Will Kinder Morgan Inc’s (NYSE:KMI) Earnings Grow In The Next Couple Of Years?
The most recent earnings announcement Kinder Morgan Inc’s (NYSE:KMI) released in December 2017 showed that the business endured a significant headwind with earnings deteriorating by -95.99%. Investors may find it useful to understand how market analysts view Kinder Morgan’s earnings growth outlook over the next couple of years and whether the future looks brighter. Note that I will be looking at net income excluding extraordinary items to get a better understanding of the underlying drivers of earnings. Check out our latest analysis for Kinder Morgan
Analysts’ expectations for the upcoming year seems positive, with earnings growth more than doubling. Earnings seem to continue strongly in the following year, finally generating US$1.94B in 2021.
Although it is informative knowing the growth rate each year relative to today’s level, it may be more beneficial to analyze the rate at which the business is growing every year, on average. The advantage of this method is that it ignores near term flucuations and accounts for the overarching direction of Kinder Morgan’s earnings trajectory over time, which may be more relevant for long term investors. To compute this rate, I put a line of best fit through analyst consensus of forecasted earnings. The slope of this line is the rate of earnings growth, which in this case is 30.96%. This means that, we can expect Kinder Morgan will grow its earnings by 30.96% every year for the next couple of years.
Next Steps:
For Kinder Morgan, I’ve compiled three pertinent factors you should further examine:
Financial Health: Does it have a healthy balance sheet? Take a look at our free balance sheet analysis with six simple checks on key factors like leverage and risk.
Valuation: What is KMI worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether KMI is currently mispriced by the market.
Other High-Growth Alternatives: Are there other high-growth stocks you could be holding instead of KMI? Explore our interactive list of stocks with large growth potential to get an idea of what else is out there you may be missing!
To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned.
