BROOKFIELD INFRASTRUCTURE PA (BIP) Stock Fundamental Analysis
NYSE:BIP - New York Stock Exchange, Inc. - BMG162521014 - Currency: USD
We assign a fundamental rating of 4 out of 10 to BIP. BIP was compared to 25 industry peers in the Multi-Utilities industry. While BIP is still in line with the averages on profitability rating, there are concerns on its financial health. BIP has a correct valuation and a medium growth rate. BIP also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year BIP has reported negative net income.
In the past year BIP had a positive cash flow from operations.
In the past 5 years BIP has always been profitable.
BIP had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of BIP (0.00%) is worse than 88.00% of its industry peers.
With a Return On Equity value of 0.06%, BIP is not doing good in the industry: 88.00% of the companies in the same industry are doing better.
With a decent Return On Invested Capital value of 4.31%, BIP is doing good in the industry, outperforming 68.00% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for BIP is in line with the industry average of 3.93%.
The 3 year average ROIC (3.99%) for BIP is below the current ROIC(4.31%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0% | ||
| ROE | 0.06% | ||
| ROIC | 4.31% |
ROA(3y)0.08%
ROA(5y)0.25%
ROE(3y)0.88%
ROE(5y)2.42%
ROIC(3y)3.99%
ROIC(5y)3.66%
1.3 Margins
BIP has a Profit Margin of 0.02%. This is amonst the worse of the industry: BIP underperforms 88.00% of its industry peers.
BIP's Profit Margin has declined in the last couple of years.
The Operating Margin of BIP (24.06%) is better than 84.00% of its industry peers.
BIP's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 43.24%, BIP is in line with its industry, outperforming 44.00% of the companies in the same industry.
BIP's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 24.06% | ||
| PM (TTM) | 0.02% | ||
| GM | 43.24% |
OM growth 3Y-1.95%
OM growth 5Y-1.88%
PM growth 3Y-68.79%
PM growth 5Y-18.69%
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 is destroying value.
The number of shares outstanding for BIP remains at a similar level compared to 1 year ago.
Compared to 5 years ago, BIP has more shares outstanding
Compared to 1 year ago, BIP has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 0.38, we must say that BIP is in the distress zone and has some risk of bankruptcy.
BIP's Altman-Z score of 0.38 is on the low side compared to the rest of the industry. BIP is outperformed by 96.00% of its industry peers.
BIP has a debt to FCF ratio of 152.07. This is a negative value and a sign of low solvency as BIP would need 152.07 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 152.07, BIP belongs to the top of the industry, outperforming 96.00% of the companies in the same industry.
BIP has a Debt/Equity ratio of 7.24. This is a high value indicating a heavy dependency on external financing.
BIP has a Debt to Equity ratio of 7.24. This is amonst the worse of the industry: BIP underperforms 96.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 7.24 | ||
| Debt/FCF | 152.07 | ||
| Altman-Z | 0.38 |
ROIC/WACC0.74
WACC5.83%
2.3 Liquidity
A Current Ratio of 0.77 indicates that BIP may have some problems paying its short term obligations.
BIP has a worse Current ratio (0.77) than 68.00% of its industry peers.
A Quick Ratio of 0.73 indicates that BIP may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.73, BIP is in line with its industry, outperforming 60.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.77 | ||
| Quick Ratio | 0.73 |
3. Growth
3.1 Past
BIP shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -105.88%.
BIP shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -3.04% yearly.
BIP shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 12.40%.
BIP shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 26.11% yearly.
EPS 1Y (TTM)-105.88%
EPS 3Y-67.45%
EPS 5Y-3.04%
EPS Q2Q%-60%
Revenue 1Y (TTM)12.4%
Revenue growth 3Y22.17%
Revenue growth 5Y26.11%
Sales Q2Q%3.95%
3.2 Future
Based on estimates for the next years, BIP will show a very strong growth in Earnings Per Share. The EPS will grow by 121.31% 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 Y2610.16%
EPS Next 2Y505.99%
EPS Next 3Y260.24%
EPS Next 5Y121.31%
Revenue Next Year-49.17%
Revenue Next 2Y-30.52%
Revenue Next 3Y-19.71%
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.
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 negative for BIP. In the last year negative earnings were reported.
BIP is valuated rather expensively with a Price/Forward Earnings ratio of 23.19.
BIP's Price/Forward Earnings ratio is rather expensive when compared to the industry. BIP is more expensive than 92.00% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of BIP to the average of the S&P500 Index (21.90), we can say BIP is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 23.19 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of BIP indicates a rather cheap valuation: BIP is cheaper than 88.00% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, BIP is valued cheaper than 100.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 42.88 | ||
| EV/EBITDA | 7.91 |
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's earnings are expected to grow with 260.24% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y505.99%
EPS Next 3Y260.24%
5. Dividend
5.1 Amount
BIP has a Yearly Dividend Yield of 6.47%, which is a nice return.
BIP's Dividend Yield is rather good when compared to the industry average which is at 3.76. 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 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.47% |
5.2 History
The dividend of BIP is nicely growing with an annual growth rate of 7.54%!
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
BIP pays out 34175.00% of its income as dividend. This is not a sustainable payout ratio.
The dividend of BIP is growing, but earnings are growing more, so the dividend growth is sustainable.
DP34175%
EPS Next 2Y505.99%
EPS Next 3Y260.24%
34.07
+0.28 (+0.83%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryMulti-Utilities
Earnings (Last)
Earnings (Next)
Inst Owners60.95%
Inst Owner Change-2.27%
Ins Owners0.01%
Ins Owner ChangeN/A
Market Cap15.74B
Analysts78.67
Price Target40.8 (19.75%)
Short Float %0.25%
Short Ratio2.34
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.47% |
Yearly Dividend2.92
Dividend Growth(5Y)7.54%
DP34175%
Div Incr Years16
Div Non Decr Years16
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-18.43%
Min EPS beat(2)-78.3%
Max EPS beat(2)41.44%
EPS beat(4)1
Avg EPS beat(4)-103.37%
Min EPS beat(4)-231.04%
Max EPS beat(4)41.44%
EPS beat(8)2
Avg EPS beat(8)-81.8%
EPS beat(12)3
Avg EPS beat(12)-79.93%
EPS beat(16)5
Avg EPS beat(16)-11.73%
Revenue beat(2)2
Avg Revenue beat(2)171.16%
Min Revenue beat(2)166.4%
Max Revenue beat(2)175.93%
Revenue beat(4)4
Avg Revenue beat(4)170.69%
Min Revenue beat(4)165.94%
Max Revenue beat(4)175.93%
Revenue beat(8)8
Avg Revenue beat(8)146.4%
Revenue beat(12)12
Avg Revenue beat(12)121.46%
Revenue beat(16)16
Avg Revenue beat(16)116.99%
PT rev (1m)0.69%
PT rev (3m)-0.62%
EPS NQ rev (1m)0%
EPS NQ rev (3m)36.97%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.95%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-4.23%
Revenue NY rev (1m)-0.13%
Revenue NY rev (3m)-33.43%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 23.19 | ||
| P/S | 0.74 | ||
| P/FCF | 42.88 | ||
| P/OCF | 3.39 | ||
| P/B | 2.2 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.91 |
EPS(TTM)-0.02
EYN/A
EPS(NY)1.47
Fwd EY4.31%
FCF(TTM)0.79
FCFY2.33%
OCF(TTM)10.05
OCFY29.49%
SpS45.99
BVpS15.46
TBVpS-47.25
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0% | ||
| ROE | 0.06% | ||
| ROCE | 5.47% | ||
| ROIC | 4.31% | ||
| ROICexc | 4.39% | ||
| ROICexgc | 6.42% | ||
| OM | 24.06% | ||
| PM (TTM) | 0.02% | ||
| GM | 43.24% | ||
| FCFM | 1.73% |
ROA(3y)0.08%
ROA(5y)0.25%
ROE(3y)0.88%
ROE(5y)2.42%
ROIC(3y)3.99%
ROIC(5y)3.66%
ROICexc(3y)4.11%
ROICexc(5y)3.76%
ROICexgc(3y)6.13%
ROICexgc(5y)5.68%
ROCE(3y)5.08%
ROCE(5y)4.66%
ROICexcg growth 3Y3.68%
ROICexcg growth 5Y6.06%
ROICexc growth 3Y6.32%
ROICexc growth 5Y9.67%
OM growth 3Y-1.95%
OM growth 5Y-1.88%
PM growth 3Y-68.79%
PM growth 5Y-18.69%
GM growth 3Y14.5%
GM growth 5Y-2.48%
F-Score5
Asset Turnover0.2
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 7.24 | ||
| Debt/FCF | 152.07 | ||
| Debt/EBITDA | 5.88 | ||
| Cap/Depr | 116.52% | ||
| Cap/Sales | 20.12% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 52.86% | ||
| Profit Quality | 9175% | ||
| Current Ratio | 0.77 | ||
| Quick Ratio | 0.73 | ||
| Altman-Z | 0.38 |
F-Score5
WACC5.83%
ROIC/WACC0.74
Cap/Depr(3y)118.64%
Cap/Depr(5y)108.76%
Cap/Sales(3y)18.92%
Cap/Sales(5y)18.25%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-105.88%
EPS 3Y-67.45%
EPS 5Y-3.04%
EPS Q2Q%-60%
EPS Next Y2610.16%
EPS Next 2Y505.99%
EPS Next 3Y260.24%
EPS Next 5Y121.31%
Revenue 1Y (TTM)12.4%
Revenue growth 3Y22.17%
Revenue growth 5Y26.11%
Sales Q2Q%3.95%
Revenue Next Year-49.17%
Revenue Next 2Y-30.52%
Revenue Next 3Y-19.71%
Revenue Next 5Y9.15%
EBIT growth 1Y17.82%
EBIT growth 3Y19.79%
EBIT growth 5Y23.74%
EBIT Next Year11.76%
EBIT Next 3Y9.8%
EBIT Next 5Y5.76%
FCF growth 1Y87.24%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y61.71%
OCF growth 3Y18.84%
OCF growth 5Y16.92%