BROOKFIELD INFRASTRUCTURE PA (BIP-UN.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:BIP-UN - BMG162521014
48.18 CAD
+0.33 (+0.69%)
We assign a fundamental rating of 3 out of 10 to BIP-UN. BIP-UN was compared to 19 industry peers in the Multi-Utilities industry. Both the profitability and financial health of BIP-UN have multiple concerns. BIP-UN shows excellent growth, but is valued quite expensive already. Finally BIP-UN also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
- In the past year BIP-UN was profitable.
- In the past year BIP-UN had a positive cash flow from operations.
- BIP-UN had positive earnings in each of the past 5 years.
- Each year in the past 5 years BIP-UN had a positive operating cash flow.
1.2 Ratios
- BIP-UN has a Return On Assets of 0.25%. This is in the lower half of the industry: BIP-UN underperforms 73.68% of its industry peers.
- The Return On Equity of BIP-UN (5.42%) is worse than 73.68% of its industry peers.
- With a decent Return On Invested Capital value of 3.90%, BIP-UN is doing good in the industry, outperforming 78.95% of the companies in the same industry.
- BIP-UN had an Average Return On Invested Capital over the past 3 years of 3.99%. This 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
- The Profit Margin of BIP-UN (1.38%) is worse than 73.68% of its industry peers.
- BIP-UN's Profit Margin has declined in the last couple of years.
- The Operating Margin of BIP-UN (24.55%) is worse than 73.68% of its industry peers.
- BIP-UN's Operating Margin has declined in the last couple of years.
- Looking at the Gross Margin, with a value of 44.05%, BIP-UN is doing worse than 89.47% of the companies in the same industry.
- In the last couple of years the Gross Margin of BIP-UN 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
- BIP-UN has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
- The number of shares outstanding for BIP-UN remains at a similar level compared to 1 year ago.
- Compared to 5 years ago, BIP-UN has more shares outstanding
- Compared to 1 year ago, BIP-UN has a worse debt to assets ratio.
2.2 Solvency
- Based on the Altman-Z score of 0.37, we must say that BIP-UN is in the distress zone and has some risk of bankruptcy.
- BIP-UN's Altman-Z score of 0.37 is on the low side compared to the rest of the industry. BIP-UN is outperformed by 73.68% of its industry peers.
- BIP-UN has a debt to FCF ratio of 378.95. This is a negative value and a sign of low solvency as BIP-UN would need 378.95 years to pay back of all of its debts.
- BIP-UN's Debt to FCF ratio of 378.95 is on the low side compared to the rest of the industry. BIP-UN is outperformed by 73.68% of its industry peers.
- A Debt/Equity ratio of 10.74 is on the high side and indicates that BIP-UN has dependencies on debt financing.
- BIP-UN has a Debt to Equity ratio of 10.74. This is amonst the worse of the industry: BIP-UN underperforms 89.47% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 10.74 | ||
| Debt/FCF | 378.96 | ||
| Altman-Z | 0.37 |
ROIC/WACC0.61
WACC6.38%
2.3 Liquidity
- A Current Ratio of 0.85 indicates that BIP-UN may have some problems paying its short term obligations.
- BIP-UN has a Current ratio of 0.85. This is in the lower half of the industry: BIP-UN underperforms 78.95% of its industry peers.
- A Quick Ratio of 0.81 indicates that BIP-UN may have some problems paying its short term obligations.
- The Quick ratio of BIP-UN (0.81) is worse than 78.95% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.85 | ||
| Quick Ratio | 0.81 |
3. Growth
3.1 Past
- BIP-UN 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-UN 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.
- The Revenue has been growing by 26.11% on average over the past years. This is a very strong growth!
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-UN 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 Y1843.42%
EPS Next 2Y437.93%
EPS Next 3Y229.21%
EPS Next 5Y123.93%
Revenue Next Year-25.14%
Revenue Next 2Y-29.31%
Revenue Next 3Y-19%
Revenue Next 5Y9.15%
3.3 Evolution
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
- 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
- BIP-UN is valuated quite expensively with a Price/Earnings ratio of 52.37.
- BIP-UN's Price/Earnings ratio is a bit more expensive when compared to the industry. BIP-UN is more expensive than 78.95% of the companies in the same industry.
- BIP-UN's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 27.25.
- Based on the Price/Forward Earnings ratio of 30.24, the valuation of BIP-UN can be described as expensive.
- 68.42% of the companies in the same industry are cheaper than BIP-UN, based on the Price/Forward Earnings ratio.
- When comparing the Price/Forward Earnings ratio of BIP-UN to the average of the S&P500 Index (25.98), we can say BIP-UN is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 52.37 | ||
| Fwd PE | 30.24 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of BIP-UN indicates a slightly more expensive valuation: BIP-UN is more expensive than 68.42% of the companies listed in the same industry.
- Based on the Price/Free Cash Flow ratio, BIP-UN is valued a bit more expensive than 73.68% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 129.59 | ||
| EV/EBITDA | 9.11 |
4.3 Compensation for Growth
- BIP-UN's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
- A more expensive valuation may be justified as BIP-UN's earnings are expected to grow with 229.21% in the coming years.
PEG (NY)0.03
PEG (5Y)N/A
EPS Next 2Y437.93%
EPS Next 3Y229.21%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 7.36%, BIP-UN is a good candidate for dividend investing.
- Compared to an average industry Dividend Yield of 5.19, BIP-UN pays a better dividend. On top of this BIP-UN pays more dividend than 100.00% of the companies listed in the same industry.
- BIP-UN's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.36% |
5.2 History
- On average, the dividend of BIP-UN grows each year by 7.54%, which is quite nice.
- BIP-UN has been paying a dividend for at least 10 years, so it has a reliable track record.
- The dividend of BIP-UN decreased in the last 3 years.
Dividend Growth(5Y)7.54%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
- 458.17% of the earnings are spent on dividend by BIP-UN. This is not a sustainable payout ratio.
- BIP-UN's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP458.17%
EPS Next 2Y437.93%
EPS Next 3Y229.21%
BROOKFIELD INFRASTRUCTURE PA / BIP-UN.CA FAQ
Can you provide the ChartMill fundamental rating for BROOKFIELD INFRASTRUCTURE PA?
ChartMill assigns a fundamental rating of 3 / 10 to BIP-UN.CA.
Can you provide the valuation status for BROOKFIELD INFRASTRUCTURE PA?
ChartMill assigns a valuation rating of 2 / 10 to BROOKFIELD INFRASTRUCTURE PA (BIP-UN.CA). This can be considered as Overvalued.
Can you provide the profitability details for BROOKFIELD INFRASTRUCTURE PA?
BROOKFIELD INFRASTRUCTURE PA (BIP-UN.CA) has a profitability rating of 3 / 10.
What is the expected EPS growth for BROOKFIELD INFRASTRUCTURE PA (BIP-UN.CA) stock?
The Earnings per Share (EPS) of BROOKFIELD INFRASTRUCTURE PA (BIP-UN.CA) is expected to grow by 1843.42% in the next year.
Is the dividend of BROOKFIELD INFRASTRUCTURE PA sustainable?
The dividend rating of BROOKFIELD INFRASTRUCTURE PA (BIP-UN.CA) is 7 / 10 and the dividend payout ratio is 458.17%.