BROOKFIELD INFRASTRUCTUR - BIP 5 1/2 PERP (BIP-PR-B.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:BIP-PR-B - BMG162521436
24.99 CAD
-0.06 (-0.24%)
We assign a fundamental rating of 4 out of 10 to BIP-PR-B. BIP-PR-B was compared to 19 industry peers in the Multi-Utilities industry. Both the profitability and financial health of BIP-PR-B have multiple concerns. BIP-PR-B is not priced too expensively while it is growing strongly. Keep and eye on this one! BIP-PR-B also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
- In the past year BIP-PR-B was profitable.
- BIP-PR-B had a positive operating cash flow in the past year.
- BIP-PR-B had positive earnings in each of the past 5 years.
- Each year in the past 5 years BIP-PR-B had a positive operating cash flow.
1.2 Ratios
- BIP-PR-B has a worse Return On Assets (0.25%) than 60.00% of its industry peers.
- The Return On Equity of BIP-PR-B (5.42%) is worse than 60.00% of its industry peers.
- BIP-PR-B has a better Return On Invested Capital (3.90%) than 90.00% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for BIP-PR-B is in line with the industry average of 3.73%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.25% | ||
| ROE | 5.42% | ||
| ROIC | 3.9% |
ROA(3y)0.07%
ROA(5y)0.25%
ROE(3y)0.79%
ROE(5y)2.36%
ROIC(3y)3.99%
ROIC(5y)3.66%
1.3 Margins
- Looking at the Profit Margin, with a value of 1.38%, BIP-PR-B is doing worse than 60.00% of the companies in the same industry.
- In the last couple of years the Profit Margin of BIP-PR-B has declined.
- Looking at the Operating Margin, with a value of 24.55%, BIP-PR-B is doing worse than 60.00% of the companies in the same industry.
- BIP-PR-B's Operating Margin has declined in the last couple of years.
- With a Gross Margin value of 44.05%, BIP-PR-B is not doing good in the industry: 75.00% of the companies in the same industry are doing better.
- In the last couple of years the Gross Margin of BIP-PR-B has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 24.55% | ||
| PM (TTM) | 1.38% | ||
| GM | 44.05% |
OM growth 3Y-1.95%
OM growth 5Y-1.88%
PM growth 3Y-75.22%
PM growth 5Y-29.22%
GM growth 3Y14.5%
GM growth 5Y-2.48%
2. Health
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so BIP-PR-B is destroying value.
- The number of shares outstanding for BIP-PR-B remains at a similar level compared to 1 year ago.
- The number of shares outstanding for BIP-PR-B has been increased compared to 5 years ago.
- BIP-PR-B has a worse debt/assets ratio than last year.
2.2 Solvency
- BIP-PR-B has an Altman-Z score of 0.31. This is a bad value and indicates that BIP-PR-B is not financially healthy and even has some risk of bankruptcy.
- The Altman-Z score of BIP-PR-B (0.31) is worse than 90.00% of its industry peers.
- BIP-PR-B has a debt to FCF ratio of 378.95. This is a negative value and a sign of low solvency as BIP-PR-B would need 378.95 years to pay back of all of its debts.
- Looking at the Debt to FCF ratio, with a value of 378.95, BIP-PR-B is doing worse than 60.00% of the companies in the same industry.
- BIP-PR-B has a Debt/Equity ratio of 10.74. This is a high value indicating a heavy dependency on external financing.
- The Debt to Equity ratio of BIP-PR-B (10.74) is worse than 75.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 10.74 | ||
| Debt/FCF | 378.96 | ||
| Altman-Z | 0.31 |
ROIC/WACC0.67
WACC5.82%
2.3 Liquidity
- A Current Ratio of 0.85 indicates that BIP-PR-B may have some problems paying its short term obligations.
- With a Current ratio value of 0.85, BIP-PR-B is not doing good in the industry: 65.00% of the companies in the same industry are doing better.
- A Quick Ratio of 0.81 indicates that BIP-PR-B may have some problems paying its short term obligations.
- BIP-PR-B has a Quick ratio of 0.81. This is in the lower half of the industry: BIP-PR-B underperforms 65.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.85 | ||
| Quick Ratio | 0.81 |
3. Growth
3.1 Past
- BIP-PR-B shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 291.43%, which is quite impressive.
- Measured over the past years, BIP-PR-B shows a decrease in Earnings Per Share. The EPS has been decreasing by -3.04% on average per year.
- Looking at the last year, BIP-PR-B shows a quite strong growth in Revenue. The Revenue has grown by 8.14% in the last year.
- Measured over the past years, BIP-PR-B shows a very strong growth in Revenue. The Revenue has been growing by 26.11% on average per year.
EPS 1Y (TTM)291.43%
EPS 3Y-67.45%
EPS 5Y-3.04%
EPS Q2Q%344.44%
Revenue 1Y (TTM)8.14%
Revenue growth 3Y22.17%
Revenue growth 5Y26.11%
Sales Q2Q%13.38%
3.2 Future
- The Earnings Per Share is expected to grow by 123.93% on average over the next years. This is a very strong growth
- BIP-PR-B is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 9.15% yearly.
EPS Next Y1860.23%
EPS Next 2Y451.26%
EPS Next 3Y218.87%
EPS Next 5Y123.93%
Revenue Next Year-25.04%
Revenue Next 2Y-28.67%
Revenue Next 3Y-18.49%
Revenue Next 5Y9.15%
3.3 Evolution
- The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 26.87, the valuation of BIP-PR-B can be described as expensive.
- 65.00% of the companies in the same industry are cheaper than BIP-PR-B, based on the Price/Earnings ratio.
- The average S&P500 Price/Earnings ratio is at 27.21. BIP-PR-B is around the same levels.
- BIP-PR-B is valuated correctly with a Price/Forward Earnings ratio of 14.81.
- BIP-PR-B's Price/Forward Earnings ratio is in line with the industry average.
- BIP-PR-B's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 25.98.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.87 | ||
| Fwd PE | 14.81 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of BIP-PR-B indicates a rather cheap valuation: BIP-PR-B is cheaper than 90.00% of the companies listed in the same industry.
- Based on the Price/Free Cash Flow ratio, BIP-PR-B is valued a bit more expensive than 60.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 66.63 | ||
| EV/EBITDA | 7.93 |
4.3 Compensation for Growth
- The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
- BIP-PR-B's earnings are expected to grow with 218.87% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.01
PEG (5Y)N/A
EPS Next 2Y451.26%
EPS Next 3Y218.87%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 6.25%, BIP-PR-B is a good candidate for dividend investing.
- Compared to an average industry Dividend Yield of 5.19, BIP-PR-B pays a better dividend. On top of this BIP-PR-B pays more dividend than 85.00% of the companies listed in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.81, BIP-PR-B pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.25% |
5.2 History
- On average, the dividend of BIP-PR-B grows each year by 7.54%, which is quite nice.
- BIP-PR-B has paid a dividend for at least 10 years, which is a reliable track record.
- BIP-PR-B has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.
Dividend Growth(5Y)7.54%
Div Incr Years0
Div Non Decr Years7
5.3 Sustainability
- 458.17% of the earnings are spent on dividend by BIP-PR-B. This is not a sustainable payout ratio.
- BIP-PR-B's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP458.17%
EPS Next 2Y451.26%
EPS Next 3Y218.87%
BROOKFIELD INFRASTRUCTUR - BIP 5 1/2 PERP / BIP-PR-B.CA FAQ
Can you provide the ChartMill fundamental rating for BROOKFIELD INFRASTRUCTUR - BIP 5 1/2 PERP?
ChartMill assigns a fundamental rating of 3 / 10 to BIP-PR-B.CA.
What is the valuation status of BROOKFIELD INFRASTRUCTUR - BIP 5 1/2 PERP (BIP-PR-B.CA) stock?
ChartMill assigns a valuation rating of 4 / 10 to BROOKFIELD INFRASTRUCTUR - BIP 5 1/2 PERP (BIP-PR-B.CA). This can be considered as Fairly Valued.
What is the profitability of BIP-PR-B stock?
BROOKFIELD INFRASTRUCTUR - BIP 5 1/2 PERP (BIP-PR-B.CA) has a profitability rating of 3 / 10.
Can you provide the PE and PB ratios for BIP-PR-B stock?
The Price/Earnings (PE) ratio for BROOKFIELD INFRASTRUCTUR - BIP 5 1/2 PERP (BIP-PR-B.CA) is 26.87 and the Price/Book (PB) ratio is 2.08.
Is the dividend of BROOKFIELD INFRASTRUCTUR - BIP 5 1/2 PERP sustainable?
The dividend rating of BROOKFIELD INFRASTRUCTUR - BIP 5 1/2 PERP (BIP-PR-B.CA) is 7 / 10 and the dividend payout ratio is 458.17%.