Kinder Morgan (KMI) 10-K Red Flags
Risk signals extracted deterministically from Kinder Morgan’s SEC 10-K/10-Q XBRL filings — no LLM, every finding cites the underlying data.
Detected red flags (16)
- Receivables outpacing revenue: Accounts receivable grew +3.5% YoY vs revenue growth of -20.1%. The +23.6% spread suggests extended credit terms, channel stuffing risk, or collection deterioration. Investigate the allowance for doubtful accounts and DSO trend.
- Inventory buildup exceeds sales growth: Inventory grew +5.7% vs revenue -20.1%. Excess inventory may signal weakening demand, potential write-downs, or supply chain overcommitment. Watch gross margin for discounting impact.
- Interest coverage deteriorating below 3x: Interest coverage fell from 5.78x to 2.99x. Operating income of $4.26B covers interest of $1.43B only 2.99x — approaching the threshold where debt service becomes constrained. Monitor for covenant breaches.
- Material weakness in internal controls: The term "material weakness" appears in 16 recent filing(s) (vs 2 in the prior period). This risk language is ongoing.
- NEW: Substantial doubt about ability to continue in latest filing: The term "substantial doubt" "ability to continue" appears in recent 10-K/10-Q filings but was NOT present in the prior 24-month period. This is a new risk disclosure that warrants attention. Found in 1 filing(s).
- Operating cash flow exceeds net income: OCF is 2.71x net income, indicating high earnings quality — cash conversion is strong and accruals are not inflating reported profits.
- Endogenous analysis: Revenue grew -20.1% but receivables grew +3.5% — the receivables-to-revenue gap suggests growth may be partially driven by extended credit terms rather than genuine demand. If DSO continues to rise, a revenue reversal or bad-debt charge could follow.
- 20 disclosure(s) dropped from prior year — reduced reporting granularity.
- 1 new risk-language term(s) detected in filing text: Substantial doubt about ability to continue.
- Ongoing high-severity risk language: Material weakness in internal controls.
- Revenue declined **+20.1%** YoY to $15.33B.
- 5-year revenue CAGR **+3.0%**; 10y CAGR -0.6%.
- Composite risk: Elevated.
- Leverage debt/equity 1.19 (moderate).
- Receivables outpacing revenue: Accounts receivable grew +3.5% YoY vs revenue growth of -20.1%. The +23.6% spread suggests extended credit terms, channel stuffing risk, or collection deterioration. Investigate the allowance for doubtful accounts and DSO trend.
- Inventory buildup exceeds sales growth: Inventory grew +5.7% vs revenue -20.1%. Excess inventory may signal weakening demand, potential write-downs, or supply chain overcommitment. Watch gross margin for discounting impact.
Filings & ownership
- Latest annual report (10-K) filed Feb 13, 2026.
- Latest quarterly report (10-Q) filed Apr 24, 2026.
- 23 recent 8-K material-event filings in the index.
- Recent insider Form 4s: 0 buy vs 0 sell transactions.
- ~10,000+ recent 13F-HR filings reference Kinder Morgan; broad institutional reporting.
- Recent filers include Energy Income Partners, LLC, Energy Income Partners, LLC, Energy Income Partners, LLC.
Full KMI analyst report
Valuation (DCF & Graham), technicals, macro exposure, risk scorecard and 13F/13D ownership.
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