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 Margin29.9%
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 Margin20.2%
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 Debt32.7 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-$32.2B
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-$2.5B
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-Book2.24x
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$687M
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 Income82.4%
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$2.4B
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 2 of 7 of Graham's defensive criteria — well below his required standard.
At $31.59, the stock trades at a 167% premium to its Graham Number of $11.81. 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
Q1 2026
Q4 2025
Q4 2024
Gross Profit %
50.7%▼
54.2%•
N/A
Operating Margin %
29.9%▼
30.3%•
N/A
Net Income %
20.2%▼
22.1%•
N/A
Diluted EPS
0.44▼
0.45•
N/A
Balance Sheet Highlights
Metric
Q1 2026
Q4 2025
Q4 2024
Total Assets
$73.1B
$72.7B
N/A
Total Debt
$31.9B▲
$31.8B•
N/A
Working Capital
-$2.5B▼
-$1.6B•
N/A
Years to Pay Debt
32.73
31.91
N/A
Cash Flow Highlights
Metric
Q1 2026
Q4 2025
Q4 2024
Free Cash Flow
$687M▼
$872M•
N/A
Owner Earnings
$2.4B
$2.4B
N/A
CapEx % of Net Income
82.4%
82.3%
N/A
Income Statement
2026
2025
2024
Tax Rate For Calcs
0
0
Normalized EBITDA
2,077,000
1,982,000
Total Unusual Items
Total Unusual Items Excluding Goodwill
Net Income From Continuing Operation Net Minority Interest
976,000
996,000
Reconciled Depreciation
633,000
618,000
Reconciled Cost Of Revenue
2,382,000
2,065,000
EBITDA
2,077,000
1,982,000
EBIT
1,444,000
1,364,000
Net Interest Income
-430,000
-442,000
Normalized Income
976,000
996,000
Net Income From Continuing And Discontinued Operation
976,000
996,000
Total Expenses
3,384,000
3,144,000
Total Operating Income As Reported
1,444,000
1,364,000
Diluted Average Shares
2,225,000
2,225,000
Basic Average Shares
2,225,000
2,225,000
Diluted EPS
0
0
Basic EPS
0
0
Diluted NI Availto Com Stockholders
971,000
991,000
Net Income Common Stockholders
971,000
991,000
Otherunder Preferred Stock Dividend
5,000
5,000
Net Income
976,000
996,000
Minority Interests
-25,000
-25,000
Net Income Including Noncontrolling Interests
1,001,000
1,021,000
Net Income Continuous Operations
1,001,000
1,021,000
Tax Provision
287,000
284,000
Pretax Income
1,288,000
1,305,000
Other Income Expense
274,000
383,000
Other Non Operating Income Expenses
20,000
134,000
Special Income Charges
Gain On Sale Of Business
Earnings From Equity Interest
254,000
249,000
Net Non Operating Interest Income Expense
-430,000
-442,000
Total Other Finance Cost
430,000
442,000
Operating Income
1,444,000
1,364,000
Operating Expense
1,002,000
1,079,000
Other Operating Expenses
-7,000
-5,000
-81,000
Other Taxes
114,000
111,000
Selling General And Administration
184,000
186,000
General And Administrative Expense
184,000
186,000
Other Gand A
184,000
186,000
Gross Profit
2,446,000
2,443,000
Cost Of Revenue
2,382,000
2,065,000
Total Revenue
4,828,000
4,508,000
Operating Revenue
4,770,000
4,457,000
Balance Sheet
2026
2025
2024
Ordinary Shares Number
2,224,810
2,224,778
Share Issued
2,224,810
2,224,778
Net Debt
31,874,000
31,719,000
Total Debt
31,946,000
31,782,000
Tangible Book Value
9,552,000
9,348,000
Invested Capital
63,268,000
62,944,000
Working Capital
-2,475,000
-1,568,000
Net Tangible Assets
9,552,000
9,348,000
Common Stock Equity
31,322,000
31,162,000
Total Capitalization
61,082,000
61,718,000
Total Equity Gross Minority Interest
32,583,000
32,449,000
Minority Interest
1,261,000
1,287,000
Stockholders Equity
31,322,000
31,162,000
Gains Losses Not Affecting Retained Earnings
-137,000
45,000
Other Equity Adjustments
-137,000
45,000
Retained Earnings
-9,859,000
-10,181,000
Additional Paid In Capital
41,296,000
41,276,000
Capital Stock
22,000
22,000
Common Stock
22,000
22,000
Total Liabilities Net Minority Interest
40,489,000
40,299,000
Total Non Current Liabilities Net Minority Interest
35,307,000
35,977,000
Other Non Current Liabilities
2,317,000
2,309,000
Preferred Securities Outside Stock Equity
110,000
221,000
Non Current Deferred Liabilities
3,120,000
2,891,000
Non Current Deferred Taxes Liabilities
3,120,000
2,891,000
Long Term Debt And Capital Lease Obligation
29,760,000
30,556,000
Long Term Debt
29,760,000
30,556,000
Current Liabilities
5,182,000
4,322,000
Other Current Liabilities
1,093,000
898,000
Current Debt And Capital Lease Obligation
2,186,000
1,226,000
Current Debt
2,186,000
1,226,000
Other Current Borrowings
2,186,000
1,226,000
Payables And Accrued Expenses
1,903,000
2,198,000
Current Accrued Expenses
339,000
534,000
Interest Payable
339,000
534,000
Payables
1,564,000
1,664,000
Total Tax Payable
198,000
256,000
Accounts Payable
1,366,000
1,408,000
Total Assets
73,072,000
72,748,000
Total Non Current Assets
70,365,000
69,994,000
Other Non Current Assets
1,245,000
1,317,000
Investments And Advances
7,651,000
7,532,000
Long Term Equity Investment
7,532,000
7,845,000
Goodwill And Other Intangible Assets
21,770,000
21,814,000
Other Intangible Assets
1,686,000
1,730,000
Goodwill
20,084,000
20,084,000
Net PPE
39,699,000
39,331,000
Accumulated Depreciation
-24,062,000
-22,182,000
Gross PPE
63,393,000
60,195,000
Construction In Progress
1,817,000
1,588,000
Other Properties
60,737,000
57,770,000
Land And Improvements
839,000
837,000
Current Assets
2,707,000
2,754,000
Other Current Assets
352,000
357,000
Hedging Assets Current
Restricted Cash
108,000
46,000
Inventory
593,000
574,000
Receivables
1,582,000
1,714,000
Accounts Receivable
1,582,000
1,714,000
Cash Cash Equivalents And Short Term Investments
72,000
63,000
Cash And Cash Equivalents
72,000
63,000
Cash Flow
2026
2025
2024
Free Cash Flow
687,000
872,000
Repayment Of Debt
-1,867,000
-2,144,000
Issuance Of Debt
1,937,000
1,583,000
Capital Expenditure
-804,000
-820,000
Interest Paid Supplemental Data
623,000
273,000
Income Tax Paid Supplemental Data
4,000
7,000
End Cash Position
180,000
109,000
Beginning Cash Position
109,000
133,000
Changes In Cash
71,000
-24,000
Financing Cash Flow
-617,000
-1,239,000
Cash Flow From Continuing Financing Activities
-617,000
-1,239,000
Net Other Financing Charges
-33,000
-24,000
Cash Dividends Paid
-654,000
-654,000
Common Stock Dividend Paid
-654,000
-654,000
Net Issuance Payments Of Debt
70,000
-561,000
Net Long Term Debt Issuance
70,000
-561,000
Long Term Debt Payments
-1,867,000
-2,144,000
Long Term Debt Issuance
1,937,000
1,583,000
Investing Cash Flow
-803,000
-477,000
Cash Flow From Continuing Investing Activities
-803,000
-477,000
Net Other Investing Changes
8,000
623,000
Dividends Received Cfi
46,000
61,000
Net Investment Purchase And Sale
-53,000
307,000
Purchase Of Investment
-53,000
-75,000
Net Business Purchase And Sale
Purchase Of Business
Capital Expenditure Reported
-804,000
-820,000
Operating Cash Flow
1,491,000
1,692,000
Cash Flow From Continuing Operating Activities
1,491,000
1,692,000
Dividend Received Cfo
150,000
220,000
Change In Working Capital
-339,000
27,000
Change In Other Current Liabilities
27,000
67,000
Change In Other Current Assets
-56,000
-22,000
Change In Payables And Accrued Expense
-422,000
260,000
Change In Accrued Expense
-192,000
168,000
Change In Interest Payable
-192,000
168,000
Change In Payable
-230,000
92,000
Change In Account Payable
-172,000
126,000
Change In Tax Payable
-58,000
-34,000
Change In Income Tax Payable
-58,000
-34,000
Change In Inventory
-19,000
-16,000
Change In Receivables
131,000
-267,000
Changes In Account Receivables
131,000
-267,000
Other Non Cash Items
-67,000
-50,000
Deferred Tax
281,000
268,000
Deferred Income Tax
281,000
268,000
Depreciation Amortization Depletion
633,000
618,000
Operating Gains Losses
-168,000
-412,000
Earnings Losses From Equity Investments
-254,000
-249,000
Gain Loss On Investment Securities
86,000
-37,000
Gain Loss On Sale Of Business
-126,000
2,000
Net Income From Continuing Operations
1,001,000
1,021,000
📊Quarterly mode — Graham Fair Value & 7 Criteria require annual data. Switch to Annual for full analysis.
Quarter vs Same Quarter Last Year
YoY strips seasonality
Revenue Growth (YoY)
Prior year: $4.2B▲ $4.8B+13.8%
Revenue growth vs same quarter last year strips seasonality. Consistent double-digit growth is a Buffett hallmark.
Gross Margin
Prior year: 50.8%▲ 50.7%-0.2pp
Buffett: consistent gross margin above 40% signals durable pricing power and competitive moat.
Operating Margin
Prior year: 34.0%▲ 29.9%-4.1pp
Graham: operating margin reflects true business economics before financing. Trend matters as much as level.
Net Margin
Prior year: 16.9%▲ 20.2%+3.3pp
Net margin can be distorted by one-time items, tax timing, or interest costs — compare to operating margin for signal quality.
Quarterly Health Checks
3 Graham/Buffett criteria that are valid and reliable on quarterly data
✅ Adequate Size
Graham required scale for resilience. Quarterly revenue × 4 gives an annualised proxy.
$4.8B/qtr (≈$19.3B ann.)
vs > $1.5B annualised revenue
❌ Financial Condition
Current assets vs current liabilities — a real-time liquidity snapshot. Valid and reliable on quarterly data.
0.52x current ratio
vs ≥ 2.0x
✅ Free Cash Flow
Buffett's most important single metric. A positive FCF quarter means the business generated real cash for owners after maintaining its asset base.
$687M
vs Positive
Operating Cash Flow
$1.5B
Latest quarter · Buffett's cash reality check
ROIC
1.7%
Based on latest annual operating income
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.
Market Cap / Net Assets
2.2x
Net Assets: $32.6B
Asset Context — Oil & Gas Midstream
Asset-heavy businesses (energy, industrials, utilities, REITs) have physical assets with real replacement value — book value and Net Assets are more meaningful here than for technology or consumer brand companies. A low Market Cap / Net Assets ratio may indicate genuine undervaluation.
⚠️Revenue grew vs prior year but operating margin contracted. Possible explanations: deliberate investment in growth (hiring, marketing, R&D), input cost inflation, or pricing pressure from competition. Buffett distinguishes between spending that builds moat vs. spending that doesn't.
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)
3.1%
Weak — poor returns on equity
Return on Assets (ROA)
1.3%
Poor — assets are not generating adequate returns
Debt Trend YoY
+0.5% 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
0.055% of net income
Dax Sanders CPA
President
Age 50
Pay: $1,440,577
0.148% of net income
David Patrick Michels
VP & CFO
Age 46
Pay: $1,290,577
0.132% of net income
John Schlosser
VP & President of Terminals
Age 62
Pay: $1,340,577
0.137% 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: $11.81. Margin of safety: 0%. Gross profit margin: 50.7%. Operating margin: 29.9%. Net margin: 20.2%. 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.
Disclaimer: 360investing is provided for informational and educational purposes only and does not constitute financial, investment, legal, or tax advice. All data is sourced from public third-party providers
and may be delayed, inaccurate, or incomplete. Past performance is not indicative of future results. Analysis, scores, and valuations are algorithmic and do not represent professional investment recommendations. Always conduct your own due
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