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Kinder Morgan earnings quality score

How much of the reported profit is backed by cash, and how many markers of managed earnings the filings show

Score64 / 100 · grade C · rank 566 of 1027

Kinder Morgan (KMI) scores 64 of 100 for earnings quality, grade C: rank 566 of 1027 companies and 28 of 55 in utilities. It loses the most points on accruals of -4.0% of assets, higher than 52% of companies (profit backed by cash), Montier C-score 2 of 4 checks failed, discretionary accruals of +1.2% of assets (modified Jones), smaller than most. It earns full or near-full marks for profit steadier than cash flow (smoothness 0.63), adjusted earnings 2% above GAAP.

What earned and lost points

ComponentWhat the filings showPointsOf
Accrualsaccruals of -4.0% of assets, higher than 52% of companies (profit backed by cash)1633
Montier C-scoreMontier C-score 2 of 4 checks failed1225
Discretionary accrualsdiscretionary accruals of +1.2% of assets (modified Jones), smaller than most1317
Non-GAAP gapadjusted earnings 2% above GAAP1617
Earnings smoothnessprofit steadier than cash flow (smoothness 0.63)78
KMI: share of the available points, by componentKMI: share of the available points, by componentAccruals48%Discretionary accruals78%Montier C-score50%Non-GAAP gap93%Earnings smoothness87%

How the score is built

Eight published measures, each scored against the whole universe or on its own scale and weighted: accruals 20, discretionary accruals 10, Beneish M 15, Dechow F 15, Montier C 15, Piotroski F 10, the non-GAAP gap 10, smoothness 5. A measure that cannot be computed (Beneish for a bank, say) drops out and the rest is rescaled, so every company is scored on what applies to it.

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Computed from the companies’ own XBRL filings (latest fiscal year) by published formulas; a statistical screen, not an audit or an accusation. A low score means the reported profit shows more of the markers of managed or low-quality earnings than its peers. Not investment advice.