Revenue minus cost of goods sold. Graham's ≥40% threshold identifies businesses with durable pricing power. Note: software and financial companies naturally exceed this; retailers and manufacturers rarely reach it due to their cost structures.
Operating Margin27.9%
Profit after operating costs before interest and taxes. A consistent ≥15% operating margin signals a business with real competitive advantages. Capital-intensive industries (airlines, auto, commodities) rarely hit this threshold due to their structural cost base — compare within industry for context.
Net Income Margin18.0%
Bottom-line profit as a percentage of revenue. The ≥20% target reflects Buffett's preference for highly profitable businesses. Financial engineering (buybacks, tax optimisation) can inflate this temporarily — look for consistency across multiple years rather than a single strong result.
Financial Health
F
Years to Pay Off Debt10.4 yrs
Total Debt ÷ Net Income. Lower = stronger balance sheet. Important caveat: utilities, telecoms, REITs, and infrastructure companies carry large structural debt by design — their bond-like cash flows service it comfortably at ratios that would alarm Graham. Compare within sector.
Working Capital vs Long-Term Debt-$32.1B
Working Capital minus Long-Term Debt. Negative results are common and expected in capital-return-focused businesses like Apple, Domino's, and McDonald's — where aggressive buybacks and dividends intentionally reduce book equity. This does not indicate financial distress in high-FCF businesses.
Working Capital-$1.6B
Current Assets minus Current Liabilities. Negative working capital can be a deliberate efficiency strategy in businesses that collect cash before paying suppliers (retailers, fast food franchises, subscription businesses). Assess alongside free cash flow generation for full context.
Valuation
F
Margin of Safety0.0%
How far below the Graham Number the stock trades. Graham required a 33% discount as a buffer against analytical error. However, the Graham Number itself assumes 1960s-era P/E and P/B norms — for modern asset-light businesses it often understates true intrinsic value, making 0% MoS appear misleadingly bad.
Price-to-Book2.26x
Market price vs book value per share. Rarely below 1.5x for quality businesses today. Intangible assets (brand, software, patents) don't appear on the balance sheet under accounting rules, making P/B artificially high for asset-light companies like software and consumer brands.
Cash Flow
C
Free Cash Flow$2.9B
Operating cash flow minus capital expenditures. Buffett's most important metric — cash a business actually generates for its owners after maintaining and growing its asset base. Consistently positive FCF is one of the strongest indicators of a durable, well-run business regardless of accounting profits.
CapEx % of Net Income99.0%
Capital expenditure as a share of net income. Low CapEx signals a capital-light business that doesn't need heavy reinvestment to sustain earnings — Buffett's ideal. High CapEx is structurally necessary in manufacturing, airlines, telecoms, and semiconductors. For these industries, a high reading reflects the business model, not poor management.
Owner Earnings$8.5B
Net Income + Depreciation & Amortisation − Capital Expenditures. Buffett's preferred measure of a company's true annual earning power — what could theoretically be distributed to owners without impairing the business. More reliable than reported EPS because it accounts for the capital cost of maintaining the business.
About Kinder Morgan, Inc.
Kinder Morgan, Inc. operates as an energy infrastructure company primarily in North America. It operates through Natural Gas Pipelines, Products Pipelines, Terminals, and CO2 segments. The Natural Gas Pipelines segment owns and operates interstate and intrastate natural gas pipeline, and storage systems; natural gas gathering systems and natural gas processing and treating facilities; natural gas liquids fractionation facilities and transportation systems; and liquefied natural gas gasification, liquefaction, and storage facilities. The Products Pipelines segment owns and operates refined petroleum products, and crude oil and condensate pipelines; and associated product terminals and petroleum pipeline transmix facilities. The Terminals segment owns and/or operates liquids and bulk terminals that stores and handles various commodities, including gasoline, diesel fuel, renewable fuel and feedstocks, chemicals, ethanol, metals, and petroleum coke; and owns tankers. The CO2 segment produces, transports, and markets CO2 to recovery and production crude oil from mature oil fields; owns interests in/or operates oil fields and gasoline processing plants; and operates a crude oil pipeline system in West Texas, as well as owns and operates RNG and LNG facilities. The company was formerly known as Kinder Morgan Holdco LLC and changed its name to Kinder Morgan, Inc. in February 2011. Kinder Morgan, Inc. was founded in 1997 and is headquartered in Houston, Texas.
Kinder Morgan, Inc. operates as an energy infrastructure company primarily in North America. It operates through Natural Gas Pipelines, Products Pipelines, Terminals, and CO2 segments. The Natural Gas Pipelines segment owns and operates interstate and intrastate natural gas pipeline, and storage systems; natural gas gathering systems and natural gas processing and treating facilities; natural gas liquids fractionation facilities and transportation systems; and liquefied natural gas gasification, liquefaction, and storage facilities. The Products Pipelines segment owns and operates refined petroleum products, and crude oil and condensate pipelines; and associated product terminals and petroleum pipeline transmix facilities. The Terminals segment owns and/or operates liquids and bulk terminals that stores and handles various commodities, including gasoline, diesel fuel, renewable fuel and feedstocks, chemicals, ethanol, metals, and petroleum coke; and owns tankers. The CO2 segment produces, transports, and markets CO2 to recovery and production crude oil from mature oil fields; owns interests in/or operates oil fields and gasoline processing plants; and operates a crude oil pipeline system in West Texas, as well as owns and operates RNG and LNG facilities. The company was formerly known as Kinder Morgan Holdco LLC and changed its name to Kinder Morgan, Inc. in February 2011. Kinder Morgan, Inc. was founded in 1997 and is headquartered in Houston, Texas.
Metric Explanations
What each dimension measures and where the thresholds come from.
Gross Profit Margin
Revenue minus cost of goods sold. Graham's ≥40% threshold identifies businesses with durable pricing power. Note: software and financial companies naturally exceed this; retailers and manufacturers rarely reach it due to their cost structures.
Operating Margin
Profit after operating costs before interest and taxes. A consistent ≥15% operating margin signals a business with real competitive advantages. Capital-intensive industries (airlines, auto, commodities) rarely hit this threshold due to their structural cost base — compare within industry for context.
Net Income Margin
Bottom-line profit as a percentage of revenue. The ≥20% target reflects Buffett's preference for highly profitable businesses. Financial engineering (buybacks, tax optimisation) can inflate this temporarily — look for consistency across multiple years rather than a single strong result.
Years to Pay Off Debt
Total Debt ÷ Net Income. Lower = stronger balance sheet. Important caveat: utilities, telecoms, REITs, and infrastructure companies carry large structural debt by design — their bond-like cash flows service it comfortably at ratios that would alarm Graham. Compare within sector.
Working Capital vs Long-Term Debt
Working Capital minus Long-Term Debt. Negative results are common and expected in capital-return-focused businesses like Apple, Domino's, and McDonald's — where aggressive buybacks and dividends intentionally reduce book equity. This does not indicate financial distress in high-FCF businesses.
Working Capital
Current Assets minus Current Liabilities. Negative working capital can be a deliberate efficiency strategy in businesses that collect cash before paying suppliers (retailers, fast food franchises, subscription businesses). Assess alongside free cash flow generation for full context.
Margin of Safety
How far below the Graham Number the stock trades. Graham required a 33% discount as a buffer against analytical error. However, the Graham Number itself assumes 1960s-era P/E and P/B norms — for modern asset-light businesses it often understates true intrinsic value, making 0% MoS appear misleadingly bad.
Price-to-Book
Market price vs book value per share. Rarely below 1.5x for quality businesses today. Intangible assets (brand, software, patents) don't appear on the balance sheet under accounting rules, making P/B artificially high for asset-light companies like software and consumer brands.
Free Cash Flow
Operating cash flow minus capital expenditures. Buffett's most important metric — cash a business actually generates for its owners after maintaining and growing its asset base. Consistently positive FCF is one of the strongest indicators of a durable, well-run business regardless of accounting profits.
CapEx % of Net Income
Capital expenditure as a share of net income. Low CapEx signals a capital-light business that doesn't need heavy reinvestment to sustain earnings — Buffett's ideal. High CapEx is structurally necessary in manufacturing, airlines, telecoms, and semiconductors. For these industries, a high reading reflects the business model, not poor management.
Owner Earnings
Net Income + Depreciation & Amortisation − Capital Expenditures. Buffett's preferred measure of a company's true annual earning power — what could theoretically be distributed to owners without impairing the business. More reliable than reported EPS because it accounts for the capital cost of maintaining the business.
Mr. Market is currently offering Kinder Morgan, Inc. at $31.59.
The business passes only 3 of 7 of Graham's defensive criteria — well below his required standard.
At $31.59, the stock trades at a 52% premium to its Graham Number of $20.78. Graham would consider this price speculative.
There is no margin of safety at the current price. Graham would advise patience and waiting for a better entry point.
Negative NCAV — liabilities exceed current assets. Common in capital-return businesses (buybacks, debt-funded dividends) and capital-intensive industries. Not automatically a warning sign..
Conclusion: By Graham's standards, this stock is speculative at its current price. The intelligent investor would look elsewhere or wait.
Showing Key Metrics
Income Highlights
Metric
2025
2024
2023
2022
2021
Gross Profit %
52.9%▼
55.7%▲
53.1%▲
40.4%•
N/A
Operating Margin %
27.9%▼
29.0%▲
27.8%▲
21.2%•
N/A
Net Income %
18.0%▲
17.3%▲
15.6%▲
13.3%•
N/A
Diluted EPS
1.37▲
1.17▲
1.06▼
1.12•
N/A
Balance Sheet Highlights
Metric
2025
2024
2023
2022
2021
Total Assets
$72.7B
$71.4B
$71.0B
$70.1B
N/A
Total Debt
$31.8B▲
$31.7B▼
$31.9B▲
$31.6B•
N/A
Working Capital
-$1.6B▲
-$2.6B▲
-$4.7B▼
-$3.1B•
N/A
Years to Pay Debt
10.40
12.12
13.34
12.39
N/A
Cash Flow Highlights
Metric
2025
2024
2023
2022
2021
Free Cash Flow
$2.9B▼
$3.0B▼
$4.2B▲
$3.3B•
N/A
Owner Earnings
$8.5B
$7.6B
$7.0B
$6.4B
N/A
CapEx % of Net Income
99.0%
100.6%
96.9%
63.6%
N/A
Income Statement
2025
2024
2023
2022
2021
Tax Rate For Calcs
0
0
0
0
Normalized EBITDA
7,177,000
6,738,000
6,513,000
6,251,000
Total Unusual Items
15,000
32,000
-1,624,000
Total Unusual Items Excluding Goodwill
15,000
32,000
-1,624,000
Net Income From Continuing Operation Net Minority Interest
3,056,000
2,613,000
2,391,000
2,548,000
Reconciled Depreciation
2,453,000
2,354,000
2,250,000
2,186,000
Reconciled Cost Of Revenue
7,982,000
6,691,000
7,188,000
11,441,000
EBITDA
7,177,000
6,738,000
6,513,000
6,251,000
EBIT
4,724,000
4,384,000
4,263,000
4,065,000
Net Interest Income
-1,801,000
-1,844,000
-1,797,000
-1,513,000
Normalized Income
3,056,000
2,613,000
2,391,000
2,548,000
Net Income From Continuing And Discontinued Operation
3,056,000
2,613,000
2,391,000
2,548,000
Total Expenses
12,213,000
10,716,000
11,071,000
15,135,000
Total Operating Income As Reported
4,724,000
4,384,000
4,263,000
4,065,000
Diluted Average Shares
2,223,000
2,220,000
2,234,000
2,258,000
Basic Average Shares
2,223,000
2,220,000
2,234,000
2,258,000
Diluted EPS
0
0
0
0
Basic EPS
0
0
0
0
Diluted NI Availto Com Stockholders
3,040,000
2,598,000
2,377,000
2,535,000
Net Income Common Stockholders
3,040,000
2,598,000
2,377,000
2,535,000
Otherunder Preferred Stock Dividend
16,000
15,000
14,000
13,000
Net Income
3,056,000
2,613,000
2,391,000
2,548,000
Minority Interests
-104,000
-107,000
-95,000
-77,000
Net Income Including Noncontrolling Interests
3,160,000
2,720,000
2,486,000
2,625,000
Net Income Continuous Operations
3,160,000
2,720,000
2,486,000
2,625,000
Tax Provision
832,000
687,000
715,000
710,000
Pretax Income
3,992,000
3,407,000
3,201,000
3,335,000
Other Income Expense
1,069,000
867,000
735,000
783,000
Other Non Operating Income Expenses
173,000
27,000
-37,000
55,000
Special Income Charges
15,000
32,000
-1,624,000
Gain On Sale Of Ppe
15,000
32,000
-1,624,000
Gain On Sale Of Business
15,000
32,000
-1,624,000
Impairment Of Capital Assets
0
1,624,000
Securities Amortization
78,000
Earnings From Equity Interest
896,000
840,000
772,000
728,000
Net Non Operating Interest Income Expense
-1,801,000
-1,844,000
-1,797,000
-1,513,000
Total Other Finance Cost
1,801,000
1,844,000
1,797,000
1,513,000
Operating Income
4,724,000
4,384,000
4,263,000
4,065,000
Operating Expense
4,231,000
4,025,000
3,883,000
3,694,000
Other Operating Expenses
-15,000
-92,000
-13,000
-39,000
Other Taxes
445,000
433,000
421,000
441,000
Selling General And Administration
744,000
712,000
668,000
637,000
General And Administrative Expense
744,000
712,000
668,000
637,000
Other Gand A
744,000
712,000
668,000
637,000
Gross Profit
8,955,000
8,409,000
8,146,000
7,759,000
Cost Of Revenue
7,982,000
6,691,000
7,188,000
11,441,000
Total Revenue
16,937,000
15,100,000
15,334,000
19,200,000
Operating Revenue
16,745,000
14,873,000
15,157,000
19,042,000
Balance Sheet
2025
2024
2023
2022
2021
Preferred Shares Number
32,000
Ordinary Shares Number
2,224,778
2,221,648
2,219,730
2,247,682
Share Issued
2,224,778
2,221,648
2,219,730
2,247,682
Net Debt
31,719,000
31,581,000
31,812,000
30,823,000
Total Debt
31,782,000
31,669,000
31,895,000
31,568,000
Tangible Book Value
9,348,000
8,687,000
8,228,000
8,968,000
Invested Capital
62,944,000
62,200,000
62,201,000
62,310,000
Working Capital
-1,568,000
-2,580,000
-4,679,000
-3,127,000
Net Tangible Assets
9,348,000
8,687,000
8,228,000
8,968,000
Common Stock Equity
31,162,000
30,531,000
30,306,000
30,742,000
Total Capitalization
61,718,000
60,191,000
58,152,000
58,925,000
Total Equity Gross Minority Interest
32,449,000
31,867,000
31,729,000
32,114,000
Minority Interest
1,287,000
1,336,000
1,423,000
1,372,000
Stockholders Equity
31,162,000
30,531,000
30,306,000
30,742,000
Gains Losses Not Affecting Retained Earnings
45,000
-95,000
-217,000
-402,000
Other Equity Adjustments
45,000
-95,000
-217,000
-402,000
Retained Earnings
-10,181,000
-10,633,000
-10,689,000
-10,551,000
Additional Paid In Capital
41,276,000
41,237,000
41,190,000
41,673,000
Capital Stock
22,000
22,000
22,000
22,000
Common Stock
22,000
22,000
22,000
22,000
Total Liabilities Net Minority Interest
40,299,000
39,540,000
39,291,000
37,964,000
Total Non Current Liabilities Net Minority Interest
35,977,000
34,439,000
32,070,000
31,034,000
Other Non Current Liabilities
2,309,000
2,488,000
2,615,000
2,008,000
Preferred Securities Outside Stock Equity
221,000
221,000
221,000
220,000
Non Current Deferred Liabilities
2,891,000
2,070,000
1,388,000
623,000
Non Current Deferred Taxes Liabilities
2,891,000
2,070,000
1,388,000
623,000
Long Term Debt And Capital Lease Obligation
30,556,000
29,660,000
27,846,000
28,183,000
Long Term Debt
30,556,000
29,660,000
27,846,000
28,183,000
Current Liabilities
4,322,000
5,101,000
7,221,000
6,930,000
Other Current Liabilities
898,000
878,000
1,021,000
1,322,000
Current Debt And Capital Lease Obligation
1,226,000
2,009,000
4,049,000
3,385,000
Current Debt
1,226,000
2,009,000
4,049,000
3,385,000
Other Current Borrowings
1,226,000
2,009,000
4,049,000
3,385,000
Commercial Paper
1,989,000
0
Payables And Accrued Expenses
2,198,000
2,214,000
2,151,000
2,223,000
Current Accrued Expenses
534,000
543,000
513,000
515,000
Interest Payable
534,000
543,000
513,000
515,000
Payables
1,664,000
1,671,000
1,638,000
1,708,000
Total Tax Payable
256,000
276,000
272,000
264,000
Accounts Payable
1,408,000
1,395,000
1,366,000
1,444,000
Total Assets
72,748,000
71,407,000
71,020,000
70,078,000
Total Non Current Assets
69,994,000
68,886,000
68,478,000
66,275,000
Other Non Current Assets
1,317,000
1,184,000
1,229,000
1,249,000
Non Current Deferred Assets
0
115,000
Non Current Deferred Taxes Assets
0
115,000
Investments And Advances
7,532,000
7,845,000
7,874,000
7,653,000
Long Term Equity Investment
7,532,000
7,845,000
7,874,000
7,653,000
Investments In Other Ventures Under Equity Method
347,000
369,000
Investmentsin Associatesat Cost
6,927,000
6,835,000
Investmentsin Subsidiariesat Cost
379,000
374,000
Goodwill And Other Intangible Assets
21,814,000
21,844,000
22,078,000
21,774,000
Other Intangible Assets
1,730,000
1,760,000
1,957,000
1,809,000
Goodwill
20,084,000
20,084,000
20,121,000
19,965,000
Net PPE
39,331,000
38,013,000
37,297,000
35,599,000
Accumulated Depreciation
-24,062,000
-22,182,000
-22,075,000
-20,412,000
Gross PPE
63,393,000
60,195,000
59,372,000
56,011,000
Construction In Progress
1,817,000
1,588,000
1,045,000
1,043,000
Other Properties
60,737,000
57,770,000
56,410,000
53,230,000
Land And Improvements
839,000
837,000
1,917,000
1,738,000
Current Assets
2,754,000
2,521,000
2,542,000
3,803,000
Other Current Assets
357,000
246,000
333,000
304,000
Hedging Assets Current
126,000
231,000
220,000
Restricted Cash
46,000
126,000
13,000
49,000
Inventory
574,000
555,000
525,000
634,000
Receivables
1,714,000
1,506,000
1,588,000
1,840,000
Accounts Receivable
1,714,000
1,506,000
1,588,000
1,840,000
Allowance For Doubtful Accounts Receivable
-1,000
-1,000
-1,000
Gross Accounts Receivable
1,589,000
1,841,000
1,612,000
Cash Cash Equivalents And Short Term Investments
63,000
88,000
83,000
745,000
Cash And Cash Equivalents
63,000
88,000
83,000
745,000
Cash Flow
2025
2024
2023
2022
2021
Free Cash Flow
2,891,000
3,006,000
4,174,000
3,346,000
Repurchase Of Capital Stock
0
-7,000
-522,000
-368,000
Repayment Of Debt
-10,054,000
-10,557,000
-7,356,000
-9,735,000
Issuance Of Debt
10,017,000
10,441,000
7,590,000
9,058,000
Capital Expenditure
-3,026,000
-2,629,000
-2,317,000
-1,621,000
Interest Paid Supplemental Data
1,811,000
1,816,000
1,844,000
1,460,000
Income Tax Paid Supplemental Data
47,000
33,000
11,000
13,000
End Cash Position
109,000
214,000
96,000
794,000
Beginning Cash Position
214,000
96,000
794,000
1,147,000
Effect Of Exchange Rate Changes
0
-1,000
0
0
Changes In Cash
-105,000
119,000
-698,000
-353,000
Financing Cash Flow
-2,843,000
-2,887,000
-3,014,000
-3,145,000
Cash Flow From Continuing Financing Activities
-2,843,000
-2,887,000
-3,014,000
-3,145,000
Net Other Financing Charges
-202,000
-207,000
-197,000
404,000
Cash Dividends Paid
-2,604,000
-2,557,000
-2,529,000
-2,504,000
Common Stock Dividend Paid
-2,604,000
-2,557,000
-2,529,000
-2,504,000
Net Common Stock Issuance
0
-7,000
-522,000
-368,000
Common Stock Payments
0
-7,000
-522,000
-368,000
Net Issuance Payments Of Debt
-37,000
-116,000
234,000
-677,000
Net Long Term Debt Issuance
-37,000
-116,000
234,000
-677,000
Long Term Debt Payments
-10,054,000
-10,557,000
-7,356,000
-9,735,000
Long Term Debt Issuance
10,017,000
10,441,000
7,590,000
9,058,000
Investing Cash Flow
-3,179,000
-2,629,000
-4,175,000
-2,175,000
Cash Flow From Continuing Investing Activities
-3,179,000
-2,629,000
-4,175,000
-2,175,000
Net Other Investing Changes
-39,000
6,000
-32,000
6,000
Dividends Received Cfi
330,000
177,000
228,000
156,000
Net Investment Purchase And Sale
204,000
-121,000
-212,000
-229,000
Sale Of Investment
382,000
0
0
Purchase Of Investment
-178,000
-121,000
-212,000
-229,000
Net Business Purchase And Sale
-648,000
-62,000
-1,842,000
-487,000
Purchase Of Business
-648,000
-62,000
-1,842,000
-487,000
Net PPE Purchase And Sale
-28,000
6,000
406,000
Sale Of PPE
6,000
406,000
Purchase Of PPE
-28,000
Capital Expenditure Reported
-3,026,000
-2,629,000
-2,317,000
-1,621,000
Operating Cash Flow
5,917,000
5,635,000
6,491,000
4,967,000
Cash Flow From Continuing Operating Activities
5,917,000
5,635,000
6,491,000
4,967,000
Dividend Received Cfo
805,000
823,000
755,000
725,000
Change In Working Capital
-108,000
-69,000
1,176,000
-261,000
Change In Other Working Capital
5,000
-58,000
870,000
-24,000
Change In Other Current Liabilities
41,000
-48,000
-79,000
11,000
Change In Other Current Assets
-9,000
-46,000
108,000
-51,000
Change In Payables And Accrued Expense
68,000
43,000
-212,000
206,000
Change In Accrued Expense
-13,000
43,000
-13,000
50,000
Change In Interest Payable
-13,000
43,000
-13,000
50,000
Change In Payable
81,000
-199,000
156,000
387,000
Change In Account Payable
96,000
-5,000
-201,000
161,000
Change In Tax Payable
-15,000
5,000
2,000
-5,000
Change In Income Tax Payable
-15,000
5,000
2,000
-5,000
Change In Inventory
-21,000
-12,000
188,000
-183,000
Change In Receivables
-192,000
52,000
301,000
-220,000
Changes In Account Receivables
-192,000
52,000
301,000
-220,000
Other Non Cash Items
-125,000
2,000
27,000
-221,000
Asset Impairment Charge
0
1,624,000
Deferred Tax
780,000
647,000
710,000
692,000
Deferred Income Tax
780,000
647,000
710,000
692,000
Depreciation Amortization Depletion
2,453,000
2,354,000
2,250,000
2,186,000
Operating Gains Losses
-1,048,000
-842,000
-913,000
-779,000
Pension And Employee Benefit Expense
-50,000
-39,000
Earnings Losses From Equity Investments
-896,000
-840,000
-772,000
-803,000
Gain Loss On Investment Securities
-23,000
72,000
-126,000
56,000
Gain Loss On Sale Of PPE
-32,000
Gain Loss On Sale Of Business
-129,000
-74,000
-15,000
-32,000
Net Income From Continuing Operations
3,160,000
2,720,000
2,486,000
2,625,000
3/7
Graham Score
Speculative Investor
Fails most of Graham's safety criteria. Treat with caution.
Graham's Fair Value
$20.78
Margin of Safety
0%
Market Cap / Net Assets
2.2x
Net Assets: $32.4B
Warren's Owner Earnings
$8.5B
Latest fiscal year
Graham's 7 Criteria
Defensive Investor Checklist
3/7 — Speculative Investor
✅
Adequate Size
Graham required companies large enough to withstand economic downturns. This threshold ($1.5B) is inflation-adjusted from Graham's original $100M — virtually all S&P 500 companies pass this today.
$16.9B
vs > $1.5B revenue
❌
Strong Financial Condition
Current assets must be at least twice current liabilities. Note: highly profitable companies (Apple, Domino's) often run negative or low working capital deliberately — they collect cash fast and stretch payables. A failing score here is not always a warning sign.
0.64x
vs Current Ratio > 2.0x
✅
Earnings Stability
Graham required uninterrupted positive earnings. Any loss year is a red flag for defensive investors. Growth companies and cyclicals may show occasional losses during investment cycles or downturns without being fundamentally unsound.
No loss years (4 yrs data)
vs No negative EPS years
✅
Dividend Record
Graham valued dividends as evidence of financial discipline and shareholder alignment. Many excellent modern businesses (Alphabet, Amazon, Berkshire Hathaway) pay no dividend, preferring to reinvest cash at high rates of return. Failing this criterion does not indicate a poor business — it may indicate a high-growth one.
3.75%
vs Uninterrupted dividends
❌
Earnings Growth
EPS grew from $1.12 to $1.37 over 3 years. Graham's 33% threshold was set over a 10-year period. Measured over fewer years (as here), the bar is proportionally lower. Share buybacks can also inflate EPS growth without reflecting underlying business improvement.
+22.3% EPS growth
vs > 33% EPS growth
❌
Moderate P/E Ratio
Graham's 15x P/E threshold was calibrated to 1960s market averages when interest rates were higher. Today's lower rate environment structurally supports higher multiples — the S&P 500 long-run average P/E is now closer to 20–25x. A stock trading at 20x is not automatically speculative in the modern context.
21.2x
vs P/E ≤ 15.0x
❌
Moderate Price-to-Book
Graham's 1.5x P/B threshold made sense when most company value was tangible. Today, intangible assets — brand, software, patents, network effects — rarely appear on the balance sheet. A high P/B in tech, pharma, or consumer brands often reflects intangible value, not overvaluation. P/FCF or EV/EBITDA are more reliable for asset-light businesses.
2.26x P/B (P/E×P/B: 47.8)
vs P/B ≤ 1.5x | P/E × P/B ≤ 22.5
Graham's 7 Criteria — Explained
What each criterion measures and why it matters.
✅ Adequate Size — $16.9Bvs > $1.5B revenue
Graham required companies large enough to withstand economic downturns. This threshold ($1.5B) is inflation-adjusted from Graham's original $100M — virtually all S&P 500 companies pass this today.
"The minimum size of an enterprise should be not less than $100 million of annual sales."
❌ Strong Financial Condition — 0.64xvs Current Ratio > 2.0x
Current assets must be at least twice current liabilities. Note: highly profitable companies (Apple, Domino's) often run negative or low working capital deliberately — they collect cash fast and stretch payables. A failing score here is not always a warning sign.
"For industrial companies, current assets should be at least twice current liabilities."
✅ Earnings Stability — No loss years (4 yrs data)vs No negative EPS years
Graham required uninterrupted positive earnings. Any loss year is a red flag for defensive investors. Growth companies and cyclicals may show occasional losses during investment cycles or downturns without being fundamentally unsound.
"The company should have shown no deficit in the past ten years."
✅ Dividend Record — 3.75%vs Uninterrupted dividends
Graham valued dividends as evidence of financial discipline and shareholder alignment. Many excellent modern businesses (Alphabet, Amazon, Berkshire Hathaway) pay no dividend, preferring to reinvest cash at high rates of return. Failing this criterion does not indicate a poor business — it may indicate a high-growth one.
"Some current dividend payments — for at least the past 20 years."
EPS grew from $1.12 to $1.37 over 3 years. Graham's 33% threshold was set over a 10-year period. Measured over fewer years (as here), the bar is proportionally lower. Share buybacks can also inflate EPS growth without reflecting underlying business improvement.
"A minimum increase of at least one-third in per-share earnings over ten years."
❌ Moderate P/E Ratio — 21.2xvs P/E ≤ 15.0x
Graham's 15x P/E threshold was calibrated to 1960s market averages when interest rates were higher. Today's lower rate environment structurally supports higher multiples — the S&P 500 long-run average P/E is now closer to 20–25x. A stock trading at 20x is not automatically speculative in the modern context.
"The price-earnings ratio should be no more than 15 times average earnings."
Graham's 1.5x P/B threshold made sense when most company value was tangible. Today, intangible assets — brand, software, patents, network effects — rarely appear on the balance sheet. A high P/B in tech, pharma, or consumer brands often reflects intangible value, not overvaluation. P/FCF or EV/EBITDA are more reliable for asset-light businesses.
"The price should not be more than 1½ times book value. P/E × P/B ≤ 22.5."
These metrics estimate what Kinder Morgan, Inc. is worth based on fundamentals — independent of what the market prices it at.
Graham's Fair Value and NCAV are conservative floors.
EPV assumes zero growth. These are reference points, not price targets.
Net Current Asset Value
$-16.88
Negative NCAV — liabilities exceed current assets. Common in capital-return businesses (buybacks, debt-funded dividends) and capital-intensive industries. Not automatically a warning sign.
"Buy at two-thirds of net current assets." — Graham
Earnings Power Value
$23.59
Per share, no-growth floor. Compare to current price.
ROIC — Return on Invested Capital
5.5%
Return on Invested Capital — Buffett's preferred measure for asset-light businesses. ROIC > 15% consistently signals a durable competitive advantage (moat). More meaningful than P/B for software, pharma, and consumer brand companies where most value is intangible and off-balance-sheet.
Cash Flow Analysis
Metric
2025
2024
2023
2022
2021
Capital Expenditure % of Net Income
99.0%
100.6%
96.9%
63.6%
N/A
Repurchase of Capital Stock
$0M
-$7M
-$522M
-$368M
N/A
Free Cash Flow
$2.9B▼
$3.0B▼
$4.2B▲
$3.3B•
N/A•
Warren's Owner Earnings
$8.5B
$7.6B
$7.0B
$6.4B
N/A
Peers & Industry
No auto-detected peers for Oil & Gas Midstream. You can manually compare KMI against any stock using the Compare tool.
"The management of a business is its most important single factor — more important than market position, patents, or financial structure."
— Benjamin Graham
Capital Allocation & Alignment
Insider Ownership
12.69%
High — management has strong skin in the game
Return on Equity (ROE)
9.8%
Adequate — returns are moderate
Return on Assets (ROA)
4.2%
Fair — average asset utilization
Debt Trend YoY
+0.4% YoY
Debt is roughly stable
Leadership Team
Richard Kinder
Executive Chairman of the Board
Age 80
Pay: $1
0.000% of net income
Kimberly Allen Dang
CEO & Director
Age 55
Pay: $540,577
0.018% of net income
Dax Sanders CPA
President
Age 50
Pay: $1,440,577
0.047% of net income
David Patrick Michels
VP & CFO
Age 46
Pay: $1,290,577
0.042% of net income
John Schlosser
VP & President of Terminals
Age 62
Pay: $1,340,577
0.044% of net income
Top Institutional Holders
Institution
% Owned
Shares
Blackrock Inc.
7.82%
173,959,103
State Street Corporation
5.64%
125,501,841
Vanguard Capital Management LLC
5.62%
124,953,580
Vanguard Portfolio Management LLC
3.03%
67,321,478
Bank of America Corporation
2.79%
62,018,394
Geode Capital Management, LLC
2.47%
54,941,387
JPMORGAN CHASE & CO
1.39%
30,967,159
Charles Schwab Investment Management, Inc.
1.36%
30,366,044
⚠️Current ratio below 1 — liquidity risk
Risk Analysis
Beta (Market Risk)
0.54
Low volatility — more stable than the market
Short Interest
2.3% of float
Low short interest — market is not heavily bearish
Debt-to-Equity
0.99x
Conservative balance sheet — low financial risk
Current Ratio
0.52x
Weak liquidity — current liabilities exceed current assets
52-Week Price Range
Low: $25.60Current: $31.59High: $34.81
Currently at 65% of 52-week range
Kinder Morgan, Inc. (KMI) fundamental analysis — Overall grade D based on profitability, financial health, valuation and cash flow. Graham's
Fair Value: $20.78. Margin of safety: 0%. Gross profit margin: 52.9%. Operating margin: 27.9%. Net margin: 18.0%. Market cap: $70.3B. Sector: Energy. Industry: Oil & Gas Midstream. Analysis powered by 360investing — free fundamental stock analysis based on Benjamin Graham and Warren Buffett
principles.
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