Kinder Morgan Trades at Cheap Valuation: Is the Stock a Buy Now?

Zacks12-12

Kinder Morgan KMI is currently undervalued, with a trailing 12-month enterprise value to EBITDA (EV/EBITDA) of 13.90x. This is below the broader industry average of 14.76x and lags key midstream ...

Source Link

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap

Leave a comment

{"i18n":{"language":"en_US"},"isChannel":false,"data":{"share":"https://ttm.financial/m/news/2490100338?lang=en_US&edition=fundamental","thumbnail":"https://s.yimg.com/uu/api/res/1.2/kyxbhc9vU6coF3kOO3p15g--~B/aD00MDA7dz02MzU7YXBwaWQ9eXRhY2h5b24-/https://media.zenfs.com/en/zacks.com/5102c7cc524ab92392c1c3e5f0753c65","is_english":true,"pubTime":"2024-12-12 22:25","share_image_url":"https://static.laohu8.com/5f26f4a48f9cb3e29be4d71d3ba8c038","id":"2490100338","market":"us","top_or_hot":-1,"title":"Kinder Morgan Trades at Cheap Valuation: Is the Stock a Buy Now?","media":"Zacks","content":"<div>\n<p>Kinder Morgan KMI is currently undervalued, with a trailing 12-month enterprise value to EBITDA (EV/EBITDA) of 13.90x. This is below the broader industry average of 14.76x and lags key midstream ...</p>\n\n<a href=\"https://finance.yahoo.com/news/kinder-morgan-trades-cheap-valuation-142500067.html\">Source Link</a>\n\n</div>\n","source":"yahoofinance","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Kinder Morgan Trades at Cheap Valuation: Is the Stock a Buy Now?</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nKinder Morgan Trades at Cheap Valuation: Is the Stock a Buy Now?\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-12-12 22:25 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://finance.yahoo.com/news/kinder-morgan-trades-cheap-valuation-142500067.html><strong>Zacks</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Kinder Morgan KMI is currently undervalued, with a trailing 12-month enterprise value to EBITDA (EV/EBITDA) of 13.90x. This is below the broader industry average of 14.76x and lags key midstream ...</p>\n\n<a href=\"https://finance.yahoo.com/news/kinder-morgan-trades-cheap-valuation-142500067.html\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"BK4588","symbol_name":"碎股","start_time":0,"source_url":"https://finance.yahoo.com/news/kinder-morgan-trades-cheap-valuation-142500067.html","article_id":"2490100338","we_media_id":null,"thumbnails":["https://s.yimg.com/uu/api/res/1.2/kyxbhc9vU6coF3kOO3p15g--~B/aD00MDA7dz02MzU7YXBwaWQ9eXRhY2h5b24-/https://media.zenfs.com/en/zacks.com/5102c7cc524ab92392c1c3e5f0753c65"],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2490100338","pubTimestamp":1734013500,"columns":[],"sourceInfo":{"source_id":"yahoofinance","name":"雅虎金融"},"weMediaInfo":null,"summary":"Kinder Morgan KMI is currently undervalued, with a trailing 12-month enterprise value to EBITDA  of 13.90x. This is below the broader industry average of 14.76x and lags key midstream players like Enbridge Inc. ENB and The Williams Companies Inc. WMB, trading at 16.74x and 17.87x EV/EBITDA, respectively. This lower valuation may indicate market skepticism about KMI’s prospects or potential mispricing of the midstream company’s intrinsic value.Securing Stability: The Value of KMI’s Take-or-Pay Contracts. Kinder Morgan operates an extensive network of pipelines spanning 79,000 miles, transporting natural gas, gasoline, crude oil and carbon dioxide. In addition, the company owns 139 terminals that store a variety of products, including renewable fuels, petroleum products, chemicals and vegetable oils.Kinder Morgan’s impressive asset utilization reflects its operational effectiveness and consistent revenue generation. With nearly all of its liquid terminal capacity (95%) leased and full ut","collect":0,"end_time":0,"defaultTopTitle":"yahoo.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"BK4588":"碎股","LU0320765646.SGD":"FTIF - Franklin Income A MDIS SGD-H1","LU2028103732.USD":"ALLIANZ GLOBAL SUSTAINABILITY \"AMG\" (USD) INC","IE00BZ1G4Q59.USD":"LEGG MASON CLEARBRIDGE US EQUITY SUSTAINABILITY LEADER \"A\"(USD) INC (A)","LU0345780950.USD":"NINETY ONE GSF GLOBAL NATURAL RESOURCES \"A\" (USD) ACC","LU0106831901.USD":"贝莱德世界金融基金A2","LU1621767737.EUR":"AZ EQUITY GLOBAL INFRASTRUCTURE \"AAZ\" (EUR) ACC","LU2384288077.EUR":"AZ EQUITY GLOBAL INFRASTRUCTURE \"A-INS\" (EUR) ACC","LU0314104364.USD":"MANULIFE GF AMERICAN GROWTH \"AA\" (USD) INC","LU0320765489.SGD":"FTIF - Franklin Mutual US Value A Acc SGD","LU1621767810.EUR":"AZ EQUITY GLOBAL INFRASTRUCTURE \"A\" (EUR) INC","LU0070302665.USD":"FRANKLIN MUTUAL U.S. VALUE \"A\" (USD) ACC","LU1621768206.USD":"AZ EQUITY GLOBAL INFRASTRUCTURE \"AAZ\" (USD) ACC","LU1621768115.EUR":"AZ EQUITY GLOBAL INFRASTRUCTURE \"B\" (EUR) INC","LU0368265418.SGD":"Blackrock World Energy Fund A2 SGD-H","ENB":"安桥","LU1720051017.SGD":"Allianz Global Artificial Intelligence AT Acc H2-SGD","BK4504":"桥水持仓","LU0225283273.USD":"SCHRODER ISF GLOBAL EQUITY ALPHA \"A\" (USD) ACC","WMB":"威廉姆斯","LU0971096721.USD":"富达环球金融服务 A","LU1074936037.SGD":"JPMorgan Funds - US Value A (acc) SGD","LU0300736062.USD":"FRANKLIN NATURAL RESOURCES \"A\" (USD) ACC","LU2111349929.HKD":"ALLIANZ GLOBAL SUSTAINABILITY \"AM\" (HKD) INC","LU0122376428.USD":"贝莱德世界能源基金A2","LU1668664300.SGD":"Blackrock World Financials A2 SGD-H","IE00BLSP4452.SGD":"Legg Mason ClearBridge - Tactical Dividend Income A Mdis SGD-H Plus","LU0788109394.HKD":"BGF WORLD ENERGY \"A2\" (HKDHGD) ACC","LU0158827781.USD":" ALLIANZ GLOBAL SUSTAINABILITY \"AT\" (USD) ACC","LU1720051108.HKD":"ALLIANZ GLOBAL ARTIFICIAL INTELLIGENCE \"AT\" (HKD) ACC","BK4144":"石油与天然气的储存和运输","LU0238689110.USD":"贝莱德环球动力股票基金","LU2271345857.HKD":"ALLIANZ GLOBAL SUSTAINABILITY \"AT\" (HKD) ACC","LU2357305700.SGD":"Allianz Global Artificial Intelligence ET H2-SGD","BK4585":"ETF&股票定投概念","BK4534":"瑞士信贷持仓","BK4581":"高盛持仓","LU0053666078.USD":"摩根大通基金-美国股票A（离岸）美元","LU0106261372.USD":"SCHRODER ISF US LARGE CAP \"A\" ACC","LU2237443382.USD":"Aberdeen Standard SICAV I - Global Dynamic Dividend A MIncA USD","LU2237443978.SGD":"Aberdeen Standard SICAV I - Global Dynamic Dividend A Acc SGD-H","LU1989772840.SGD":"CPR Invest - Climate Action A2 Acc SGD-H","IE00BN8TJ469.HKD":"FTGF CLEARBRIDGE TACTICAL DIVIDEND INCOME \"A\" (HKD) INC","LU0208291251.USD":"FRANKLIN MUTUAL U.S. VALUE \"A\" (USD) INC","LU2237443549.SGD":"Aberdeen Standard SICAV I - Global Dynamic Dividend A MIncA SGD-H","LU1162221912.USD":"FRANKLIN INCOME \"A\" (USD) ACC","LU1989772923.USD":"CPR Invest - Climate Action A2 Acc USD-H","KMI":"金德尔摩根","LU2089284900.SGD":"Allianz Global Sustainability Cl AM Dis H2-SGD","IE00BBT3K403.USD":"LEGG MASON CLEARBRIDGE TACTICAL DIVIDEND INCOME \"A(USD) ACC"},"translate_title":"金德摩根的交易估值低廉：该股现在值得买入吗？","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"WMB":1,"ENB":1,"KMI":1},"content_text":"Kinder Morgan KMI is currently undervalued, with a trailing 12-month enterprise value to EBITDA (EV/EBITDA) of 13.90x. This is below the broader industry average of 14.76x and lags key midstream players like Enbridge Inc. ENB and The Williams Companies Inc. WMB, trading at 16.74x and 17.87x EV/EBITDA, respectively. This lower valuation may indicate market skepticism about KMI’s prospects or potential mispricing of the midstream company’s intrinsic value.\n Image Source: Zacks Investment Research\nThe pressing question for investors is how to approach KMI in light of this valuation. To make an informed decision, it is essential to first examine the fundamental strengths and weaknesses of this major energy infrastructure company.\nSecuring Stability: The Value of KMI’s Take-or-Pay Contracts\nKinder Morgan operates an extensive network of pipelines spanning 79,000 miles, transporting natural gas, gasoline, crude oil and carbon dioxide. In addition, the company owns 139 terminals that store a variety of products, including renewable fuels, petroleum products, chemicals and vegetable oils.\nAs a leading midstream service provider, Kinder Morgan’s pipeline and storage assets are secured under long-term take-or-pay contracts. These contracts ensure that shippers pay for the capacity reserved, whether they utilize it or not, which provides a steady stream of revenue. This structure allows Kinder Morgan to generate stable earnings, primarily insulated from fluctuations in the volume of natural gas transported, offering significant stability to its bottom line.\nHow Growing Natural Gas Demand Fortifies KMI's Future\nThe demand for natural gas in the United States is anticipated to grow rapidly, backed by several important factors. As the nation shifts toward cleaner energy, natural gas is being increasingly utilized as a transitional fuel, given its cleaner-burning properties compared to coal and oil, which result in lower carbon emissions. Moreover, the rise in industrial activity and the growing demand for electricity, particularly from gas-powered plants, are fueling this increased demand. Additionally, the expansion of natural gas exports, mainly as liquefied natural gas, to satisfy global energy needs further boosts domestic demand.\nAs a leading transporter of natural gas, Kinder Morgan is well-positioned to benefit from the growing demand for natural gas, which aids its earnings.\nKMI’s High Utilization Rates for Assets & Robust Backlog\nKinder Morgan’s impressive asset utilization reflects its operational effectiveness and consistent revenue generation. With nearly all of its liquid terminal capacity (95%) leased and full utilization (100%) of its Jones Act tankers through 2024, the company is optimizing the profitability of its infrastructure. These strong performance indicators underscore KMI's resilience and the robust demand for its services, positioning the company as a compelling option for investors looking for reliable income and sustained growth in the energy infrastructure space. \nAdditionally, KMI benefits from a robust project backlog. The company’s backlog grew substantially from $3.8 billion in third-quarter 2023 to $5.1 billion in third-quarter 2024, signaling a healthy pipeline of upcoming projects that are expected to drive top-line growth.\nWhat Should Investors Do With KMI Stock?\nThe positive progress is evident in the stock's price chart. Over the past year, KMI has climbed 63.2%, outperforming the industry’s composite stocks, which gained 42.4%.\nOne-Year Price Chart\n Image Source: Zacks Investment Research\nHowever, investors should be cautious about rushing to buy the stock at this moment, as several uncertainties surround the midstream company. Regulatory and legal challenges, like the court stay on the Cumberland project, highlight potential risks in project execution and the reliability of timelines. Also, the slow start-up of RNG (Renewable Natural Gas) facilities suggests challenges in diversifying and scaling newer energy initiatives.\nFurthermore, KMI, carrying a Zacks Rank #3 (Hold), has generally offered a lower dividend yield than the industry over the past year, disappointing investors looking for consistent, attractive dividend income. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.\n Image Source: Zacks Investment Research\nTherefore, although the stock is undervalued, investors should wait for the uncertainties to resolve and look for a more favorable entry point.\nWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report\nWilliams Companies, Inc. (The) (WMB) : Free Stock Analysis Report\nEnbridge Inc (ENB) : Free Stock Analysis Report\nKinder Morgan, Inc. (KMI) : Free Stock Analysis Report\nTo read this article on Zacks.com click here.\nZacks Investment Research","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"symbols":[],"gpt_button":1},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.29.3","shortVersion":"4.29.3","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2490100338"}