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%)
BIP-PR-B gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 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 growing strongly while it is still valued neutral. This is a good combination! 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.
- BIP-PR-B had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- Looking at the Return On Assets, with a value of 0.25%, BIP-PR-B is doing worse than 60.00% of the companies in the same industry.
- BIP-PR-B has a Return On Equity of 5.42%. This is in the lower half of the industry: BIP-PR-B underperforms 60.00% of its industry peers.
- BIP-PR-B has a Return On Invested Capital of 3.90%. This is amongst the best in the industry. BIP-PR-B outperforms 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.
- The Operating Margin of BIP-PR-B (24.55%) is worse than 60.00% of its industry peers.
- In the last couple of years the Operating Margin of BIP-PR-B has declined.
- The Gross Margin of BIP-PR-B (44.05%) is worse than 75.00% of its industry peers.
- 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
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), BIP-PR-B is destroying value.
- Compared to 1 year ago, BIP-PR-B has about the same amount of shares outstanding.
- BIP-PR-B has more shares outstanding than it did 5 years ago.
- Compared to 1 year ago, BIP-PR-B has a worse debt to assets ratio.
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.
- The Debt to FCF ratio of BIP-PR-B (378.95) is worse than 60.00% of its industry peers.
- BIP-PR-B has a Debt/Equity ratio of 10.74. This is a high value indicating a heavy dependency on external financing.
- Looking at the Debt to Equity ratio, with a value of 10.74, BIP-PR-B is doing worse than 75.00% of the companies in the same industry.
| 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.
- BIP-PR-B has a Quick Ratio of 0.85. This is a bad value and indicates that BIP-PR-B is not financially healthy enough and could expect problems in meeting its short term obligations.
- Looking at the Quick ratio, with a value of 0.81, BIP-PR-B is doing worse than 65.00% of the companies in the same industry.
| 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.
- The Revenue has grown by 8.14% in the past year. This is quite good.
- BIP-PR-B shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 26.11% yearly.
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
- Based on estimates for the next years, BIP-PR-B will show a very strong growth in Earnings Per Share. The EPS will grow by 123.93% on average per year.
- The Revenue is expected to grow by 9.15% on average over the next years. This is quite good.
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.
- The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 26.87 indicates a quite expensive valuation of BIP-PR-B.
- 65.00% of the companies in the same industry are cheaper than BIP-PR-B, based on the Price/Earnings ratio.
- When comparing the Price/Earnings ratio of BIP-PR-B to the average of the S&P500 Index (28.82), we can say BIP-PR-B is valued inline with the index average.
- Based on the Price/Forward Earnings ratio of 14.81, the valuation of BIP-PR-B can be described as correct.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of BIP-PR-B is on the same level as its industry peers.
- When comparing the Price/Forward Earnings ratio of BIP-PR-B to the average of the S&P500 Index (25.95), we can say BIP-PR-B is valued slightly cheaper.
| 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.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of BIP-PR-B indicates a slightly more expensive valuation: BIP-PR-B is more expensive than 60.00% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 66.63 | ||
| EV/EBITDA | 7.93 |
4.3 Compensation for Growth
- BIP-PR-B's 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
- BIP-PR-B has a Yearly Dividend Yield of 6.25%, which is a nice return.
- BIP-PR-B's Dividend Yield is rather good when compared to the industry average which is at 5.19. BIP-PR-B pays more dividend than 85.00% of the companies in the same industry.
- BIP-PR-B's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.25% |
5.2 History
- The dividend of BIP-PR-B is nicely growing with an annual growth rate of 7.54%!
- BIP-PR-B has paid a dividend for at least 10 years, which is a reliable track record.
- As BIP-PR-B did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
Dividend Growth(5Y)7.54%
Div Incr Years0
Div Non Decr Years7
5.3 Sustainability
- BIP-PR-B pays out 458.17% of its income as dividend. This is not a sustainable payout ratio.
- The dividend of BIP-PR-B is growing, but earnings are growing more, so the dividend growth is 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%.