Now trading at a price of $28.0, Kinder Morgan has moved -1.6% so far today.
Kinder Morgan returned gains of 20.7% last year, with its stock price reaching a high of $31.48 and a low of $23.06. Over the same period, the stock outperformed the S&P 500 index by 2.8%. More recently, the company's 50-day average price was $27.28. Kinder Morgan, Inc. operates as an energy infrastructure company primarily in North America. Based in Houston, TX, the Large-Cap Utilities company has 10,933 full time employees. Kinder Morgan has offered a 4.1% dividend yield over the last 12 months.
Increasing Revenues but Narrowing Margins:
| 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | |
|---|---|---|---|---|---|---|
| Revenue (M) | $13,209 | $11,700 | $16,610 | $19,200 | $15,334 | $15,100 |
| Operating Margins | 37% | 13% | 18% | 21% | 28% | 28% |
| Net Margins | 17% | 1% | 11% | 13% | 16% | 17% |
| Net Income (M) | $2,190 | $119 | $1,784 | $2,548 | $2,391 | $2,613 |
| Net Interest Expense (M) | -$1,801 | -$1,595 | -$1,492 | -$1,513 | -$1,797 | -$1,844 |
| Depreciation & Amort. (M) | $2,411 | $2,164 | $2,135 | $2,186 | $2,250 | $2,354 |
| Diluted Shares (M) | 2,264 | 2,263 | 2,266 | 2,258 | 2,234 | 2,220 |
| Earnings Per Share | $0.96 | $0.05 | $0.78 | $1.12 | $1.06 | $1.17 |
| EPS Growth | n/a | -94.79% | 1460.0% | 43.59% | -5.36% | 10.38% |
| Avg. Price | $15.51 | $12.62 | $14.79 | $16.82 | $17.64 | $28.09 |
| P/E Ratio | 16.16 | 252.4 | 18.96 | 15.02 | 16.64 | 24.01 |
| Free Cash Flow (M) | $2,478 | $2,843 | $4,427 | $3,346 | $4,174 | $3,006 |
| CAPEX (M) | $2,270 | $1,707 | $1,281 | $1,621 | $2,317 | $2,629 |
| EV / EBITDA | 9.52 | 16.67 | 13.0 | 11.07 | 11.01 | 13.97 |
| Total Debt (M) | $34,392 | $34,689 | $33,320 | $31,788 | $32,116 | $31,890 |
| Net Debt / EBITDA | 4.7 | 9.0 | 6.37 | 4.97 | 4.92 | 4.72 |
| Current Ratio | 0.63 | 0.63 | 0.66 | 0.55 | 0.35 | 0.49 |
Kinder Morgan has growing revenues and increasing reinvestment in the business, positive EPS growth, and generally positive cash flows. However, the firm suffers from not enough current assets to cover current liabilities because its current ratio is 0.49 and a highly leveraged balance sheet. Finally, we note that Kinder Morgan has decent operating margins with a negative growth trend.
Kinder Morgan's Valuation Is in Line With Its Sector Averages:
Kinder Morgan has a trailing twelve month P/E ratio of 22.4, compared to an average of 21.16 for the Utilities sector. Based on its EPS guidance of $1.26, the company has a forward P/E ratio of 21.7. The 4.0% compound average growth rate of Kinder Morgan's historical and projected earnings per share yields a PEG ratio of 5.64. This suggests that these shares are overvalued. In contrast, the market is likely undervaluing Kinder Morgan in terms of its equity because its P/B ratio is 2.02 while the sector average is 2.36. The company's shares are currently trading 47.2% below their Graham number.
There's an Analyst Consensus of Some Upside Potential for Kinder Morgan:
The 20 analysts following Kinder Morgan have set target prices ranging from $24.0 to $38.0 per share, for an average of $31.11 with a buy rating. The company is trading -10.0% away from its average target price, indicating that there is an analyst consensus of some upside potential.
Kinder Morgan has an average amount of shares sold short because 2.2% of the company's shares are sold short. Institutions own 68.5% of the company's shares, and the insider ownership rate stands at 12.75%, suggesting a large amount of insider shareholders. The largest shareholder is Vanguard Group Inc, whose 9% stake in the company is worth $5,803,181,391.
