BROOKFIELD INFRASTRUCTURE PA (BIP) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:BIP - BMG162521014
35.212 USD
-0.17 (-0.47%)
We assign a fundamental rating of 4 out of 10 to BIP. 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 growing strongly while it is still valued neutral. This is a good combination! BIP also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
- In the past year BIP was profitable.
- 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
- BIP has a worse Return On Assets (0.25%) than 88.46% of its industry peers.
- 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 has a worse Return On Invested Capital (3.90%) than 61.54% of its industry peers.
- BIP had an Average Return On Invested Capital over the past 3 years of 3.99%. This is in line with the industry average of 3.94%.
| 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
- Looking at the Profit Margin, with a value of 1.38%, BIP is doing worse than 88.46% of the companies in the same industry.
- 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.
- The Gross Margin of BIP (44.05%) is comparable to the rest of the industry.
- In the last couple of years the Gross Margin of BIP 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 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.
- The Altman-Z score of BIP (0.37) is worse 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.
- With an excellent Debt to FCF ratio value of 378.95, BIP belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
- BIP has a Debt/Equity ratio of 10.74. This is a high value indicating a heavy dependency on external financing.
- The Debt to Equity ratio of BIP (10.74) is worse 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
WACC6.09%
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.
- A Quick Ratio of 0.81 indicates that BIP may have some problems paying its short term obligations.
- With a decent Quick ratio value of 0.81, BIP is doing good in 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
- 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.
- Looking at the last year, BIP shows a quite strong growth in Revenue. The Revenue has grown by 8.14% in the last year.
- BIP 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 will show a very strong growth in Earnings Per Share. The EPS will grow by 123.93% on average per year.
- 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 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
- BIP is valuated quite expensively with a Price/Earnings ratio of 52.56.
- BIP's Price/Earnings ratio is rather expensive when compared to the industry. BIP is more expensive than 92.31% of the companies in the same industry.
- The average S&P500 Price/Earnings ratio is at 28.82. BIP is valued rather expensively when compared to this.
- The Price/Forward Earnings ratio is 30.42, which means the current valuation is very expensive for BIP.
- BIP's Price/Forward Earnings ratio is rather expensive when compared to the industry. BIP is more expensive than 92.31% of the companies in the same industry.
- BIP's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 25.95.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 52.56 | ||
| Fwd PE | 30.42 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, BIP is valued a bit cheaper than the industry average as 65.38% of the companies are valued more expensively.
- 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 | 130.35 | ||
| EV/EBITDA | 9.13 |
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.
- 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
- BIP has a Yearly Dividend Yield of 7.36%, which is a nice return.
- Compared to an average industry Dividend Yield of 3.77, BIP pays a better dividend. On top of this BIP pays more dividend than 100.00% of the companies listed 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
- The dividend of BIP is nicely growing with an annual growth rate of 7.54%!
- BIP has paid a dividend for at least 10 years, which is 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.
- 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 52.56 and the Price/Book (PB) ratio is 4.06.
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.