Kinder Morgan KMI
Kinder Morgan is one of North America's largest energy infrastructure companies, operating oil and gas pipelines, storage terminals, and natural gas processing plants, charging fees for energy transportation and storage. Kinder Morgan shows solid growth (earnings +21.2%) and an attractive dividend (net yield 3.84%), but its high leverage (ND/EBITDA 4.23) and weak free cash flow conversion (14.08%) limit its appeal in a rising rate environment.
Detailed metrics
Market and fundamental data as of the analysis date.
Full AI report
Generated automatically from the metrics, the macro context and the company's news.
Kinder Morgan is one of North America's largest energy infrastructure companies, operating oil and gas pipelines, storage terminals, and natural gas processing plants, charging fees for energy transportation and storage. Kinder Morgan shows solid growth (earnings +21.2%) and an attractive dividend (net yield 3.84%), but its high leverage (ND/EBITDA 4.23) and weak free cash flow conversion (14.08%) limit its appeal in a rising rate environment.
Score by category
| Category | Score |
|---|---|
| Financial health | 3.8 |
| Quality / Moat | 4.5 |
| Valuation | 4.0 |
| Growth | 7.4 |
| Dividend | 7.0 |
| Momentum | 5.6 |
| Risk & Context | 7.8 |
OVERALL SCORE: 5.4/10
Context and risks
The rise in crude oil and tensions in the Middle East (Ormuz) increase the geopolitical risk premium for energy infrastructure, although KMI is diversified in the US and its natural gas business is less sensitive to crude than oil. The rise in 10-year rates makes refinancing its debt, which is high (ND/EBITDA 4.23), more expensive.
News considered in the analysis
- Kinder Morgan (KMI) Could Be 14% Undervalued Following Its Recent Pullback — Análisis de valoración de una fuente secundaria; sugiere un potencial alcista moderado, pero es una opinión, no un hecho material.
- Kinder Morgan (KMI) Stock Slides as Market Rises: Facts to Know Before You Trade — Comentario de mercado sobre un movimiento de precios a corto plazo, sin información fundamental nueva.
- ET vs. KMI: Which Energy Infrastructure Stock Offers More Potential? — Comparativa genérica entre dos empresas del sector, sin información específica nueva sobre KMI.
- 5 Midstream Giants That Raised Dividends Through Market Cycles: Your Guide to Recession-Resistant Income — Reconoce la fortaleza del modelo de negocio de midstream y su historial de dividendos, ya reflejado en el precio y en las notas de dividendo.
- Why ONEOK’s Dividend Raise Matters More Than Its Eye-Catching Yield — Noticia sobre un competidor (ONEOK), sin impacto directo en los fundamentales de KMI.
Verdict: Hold; the strength of the midstream business and the dividend offset the balance sheet risk, but the debt and average valuation do not offer a clear margin of safety.
Main risk: High leverage (ND/EBITDA 4.23) and low free cash flow conversion (14.08%) make the company vulnerable to a prolonged period of high interest rates, which increases the cost of servicing its debt and pressures its valuation.
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