KMIKinder Morgan
Is the business good?
A genuinely good business: earnings fully cash-backed (1.6×) and margins widening.
Operating profit is fully backed by cash.
Positive operating leverage, operating profit is growing faster than sales, so margins widen as the business scales.
Margin-driven, fat margins on slower asset turns. ROE 10% = margin × turnover × leverage.
Unless marked, from derived.
Against the whole market›
Percentile against every name Ryufin tracks. Higher is better; the tick marks the middle of the market. Context, not one of the checks above.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
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.
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 30% · 12 months to Q2 2026
- Cash conversion
- 1.62×
Cash conversion · 1.56× a year ago · operating cash flow covers the operating profit after tax
- 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 is operating cash flow over operating profit after tax.
Oil & Gas Midstream
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