Positioning no disclosures inside 60 days, left as found
Options no verdict drawn today, left as found
Ethical does not pass the values gate
Price30.75 USD
Fair value24.53
Ethical score10.0/100
RatingAVOID
Our investment reviews on this name
2026-10-02Read Markdown30.75+0.0% to today
2026-09-03Read Markup31.61-2.7% to today
2026-08-03Read Distribution31.75-3.1% to today ✓
2026-07-02Read Markup31.68-2.9% to today
Our analytic regime reads on this name, dated and marked against the screened price. Small sample per name, and separate from the daily-framework accuracy on the Track Record page.
Kinder Morgan holds its Markdown at $30.75. Consolidating, no directional conviction, held for 7 days.
As held on the ledger · 2026-09-25
Phase
Markdown · caution
Quantitative state
Consolidating, no directional conviction, held for 7 days
Price at the screen
$30.75
Valuation
19.84 trailing · 19.91 forward price to earnings
Values screen
FAIL· score 10.0
Beta
0.55
The Workings
Five Screens, Shown in Full
Does not pass. Debt ratio
Test
Figure
Limit
What it means
Status
Business activity
Permissible
Core business clean
Its core business isn't built on prohibited lines: no gambling, alcohol, tobacco, weapons, or interest-based lending.
Pass
Debt load
43.69%
Below 33%
Interest-bearing debt is 43.7% of its assets, above the one-third ceiling the screen allows.
Fail
Interest-bearing cash
10.35%
Below 33%
Cash held in interest-bearing accounts and securities is 10.4% of assets, under the one-third limit.
Pass
Receivables
2.44%
Below 49%
Money owed to the company is 2.4% of assets, under the 49% limit.
Pass
Revenue purity
0.00%
Below 5%
Only 0.0% of revenue comes from non-compliant sources, under the 5% line.
Pass
Five checks adapted from AAOIFI screening standards: business activity plus four balance-sheet ratios. All five must pass for ethical clearance. Every figure is arithmetic on public accounts, not judgement.
The Ethical Read
Why It Falls Short, in Plain English
Kinder Morgan's business is in a permissible area, but its interest-bearing debt is about 44% of the company, well over the ~33% line, so it does not pass on the financial screens.
Read as at 2026-10-04. It updates when the underlying figures move, and past reads are kept below.
What the Numbers Say It Is Worth
The Fair Value Range
Our framework reads AVOID: it trades above our $24.53 fair value estimate, moderate competitive moat, 10.80% revenue growth.
Fair value range in USD, drawn from the 2026-09-25 screen. The gold marker is the market price at the same screen. The price runs 20.2% above the base estimate.
Third-party analyst targets: 22 covering, consensus Buy. The average target sits +17% from the screen price.
Reading the gap · Our more conservative model reads it as fully-to-richly valued here, while the Street is more bullish: a quality-at-a-fair-price name rather than a deep-value one.
Price History & Projections
Where it has been, where the models see it going. History from market close data; projection points are our fair-value estimates and third-party analyst targets, dated to the 2026-09-25 screen.
Fair value and rating are our own model estimates; the Street's range reflects third-party analyst estimates. Analysis, not advice.
The Business, in Plain Words
Kinder Morgan Trips Over Debt and Cycles
Gas keeps flowing through Kinder Morgan pipes from Texas to the Midwest, yet the business carries more debt than its cash flows comfortably support. We pass because the shares trade well above our fair value, the ethical screen flags the leverage, and a forward multiple of 21.5 times leaves little room for the next downturn.
This is a classic cyclical value trap. Revenue may be growing 14 percent, yet peak-cycle earnings often sit at the top of the range while multiples compress when volumes fall. Return on equity of just 11 percent and a moderate moat do not justify stretching for the name when the margin of safety sits at minus 26 percent.
Analysts may still like the dividend, but the debt ratio alone rules it out on our screen. Analysis, not advice.
The risks · The main risks here are ordinary market swings and the chance our fair-value read proves too optimistic.
Plain-English interpretation of our own screen data. Analysis, not advice.
Where & How to Trade
KMI trades on a US exchange. As a listed security it is accessible through almost any international broker offering its home market. New to this, or investing from abroad? Our guide to accessing global markets covers brokers, currencies and the practical steps.
The Dated Journal · Newest First, Never Edited
Every Entry, As Written
2026-10-02Markdown · changed$30.75-2.7%Entry 7
The framework has shifted from markup to markdown since the last review. Price is trending lower. Sellers are in control and the prior trend has reversed. Price has moved down 2.7% since our last review. Ethical screening: FAIL. This security does not pass our values-based screening criteria. The risk-adjusted return profile shows excellent risk-adjusted returns. Our composite framework grades it B, carrying a low risk profile. Technically it is holding around 14% above its long-term trend line with momentum reading neutral. Over the past year the shares are up 22%. Our forward projection puts the odds of a 10% gain over the next month near 23%. The street (21 analysts) rates it buy, with a mean price target of $35.
2026-09-03Markup · changed$31.61-0.4%Entry 6
The framework has shifted from distribution to markup since the last review. Price is trending higher with momentum. The crowd has caught on and buyers are in control. Price has moved down 0.4% since our last review. Ethical screening: FAIL. This security does not pass our values-based screening criteria. The risk-adjusted return profile shows excellent risk-adjusted returns. Our composite framework grades it B, carrying a low risk profile. Technically it is holding around 14% above its long-term trend line with momentum reading neutral. Over the past year the shares are up 22%. Our forward projection puts the odds of a 10% gain over the next month near 23%. The street (21 analysts) rates it buy, with a mean price target of $35.
The framework has shifted from markup to distribution since the last review. Smart money appears to be selling into strength. Institutional holders may be rotating out. Price has moved up 0.2% since our last review. Ethical screening: FAIL. This security does not pass our values-based screening criteria. The risk-adjusted return profile shows excellent risk-adjusted returns. Our composite framework grades it B, carrying a low risk profile. Technically it is holding around 14% above its long-term trend line with momentum reading neutral. Over the past year the shares are up 22%. Our forward projection puts the odds of a 10% gain over the next month near 23%. The street (21 analysts) rates it buy, with a mean price target of $35.
2026-07-18Markup$31.68+0.0%Entry 4
The framework reads markup. Price is trending higher with momentum. The crowd has caught on and buyers are in control. Price has moved down 0.0% since our last review. Ethical screening: FAIL. This security does not pass our values-based screening criteria. The risk-adjusted return profile shows excellent risk-adjusted returns. Our composite framework grades it B, carrying a low risk profile. Technically it is holding around 14% above its long-term trend line with momentum reading neutral. Over the past year the shares are up 22%. Our forward projection puts the odds of a 10% gain over the next month near 23%. The street (21 analysts) rates it buy, with a mean price target of $35.
2026-07-15Markup$31.68+0.0%Entry 3
The framework reads markup. Price is trending higher with momentum. The crowd has caught on and buyers are in control. Price has moved down 0.0% since our last review. Ethical screening: FAIL. This security does not pass our values-based screening criteria. The risk-adjusted return profile shows excellent risk-adjusted returns. It reported earnings in this window, a natural checkpoint for the thesis.
2026-07-03Markup$31.68+0.0%Entry 2
The framework reads markup. Price is trending higher with momentum. The crowd has caught on and buyers are in control. Price has moved down 0.0% since our last review. Ethical screening: FAIL. This security does not pass our values-based screening criteria. The risk-adjusted return profile shows excellent risk-adjusted returns.
2026-07-02Markup$31.68Entry 1
The framework reads markup. Price is trending higher with momentum. The crowd has caught on and buyers are in control. Ethical screening: FAIL. This security does not pass our values-based screening criteria. The risk-adjusted return profile shows excellent risk-adjusted returns.
Each entry above was written on its date, before the outcome. A journal you can prune is not a journal.
