Kinder Morgan Inc - Class P
Exchange: NYSESector: EnergyIndustry: Oil & Gas Midstream
Kinder Morgan, Inc. is one of the largest energy infrastructure companies in North America. Access to reliable, affordable energy is a critical component for improving lives around the world. We are committed to providing energy transportation and storage services in a safe, efficient and environmentally responsible manner for the benefit of the people, communities and businesses we serve. We own an interest in or operate approximately 79,000 miles of pipelines, 139 terminals, more than 700 Bcf of working natural gas storage capacity and have renewable natural gas generation capacity of approximately 6.9 Bcf per year. Our pipelines transport natural gas, refined petroleum products, crude oil, condensate, CO 2, renewable fuels and other products, and our terminals store and handle various commodities including gasoline, diesel fuel, jet fuel, chemicals, metals, petroleum coke, and ethanol and other renewable fuels and feedstocks.
Did you know?
Earnings per share grew at a 5.7% CAGR.
Current Price
$32.53
-1.03%GoodMoat Value
$55.58
70.9% undervaluedProfile
Valuation (TTM)
Market Cap$72.37B
P/E21.83
EV$106.94B
P/B2.32
Shares Out2.22B
P/Sales4.13
Revenue$17.52B
EV/EBITDA12.27
Kinder Morgan Inc - Class P (KMI) Stock Analysis
GoodMoat Analysis
Kinder Morgan operates a vast network of midstream energy assets, possessing a strong competitive moat through its scale and regulatory advantages. However, its current valuation appears unfavourable, trading at a significant premium to the GoodMoat target price, and its financial quality metrics are mixed.
Read full analysis
Kinder Morgan Inc. (KMI) is a major player in the North American energy infrastructure sector, operating an extensive network of pipelines, terminals, and storage facilities for natural gas, refined products, and CO2. Applying the GoodMoat framework, the business exhibits a potentially durable competitive advantage. Its moat is likely anchored in scale privilege (owning critical, large-scale infrastructure), regulatory barriers (operating in a highly regulated environment with significant permitting hurdles), and niche dominance in specific pipeline corridors. This aligns with a Moat Score that would likely pass the initial gate of 5+. However, the Quality Indicators present a mixed picture. While the operating margin of 27.9% is solid, the ROE of 9.8% falls below the high-quality threshold of 15-20%, and the Debt/Equity ratio of 1.03 indicates a leveraged balance sheet rather than a substantial net cash position. The 3.8% FCF Yield is modest. Crucially, the valuation assessment is unfavourable. The current price of $33.98 is 39% below the GoodMoat target of $55.58, which, per the framework's DCF bands, indicates a Margin of Safety greater than 40% and would be considered deeply undervalued. However, this must be reconciled with a P/E of 24.7x, which is high for a company with 13.1% revenue growth and single-digit ROE, suggesting the market price and the target signal are in significant conflict. Following the Decision Framework, the business may pass the Moat & Quality Gate, but the extreme valuation disconnect and leveraged balance sheet warrant a high degree of caution for further investigation.
Market Cap$72.37B
Current Price$32.53
P/E Ratio21.83
Forward P/E—
PEG Ratio0.58
EPS$1.37
Book Value$14.01
P/B Ratio2.32
KMI Financial Charts
FCF vs CAPEX
FCFCAPEX
Forward estimates use 2.0% FCF growth (CAGR)
Cash vs Debt
Net Debt: 31.9B
Revenue
13.2B
FY19
11.7B
FY20
16.6B
FY21
19.2B
FY22
15.3B
FY23
15.1B
FY24
16.9B
FY25
Net Income
2.2B
FY19
119M
FY20
1.8B
FY21
2.5B
FY22
2.4B
FY23
2.6B
FY24
3.1B
FY25
KMI 52-Week Range
$25.32
$34.07
50-Day MA: $32.87200-Day MA: $28.62
Did you know?
Free cash flow has been growing at 2.0% annually.
Kinder Morgan Inc - Class P (KMI) Financial Summary
Kinder Morgan Inc - Class P (KMI) is a Energy company in the Oil & Gas Midstream industry, listed on NYSE. The stock currently trades at $32.53 with a market capitalization of $72.37B.
Key valuation metrics include a P/E ratio of 21.83, price-to-book ratio of 2.32, and EPS of $1.37. The company reports a profit margin of 18.9% and return on equity of 10.6%.
KMI Key Financial Metrics
| Metric | Value |
|---|---|
| Market Cap | $72.37B |
| P/E Ratio | 21.83 |
| EPS | $1.37 |
| P/B Ratio | 2.32 |
| P/S Ratio | 4.13 |
| EV/EBITDA | 12.27 |
| Dividend Yield | 3.60% |
| Profit Margin | 18.9% |
| Return on Equity | 10.6% |
| Debt/Equity | 1.03 |
KMI Revenue & Earnings History
| Year | Revenue | Net Income |
|---|---|---|
| FY19 | $13.21B | $2.19B |
| FY20 | $11.70B | $119.00M |
| FY21 | $16.61B | $1.78B |
| FY22 | $19.20B | $2.55B |
| FY23 | $15.33B | $2.39B |
| FY24 | $15.10B | $2.61B |
| FY25 | $16.94B | $3.06B |
Kinder Morgan Inc - Class P (KMI) Valuation
Based on GoodMoat's DCF model, Kinder Morgan Inc - Class P has a fair value estimate of $55.58. At the current price of $32.53, the stock appears 41.5% undervalued relative to our intrinsic value estimate.
KMI Quality Indicators
Kinder Morgan Inc - Class P maintains a profit margin of 18.9% and an operating margin of 27.9%. Return on equity stands at 10.6%. The current ratio is 0.64. Debt-to-equity ratio is 1.03.
About Kinder Morgan Inc - Class P
Kinder Morgan, Inc. is one of the largest energy infrastructure companies in North America. Access to reliable, affordable energy is a critical component for improving lives around the world. We are committed to providing energy transportation and storage services in a safe, efficient and environmentally responsible manner for the benefit of the people, communities and businesses we serve. We own an interest in or operate approximately 79,000 miles of pipelines, 139 terminals, more than 700 Bcf of working natural gas storage capacity and have renewable natural gas generation capacity of approximately 6.9 Bcf per year. Our pipelines transport natural gas, refined petroleum products, crude oil, condensate, CO 2, renewable fuels and other products, and our terminals store and handle various commodities including gasoline, diesel fuel, jet fuel, chemicals, metals, petroleum coke, and ethanol and other renewable fuels and feedstocks.
KMI Free Cash Flow
Kinder Morgan Inc - Class P generated $2.89B in trailing twelve-month free cash flow, representing an FCF yield of 3.99%. This moderate FCF yield indicates reasonable cash generation.
KMI Shares Outstanding
Kinder Morgan Inc - Class P has 2.22 billion shares outstanding at a share price of $32.53, giving it a market capitalization of $72.37B.
KMI Recent Insider Trades
Recent insider transactions at Kinder Morgan Inc - Class P include:
| Insider | Type | Shares | Value |
|---|---|---|---|
| Garthwaite Michael P. (VP (Pres., Products Pipelines)) | SELL | 1,550 | $49167.55 |
| Garthwaite Michael P. (VP (Pres., Products Pipelines)) | SELL | 1,550 | $51608.80 |
| Schlosser John W (V.P. (President, Terminals)) | SELL | 6,166 | $207640.05 |