Kinder Morgan Stock Intrinsic Value – Kinder Morgan’s Promising ROCE Trends Point to a Bright Future Ahead

December 15, 2023

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Kinder Morgan ($NYSE:KMI) is an energy infrastructure giant with an expansive portfolio of natural gas, crude oil, and refined products pipelines, terminals, and storage facilities. The company has been a major player in the energy industry for many years and its stock has seen tremendous growth. Recently, the company has seen a strong trend in its Return on Capital Employed (ROCE) which is a measure of profitability. This has analysts predicting a bright future for the company and investors are certainly hopeful. The ROCE trend points to Kinder Morgan being able to generate more profit from its existing investments. This is a positive sign that the company is well-positioned to capitalize on future investments and grow its business.

Additionally, the company has been investing heavily in research and development, which could result in more cost-effective projects as well as new products and services. This could lead to even higher returns in the near future. Kinder Morgan’s strong ROCE trend also indicates that the company is able to effectively manage its debt load. This is important for companies that rely heavily on debt financing for capital projects. By managing its debt load, Kinder Morgan can effectively reduce its debt service expenses, freeing up capital for other investments. Overall, Kinder Morgan’s positive trends in ROCE point to a bright future ahead for the company. With its expansive network of pipelines, terminals, and storage facilities, the company is well-positioned to capitalize on future investments and growth opportunities. Investors should certainly keep an eye on this promising energy giant as it continues to grow and expand its operations.

Share Price

On Thursday, KINDER MORGAN stock opened at $17.6 and closed at $17.7, up by 1.2% from the previous closing price of 17.5. This trend suggests that there is growing optimism about the company’s financial performance in the near future. KINDER MORGAN is expected to continue to benefit from strong demand and pricing in the energy sector, which is likely to help the company maintain its strong ROCE trends.

Additionally, KINDER MORGAN’s diversified base of assets, which span across different sectors of the energy industry, provides the company with a significant competitive advantage. This could allow KINDER MORGAN to outpace its peers in terms of financial performance and shareholder returns. Overall, the strong ROCE trends that KINDER MORGAN has been showing over the past few months are a good sign for the company’s long-term prospects. Assuming that the company can continue to capitalize on the current market conditions, KINDER MORGAN is likely to remain an attractive investment for the foreseeable future. Live Quote…

About the Company

  • Industry Classification
  • Key Executives
  • Ownership (Institutional/ Fund Holdings)
  • News Feed
  • 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%
  • Income Statement Reports (Yearly/ Quarterly/ LTM)
  • Income Supplement
  • Growth Performance
  • 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
  • Cash Flow Statement (Yearly/ Quarterly/ LTM)
  • Cash Flow Supplement
  • 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
  • Balance Sheet (Yearly/ Quarterly)
  • Balance Sheet Supplement
  • 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%
  • Income Statement Ratios
  • Balance Sheet Ratios
  • Cash Flow Ratios
  • Valuation Ratios
  • Other Ratios
  • Other Supplementary Items
  • Analysis – Kinder Morgan Stock Intrinsic Value

    At GoodWhale, we have conducted an analysis of KINDER MORGAN‘s financials. Our proprietary Valuation Line has calculated the intrinsic value of KINDER MORGAN shares to be around $16.9. Currently, the market is trading KINDER MORGAN stock at $17.7, which is slightly overvalued by 4.9%. We believe that this fair price should attract potential investors that are seeking long-term gains. More…

  • Star Chart Analysis
  • Valuation Analysis




  • 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 an energy infrastructure company with operations across North America. An analysis of the company’s financials reveals that its return on capital employed (ROCE) is trending upwards, signaling a bright future for the company. Financial metrics such as cash flow from operations, net income growth and dividend payouts have also shown positive improvements over this period.

    Other key indicators such as debt levels and total assets are in check, which suggest that Kinder Morgan is managing its resources well. In conclusion, Kinder Morgan’s financial data points to a strong investment proposition in the near future.

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