BROOKFIELD INFRASTRUCTURE PA (BIP) Stock Fundamental Analysis
NYSE:BIP - New York Stock Exchange, Inc. - BMG162521014 - Currency: USD
Overall BIP gets a fundamental rating of 5 out of 10. We evaluated BIP against 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 is not priced too expensively while it is growing strongly. 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.
BIP had a positive operating cash flow in the past year.
In the past 5 years BIP has always been profitable.
In the past 5 years BIP always reported a positive cash flow from operatings.
1.2 Ratios
BIP has a Return On Assets of -0.02%. This is amonst the worse of the industry: BIP underperforms 88.00% of its industry peers.
Looking at the Return On Equity, with a value of -0.32%, BIP is doing worse than 88.00% of the companies in the same industry.
BIP has a better Return On Invested Capital (4.31%) than 84.00% 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 3.89%.
The last Return On Invested Capital (4.31%) for BIP is above the 3 year average (3.99%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.02% | ||
| ROE | -0.32% | ||
| ROIC | 4.31% |
ROA(3y)0.07%
ROA(5y)0.25%
ROE(3y)0.71%
ROE(5y)2.31%
ROIC(3y)3.99%
ROIC(5y)3.66%
1.3 Margins
In the last couple of years the Profit Margin of BIP has declined.
With a decent Operating Margin value of 24.06%, BIP is doing good in the industry, outperforming 80.00% of the companies in the same industry.
In the last couple of years the Operating Margin of BIP has declined.
BIP has a Gross Margin of 43.24%. This is comparable to the rest of the industry: BIP outperforms 44.00% of its industry peers.
BIP's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 24.06% | ||
| PM (TTM) | N/A | ||
| GM | 43.24% |
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.
Compared to 1 year ago, BIP has about the same amount of shares outstanding.
BIP has more shares outstanding than it did 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 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.
BIP has a better Debt to FCF ratio (152.07) than 96.00% of its industry peers.
A Debt/Equity ratio of 7.24 is on the high side and indicates that BIP has dependencies on debt 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 | 0.37 |
ROIC/WACC0.74
WACC5.79%
2.3 Liquidity
BIP has a Current Ratio of 0.77. This is a bad value and indicates that BIP is not financially healthy enough and could expect problems in meeting its short term obligations.
BIP's Current ratio of 0.77 is on the low side compared to the rest of the industry. BIP is outperformed by 64.00% of its industry peers.
A Quick Ratio of 0.73 indicates that BIP may have some problems paying its short term obligations.
BIP has a Quick ratio of 0.73. This is in the better half of the industry: BIP outperforms 64.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.77 | ||
| Quick Ratio | 0.73 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 135.71% 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 17.33%.
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)135.71%
EPS 3Y-67.45%
EPS 5Y-3.04%
EPS Q2Q%70%
Revenue 1Y (TTM)17.33%
Revenue growth 3Y22.17%
Revenue growth 5Y26.11%
Sales Q2Q%5.66%
3.2 Future
BIP is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 121.31% yearly.
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 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.
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
The Price/Earnings ratio is 603.20, which means the current valuation is very expensive for BIP.
Based on the Price/Earnings ratio, BIP is valued more expensive than 96.00% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.41. BIP is valued rather expensively when compared to this.
The Price/Forward Earnings ratio is 20.53, which indicates a rather expensive current valuation of BIP.
Compared to the rest of the industry, the Price/Forward Earnings ratio of BIP indicates a rather expensive valuation: BIP more expensive than 92.00% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 33.87. BIP is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 603.2 | ||
| Fwd PE | 20.53 |
4.2 Price Multiples
BIP's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. BIP is cheaper than 88.00% of the companies 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 | 37.96 | ||
| EV/EBITDA | 7.71 |
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 260.24% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.23
PEG (5Y)N/A
EPS Next 2Y505.99%
EPS Next 3Y260.24%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.68%, BIP is a good candidate for dividend investing.
BIP's Dividend Yield is rather good when compared to the industry average which is at 3.57. 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 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.68% |
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
BIP has negative earnings and hence a negative payout ratio. The dividend may be in danger.
The dividend of BIP is growing, but earnings are growing more, so the dividend growth is sustainable.
DP-5943.48%
EPS Next 2Y505.99%
EPS Next 3Y260.24%
30.16
+0.06 (+0.2%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryMulti-Utilities
Earnings (Last)
Earnings (Next)
Inst Owners60.57%
Inst Owner Change-1.29%
Ins Owners0.01%
Ins Owner ChangeN/A
Market Cap13.93B
Analysts78.67
Price Target40.99 (35.91%)
Short Float %0.18%
Short Ratio2.02
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.68% |
Yearly Dividend2.92
Dividend Growth(5Y)7.54%
DP-5943.48%
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)0.45%
PT rev (3m)1.14%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)0%
EPS NY rev (3m)23.8%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.13%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 603.2 | ||
| Fwd PE | 20.53 | ||
| P/S | 0.66 | ||
| P/FCF | 37.96 | ||
| P/OCF | 3 | ||
| P/B | 1.95 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.71 |
EPS(TTM)0.05
EY0.17%
EPS(NY)1.47
Fwd EY4.87%
FCF(TTM)0.79
FCFY2.63%
OCF(TTM)10.05
OCFY33.31%
SpS45.99
BVpS15.46
TBVpS-47.25
PEG (NY)0.23
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.02% | ||
| ROE | -0.32% | ||
| ROCE | 5.47% | ||
| ROIC | 4.31% | ||
| ROICexc | 4.39% | ||
| ROICexgc | 6.42% | ||
| OM | 24.06% | ||
| PM (TTM) | N/A | ||
| GM | 43.24% | ||
| FCFM | 1.73% |
ROA(3y)0.07%
ROA(5y)0.25%
ROE(3y)0.71%
ROE(5y)2.31%
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-75.22%
PM growth 5Y-29.22%
GM growth 3Y14.5%
GM growth 5Y-2.48%
F-Score4
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 | N/A | ||
| Current Ratio | 0.77 | ||
| Quick Ratio | 0.73 | ||
| Altman-Z | 0.37 |
F-Score4
WACC5.79%
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)135.71%
EPS 3Y-67.45%
EPS 5Y-3.04%
EPS Q2Q%70%
EPS Next Y2610.16%
EPS Next 2Y505.99%
EPS Next 3Y260.24%
EPS Next 5Y121.31%
Revenue 1Y (TTM)17.33%
Revenue growth 3Y22.17%
Revenue growth 5Y26.11%
Sales Q2Q%5.66%
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 Year11.44%
EBIT Next 3Y9.79%
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%