Now trading at a price of $17.58, Kinder Morgan has moved -0.7% so far today.
Over the last year, Kinder Morgan logged a -0.7% change, with its stock price reaching a high of $19.1 and a low of $15.89. Over the same period, the stock underperformed the S&P 500 index by -16.1%. As of April 2023, the company's 50-day average price was $16.88. Kinder Morgan, Inc. operates as an energy infrastructure company in North America. Based in Houston, TX, the large-cap Utilities company has 10,525 full time employees. Kinder Morgan has offered a 6.4% dividend yield over the last 12 months.
The Company May Be Profitable, but Its Balance Sheet Is Highly Leveraged:
| 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | |
|---|---|---|---|---|---|---|
| Revenue (MM) | $14,144 | $13,209 | $11,700 | $16,610 | $19,200 | $15,875 |
| Revenue Growth | n/a | -6.61% | -11.42% | 41.97% | 15.59% | -17.32% |
| Operating Margins | 27% | 37% | 13% | 18% | 21% | 27% |
| Net Margins | 14% | 17% | 2% | 11% | 14% | 16% |
| Net Income (MM) | $1,919 | $2,239 | $180 | $1,850 | $2,625 | $2,561 |
| Net Interest Expense (MM) | $107 | $75 | $56 | $282 | $55 | $79 |
| Depreciation & Amort. (MM) | $2,297 | $2,411 | $2,164 | $2,135 | $2,186 | $2,237 |
| Free Cash Flow (MM) | $2,139 | $2,478 | $2,843 | $4,427 | $3,346 | $3,407 |
| Capital Expenditures (MM) | $2,904 | $2,270 | $1,707 | $1,281 | $1,621 | $2,166 |
| Current Ratio | 0.76 | 0.63 | 0.63 | 0.66 | 0.55 | 0.39 |
| Total Debt (MM) | $37,324 | $32,068 | $32,739 | $31,038 | $28,910 | $31,001 |
| Net Debt / EBITDA | 5.59 | 4.37 | 8.47 | 5.92 | 4.5 | 4.75 |
Kinder Morgan has growing revenues and decreasing reinvestment in the business, decent operating margins with a stable trend, and irregular cash flows. However, the firm has a highly leveraged balance sheet. Finally, we note that Kinder Morgan has positive expected EPS Growth.
Kinder Morgan's Valuation Is in Line With Its Sector Averages:
Kinder Morgan has a trailing twelve month P/E ratio of 15.5, compared to an average of 17.53 for the Utilities sector. Based on its EPS guidance of $1.22, the company has a forward P/E ratio of 13.8. In contrast, the market is likely undervaluing Kinder Morgan in terms of its equity because its P/B ratio is 1.29 while the sector average is 1.71. The company's shares are currently trading -5.0% below their Graham number.
Kinder Morgan Has an Average Rating of Hold:
The 17 analysts following Kinder Morgan have set target prices ranging from $12.0 to $23.0 per share, for an average of $20.0 with a hold rating. As of April 2023, the company is trading -15.6% away from its average target price, indicating that there is an analyst consensus of some upside potential.
Kinder Morgan has a very low short interest because 1.6% of the company's shares are sold short. Institutions own 64.2% of the company's shares, and the insider ownership rate stands at 12.73%, suggesting a large amount of insider shareholders. The largest shareholder is Vanguard Group Inc, whose 8% stake in the company is worth $3,032,409,153.
