BROOKFIELD INFRASTRUCTURE PA (BIP) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:BIP - BMG162521014
35.36 USD
+0.22 (+0.63%)
Taking everything into account, BIP scores 4 out of 10 in our fundamental rating. BIP was compared to 26 industry peers in the Multi-Utilities industry. BIP may be in some trouble as it scores bad on both profitability and health. BIP is showing excellent growth while it is valued at reasonable prices. Keep and eye on this one! Finally BIP also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
- BIP had positive earnings in the past year.
- BIP had a positive operating cash flow in the past year.
- Each year in the past 5 years BIP has been profitable.
- Each year in the past 5 years BIP had a positive operating cash flow.
1.2 Ratios
- The Return On Assets of BIP (0.25%) is worse than 88.46% of its industry peers.
- With a Return On Equity value of 5.42%, BIP is not doing good in the industry: 88.46% of the companies in the same industry are doing better.
- BIP has a Return On Invested Capital of 3.90%. This is in the lower half of the industry: BIP underperforms 61.54% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for BIP is in line with the industry average of 3.94%.
| 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
- BIP's Profit Margin of 1.38% is on the low side compared to the rest of the industry. BIP is outperformed by 88.46% of its industry peers.
- In the last couple of years the Profit Margin of BIP has declined.
- BIP has a Operating Margin of 24.55%. This is amongst the best in the industry. BIP outperforms 80.77% of its industry peers.
- BIP's Operating Margin has declined in the last couple of years.
- BIP has a Gross Margin (44.05%) which is comparable to the rest of the industry.
- BIP's Gross Margin has declined in the last couple of years.
| 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 is destroying value.
- The number of shares outstanding for BIP remains at a similar level compared to 1 year ago.
- BIP has more shares outstanding than it did 5 years ago.
- The debt/assets ratio for BIP is higher compared to a year ago.
2.2 Solvency
- Based on the Altman-Z score of 0.37, we must say that BIP is in the distress zone and has some risk of bankruptcy.
- BIP's Altman-Z score of 0.37 is on the low side compared to the rest of the industry. BIP is outperformed by 92.31% of its industry peers.
- The Debt to FCF ratio of BIP is 378.95, which is on the high side as it means it would take BIP, 378.95 years of fcf income to pay off all of its debts.
- BIP has a better Debt to FCF ratio (378.95) than 100.00% of its industry peers.
- A Debt/Equity ratio of 10.74 is on the high side and indicates that BIP has dependencies on debt financing.
- BIP has a worse Debt to Equity ratio (10.74) than 96.15% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 10.74 | ||
| Debt/FCF | 378.96 | ||
| Altman-Z | 0.37 |
ROIC/WACC0.64
WACC6.1%
2.3 Liquidity
- A Current Ratio of 0.85 indicates that BIP may have some problems paying its short term obligations.
- The Current ratio of BIP (0.85) is worse than 73.08% of its industry peers.
- BIP has a Quick Ratio of 0.85. This is a bad value and indicates that BIP is not financially healthy enough and could expect problems in meeting its short term obligations.
- The Quick ratio of BIP (0.81) is better than 76.92% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.85 | ||
| Quick Ratio | 0.81 |
3. Growth
3.1 Past
- BIP 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 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
- The Earnings Per Share is expected to grow by 123.93% on average over the next years. This is a very strong growth
- 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
- 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
- The Price/Earnings ratio is 52.78, which means the current valuation is very expensive for BIP.
- Based on the Price/Earnings ratio, BIP is valued more expensive than 92.31% of the companies in the same industry.
- The average S&P500 Price/Earnings ratio is at 27.25. BIP is valued rather expensively when compared to this.
- A Price/Forward Earnings ratio of 30.55 indicates a quite expensive valuation of BIP.
- Based on the Price/Forward Earnings ratio, BIP is valued expensively inside the industry as 92.31% of the companies are valued cheaper.
- BIP is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 25.98, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 52.78 | ||
| Fwd PE | 30.55 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of BIP indicates a somewhat cheap valuation: BIP is cheaper than 65.38% of the companies listed in the same industry.
- Based on the Price/Free Cash Flow ratio, BIP is valued cheaply inside the industry as 100.00% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 130.9 | ||
| EV/EBITDA | 9.12 |
4.3 Compensation for Growth
- BIP'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'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 is a good candidate for dividend investing.
- BIP's Dividend Yield is rather good when compared to the industry average which is at 3.77. BIP pays more dividend than 100.00% of the companies in the same industry.
- BIP'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 grows each year by 7.54%, which is quite nice.
- BIP has been paying a dividend for at least 10 years, so it has a reliable track record.
- BIP has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)7.54%
Div Incr Years16
Div Non Decr Years16
5.3 Sustainability
- 458.17% of the earnings are spent on dividend by BIP. This is not a sustainable payout ratio.
- BIP'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 FAQ
What is the fundamental rating for BIP stock?
ChartMill assigns a fundamental rating of 4 / 10 to BIP.
What is the valuation status of BROOKFIELD INFRASTRUCTURE PA (BIP) stock?
ChartMill assigns a valuation rating of 4 / 10 to BROOKFIELD INFRASTRUCTURE PA (BIP). This can be considered as Fairly Valued.
How profitable is BROOKFIELD INFRASTRUCTURE PA (BIP) stock?
BROOKFIELD INFRASTRUCTURE PA (BIP) has a profitability rating of 3 / 10.
What is the valuation of BROOKFIELD INFRASTRUCTURE PA based on its PE and PB ratios?
The Price/Earnings (PE) ratio for BROOKFIELD INFRASTRUCTURE PA (BIP) is 52.78 and the Price/Book (PB) ratio is 4.08.
Can you provide the expected EPS growth for BIP stock?
The Earnings per Share (EPS) of BROOKFIELD INFRASTRUCTURE PA (BIP) is expected to grow by 1843.42% in the next year.