BROOKFIELD INFRASTRUCTURE PA (BIP) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:BIP - BMG162521014
34.69 USD
+0.13 (+0.38%)
We assign a fundamental rating of 4 out of 10 to BIP. BIP was compared to 26 industry peers in the Multi-Utilities industry. Both the profitability and financial health of BIP have multiple concerns. BIP is showing excellent growth while it is valued at reasonable prices. Keep and eye on this one! BIP also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
- In the past year BIP was profitable.
- In the past year BIP had a positive cash flow from operations.
- BIP had positive earnings in each of the past 5 years.
- In the past 5 years BIP always reported a positive cash flow from operatings.
1.2 Ratios
- With a Return On Assets value of 0.25%, BIP is not doing good in the industry: 88.46% of the companies in the same industry are doing better.
- Looking at the Return On Equity, with a value of 5.42%, BIP is doing worse than 88.46% of the companies in the same industry.
- BIP's Return On Invested Capital of 3.90% is on the low side compared to the rest of the industry. BIP is outperformed by 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 has a worse Profit Margin (1.38%) than 88.46% of its industry peers.
- In the last couple of years the Profit Margin of BIP has declined.
- With an excellent Operating Margin value of 24.55%, BIP belongs to the best of the industry, outperforming 80.77% of the companies in the same industry.
- In the last couple of years the Operating Margin of BIP has declined.
- Looking at the Gross Margin, with a value of 44.05%, BIP is in line with its industry, outperforming 46.15% of the companies in the same industry.
- BIP's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 24.55% | ||
| 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 is destroying value.
- The number of shares outstanding for BIP remains at a similar level compared to 1 year ago.
- The number of shares outstanding for BIP has been increased compared to 5 years ago.
- BIP has a worse debt/assets ratio than last year.
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 has a worse Altman-Z score (0.37) than 92.31% of its industry peers.
- BIP has a debt to FCF ratio of 378.95. This is a negative value and a sign of low solvency as BIP would need 378.95 years to pay back of all of its debts.
- BIP's Debt to FCF ratio of 378.95 is amongst the best of the industry. BIP outperforms 100.00% of its industry peers.
- BIP has a Debt/Equity ratio of 10.74. This is a high value indicating a heavy dependency on external financing.
- With a Debt to Equity ratio value of 10.74, BIP is not doing good in the industry: 96.15% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 10.74 | ||
| Debt/FCF | 378.96 | ||
| Altman-Z | 0.37 |
ROIC/WACC0.64
WACC6.09%
2.3 Liquidity
- A Current Ratio of 0.85 indicates that BIP may have some problems paying its short term obligations.
- BIP has a worse Current ratio (0.85) than 73.08% of its industry peers.
- A Quick Ratio of 0.81 indicates that BIP may have some problems paying its short term obligations.
- Looking at the Quick ratio, with a value of 0.81, BIP is in the better half of the industry, outperforming 76.92% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.85 | ||
| Quick Ratio | 0.81 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an impressive 291.43% over the past year.
- 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.
- BIP shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 8.14%.
- Measured over the past years, BIP 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 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
- 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
- BIP is valuated quite expensively with a Price/Earnings ratio of 51.78.
- Based on the Price/Earnings ratio, BIP is valued expensively inside the industry as 92.31% of the companies are valued cheaper.
- BIP's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 27.32.
- Based on the Price/Forward Earnings ratio of 28.54, the valuation of BIP can be described as expensive.
- Based on the Price/Forward Earnings ratio, BIP is valued more expensive than 92.31% of the companies in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 24.32. BIP is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 51.78 | ||
| Fwd PE | 28.54 |
4.2 Price Multiples
- BIP's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. BIP is cheaper than 65.38% of the companies 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 | 128.42 | ||
| EV/EBITDA | 9.08 |
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.
- BIP's earnings are expected to grow with 218.87% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.03
PEG (5Y)N/A
EPS Next 2Y451.26%
EPS Next 3Y218.87%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 4.94%, BIP is a good candidate for dividend investing.
- BIP's Dividend Yield is a higher than the industry average which is at 4.14.
- Compared to an average S&P500 Dividend Yield of 1.83, BIP pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.94% |
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 its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
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.
- The dividend of BIP is growing, but earnings are growing more, so the dividend growth is sustainable.
DP458.17%
EPS Next 2Y451.26%
EPS Next 3Y218.87%
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 51.78 and the Price/Book (PB) ratio is 4.
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 1860.23% in the next year.