Kinder Morgan (KMI) Stock Down Amid Falling Oil Prices

Kinder Morgan (KMI) stock is down this afternoon amid falling oil prices.
By Amanda Albright ,

NEW YORK (TheStreet) -- Kinder Morgan  (KMI) - Get Report  stock is down by 2.54% to $26.81 in late afternoon trading on Wednesday, amid slumping oil prices.

WTI Crude is down by 2.84% to $46.54 per barrel, while Brent crude is down by 3.50% to $48.77 per barrel this afternoon, according to the CNBC index

Oil prices are falling due to higher than expected crude stockpiles and OPEC expectations that lackluster demand will put pressure on prices, Reuters reports. 

U.S. crude oil inventories remain near levels not seen for this time of year in at least the last 80 years, according to a EIA report this week.

Kinder Morgan is an energy infrastructure company that transports natural gas, crude oil, carbon dioxide and refine petroleum products.

Separately, TheStreet Ratings team rates KINDER MORGAN INC as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:

We rate KINDER MORGAN INC (KMI) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. Among the primary strengths of the company is its expanding profit margins over time. At the same time, however, we also find weaknesses including a generally disappointing performance in the stock itself, feeble growth in the company's earnings per share and generally higher debt management risk.

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • 46.56% is the gross profit margin for KINDER MORGAN INC which we consider to be strong. It has increased from the same quarter the previous year. Along with this, the net profit margin of 5.01% is above that of the industry average.
  • Despite the weak revenue results, KMI has outperformed against the industry average of 33.1%. Since the same quarter one year prior, revenues fell by 13.6%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
  • Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 29.04%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 75.00% compared to the year-earlier quarter. Although its share price is down sharply from a year ago, do not assume that it can now be tagged as cheap and attractive. The reality is that, based on its current price in relation to its earnings, KMI is still more expensive than most of the other companies in its industry.
  • KINDER MORGAN INC has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. Earnings per share have declined over the last two years. We anticipate that this should continue in the coming year. During the past fiscal year, KINDER MORGAN INC reported lower earnings of $0.95 versus $1.15 in the prior year. For the next year, the market is expecting a contraction of 18.9% in earnings ($0.77 versus $0.95).
  • You can view the full analysis from the report here: KMI

Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of Jim Cramer, TheStreet or any of its contributors.

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