$Kinder Morgan (KMI.US)$Launched in 2011, almost single US m...

In the past 5 years, with the exception of 2019 and 2020, revenue grew at an average rate of 7%. Operating profit did not change much due to fluctuations, and net profit almost returned to zero in 2020 due to fixed asset sales losses, which fluctuated greatly. Interest expenses account for 38% of operating profit in 2022, and the interest burden is very heavy. The return on net assets of 8.2% is not that high.

In the first three quarters of 2023, revenue contracted by 22.7%, operating profit increased by 7.3% due to a sharp increase in gross margin, and net profit shrank by 3.3%. The balance ratio has basically fluctuated around 54% over the past 5 years. The ratio and growth rate of accounts receivable and inventory are normal. Goodwill and other intangible assets have reached 21.774 billion, accounting for 68% of net assets of 32.114 billion yuan, and long-term loans of 28.403 billion yuan, accounting for 88% of net assets. The actual leverage ratio is extremely high.

Cash fell to 80 million in 2023Q3, with a current ratio of 0.39 and a quick ratio of 0.25. Cash flow risk is very high. Over the past five years, net operating cash flow has been much higher than net investment, generating a large shareholder surplus. Currently, the price-earnings ratio is 15.8, the price-earnings ratio is TTM16.2, the dividend rate is 6.4%, and the 5-year average net profit is 1.76 billion yuan. The corresponding price-earnings ratio is 22.3. In terms of cyclical stocks, the valuation is not low, and it is not very attractive for the time being.