Is the business good?
How good a business is KMI?
Kinder Morgan earns 6.5% on the capital it employs against a 9.0% cost of capital, so growth costs more than it returns.
6.5%
Return on invested capital · cost of capital 9.0% · 2.5 points below what the capital costs: growth destroys value
- Operating margin
- 29%
Operating margin · Oil & Gas Midstream median 36% · 12 months to Q2 2026
- Cash conversion
- 0.91×
Cash conversion · 1.00× a year ago · some of the reported profit has not turned into cash yet
- Share count, year on year
- +0.14%
Share count, year on year · flat: no meaningful dilution
| Year | Operating margin |
|---|---|
| FY2020 | 13% |
| FY2021 | 18% |
| FY2022 | 21% |
| FY2023 | 28% |
| FY2024 | 29% |
| FY2025 | 28% |
Details›
- Gross margin12 months to Q2 2026
- 67%
- Operating margin12 months to Q2 2026
- 29%
- Net margin12 months to Q2 2026
- 19%
- Free cash flow margin
- 18%
- Revenue, trailing twelve months
- $18.0B
- Free cash flow, trailing twelve months
- $3.16B
- Net income, trailing twelve months
- $3.47B
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 6.5%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion from the cash flow statement.
Oil & Gas Midstream
Ranks #8 of 27 by Smart Score