Home Sectors Energy Recent Valuation: Kinder Morgan (NYSE: KMI)

Recent Valuation: Kinder Morgan (NYSE: KMI)


Kinder Morgan trades as part of the energy sector and is in the oil and gas midstream industry. The company CEO is Steven J. Kean. Kinder Morgan Inc is an energy infrastructure company. The Company transports natural gas, refined petroleum products, crude oil, condensate, CO2 and other products.

Previous Intraday Trading Performance:

The KMI stock showed a previous change of 0.50% with an open at 20.04 and a close of 20.06. It reached an intraday high of 20.12 and a low of 19.98.

SeekingAlpha:  Week Thoughts: Oil Drops, IPO Pops


The stock has a market cap of $45.4b with 2.3b shares outstanding, of which the float is 2.0b shares. Trading volume reached 9,644,330 shares compared to its average volume of 13,578,457 shares. Based on the current average volume and close price, the trading liquidity is good.

Historical Trading Performance:

Over the last five trading days, Kinder Morgan shares returned -1.13% and in the past 30 trading days it returned 2.48%. Over three months, it changed 5.24%. In one year it has changed 32.41% and within that year its 52-week high was 20.57 and its 52-week low was 14.62. KMI stock is 37.21% above its 52 Week Low.

Our calculations show a 200 day moving average of 17.87 and a 50 day moving average of 19.78. Currently KMI stock is trading 12.28% above its 200 day moving average.

SeekingAlpha:  Week Thoughts: Oil Drops, IPO Pops


The last annual fiscal EPS for the company was reported at 0.66 that ended on 31st of December 2018, which according to the previous close, that is a PE of 30.39. Based on 7 analyst estimates, the consensus EPS for the next quarter is 0.25. The TTM EPS is 0.89, which comes to a TTM PE of 22.54. Historically, the PE high was 1,983.00 and the PE low was 16.00. If the stock reached its PE low, that would represent a price of 14.24, which is a decrease of -29.02%.

Below was the last reported quarterly diluted earnings per share:

1stQtr of 2019 0.24
4thQtr of 2018 0.21
3rdQtr of 2018 0.31
2ndQtr of 2018 -0.08
1stQtr of 2018 0.22

The dividend per share is currently 1.00, which is a dividend yield of 4.99%. KMI stock may not have enough earnings to cover future dividends and still be able to invest in the business, therefore the dividend may be cut in the future.

Base on our calculations, the intrinsic value per share is 13.23, which means it may be overvalued by -51.61%.

Indicators to Watch:

Based on the latest filings, there is 92.30% of institutional ownership. Short-interest was 49,707,266, which was 2.20% of shares outstanding. The short-interest ratio or days-to-cover ratio was 3.56. This stock has some short interest, but it may be normal and no cause for concern if long the position.

The current calculated beta is 0.91.

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Fundamental Indicators:

Based on last reported financials, the company’s return on equity is 4.59%, return on assets is 1.99%, profit margin is 13.73%, price-to-sales is 3.19 and price-to-book is 1.35.

Company Scores:

All scores are out of six:
 0  :Valuation Score
 3  :Past Performance Score
 1  :Financial Strength Score
 1  :Future Growth Score
 2  :Dividend Score
 1  :Overall Score

Worked for several Wall Street firms: Salomon Smith Barney, UBS, and Charles Schwab. Has developed skills and gained extensive experience over the years that is used today to uncover winning penny stocks.Also was an attorney for small businesses in Scottsdale, Arizona. That experience and understanding of law provides a unique perspective and edge in discovering quality companies in various industries.