalued.


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

Stable Share Price: KMI has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-2.4%

KMI

1.9%

US Oil and Gas

0.4%

US Market


1 Year Return

-38.6%

KMI

-45.8%

US Oil and Gas

17.8%

US Market

Return vs Industry: KMI exceeded the US Oil and Gas industry which returned -45.8% over the past year.

Return vs Market: KMI underperformed the US Market which returned 17.8% over the past year.


Shareholder returns

KMIIndustryMarket
7 Day-2.4%1.9%0.4%
30 Day0.08%3.4%6.1%
90 Day-14.8%-14.4%8.9%
1 Year-34.8%-38.6%-42.4%-45.8%20.5%17.8%
3 Year-21.5%-31.6%-45.3%-52.5%42.3%32.9%
5 Year-45.5%-55.0%-43.2%-54.2%84.2%63.4%

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?

22.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: KMI ($12.78) is trading below our estimate of fair value ($16.14)

Significantly Below Fair Value: KMI is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: KMI is poor value based on its PE Ratio (263x) compared to the US Oil and Gas industry average (7.4x).

PE vs Market: KMI is poor value based on its PE Ratio (263x) compared to the US market (19.1x).


Price to Earnings Growth Ratio

PEG Ratio: KMI is poor value based on its PEG Ratio (6.6x)


Price to Book Ratio

PB vs Industry: KMI is overvalued based on its PB Ratio (0.9x) compared to the US Oil and Gas industry average (0.8x).


Next Steps

Future Growth

How is Kinder Morgan forecast to perform in the next 1 to 3 years based on estimates from 15 analysts?

40.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: KMI's forecast earnings growth (40.1% per year) is above the savings rate (2.2%).

Earnings vs Market: KMI's earnings (40.1% per year) are forecast to grow faster than the US market (22.1% per year).

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

Revenue vs Market: KMI's revenue (3.7% per year) is forecast to grow slower than the US market (9.9% per year).

High Growth Revenue: KMI's revenue (3.7% 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 (8.3%).


Next Steps

Past Performance

How has Kinder Morgan performed over the past 5 years?

26.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: KMI has a large one-off loss of $1.1B impacting its September 30 2020 financial results.

Growing Profit Margin: KMI's current net profit margins (0.9%) are lower than last year (15.1%).


Past Earnings Growth Analysis

Earnings Trend: KMI's earnings have grown significantly by 26.7% per year over the past 5 years.

Accelerating Growth: KMI's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: KMI had negative earnings growth (-94.6%) over the past year, making it difficult to compare to the Oil and Gas industry average (-35%).


Return on Equity

High ROE: KMI's Return on Equity (0.6%) is considered low.


Next Steps

Financial Health

How is Kinder Morgan's financial position?


Financial Position Analysis

Short Term Liabilities: KMI's short term assets ($2.7B) do not cover its short term liabilities ($4.4B).

Long Term Liabilities: KMI's short term assets ($2.7B) do not cover its long term liabilities ($34.8B).


Debt to Equity History and Analysis

Debt Level: KMI's debt to equity ratio (105.2%) is considered high.

Reducing Debt: KMI's debt to equity ratio has reduced from 124.6% to 105.2% over the past 5 years.

Debt Coverage: KMI's debt is not well covered by operating cash flow (14.3%).

Interest Coverage: KMI's interest payments on its debt are not well covered by EBIT (2.1x coverage).


Balance Sheet


Next Steps

Dividend

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

8.48%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: KMI's dividend (8.22%) is higher than the bottom 25% of dividend payers in the US market (1.63%).

High Dividend: KMI's dividend (8.22%) is in the top 25% of dividend payers in the US market (4.56%)


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 (2135.4%), 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 (113.9% payout ratio).


Next Steps

Management

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

2.5yrs

Average management tenure


CEO

Steve Kean (58 yo)

5.33yrs

Tenure

US$7,270

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 ($USD7.27K) is below average for companies of similar size in the US market ($USD11.16M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Steven Kean
CEO & Director5.33yrsUS$7.27k0.32%
$ 89.9m
Kimberly Dang
President & Director3.75yrsUS$4.91m0.10%
$ 28.5m
David Michels
VP & CFO2.5yrsUS$1.76m0.0019%
$ 538.1k
Thomas Martin
VP & President of Natural Gas Pipelines8.75yrsUS$8.65m0.047%
$ 13.1m
Dax Sanders
President of Products Pipelines Business Segment2.5yrsUS$2.74m0.011%
$ 3.1m
Richard Kinder
Executive Chairman of the Board9.67yrsUS$1.0011.36%
$ 3.2b
James Holland
Chief Operating Officer0.25yrno data0.011%
$ 3.0m
Mark Huse
VP & Chief Information Officer7.75yrsno datano data
Denise Mathews
Vice President & Chief Administrative Officer2.75yrsno data0.0014%
$ 398.0k
Anthony Ashley
VP of Investor Relations & Treasurer2.5yrsno datano data
Catherine B. James
VP & General Counsel1.67yrsno data0.000020%
$ 5.6k
David Conover
Vice President of Government Relations & Communications5.25yrsno datano data

2.5yrs

Average Tenure

57yo

Average Age

Experienced Management: KMI's management team is considered experienced (2.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Steven Kean
CEO & Director5.33yrsUS$7.27k0.32%
$ 89.9m
Kimberly Dang
President & Director3.75yrsUS$4.91m0.10%
$ 28.5m
Richard Kinder
Executive Chairman of the Board9.67yrsUS$1.0011.36%
$ 3.2b
Ted Gardner
Independent Director5.83yrsUS$200.00k0.022%
$ 6.2m
Joel Staff
Independent Director9.5yrsUS$205.24k0.0041%
$ 1.1m
Michael Morgan
Independent Lead Directorno dataUS$200.00k0.018%
$ 5.1m
Deborah Macdonald
Independent Director9.5yrsUS$200.00k0.0014%
$ 403.6k
C. Shaper
Independent Director13.42yrsUS$200.00k0.42%
$ 118.4m
Anthony Hall
Independent Director8.42yrsUS$200.00k0.0021%
$ 585.7k
Fayez Sarofim
Independent Director13.42yrsUS$205.24k1.62%
$ 453.3m
Robert Vagt
Independent Director8.42yrsUS$200.00k0.0015%
$ 414.8k
Arthur Reichstetter
Independent Director5.83yrsUS$200.00k0.0047%
$ 1.3m

9.5yrs

Average Tenure

70.5yo

Average Age

Experienced Board: KMI's board of directors are considered experienced (9.5 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: KMI insiders have bought more shares than they have sold 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 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$28.026b
  • 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
2KDXTRA (XETRA Trading Platform)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 Analysis2020/10/27 00:33
End of Day Share Price2020/10/26 00:00
Earnings2020/09/30
Annual Earnings2019/12/31


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.