Kinder Morgan, Inc. operates as an energy infrastructure company in North America. The company operates through four segments: Natural Gas Pipelines, Products Pipelines, Terminals, and CO2. It owns and operates approximately 83,000 miles of pipelines and 143 terminals. The company was formerly known as Kinder Morgan Holdco LLC and changed its name to Kinder Morgan, Inc. in February 2011. Kinder Morgan, Inc. was founded in 1936 and is headquartered in Houston, Texas. This week, I fundamentally analyze Kinder Morgan’s stock. I review Kinder Morgan’s operating segments, look at its key ratios, and derive the intrinsic value using Discounted Cash Flow (DCF) analysis. Since this is a long video, please feel free to use the time stamps in the video if you only wish to watch certain topics.
I review various key ratios such as Revenue, Net Income, Shares outstanding, Dividends, Payout Ratio, Free Cash Flows (FCF), Financial Leverage, Current Ratio, Debt to Equity Ratio, Return on Equity (ROE), Days Sales Outstanding (DSO), Days Inventory, Payable Period, Cash Conversion Cycle, Inventory Turnover, etc.
After taking into account 2021’s free cash flow of $4,427 million figure, a 6% growth rate of FCF (growth for the next 10 years), 10% discount rate, 2.245% long term growth rate (growth from 10 year mark in the future to perpetuity), 2,266 million shares outstanding, and $30,564 million of long term debt, the DCF analysis yields us an intrinsic value of $19.68 per share.
0:23 Business Overview
8:30 Key Ratios Analysis
18:12 Discounted Cash Flow Analysis / Intrinsic Value
Kinder Morgan’s Website: here.
Morningstar Key Ratios Link: here.
Useful Resources here.
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