KMI Kinder Morgan, Inc. - Fundamental Analysis
NEUTRAL
KMI Stock | Fundamental Analysis & Investment Insights
NYSE
•
Energy
•
Oil & Gas Midstream
Current Price
$27.42
Analyst Target
$31.15
+13.6% Upside
52W High
$31.48
52W Low
$23.94
AI Analysis
Powered by advanced machine learning algorithms
Confidence Score
72%
Analysis Accuracy
Kinder Morgan (KMI) trades near fair value with a current price of $27.42, modestly below the analyst target of $31.15, implying 13.6% upside. The company exhibits strong revenue growth (12.1% YoY) and solid operating margins (25.64%), outperforming sector peers on profitability and growth, though earnings growth remains muted at 0.3% YoY despite a recent acceleration in EPS. Valuation is in line with the energy sector average (P/E 22.48 vs. 22.54), but elevated payout ratio (95.08%) and insider selling raise sustainability concerns. While the 4.27% dividend yield is attractive, weak liquidity (current ratio 0.63) and high leverage (D/E 1.02) constrain financial flexibility, offsetting otherwise stable midstream fundamentals.
Key Strengths
Revenue growth of 12.1% YoY significantly outpaces peer average of 0.11% and positions KMI as a top performer in the midstream segment
Operating margin of 25.64% and gross margin of 49.12% reflect strong cost control and asset efficiency, well above sector averages of 8.65% profit margin and ~20% operating margin implied by ROE spread
ROE of 8.88% exceeds sector median despite higher leverage, indicating effective capital deployment relative to equity base
Dividend yield of 4.27% is among the highest in the peer group, offering income appeal in a yield-constrained environment
Analyst consensus is 'buy' with 20 analysts supporting upside, and target price implies meaningful 13.6% appreciation potential
Key Risks
Earnings growth of only 0.3% YoY despite strong revenue growth suggests margin compression or one-time costs, raising concerns about profit conversion
Payout ratio of 95.08% leaves minimal buffer for dividend coverage, increasing risk of cut if cash flow dips
Debt/Equity of 1.02 is above sector average of 0.56 and peer MPC (1.43) is the only comparable, increasing refinancing and interest rate risk
Current ratio of 0.63 and quick ratio of 0.40 indicate poor short-term liquidity, below all major peers and raising working capital concerns
Insider selling of $4.55M over last 6 months across 8 transactions signals lack of confidence from corporate insiders, a bearish governance signal
AI Fair Value Estimate
Based on comprehensive analysis
$31.15
+13.6% above current price
Performance Snowflake
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Stock Price & Analyst Targets
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Historical Performance Trends
Long-term financial metrics and growth patterns
Valuation Metrics
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Profitability, Growth & Financial Health
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Sector Comparison & Peer Analysis
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Insider Trading & Analyst Ratings
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