Kinder Morgan, Inc.
KMI
Natural Gas Transmission
Mkt Cap
$38.52BPE
15.61Debt
$31BCash
$97MEV
$69.42BFCF
$3.407BP/E Ratio
15.61Debt
$31BCash
$97MEV
$69.42BFCF
$3.407BKinder Morgan, Inc. operates as an energy infrastructure company in North America. The company operates through four segments: Natural Gas Pipelines, Products Pipelines, Terminals, and CO2. The Natural Gas Pipelines segment owns and operates interstate and intrastate natural gas pipeline, and underground storage systems; natural gas gathering systems and natural gas processing and treating facilities; natural gas liquids fractionation facilities and transportation systems; and liquefied natural gas gasification, liquefaction, and storage facilities. The Products Pipelines segment owns and operates refined petroleum products, and crude oil and condensate pipelines; and associated product terminals and petroleum pipeline transmix facilities. The Terminals segment owns and/or operates liquids and bulk terminals that stores and handles various commodities, including gasoline, diesel fuel, renewable fuel stock, chemicals, ethanol, metals, and petroleum coke; and owns tankers. The CO2 segment produces, transports, and markets CO2 to recovery and production crude oil from mature oil fields; owns interests in/or operates oil fields and gasoline processing plants; and operates a crude oil pipeline system in West Texas, as well as owns and operates RNG and LNG facilities. It owns and operates approximately 83,000 miles of pipelines and 140 terminals. The company was formerly known as Kinder Morgan Holdco LLC and changed its name to Kinder Morgan, Inc. in February 2011. Kinder Morgan, Inc. was founded in 1936 and is headquartered in Houston, Texas.
![KNTK Logo](data:image/svg+xml,<svg xmlns='http://www.w3.org/2000/svg' width='18' height='18'><defs><linearGradient id="a" x1="3.349" x2="21.904" y1="3.122" y2="24.434" gradientUnits="userSpaceOnUse"><stop stop-color="%231A1E21"/><stop offset="1" stop-color="%2306060A"/></linearGradient></defs><path fill="url(%23a)" d="M0 0h18v18H0z"/><text x='50%' y='52%' dominant-baseline='middle' text-anchor='middle' font-size='5' font-family='sans-serif' fill='gray'>KNTK</text></svg>){kind=small}
DCF
Discounted Cash Flow Valuation of Kinder Morgan, Inc.
Value
Growth
%
%
Discount
%
%
Multiple
| g\r | +10% | +11% | +12% | +13% | +14% |
|---|---|---|---|---|---|
| 0% | 10 | 9 | 8 | 8 | 7 |
| +1% | 11 | 10 | 9 | 8 | 8 |
| +2% | 13 | 11 | 10 | 9 | 8 |
| +3% | 14 | 13 | 11 | 10 | 9 |
| +4% | 17 | 14 | 12 | 11 | 10 |
| Years | 0 | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | TV |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| FCF | $3.407B | $4.042B | $4.734B | $5.473B | $6.244B | $7.029B | $7.807B | $8.552B | $9.239B | $9.841B | $10.33B | $103.3B |
| DCF | $3.515B | $3.58B | $3.598B | $3.57B | $3.495B | $3.375B | $3.215B | $3.02B | $2.797B | $2.554B | $25.54B | |
| Value | $58.26B | |||||||||||
In the chart Earnings are multiplied by this value.
Earnings Growth 24%
Earnings Stability 15%
Competitiveness and MOAT
High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.
| Years | 12-2014 | 12-2015 | 12-2016 | 12-2017 | 12-2018 | 12-2019 | 12-2020 | 12-2021 | 12-2022 | TTM |
|---|---|---|---|---|---|---|---|---|---|---|
| Net Margin | 6.3% | 1.4% | 4.2% | 0.2% | 10% | 17% | 1% | 11% | 13% | 16% |
| ROA | 5.3% | 2.9% | 4.4% | 4.5% | 4.8% | 6.6% | 2.2% | 4.1% | 5.8% | 6.2% |
| ROE | 3% | 0.59% | 1.6% | 0.077% | 4.3% | 6.4% | 0.37% | 5.6% | 7.9% | 7.8% |
What is the average Net Margin?
The average Net Margin over the past 5 years is +8.71%.
What is the trend of Net Margin?
The trend of Net Margin over the past 5 years is +1.45%.
What is the average Return on Assets (ROA)?
The average ROA over the past 5 years is +4.66%.
What is the trend of Return on Assets (ROA)?
The trend of ROA over the past 5 years is +0.01%.
What is the average Return on Equity (ROE)?
The average ROE over the past 5 years is +4.11%.
What is the trend of Return on Equity (ROE)?
The trend of ROE over the past 5 years is +1.06%.
Safety & Stabiliy
Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.
| Years | 12-2014 | 12-2015 | 12-2016 | 12-2017 | 12-2018 | 12-2019 | 12-2020 | 12-2021 | 12-2022 | TTM |
|---|---|---|---|---|---|---|---|---|---|---|
| Debt FCF | 50.54 | 30.85 | 21.84 | 28.13 | 17.45 | 13.88 | 12.65 | 7.92 | 10.48 | 9.10 |
| Debt Equity | 1.25 | 1.23 | 1.20 | 1.13 | 1.08 | 1.01 | 1.13 | 1.10 | 1.09 | 0.98 |
| MIN | ||||||||||
| Graham Stability | - | - | 68% | 4.5% | 100% | 100% | 9.7% | 100% | 100% | 4.5% |
What is the Debt/FCF?
The Debt/FCF trailing twelve month is 9.10.
What is the trend of Debt/FCF?
The trend of Debt/FCF over the past 5 years is -3.37.
What is the Graham’s Stability?
Graham’s Stability measure stands at 0.05.
Growth
Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.
| Years | 12-2015 | 12-2017 | 12-2019 | 12-2021 | Trend |
|---|---|---|---|---|---|
| Revenue | 4.2% | 7% | 13% | 16% | 2.4% |
| Net Income | 43% | 150% | 5.2% | 43% | 71% |
| Stockholders Equity | -1.4% | -1.8% | -2% | 0.6% | -1.7% |
| FCF | 13% | 19% | 11% | -24% | -3.6% |
What is the 5 year Revenue CAGR?
The Revenue CAGR over the past 5 years is +6.98%.
What is the trend of Revenue growth?
The trend of Revenue growth rate over the past 5 years is +2.42%.
What is the 5 year Earnings CAGR?
The Earnings CAGR over the past 5 years is +148.29%.
What is the trend of Earnings growth?
The trend of Earnings growth rate over the past 5 years is +71.45%.
What is the 5 year Equity CAGR?
The Equity CAGR over the past 5 years is -1.78%.
What is the trend of Equity growth?
The trend of Equity growth rate over the past 5 years is -1.74%.
What is the 5 year FCF CAGR?
The FCF CAGR over the past 5 years is +18.82%.
What is the trend of FCF growth?
The trend of FCF growth rate over the past 5 years is -3.6%.