Kinder Morgan (KMI) Down In Pre-Market Trading

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer.

Trade-Ideas LLC identified Kinder Morgan ( KMI) as a pre-market laggard candidate. In addition to specific proprietary factors, Trade-Ideas identified Kinder Morgan as such a stock due to the following factors:

  • KMI has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $373.1 million.
  • KMI traded 24,817 shares today in the pre-market hours as of 8:40 AM.
  • KMI is down 2.4% today from yesterday's close.

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More details on KMI:

Kinder Morgan, Inc. operates as an energy infrastructure and energy company in North America. The company operates through Natural Gas Pipelines, CO2, Terminals, Products Pipelines, Kinder Morgan Canada, and Other segments. The stock currently has a dividend yield of 4.8%. KMI has a PE ratio of 5. Currently there are 13 analysts that rate Kinder Morgan a buy, no analysts rate it a sell, and 2 rate it a hold.

The average volume for Kinder Morgan has been 8.9 million shares per day over the past 30 days. Kinder Morgan has a market cap of $87.2 billion and is part of the basic materials sector and energy industry. The stock has a beta of 0.32 and a short float of 4.1% with 7.60 days to cover. Shares are down 4.9% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Kinder Morgan as a buy. The company's strengths can be seen in multiple areas, such as its increase in net income, expanding profit margins, good cash flow from operations and solid stock price performance. We feel its strengths outweigh the fact that the company has had somewhat weak growth in earnings per share.

Highlights from the ratings report include:
  • 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 49.5% when compared to the same quarter one year prior, rising from $287.00 million to $429.00 million.
  • 46.65% 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 11.92% is above that of the industry average.
  • Net operating cash flow has increased to $1,256.00 million or 12.34% 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 -53.19%.
  • Despite the weak revenue results, KMI has outperformed against the industry average of 38.5%. Since the same quarter one year prior, revenues fell by 11.1%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.
  • Looking at where the stock is today compared to one year ago, we find that it is not only higher, but it has also clearly outperformed the rise in the S&P 500 over the same period, despite the company's weak earnings results. Looking ahead, the stock's rise over the last year has already helped drive it to a level which is relatively expensive compared to the rest of its industry. We feel, however, that the other strengths this company displays justify these higher price levels.

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