KMR Fundamental Research Investment Analysis, Kinder Morgan Management LLC

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Kinder Morgan Management LLC (KMR)

The Razor's Edge

2-Year Price History

Recent Price
(1/7/2009)
$42.27
52-Week Price
$34.01 - $57.32
Market Capitalization
$3.2 Billion
Dividend Yield
9.70%
Most Recent Dividend
$3.36

About Kinder Morgan Management LLC

Kinder Morgan Management LLC is considered to operate in the Basic Materials sector. They specifically operate in the Oil & Gas Pipelines business segment contained within the Energy industry.

The Company is a limited partner in Kinder Morgan Energy Partners, L.P., and manage and control its business and affairs pursuant to a delegation of control agreement.

Ockham's Rating

Rating Specific Information Withheld Premium Access Only

KMR Revenue

Unfortunately, we do not have reliable fundamental data available for KMR at this time. Coverage will resume as reliable data becomes available.

KMR Cash Earnings

Cash Earnings is always one of the most important factors to review for a company and, more importantly, an investment in a stock. KMR is significantly below their historical average multiples of Cash Earnings, as calculated by our proprietary analysis. It is incredibly important to understand that for KMR, the current level of Cash Earnings compared to its historical levels helps identify where KMR is in relation to what the investing community was willing to pay for this level of Cash Earnings in the past. With a historical high Cash Earnings per share ratio of 47.69 and a historical low Cash Earnings per share ratio of 37.57, an investor can relate where value becomes optimal.

So what does "significantly below" mean when we talk about Price to Cash Earnings numbers for KMR? From the Ockham perspective, we are looking specifically at KMR to see if the market is recognizing the huge disparity between KMR's past stock price to Cash Earnings ratio to today's levels. At a difference of 36% below the average historical Price to Cash Earnings ratio, our view would be quite positive at this point. However, as with all metrics, we need to also take other factors into account when looking at KMR. While we view better Cash Earnings metrics as very important, if the market is slow to identify this value, or if Cash Earnings were to fall from these levels, we would become more neutral in our stance.

KMR Dividends

A strong dividend payment history is looked upon as a favorable characteristic on a company’s future and potentially can receive a positive Ockham rating. That being said, we don't require dividend payments for company's whose management has elected to forgo them entirely.

When reviewing dividend yields for KMR, we compare the historic high and low levels over the past, which is similar to our evaluation of Sales and Cash Earnings per share. Paying a dividend is not necessary for any company, but changes in dividend often can lend clues as to the health of the business. A rising dividend is a strong sign for an established company, as it reflects management's confidence in the company. KMR’s estimated annual dividend is 3.96 resulting in a current dividend yield of 7.28%. The highest dividend yield from KMR over recent history was 9.12% while the lowest dividend yield was 2.72%. KMR’s current dividend yield is therefore significantly higher than its median dividend yield historically. In fact, the current yield is 22.97% above the median which weighs very positively on our analysis of KMR.

Peer Comparison

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Kinder Morgan Management LLC Industry Grouping

(1/7/2009)
Company Ticker Market Cap (Ml) Latest
Price
Price/Cash Earnings Price/Sales 5-Yr. Rev.
Growth Rate
5-Yr.
Avg. ROE.
Current 10-Yr. Range* Current 10-Yr. Range*
Peer Company Averages (not incuding KMR) 4.61 3.28 » 16.17 1.72 1.16 » 15.75 19.29% 15.11%
*10 year range does not include current year values
FMC Technologies, Inc. FTI $3.5 Billion $27.71 5.87 3.06 » 22.68 0.52 0.37 » 5.76 17.38% 22.24%
Kinder Morgan Management LLC KMR $3.2 Billion $42.27 18.16 1.50 » 76.88 0.00 0.00 » 0.00 n/a 4.02%
Boardwalk Pipeline Partners, LP BWP $3.2 Billion $20.59 7.20 7.21 » 15.29 4.02 2.14 » 17.26 n/a 12.77%
Pride International, Inc. PDE $3.1 Billion $17.88 3.88 2.30 » 18.39 1.09 0.36 » 12.83 9.99% 7.92%
Denbury Resources Inc. DNR $3.0 Billion $12.20 4.09 0.95 » 16.54 1.97 0.94 » 24.77 27.89% 17.40%
Newfield Exploration Company NFX $2.9 Billion $21.69 1.98 2.88 » 7.96 1.01 1.98 » 18.15 21.92% 15.24%
Ockham's Rating: NotSet
Current
Rating on:
KMR
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Key Fundamentals

KMR - Kinder Morgan Management LLC Fundamentals
Price (1/7/2009) $42.27
Volume (1/7/2009) 438,900
10 Day Average Volume 346,300
13 Week Price Range $36.06 - $50.80
52 Week Price Range $34.01 - $57.32
LTM Revenue $0
 
Shares Outstanding (12/2007) 76.4 Million
Market Capitalization $3.2 Billion
Shares Held By Institutions 48.1 Million
Insitutional Holders 212
% Shares Held By Institutions 63%
Earnings Per Share (EPS) $0.71
P/E Ratio 29.20
Book Value Per Share $28.73
 
Gross Margin n/a%
Quarterly Dividend 4.08
Dividend Yield 9.70%
Beta 0.34
Fiscal Year Ends December