Kinder Morgan, Inc. (KMI) — Fundamental Analysis & Key Financial Ratios

Kaplio's reading: Kinder Morgan, Inc.

Updated on October 22, 2026 · accounts published on October 21, 2026

Reading of October 21, 2026: A steady cash-generating business with stable margins and a heavy debt load

Kinder Morgan trades at a P/E of 21.8 over the last 12 months, 15 % above its sector median and 2 % below its own ten-year median.

• Is Kinder Morgan expensive or cheap? At a P/E of 21.8, Kinder Morgan sits 15 % above its sector median but in line with its own ten-year median of 22.2.
• How is the business doing? Revenue grew 13 % and EPS 17 % over the last 12 months, with a 29 % operating margin above its 2014-2025 average of 28 %.
• How strong is the balance sheet? Net debt is $15.32 per share, 45 % of the share price, and 4.3× EBITDA in fiscal 2025 against a healthy level below 2.0×.
• What to expect from the next earnings? Analysts expect EPS of $0.39 when Kinder Morgan reports on January 20, 2027, after beats in 5 of the last 8 quarters.
• Does it generate cash through the cycle and cover the dividend? Free cash flow was positive in all of the last 10 fiscal years and covered the fiscal 2025 dividend 1.2×, right at the threshold.

Is Kinder Morgan expensive or cheap?

Over the last 12 months Kinder Morgan trades at a P/E of 21.8, 2 % below its ten-year median of 22.2, and it has traded at a lower P/E 47 % of the time in the last decade. Against 191 sector peers, with a median P/E of 19.0, it carries a 15 % premium. EV/EBITDA of 14.6× is above its ten-year average of 12.0×, past the 110 % line the energy screen treats as expensive. The stock is up 27 % over 12 months and sits within 1 % of its 52-week high of $34.31, so much of the good news is already in the share price.

How is the business doing?

Kinder Morgan's revenue rose 13 % and EPS 17 % year on year over the last 12 months. The operating margin of 29 % edges above its fiscal 2014-2025 average of 28 % and fiscal 2025's 28.4 %, so profitability is steady and slightly improving. Returns on capital are the weak spot: ROIC of 6.7 % over the last 12 months is 0.6 points below the sector median of 7.3 %, and it has not cleared 10 % in any of the last ten fiscal years. Kinder Morgan earns consistent margins on a very large asset base, but compounds capital slowly.

How strong is the balance sheet?

Debt is the main risk. Fiscal 2025 net debt of $15.32 per share equals 45 % of today's share price, and net debt to EBITDA of 4.3× is more than double the 2.0× ceiling used for energy. Over the last 12 months debt to equity is 1.05, the current ratio is 0.33 and the Altman Z of 1.1 sits in the distress zone. On the other side, a Piotroski score of 8 out of 9 points to solid fundamentals, and the dividend, yielding 3.5 % over the last 12 months, has risen for 9 consecutive fiscal years, with a payout of 85 % of fiscal 2025 earnings.

What to expect from the next earnings?

On October 21, 2026 Kinder Morgan reported EPS of $0.35 against $0.32 expected, a 9 % beat, and it has topped estimates in 5 of the last 8 quarters. For the quarter due on January 20, 2027, analysts expect EPS of $0.39. Estimates are drifting up slightly: the 2026 EPS consensus rose 0.5 % over the last 30 days, from $1.53 to $1.54 across 11 analysts, while the revenue consensus barely moved. Of 34 analysts, 16 rate it a buy, 17 a hold and 1 a sell, a split that reflects steady growth set against a full multiple.

Does it generate cash through the cycle and cover the dividend?

Energy earnings swing with commodity prices, so this sector is judged on cash across the whole cycle and on whether the dividend is sustainable. Kinder Morgan passes the consistency test, with positive free cash flow in all 10 fiscal years from 2016 to 2025, above the 8-in-10 bar for cycle discipline. Capex of 18 % of fiscal 2025 revenue sits inside the healthy 10-20 % band. The cushion is thin: dividend cover of 1.2× sits right at the healthy threshold, the free cash flow yield of 5.3 % over the last 12 months is short of the 8 % mark, and the five-year average ROIC of 5.3 % misses the 10 % bar.

How this was prepared: the data comes from companies' official filings, collected by a professional provider, and from Kaplio's analysis engine (trailing-12-month ratios, 10 years of history and sector medians computed across US-listed companies). The text is written from that data alone, every figure is checked against it before publication, and it is reviewed when the company reports results. This is not investment advice.