Kinder Morgan, Inc. (KMI) stock analysis

P/E below its 5-year median

Kinder Morgan's P/E of 19.5 is below its own 5-year median of 21.1.

P/E above the industry

Kinder Morgan's P/E of 19.5 is above the Gas Production and Distribution median of 17.3.

EV/EBITDA below its 5-year median

Kinder Morgan's EV/EBITDA of 13.3 is below its 5-year median of 13.5.

P/B above the industry

Kinder Morgan's price-to-book of 2.23 is above the Gas Production and Distribution median of 2.10.

Trading above fair value

The share price of $31.59 is above our fair value estimate of $29.05.

Margin of safety under 20%

The price is 8.7% above fair value, so there is no margin of safety.

Revenue growing under 10% a year

Revenue grew -4.1% a year over the last three fiscal years, short of the 10% we look for.

EPS growing under 10% a year

Diluted EPS grew 6.9% a year over the last three fiscal years.

Earnings growth not accelerating

Net income grew 32.1% over the last twelve months, against a 5-year average of 91.4% a year.

Growing slower than the industry

Revenue grew 11.7% over the last twelve months; the Gas Production and Distribution median is 13.6%.

Guidance lowered

Kinder Morgan lowered its the year Net Debt-to-Adjusted EBITDA outlook on Jul 22, 2026.

Gross margin slipping

Gross margin was 66.4% over the last twelve months, against 67.6% a year earlier.

Return on equity under 15%

Return on equity was 11.6% over the last twelve months and averaged 8.1% over five years; we look for 15% on both.

Return on capital under 10%

Return on invested capital was 6.5%, below the 10% that usually covers the cost of capital.

Return on equity below the industry

Kinder Morgan's return on equity of 11.6% is below the Gas Production and Distribution median of 12.1%.

Earnings grew over 5 years

Net income grew 91.4% a year on average over the last five fiscal years.

Net margin above its 5-year average

Net margin was 19.6% over the last twelve months, against a 5-year average of 15.0%.

Net margin above the industry

Kinder Morgan's net margin of 19.6% is above the Gas Production and Distribution median of 13.1%.

High debt

Debt is 105% of shareholders' equity, above the 40% we consider low.

Debt falling against equity

Debt to equity fell from 110% five years ago to 105%.

Debt covered by cash flow

Operating cash flow over the last twelve months equals 20.4% of total debt.

Interest coverage

Interest expense is not reported separately.

Short-term assets don't cover short-term debts

Current assets are 0.67 times current liabilities.

Elevated bankruptcy risk

The Altman Z-score is 1.26; above 3 is the safe zone and below 1.8 the distress zone.

Pays a dividend

Kinder Morgan paid dividends worth 2.8% of the share price over the last twelve months.

Yield below Treasuries

The 2.8% yield is below the 4.4% on a 1-year Treasury.

Yield below the top quarter

The top quarter of US dividend payers yield 3.8% or more; Kinder Morgan yields 2.8%.

Dividend not cut

The dividend per share has not fallen by more than 10% in any of the last 10 fiscal years.

Covered by earnings

Dividends take 73.2% of net income.

Covered by free cash flow

Dividends take 85.6% of free cash flow.