BROOKFIELD INFRASTRUCTURE PA (BIP) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:BIP - BMG162521014
35.25 USD
+0.56 (+1.61%)
Overall BIP gets a fundamental rating of 4 out of 10. We evaluated BIP against 26 industry peers in the Multi-Utilities industry. Both the profitability and financial health of BIP have multiple concerns. 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.
- BIP had a positive operating cash flow in each of the past 5 years.
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.
- The Return On Equity of BIP (5.42%) is worse than 88.46% of its industry peers.
- The Return On Invested Capital of BIP (3.90%) is worse than 61.54% of its industry peers.
- The Average Return On Invested Capital over the past 3 years 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
- 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 better Operating Margin (24.55%) than 80.77% of its industry peers.
- In the last couple of years the Operating Margin of BIP has declined.
- BIP has a Gross Margin (44.05%) which is in line with its industry peers.
- 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.
- BIP has about the same amout of shares outstanding than it did 1 year ago.
- The number of shares outstanding for BIP has been increased compared to 5 years ago.
- Compared to 1 year ago, BIP has a worse debt to assets ratio.
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.
- BIP has a Debt to FCF ratio of 378.95. This is amongst the best in the industry. BIP outperforms 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.
- Looking at the Current ratio, with a value of 0.85, BIP is doing worse than 73.08% of the companies in the same industry.
- A Quick Ratio of 0.81 indicates that BIP may have some problems paying its short term obligations.
- BIP's Quick ratio of 0.81 is fine compared to the rest of the industry. BIP outperforms 76.92% of its industry peers.
| 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.
- 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 8.14%.
- 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 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.
- 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
- A Price/Earnings ratio of 52.61 indicates a quite expensive valuation of BIP.
- Based on the Price/Earnings ratio, BIP is valued expensively inside the industry as 92.31% of the companies are valued cheaper.
- BIP is valuated expensively when we compare the Price/Earnings ratio to 27.21, which is the current average of the S&P500 Index.
- Based on the Price/Forward Earnings ratio of 30.45, 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.
- When comparing the Price/Forward Earnings ratio of BIP to the average of the S&P500 Index (25.98), we can say BIP is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 52.61 | ||
| Fwd PE | 30.45 |
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.
- 100.00% of the companies in the same industry are more expensive than BIP, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 130.49 | ||
| EV/EBITDA | 9.12 |
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 1.81.
| 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 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 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 52.61 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.