Kinder Morgan (KMI) AI Stock Analysis

• Market Cap: $62.08B
• Dividend Yield: 4.19%
• Average Volume (3M): 12.49M
• Price to Earnings (P/E): 24.2
• Beta (1Y): 0.58
• Revenue Growth: 4.10%
• EPS Growth: 11.48%
• Country: US
• Employees: 10,933
• Sector: Energy
• Sector Strength: 42
• Industry: Oil & Gas Midstream
• EPS (TTM): 0.28
• Shares Outstanding: 2,222,068,800
• 10 Day Avg. Volume: 11,129,653
• 30 Day Avg. Volume: 12,485,928
• PEG Ratio: >-0.01
• Price to Book (P/B): 1.99
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 22.12
• Enterprise Value/Market Cap: 1.51
• Enterprise Value/Revenue: 1.53
• Enterprise Value/Gross Profit: 11.11
• Enterprise Value/Ebitda: 3.50
• 1Y Price Target: $32.08
• Price Target Upside: 16.70% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 13

• Rating: 70 Outperform
• Price Target: $30.00 ▲(9.13%Upside)

Kinder Morgan's overall stock score of 70 reflects strong financial performance and a positive outlook from the recent earnings call. The company's solid profitability, efficient cash flow, and expanding project backlog are significant strengths. However, technical indicators and leverage risk moderate the score, suggesting caution. The attractive dividend yield adds to the stock's appeal for income investors.

Positive Factors

Financial Performance

KMI reiterates its FY25 EBITDA guidance should exceed annual budgeted levels, highlighting strong financial performance expectations.

Project Development

The company increased its backlog by $1.3B, reflecting strong project development and future revenue potential.

Regulatory Environment

A streamlined federal process could reduce the permitting to construction time by 5 months, accelerating project timelines.

Negative Factors

Competitive Growth

Growth should inflect in 2027, making 2026 EBITDA growth less competitive relative to peers.

Market Support

KMI remains cautious on committing capital for projects in areas that have historically not had strong state and local support, such as the Northeast.

Tariff Challenges

The changing tariff landscape has created challenges for shippers on the Copper State Connector project due to complex agreements.

Kinder Morgan Business Overview & Revenue Model

Company Description

Kinder Morgan, Inc. (KMI) is one of the largest energy infrastructure companies in North America. The company operates primarily in the sectors of natural gas, petroleum products, and carbon dioxide (CO2) transport and storage. Its core services include owning and controlling pipelines and terminals that facilitate the transportation of natural gas, refined petroleum products, crude oil, and CO2, as well as the storage and handling of various energy products. With a vast network of pipelines and storage facilities, Kinder Morgan plays a critical role in the energy supply chain, connecting energy producers with consumers across the continent.

How the Company Makes Money

Kinder Morgan primarily generates revenue through the fees it charges for transporting and storing energy products. The company's extensive network of pipelines and terminals allows it to charge transportation fees to energy producers for moving natural gas, oil, and refined products from production sites to refineries, distribution centers, and end consumers. Additionally, Kinder Morgan earns money from storage fees by providing storage capacity for energy products at its terminals. The company also engages in long-term contracts and take-or-pay agreements, which provide stable and predictable revenue streams. Key revenue streams include transportation fees from natural gas pipelines, refined petroleum pipelines, and CO2 transport, as well as terminal fees for storage and handling. Significant partnerships with energy producers and utility companies further enhance Kinder Morgan's revenue generation by ensuring a steady demand for its infrastructure services.

Kinder Morgan Financial Statement Overview

Summary

Kinder Morgan's financial performance is solid with strong profitability and efficient cash flow management. The income statement reflects stable profitability with a gross profit margin of 63% and a net profit margin of 17%. The balance sheet shows financial stability with an equity ratio of 42.3%, though the high debt-to-equity ratio of 1.07 suggests significant leverage risk. Cash flow analysis indicates robust cash generation, despite a slight decrease in free cash flow.

Income Statement

Kinder Morgan's income statement shows a strong performance with a consistent gross profit margin around 63% for TTM, indicating efficient cost management. The net profit margin is stable at approximately 17% for TTM, reflecting solid profitability. Revenue growth is moderate at 2.8% from 2024 to TTM, with EBITDA margin at 31.7% for TTM, showcasing a robust earnings capacity. However, the slight decline in EBIT margin from 2024 to TTM suggests potential challenges in operational efficiency.

Balance Sheet

The balance sheet reveals a strong equity position with an equity ratio of around 42.3% for TTM, indicating financial stability. However, the debt-to-equity ratio is relatively high at 1.07, suggesting significant leverage, which could pose risks if not managed properly. Return on equity is healthy at approximately 8.6% for TTM, showing effective use of equity capital.

Cash Flow

Cash flow analysis indicates a stable free cash flow with a slight decrease of 8.1% from 2024 to TTM, highlighting effective cash management despite challenges. The operating cash flow to net income ratio remains robust at around 2.1 for TTM, suggesting strong cash generation relative to reported earnings. Free cash flow to net income ratio is approximately 1.05 for TTM, indicating sufficient cash flow to cover earnings.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	15.10B	15.16B	19.20B	16.61B	11.70B
Gross Profit	8.41B	8.15B	7.76B	7.98B	6.99B
EBITDA	6.74B	6.51B	6.22B	6.67B	5.66B
Net Income	2.61B	2.39B	2.55B	1.78B	119.00M
Balance Sheet
Total Assets	71.41B	71.02B	70.08B	70.42B	71.97B
Cash, Cash Equivalents and Short-Term Investments	88.00M	83.00M	745.00M	1.14B	1.18B
Total Debt	31.67B	31.89B	31.57B	33.21B	34.58B
Total Liabilities	39.54B	39.29B	37.96B	38.49B	39.41B
Stockholders Equity	30.53B	30.31B	30.74B	30.82B	31.44B
Cash Flow
Free Cash Flow	3.01B	4.15B	3.35B	4.43B	2.84B
Operating Cash Flow	5.63B	6.49B	4.97B	5.71B	4.55B
Investing Cash Flow	-2.63B	-4.17B	-2.17B	-2.31B	-911.00M
Financing Cash Flow	-2.89B	-3.01B	-3.15B	-3.46B	-2.64B

Kinder Morgan Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 27.49
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For KMI, the sentiment is Neutral. The current price of 27.49 is below the 20-day moving average (MA) of 28.23, below the 50-day MA of 27.95, and above the 200-day MA of 26.70, indicating a neutral trend. The MACD of -0.03 indicates Positive momentum. The RSI at 42.13 is Neutral, neither overbought nor oversold. The STOCH value of 44.49 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for KMI.

Kinder Morgan Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MPLX	81 Outperform	$51.52B	11.66	32.54%	7.58%	5.53%	11.29%
OKE	78 Outperform	$49.45B	15.86	16.04%	5.20%	40.55%	19.24%
ET	76 Outperform	$59.85B	13.21	13.73%	7.51%	1.04%	22.31%
EPD	74 Outperform	$68.32B	11.83	20.49%	6.79%	9.10%	4.37%
WMB	70 Outperform	$71.27B	31.31	18.32%	3.42%	8.63%	-20.98%
KMI	70 Outperform	$62.08B	24.16	8.88%	4.19%	4.10%	11.48%
Sector *	67 Neutral	$14.98B	9.65	6.33%	5.29%	4.07%	-66.96%

Kinder Morgan Corporate Events

Kinder Morgan to Attend Barclays Infrastructure Conference

On June 12, 2025, Kinder Morgan, Inc. announced its participation in the Barclays Global Infrastructure Conference scheduled for June 17, 2025. This engagement is aimed at discussing the company’s business operations and affairs, potentially impacting its industry positioning and providing insights to stakeholders.

The most recent analyst rating on (KMI) stock is a Buy with a $28.00 price target. To see the full list of analyst forecasts on Kinder Morgan stock, see the KMI Stock Forecast page.

Kinder Morgan Holds Annual Stockholders Meeting

On May 15, 2025, Kinder Morgan, Inc. held its Annual Meeting of Stockholders, where 1,942,512,111 shares were represented, forming a quorum. During the meeting, stockholders elected eleven directors to the board, ratified PricewaterhouseCoopers LLP as the independent accounting firm for 2025, and conducted an advisory vote on executive compensation.

The most recent analyst rating on (KMI) stock is a Buy with a $28.00 price target. To see the full list of analyst forecasts on Kinder Morgan stock, see the KMI Stock Forecast page.

Kinder Morgan to Release Updated Investor Presentation

On April 17, 2025, Kinder Morgan, Inc. announced its intention to release an updated investor presentation on its website by April 21, 2025. This announcement is part of the company’s ongoing efforts to provide transparency and updated information to its investors, potentially impacting stakeholder engagement and market perception.