NYSE:KMI

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Unattractive dividend payer with poor track record.


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

-1.2%

NYSE:KMI

-3.4%

US Oil and Gas

-1.0%

US Market


1 Year Return

12.1%

NYSE:KMI

-22.5%

US Oil and Gas

-0.4%

US Market

KMI outperformed the Oil and Gas industry which returned -22.5% over the past year.

KMI outperformed the Market in United States of America which returned -0.4% over the past year.


Share holder returns

KMIIndustryMarket
7 Day-1.2%-3.4%-1.0%
30 Day-1.8%-9.2%-3.3%
90 Day-0.8%-11.9%0.8%
1 Year17.6%12.1%-19.7%-22.5%1.9%-0.4%
3 Year0.7%-9.7%-8.6%-16.8%39.4%30.4%
5 Year-40.0%-50.7%-33.5%-42.5%54.2%37.1%

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 based on future cash flows and its price relative to the stock market?

20.17x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Kinder Morgan's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

Kinder Morgan's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

Kinder Morgan is overvalued based on earnings compared to the US Oil and Gas industry average.

Kinder Morgan is overvalued based on earnings compared to the United States of America market.


Price Based on Expected Growth

Kinder Morgan is poor value based on expected growth next year.


Price Based on Value of Assets

Kinder Morgan is overvalued based on assets compared to the US Oil and Gas industry average.


Next Steps

Future Growth

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

1.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Kinder Morgan's revenue is expected to grow by 2.8% yearly, however this is not considered high growth (20% yearly).

Kinder Morgan's earnings are expected to grow by 1.4% yearly, however this is not considered high growth (20% yearly).

Kinder Morgan's revenue growth is positive but not above the United States of America market average.

Kinder Morgan's earnings growth is positive but not above the United States of America market average.

Kinder Morgan's earnings growth is positive but not above the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Kinder Morgan is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

How has Kinder Morgan performed over the past 5 years?

-0.7%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Kinder Morgan's year on year earnings growth rate was negative over the past 5 years, however the most recent earnings are above average.

Kinder Morgan has become profitable in the last year making the earnings growth rate difficult to compare to the 5-year average.

Kinder Morgan has become profitable in the last year making it difficult to compare the US Oil and Gas industry average.


Return on Equity

Kinder Morgan has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Kinder Morgan used its assets less efficiently than the US Oil and Gas industry average last year based on Return on Assets.


Return on Capital Employed

Kinder Morgan has improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Kinder Morgan's financial position?


Financial Position Analysis

Kinder Morgan's short term (1 year) commitments are greater than its holdings of cash and other short term assets.

Kinder Morgan's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

Kinder Morgan's level of debt (102.3%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has been reduced over the past 5 years (129.8% vs 102.3% today).

Debt is not well covered by operating cash flow (13%, less than 20% of total debt).

Interest payments on debt are not well covered by earnings (EBIT is 2.2x annual interest expense, ideally 3x coverage).


Balance Sheet

High level of physical assets or inventory.

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?

6.11%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Kinder Morgan's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.49%).

Kinder Morgan's dividend is above the markets top 25% of dividend payers in United States of America (3.84%).

Kinder Morgan has been paying a dividend for less than 10 years and during this time payments have been volatile (annual drop of over 20%).

Kinder Morgan has only been paying a dividend for 8 years, and since then dividends per share have fallen.


Current Payout to Shareholders

Dividends paid are not well covered by earnings (1.1x coverage).


Future Payout to Shareholders

Dividends after 3 years are not well covered by earnings (0.8x coverage).


Next Steps

Management

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

1.3yrs

Average management tenure


CEO

Steve Kean (57yo)

4.2yrs

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

Steve's remuneration is higher than average for companies of similar size in United States of America.

Steve's compensation has increased in line with Kinder Morgan recently becoming profitable.


Management Age and Tenure

1.3yrs

Average Tenure

55yo

Average Age

The average tenure for the Kinder Morgan management team is less than 2 years, this suggests a new team.


Board Age and Tenure

8.3yrs

Average Tenure

64yo

Average Age

The tenure for the Kinder Morgan board of directors is about average.


Insider Trading

More shares have been bought than sold by Kinder Morgan individual insiders in the past 3 months.


Recent Insider Transactions

BuyUS$5,903,91030 May 19
Richard Kinder
EntityIndividual
Role
Executive Chairman of the Board
Chairman of the Board
Shares300,000
Max PriceUS$19.68
BuyUS$5,858,61014 May 19
Richard Kinder
EntityIndividual
Role
Executive Chairman of the Board
Chairman of the Board
Shares300,000
Max PriceUS$19.53
BuyUS$3,449,09113 May 19
Richard Kinder
EntityIndividual
Role
Executive Chairman of the Board
Chairman of the Board
Shares177,542
Max PriceUS$19.43
BuyUS$3,894,02008 May 19
Richard Kinder
EntityIndividual
Role
Executive Chairman of the Board
Chairman of the Board
Shares200,000
Max PriceUS$19.47
BuyUS$7,812,12003 May 19
Richard Kinder
EntityIndividual
Role
Executive Chairman of the Board
Chairman of the Board
Shares400,000
Max PriceUS$19.53
BuyUS$3,977,90030 Apr 19
Richard Kinder
EntityIndividual
Role
Executive Chairman of the Board
Chairman of the Board
Shares200,000
Max PriceUS$19.89
BuyUS$589,47524 Apr 19
Richard Kinder
EntityIndividual
Role
Executive Chairman of the Board
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
Shares2,500
Max PriceUS$19.89
SellUS$1,061,98311 Mar 19
John Schlosser
EntityIndividual
Role
VP & President of Terminals
Shares54,100
Max PriceUS$19.63
BuyUS$5,897,55011 Mar 19
Richard Kinder
EntityIndividual
Role
Executive Chairman of the Board
Chairman of the Board
Shares300,000
Max PriceUS$19.66
BuyUS$234,41806 Mar 19
Richard Kinder
EntityIndividual
Role
Executive Chairman of the Board
Chairman of the Board
Shares11,900
Max PriceUS$19.70
BuyUS$3,922,50005 Mar 19
Richard Kinder
EntityIndividual
Role
Executive Chairman of the Board
Chairman of the Board
Shares200,000
Max PriceUS$19.61
BuyUS$1,482,92704 Mar 19
Richard Kinder
EntityIndividual
Role
Executive Chairman of the Board
Chairman of the Board
Shares76,836
Max PriceUS$19.30
BuyUS$5,768,10001 Mar 19
Richard Kinder
EntityIndividual
Role
Executive Chairman of the Board
Chairman of the Board
Shares300,000
Max PriceUS$19.23
BuyUS$5,800,08027 Feb 19
Richard Kinder
EntityIndividual
Role
Executive Chairman of the Board
Chairman of the Board
Shares300,000
Max PriceUS$19.33
BuyUS$5,786,31025 Feb 19
Richard Kinder
EntityIndividual
Role
Executive Chairman of the Board
Chairman of the Board
Shares300,000
Max PriceUS$19.29
BuyUS$5,745,12022 Feb 19
Richard Kinder
EntityIndividual
Role
Executive Chairman of the Board
Chairman of the Board
Shares300,000
Max PriceUS$19.15
BuyUS$359,14320 Feb 19
Richard Kinder
EntityIndividual
Role
Executive Chairman of the Board
Chairman of the Board
Shares19,112
Max PriceUS$18.79
BuyUS$3,785,68019 Feb 19
Richard Kinder
EntityIndividual
Role
Executive Chairman of the Board
Chairman of the Board
Shares200,000
Max PriceUS$18.93
BuyUS$3,678,86012 Feb 19
Richard Kinder
EntityIndividual
Role
Executive Chairman of the Board
Chairman of the Board
Shares200,000
Max PriceUS$18.39
BuyUS$2,048,95011 Feb 19
Richard Kinder
EntityIndividual
Role
Executive Chairman of the Board
Chairman of the Board
Shares114,932
Max PriceUS$17.83
BuyUS$7,194,00008 Feb 19
Richard Kinder
EntityIndividual
Role
Executive Chairman of the Board
Chairman of the Board
Shares400,000
Max PriceUS$17.99
BuyUS$3,666,80006 Feb 19
Richard Kinder
EntityIndividual
Role
Executive Chairman of the Board
Chairman of the Board
Shares200,000
Max PriceUS$18.33
BuyUS$2,746,89005 Feb 19
Richard Kinder
EntityIndividual
Role
Executive Chairman of the Board
Chairman of the Board
Shares150,000
Max PriceUS$18.31
BuyUS$1,805,28001 Feb 19
Richard Kinder
EntityIndividual
Role
Executive Chairman of the Board
Chairman of the Board
Shares100,000
Max PriceUS$18.05
BuyUS$1,171,41031 Jan 19
Richard Kinder
EntityIndividual
Role
Executive Chairman of the Board
Chairman of the Board
Shares65,260
Max PriceUS$17.95
BuyUS$896,07529 Jan 19
Richard Kinder
EntityIndividual
Role
Executive Chairman of the Board
Chairman of the Board
Shares50,000
Max PriceUS$17.92
BuyUS$8,776,50027 Sep 18
Richard Kinder
EntityIndividual
Role
Executive Chairman of the Board
Chairman of the Board
Shares500,000
Max PriceUS$17.55

Ownership Breakdown


Management Team

  • Catherine B. James (54yo)

    VP & General Counsel

    • Tenure: 0.5yrs
  • Rich Kinder (74yo)

    Executive Chairman of the Board

    • Compensation: $1.00
  • Steve Kean (57yo)

    CEO & Director

    • Tenure: 4.2yrs
    • Compensation: $16.91m
  • Dax Sanders (44yo)

    Executive VP & Chief Strategy Officer

    • Tenure: 1.3yrs
    • Compensation: $4.58m
  • Denise Mathews (63yo)

    Vice President of Human Resources

    • Tenure: 1.6yrs
  • Mark Huse

    VP & Chief Information Officer

    • Tenure: 6.6yrs
  • Kim Dang (49yo)

    President & Director

    • Tenure: 1.3yrs
    • Compensation: $4.16m
  • Anthony Ashley

    VP of Investor Relations & Treasurer

    • Tenure: 1.3yrs
  • David Michels (40yo)

    VP & CFO

    • Tenure: 1.3yrs
    • Compensation: $1.50m
  • John Schlosser (56yo)

    VP & President of Terminals

    • Tenure: 4.7yrs
    • Compensation: $9.76m

Board Members

  • Joel Staff (75yo)

    Director

    • Tenure: 8.3yrs
    • Compensation: $203.46k
  • Rich Kinder (74yo)

    Executive Chairman of the Board

    • Tenure: 8.5yrs
    • Compensation: $1.00
  • Mike Morgan (50yo)

    Lead Director

    • Compensation: $200.00k
  • Steve Kean (57yo)

    CEO & Director

    • Tenure: 12.3yrs
    • Compensation: $16.91m
  • C. Shaper (50yo)

    Director

    • Tenure: 12.3yrs
    • Compensation: $200.00k
  • Deb Macdonald (67yo)

    Director

    • Tenure: 8.3yrs
    • Compensation: $201.68k
  • Kim Dang (49yo)

    President & Director

    • Tenure: 2.6yrs
    • Compensation: $4.16m
  • Fayez Sarofim (90yo)

    Director

    • Tenure: 12.3yrs
    • Compensation: $203.46k
  • Ted Gardner (61yo)

    Director

    • Tenure: 4.7yrs
    • Compensation: $200.00k
  • Robert Vagt (72yo)

    Director

    • Tenure: 7.3yrs
    • Compensation: $200.00k

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$45.570b
  • Shares outstanding: 2.26b
  • Website: Click here

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

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 Analysis2019/08/18 00:39
End of Day Share Price2019/08/16 00:00
Earnings2019/06/30
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.