Despite concerns over weak fundamentals and an underperforming return on equity (ROE), Kinder Morgan (NYSE:KMI)’s shares have recently experienced a 5.2% uptick. The company’s ROE, a crucial efficiency metric calculated as net profit divided by shareholders’ equity, stands at 8.1%. This figure indicates that for each dollar invested, only $0.08 is returned, falling short of the industry average of 24%.
While these figures may be cause for concern, the company has demonstrated some resilience with an 18% net income growth over the past five years. This growth suggests that despite the current challenges facing Kinder Morgan, the company has been able to steadily increase its net income over this period.
The recent share price increase coupled with the sustained net income growth signals mixed performance for Kinder Morgan. On one hand, the subpar ROE and weak fundamentals…
