Kinder Morgan Operating Margin vs. Current Valuation

KMI Stock  USD 27.39  0.03  0.11%   
Considering Kinder Morgan's profitability and operating efficiency indicators, Kinder Morgan is yielding more profit at this time then in previous quarter. It has a moderate risk of reporting better profitability numbers in January. Profitability indicators assess Kinder Morgan's ability to earn profits and add value for shareholders.

Kinder Morgan Operating Profit Margin

0.16

As of now, Kinder Morgan's Days Sales Outstanding is decreasing as compared to previous years. The Kinder Morgan's current Sales General And Administrative To Revenue is estimated to increase to 0.06, while Price To Sales Ratio is projected to decrease to 1.90. As of now, Kinder Morgan's Total Other Income Expense Net is increasing as compared to previous years. The Kinder Morgan's current Net Income From Continuing Ops is estimated to increase to about 2.5 B, while Accumulated Other Comprehensive Income is projected to decrease to (227.8 M).
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.620.4949
Significantly Up
Pretty Stable
Return On Assets0.03530.0337
Sufficiently Up
Slightly volatile
Return On Equity0.05960.0789
Way Down
Pretty Stable
For Kinder Morgan profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Kinder Morgan to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Kinder Morgan utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Kinder Morgan's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Kinder Morgan over time as well as its relative position and ranking within its peers.
  

Kinder Morgan's Revenue Breakdown by Earning Segment

Check out Correlation Analysis.
For more detail on how to invest in Kinder Stock please use our How to Invest in Kinder Morgan guide.
Is Oil & Gas Storage & Transportation space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Kinder Morgan. If investors know Kinder will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Kinder Morgan listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
0.181
Dividend Share
1.145
Earnings Share
1.13
Revenue Per Share
6.823
Quarterly Revenue Growth
(0.05)
The market value of Kinder Morgan is measured differently than its book value, which is the value of Kinder that is recorded on the company's balance sheet. Investors also form their own opinion of Kinder Morgan's value that differs from its market value or its book value, called intrinsic value, which is Kinder Morgan's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Kinder Morgan's market value can be influenced by many factors that don't directly affect Kinder Morgan's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Kinder Morgan's value and its price as these two are different measures arrived at by different means. Investors typically determine if Kinder Morgan is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Kinder Morgan's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

Kinder Morgan Current Valuation vs. Operating Margin Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Kinder Morgan's current stock value. Our valuation model uses many indicators to compare Kinder Morgan value to that of its competitors to determine the firm's financial worth.
Kinder Morgan is rated fifth overall in operating margin category among its peers. It is rated below average in current valuation category among its peers reporting about  337,569,613,305  of Current Valuation per Operating Margin. As of now, Kinder Morgan's Operating Profit Margin is increasing as compared to previous years. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Kinder Morgan's earnings, one of the primary drivers of an investment's value.

Kinder Current Valuation vs. Operating Margin

Operating Margin shows how much operating income a company makes on each dollar of sales. It is one of the profitability indicators which helps analysts to understand whether the firm is successful or not making money from everyday operations.

Kinder Morgan

Operating Margin

 = 

Operating Income

Revenue

X

100

 = 
0.27 %
A good Operating Margin is required for a company to be able to pay for its fixed costs or payout its debt, which implies that the higher the margin, the better. This ratio is most effective in evaluating the earning potential of a company over time when comparing it against a firm's competitors.
Enterprise Value is a firm valuation proxy that approximates the current market value of a company. It is typically used to determine the takeover or merger price of a firm. Unlike Market Cap, this measure takes into account the entire liquid asset, outstanding debt, and exotic equity instruments that the company has on its balance sheet. When a takeover occurs, the parent company will have to assume the target company's liabilities but will take possession of all cash and cash equivalents.

Kinder Morgan

Enterprise Value

 = 

Market Cap + Debt

-

Cash

 = 
92.73 B
Enterprise Value can be a useful tool to compare companies with different capital structures. Long term liability and current cash or cash equivalents can have a huge impact on market valuation of a given company.

Kinder Current Valuation vs Competition

Kinder Morgan is rated below average in current valuation category among its peers. After adjusting for long-term liabilities, total market size of Energy industry is now estimated at about 864.83 Billion. Kinder Morgan retains roughly 92.73 Billion in current valuation claiming about 11% of equities under Energy industry.

Kinder Morgan Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Kinder Morgan, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Kinder Morgan will eventually generate negative long term returns. The profitability progress is the general direction of Kinder Morgan's change in net profit over the period of time. It can combine multiple indicators of Kinder Morgan, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Last ReportedProjected for Next Year
Accumulated Other Comprehensive Income-217 M-227.8 M
Operating Income4.3 B2.2 B
Income Before Tax3.2 B3.4 B
Net Income Applicable To Common Shares2.4 B2.5 B
Net Income2.5 B2.6 B
Income Tax Expense715 M546 M
Total Other Income Expense Net748 M785.4 M
Net Income From Continuing Ops2.5 B2.5 B
Non Operating Income Net Other900.5 M945.5 M
Interest IncomeM6.7 M
Net Interest Income-1.8 B-1.9 B
Change To Netincome665.9 M1.1 B
Net Income Per Share 1.07  1.12 
Income Quality 2.61  2.48 
Net Income Per E B T 0.75  0.40 

Kinder Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Kinder Morgan. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Kinder Morgan position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Kinder Morgan's important profitability drivers and their relationship over time.

Use Kinder Morgan in pair-trading

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Kinder Morgan position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Kinder Morgan will appreciate offsetting losses from the drop in the long position's value.

Kinder Morgan Pair Trading

Kinder Morgan Pair Trading Analysis

The ability to find closely correlated positions to Kinder Morgan could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Kinder Morgan when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Kinder Morgan - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Kinder Morgan to buy it.
The correlation of Kinder Morgan is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Kinder Morgan moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Kinder Morgan moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Kinder Morgan can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your Kinder Morgan position

In addition to having Kinder Morgan in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

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When determining whether Kinder Morgan offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Kinder Morgan's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Kinder Morgan Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Kinder Morgan Stock:
Check out Correlation Analysis.
For more detail on how to invest in Kinder Stock please use our How to Invest in Kinder Morgan guide.
You can also try the Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
To fully project Kinder Morgan's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Kinder Morgan at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Kinder Morgan's income statement, its balance sheet, and the statement of cash flows.
Potential Kinder Morgan investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Kinder Morgan investors may work on each financial statement separately, they are all related. The changes in Kinder Morgan's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Kinder Morgan's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.