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Kinder Morgan Inc Class P KMI

Morningstar Rating
$19.41 +0.26 (1.36%)
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Company Report

Finding Undervalued Opportunities From AI and Data Center Demand in E&Ps and Midstream

We think AI and data center demand offers a potentially sizable growth opportunity across our US E&P and US & Canadian midstream coverage list. We consider Chart Industries, Energy Transfer, Enbridge, Kinder Morgan, and TC Energy as undervalued ways to play this trend. Cheniere Energy and Williams are more fairly valued, while Antero, Range, and likely EQT (not covered) are obvious direct opportunities and appear expensive.

Price vs Fair Value

KMI is trading at a 600% premium.
Price
$19.41
Fair Value
$88.00
Uncertainty
Medium
1-Star Price
$98.30
5-Star Price
$38.80
Economic Moat
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Capital Allocation
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Bulls Say, Bears Say

Bulls

Kinder Morgan's natural gas midstream footprint is unrivaled in North America, giving it high-return investment opportunities as gas supply/demand fundamentals shift.

Bears

Kinder has yet to pursue stakeholder partnerships for new pipeline projects like its large Canadian peers have done, which could help improve stakeholder relations.

Is it the right time to buy, sell, or hold?
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News

Trading Information

Previous Close Price
$19.15
Day Range
$19.1419.45
52-Week Range
$15.8919.45
Bid/Ask
$19.38 / $19.44
Market Cap
$43.08 Bil
Volume/Avg
14.6 Mil / 13.3 Mil

Key Statistics

Price/Earnings (Normalized)
17.47
Price/Sales
2.83
Dividend Yield (Trailing)
5.85%
Dividend Yield (Forward)
5.92%
Total Yield
6.91%

Company Profile

Kinder Morgan is one of the largest midstream energy firms in North America, with an interest in or an operator on about 82,000 miles in pipelines and 139 storage terminals. The company is active in the transportation, storage, and processing of natural gas, crude oil, refined products, natural gas liquids, and carbon dioxide. The majority of Kinder Morgan's cash flows stem from fee-based contracts for handling, moving, and storing fossil fuel products.
Sector
Energy
Industry
Oil & Gas Midstream
Stock Style Box
Mid Value
Total Number of Employees
10,891

Competitors

Valuation

Metric
KMI
ET
EPD
Price/Earnings (Normalized)
17.4712.8111.25
Price/Book Value
1.421.762.27
Price/Sales
2.830.631.22
Price/Cash Flow
6.864.967.70
Price/Earnings
KMI
ET
EPD

Financial Strength

Metric
KMI
ET
EPD
Quick Ratio
0.330.930.61
Current Ratio
0.501.180.93
Interest Coverage
2.803.185.45
Quick Ratio
KMI
ET
EPD

Profitability

Metric
KMI
ET
EPD
Return on Assets (Normalized)
3.46%5.75%8.30%
Return on Equity (Normalized)
7.89%22.11%21.13%
Return on Invested Capital (Normalized)
6.00%9.47%12.21%
Return on Assets
KMI
ET
EPD
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Oil & Gas Midstream Industry Comparables

Ticker
Name
Morningstar Rating for Stocks
Capital Allocation
Economic Moat
Market Cap
ENB
Enbridge IncQsrlqfqxjKqqdqt$80.3 Bil
EPD
Enterprise Products Partners LPQpchwrvxcNftf$62.9 Bil
ET
Energy Transfer LPRzfXdzc$53.3 Bil
WMB
Williams Companies IncGcdwfbkqzGgldsk$49.2 Bil
OKE
ONEOK IncMysvzrykVpqww$47.0 Bil
MPLX
MPLX LP Partnership UnitsKrsbkcpxnXkvrdd$41.3 Bil
TRP
TC Energy CorpMmfzztpjpBklsqxx$40.1 Bil
LNG
Cheniere Energy IncYsbstmnrHbv$36.0 Bil
TRGP
Targa Resources CorpVpnxtbhlPdws$25.4 Bil

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