Kinder Morgan Intrinsic Value Calculation – Kinder Morgan’s Fundamentals Strong Despite Market Sentiment
December 22, 2023
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Kinder Morgan ($NYSE:KMI) Inc., is a resource and energy transportation company based in Houston, Texas. The company operates the largest natural gas pipeline network in North America and transports oil, gas, and carbon dioxide. Despite the market’s current negative sentiment towards Kinder Morgan’s stock, the company has strong fundamentals that have led to consistent growth over the years. Its common stock and bonds have also been performing very well over the past decade.
In addition, Kinder Morgan has made significant investments in expansion projects that will benefit its long-term growth. Kinder Morgan also has a strong balance sheet that is bolstered by a substantial cash position. Furthermore, the company has a strong operational track record of delivering on its projects on time and on budget. With an experienced management team leading the way, investor confidence in Kinder Morgan’s stock should remain strong in spite of current market sentiment.
Market Price
Kinder Morgan Inc. (KMI) has been weathering the storm of market sentiment despite the global pandemic and economic downturn. On Thursday, the stock opened at $17.5 and closed at $17.6, a 0.8% increase from its last closing price of $17.5. This indicates that the company’s fundamentals remain strong despite the current market environment. Kinder Morgan’s management team has implemented a variety of measures to reduce costs and improve operating efficiency to counteract the effects of the pandemic. These include cost cutting initiatives, expanding their core business areas, and continuing to pursue strategic acquisitions and joint ventures.
As a result of their strategy, KMI has been able to maintain a solid financial position, with strong cash flows and a healthy balance sheet. The company’s strong fundamentals have enabled KMI to remain on track with its growth plans and continue to deliver shareholder value. With a solid portfolio of assets that are well-positioned for future growth, Kinder Morgan remains a sound investment option in today’s volatile market. Investors should take comfort in the fact that despite market sentiment, Kinder Morgan’s fundamentals remain strong and their future looks bright. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Kinder Morgan. More…
| Total Revenues | Net Income | Net Margin |
| 15.88k | 2.45k | 15.5% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Kinder Morgan. More…
| Operations | Investing | Financing |
| 5.57k | -2.36k | -3.84k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Kinder Morgan. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 68.86k | 37.28k | 13.61 |
Key Ratios Snapshot
Some of the financial key ratios for Kinder Morgan are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 10.0% | 6.0% | 26.8% |
| FCF Margin | ROE | ROA |
| 21.5% | 8.7% | 3.9% |
Analysis – Kinder Morgan Intrinsic Value Calculation
At GoodWhale, we have done an analysis of KINDER MORGAN‘s financials and have come to a conclusion about the fair value of their stock. Our proprietary Valuation Line suggests that the fair value of KINDER MORGAN shares is approximately $16.9. However, the stock is currently traded at $17.6, a fair price which is overvalued by 4.4%. More…
Peers
Kinder Morgan Inc is a leading pipeline transportation and energy storage company in North America. The company operates in three segments: Natural Gas Pipelines, Products Pipelines, and Terminals. Kinder Morgan’s competitors include ONEOK Inc, Kinetik Holdings Inc, and Keyera Corp.
– ONEOK Inc ($NYSE:OKE)
ONEOK Inc. is one of the largest energy midstream service providers in the United States. It owns and operates natural gas liquids (NGL) gathering, processing, transportation and storage assets, as well as natural gas pipelines. The company’s NGL business includes the gathering, processing and transportation of NGLs, as well as the storage and marketing of propane, butane and natural gasoline. The company’s natural gas business includes the transportation of natural gas through an interstate natural gas pipeline system.
– Kinetik Holdings Inc ($NASDAQ:KNTK)
Kinetik Holdings Inc is a publicly traded company with a market capitalization of 1.54 billion as of 2022. The company has a return on equity of 5.46%. Kinetik Holdings is engaged in the business of providing a range of energy storage solutions. The company’s products are used in a variety of applications including automotive, residential, commercial and industrial.
– Keyera Corp ($TSX:KEY)
Keyera Corp is a Canadian company that owns and operates energy infrastructure assets. Its business segments include natural gas gathering and processing, natural gas liquids (NGL) extraction and fractionation, transportation, storage and marketing, and power generation. The company has a market cap of 6.31B as of 2022 and a Return on Equity of 17.57%.
Summary
Kinder Morgan is a leading midstream energy infrastructure company and is of interest to many investors. An analysis of the company’s performance reveals that its stock price has not mirrored its fundamental performance. The company has consistently reported strong financial results, with revenues and profits steadily increasing over the years.
However, the market sentiment for the company has been lagging, mostly due to political uncertainty surrounding its large acquisitions. Despite this, Kinder Morgan remains financially stable and has taken proactive steps to improve its position. Investors looking for long-term capital appreciation should consider Kinder Morgan as an interesting investment opportunity.
