Cramer notes that while many people dislike master limited partnerships, he still believes they are solid income vehicles and Kinder has a way of looking forward. Thus, he rates Kinder Morgan as a "buy."
Furthermore, Cramer suggests swapping out of Linn Energy (LINE) and moving into KMP, which he notes has come down substantially. Some feel Kinder is too big and unwieldy, but Cramer puts his faith in KMP.
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Separately, TheStreet Ratings team rates KINDER MORGAN INC as a "buy" with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate KINDER MORGAN INC (KMI) a BUY. This is driven by some important positives, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its robust revenue growth, compelling growth in net income, good cash flow from operations, growth in earnings per share and expanding profit margins. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- The revenue growth greatly exceeded the industry average of 7.7%. Since the same quarter one year prior, revenues rose by 25.8%. Growth in the company's revenue appears to have helped boost the earnings per share.
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Oil, Gas & Consumable Fuels industry. The net income increased by 53.6% when compared to the same quarter one year prior, rising from $220.00 million to $338.00 million.
- Net operating cash flow has increased to $1,287.00 million or 48.27% when compared to the same quarter last year. In addition, KINDER MORGAN INC has also vastly surpassed the industry average cash flow growth rate of -23.43%.
- KINDER MORGAN INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, KINDER MORGAN INC reported lower earnings of $1.15 versus $1.22 in the prior year. This year, the market expects an improvement in earnings ($1.25 versus $1.15).
- 42.33% is the gross profit margin for KINDER MORGAN INC which we consider to be strong. Regardless of KMI's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, KMI's net profit margin of 8.72% compares favorably to the industry average.
- You can view the full analysis from the report here: KMI Ratings Report