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TheStreet Open House
Kinder Morgan Energy Partners LP
KMP : NYSE : Basic Materials
$94.31 0.35 | 0.38%
Today's Range: 94.11 - 94.92
Avg. Daily Volume: 3,260,500
10/31/14 - 11:31 AM ET

Financial Analysis


KINDER MORGAN ENERGY -LP's gross profit margin for the third quarter of its fiscal year 2014 has increased when compared to the same period a year ago. The company managed to grow both sales and net income at a faster pace than the average competitor in its industry this quarter as compared to the same quarter a year ago.

During the same period, stockholders' equity ("net worth") has increased by 5.60% from the same quarter last year.

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Income Statement Q3 FY14 Q3 FY13
Net Sales ($mil)3933.03381.0
EBITDA ($mil)1587.01186.0
EBIT ($mil)1160.0809.0
Net Income ($mil)963.0689.0


Balance Sheet Q3 FY14 Q3 FY13
Cash & Equiv. ($mil)0.0534.0
Total Assets ($mil)45340.041985.0
Total Debt ($mil)20810.019612.0
Equity ($mil)17555.016623.0


Profitability Q3 FY14 Q3 FY13
Gross Profit Margin43.5539.07
EBITDA Margin40.3535.07
Operating Margin29.4923.93
Sales Turnover0.320.28
Return on Assets7.017.41
Return on Equity18.1218.65
Debt Q3 FY14 Q3 FY13
Current Ratio0.650.71
Debt/Capital0.540.54
Interest Expense238.0219.0
Interest Coverage4.873.69


Share Data Q3 FY14 Q3 FY13
Shares outstanding (mil)461.71437.83
Div / share1.391.32
EPS1.050.59
Book value / share38.0237.97
Institutional Own % n/a n/a
Avg Daily Volume3162434.01077880.0

Valuation


BUY. This stock's P/E ratio indicates a premium compared to an average of 23.55 for the Oil, Gas & Consumable Fuels industry and a significant premium compared to the S&P 500 average of 18.92. To use another comparison, its price-to-book ratio of 2.50 indicates valuation on par with the S&P 500 average of 2.61 and a significant discount versus the industry average of 14.86. The price-to-sales ratio is well above both the S&P 500 average and the industry average, indicating a premium. The valuation analysis reveals that, KINDER MORGAN ENERGY -LP seems to be trading at a premium to investment alternatives within the industry.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
KMP 31.87 Peers 23.55   KMP NA Peers 21.81

Premium. A higher P/E ratio than its peers can signify a more expensive stock or higher growth expectations.

KMP is trading at a significant premium to its peers.

 

Neutral. The P/CF ratio is the stock’s price divided by the sum of the company's cash flow from operations. It is useful for comparing companies with different capital requirements or financing structures.

Ratio not available.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
KMP 34.41 Peers 18.70   KMP NM Peers 1.94

Premium. A higher price-to-projected earnings ratio than its peers can signify a more expensive stock or higher future growth expectations.

KMP is trading at a significant premium to its peers.

 

Neutral. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.

KMP's negative PEG ratio makes this valuation measure meaningless.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
KMP 2.50 Peers 14.86   KMP -16.76 Peers 39.91

Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.

KMP is trading at a significant discount to its peers.

 

Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

However, KMP is expected to significantly trail its peers on the basis of its earnings growth rate.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
KMP 3.00 Peers 2.27   KMP 24.65 Peers 11.10

Premium. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.

KMP is trading at a significant premium to its industry.

 

Higher. A sales growth rate that exceeds the industry implies that a company is gaining market share.

KMP has a sales growth rate that significantly exceeds its peers.

 

 

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