Kinder Morgan Inc. Class P Stock Sell Recommendation Reiterated (KMI)

NEW YORK (TheStreet) -- Kinder Morgan Inc. Class P (NYSE:KMI) has been reiterated by TheStreet Ratings as a sell with a ratings score of D . The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, generally weak debt management and disappointing return on equity.

• ACTIVE STOCK TRADERS: Check out TheStreet's special offer for Real Money , headlined by Jim Cramer, now!

Highlights from the ratings report include:

• The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Oil, Gas & Consumable Fuels industry. The net income has significantly decreased by 194.6% when compared to the same quarter one year ago, falling from $132.10 million to -$125.00 million.
• The debt-to-equity ratio is very high at 2.38 and currently higher than the industry average, implying that there is very poor management of debt levels within the company.
• The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. In comparison to the other companies in the Oil, Gas & Consumable Fuels industry and the overall market, KINDER MORGAN INC's return on equity is significantly below that of the industry average and is below that of the S&P 500.
• KINDER MORGAN INC's earnings per share declined by 10.5% in the most recent quarter compared to the same quarter a year ago. This year, the market expects an improvement in earnings ($0.90 versus $0.76).
• Compared to its closing price of one year ago, KMI's share price has jumped by 29.56%, exceeding the performance of the broader market during that same time frame. Setting our sights on the months ahead, however, we feel that the stock's sharp appreciation over the last year has driven it to a price level which is now relatively expensive compared to the rest of its industry. The implication is that its reduced upside potential is not good enough to warrant further investment at this time.

 

Kinder Morgan, Inc. owns and operates energy transportation and storage assets in the United States and Canada. The company operates in six segments: Products Pipelines-KMP, Natural Gas Pipelines KMP, CO2 KMP, Terminals KMP, Kinder Morgan Canada KMP, and NGPL PipeCo LLC.The company has a P/E ratio of 45.9, below the average energy industry P/E ratio of 397.9and above the S&P 500 P/E ratio of 17.7.Kinder Morgan Inc. Class P has a market cap of $25.31 billion and is part of the basic materials sector and energy industry.Shares are up 11.3% year to date as of the close of trading on Wednesday.

You can view the full Kinder Morgan Inc. Class P Ratings Report or get investment ideas from our investment research center.

--Written by a member of TheStreet Ratings Staff.

TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.

 

For more information on Kinder Morgan Inc. click any of the following:

• Kinder Morgan Inc. Stock Price

• Kinder Morgan Inc. Analyst Ratings

• Kinder Morgan Inc. Key Stats & Profile

• Kinder Morgan Inc. Earnings

• Kinder Morgan Inc. Ratio Comparison

• Kinder Morgan Inc. Growth Rates

• Kinder Morgan Inc. Balance Sheet

• Kinder Morgan Inc. Cash Flow

• Kinder Morgan Inc. Income Statement