Kinder Morgan, Inc.
Kinder Morgan, Inc. Fundamental Analysis
Kinder Morgan, Inc. (KMI) shows moderate financial fundamentals with a PE ratio of 20.68, profit margin of 18.92%, and ROE of 10.69%. The company generates $17.5B in annual revenue with strong year-over-year growth of 12.45%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 52.3/100 based on profitability, valuation, growth, and balance sheet metrics. The C grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze KMI's fundamental strength across five key dimensions:
Efficiency Score
WeakKMI struggles to generate sufficient returns from assets.
Valuation Score
ExcellentKMI trades at attractive valuation levels.
Growth Score
ExcellentKMI delivers strong and consistent growth momentum.
Financial Health Score
WeakKMI carries high financial risk with limited liquidity.
Profitability Score
ModerateKMI maintains healthy but balanced margins.
Key Financial Metrics
Is KMI Expensive or Cheap?
P/E Ratio
KMI trades at 20.68 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, KMI's PEG of 0.73 indicates potential undervaluation.
Price to Book
The market values Kinder Morgan, Inc. at 2.19 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 4.85 times EBITDA. This is generally considered low.
How Well Does KMI Make Money?
Net Profit Margin
For every $100 in sales, Kinder Morgan, Inc. keeps $18.92 as profit after all expenses.
Operating Margin
Core operations generate 28.61 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $10.69 in profit for every $100 of shareholder equity.
ROA
Kinder Morgan, Inc. generates $4.54 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Kinder Morgan, Inc. generates strong operating cash flow of $6.31B, reflecting robust business health.
Free Cash Flow
Kinder Morgan, Inc. generates strong free cash flow of $3.89B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $1.75 in free cash annually.
FCF Yield
KMI converts 5.64% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
20.68
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.73
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.19
vs 25 benchmark
P/S Ratio
Price to sales ratio
3.91
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.02
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.02
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.11
vs 25 benchmark
ROA
Return on assets percentage
0.05
vs 25 benchmark
ROCE
Return on capital employed
0.07
vs 25 benchmark
How KMI Stacks Against Its Sector Peers
| Metric | KMI Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 20.68 | 22.11 | Neutral |
| ROE | 10.69% | 950.00% | Weak |
| Net Margin | 18.92% | -62400.00% (disorted) | Strong |
| Debt/Equity | 1.02 | -0.46 (disorted) | Distorted |
| Current Ratio | 0.02 | 5.09 | Weak Liquidity |
| ROA | 4.54% | -11018380.00% (disorted) | Weak |
KMI outperforms its industry in 1 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Kinder Morgan, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
50.18%
Industry Style: Cyclical, Value, Commodity
High GrowthEPS CAGR
2511.93%
Industry Style: Cyclical, Value, Commodity
High GrowthFCF CAGR
39.64%
Industry Style: Cyclical, Value, Commodity
High Growth