BROOKFIELD INFRASTRUCTURE PA (BIP)

BMG162521014

29.96  -0.02 (-0.07%)

Fundamental Rating

5

BIP gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 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.



3

1. Profitability

1.1 Basic Checks

In the past year BIP was profitable.
BIP had a positive operating cash flow in the past year.
BIP had positive earnings in 4 of the past 5 years.
BIP had a positive operating cash flow in 4 of the past 5 years.

1.2 Ratios

BIP has a worse Return On Assets (0.19%) than 84.62% of its industry peers.
With a Return On Equity value of 2.25%, BIP is not doing good in the industry: 84.62% of the companies in the same industry are doing better.
Looking at the Return On Invested Capital, with a value of 3.23%, BIP is doing worse than 73.08% of the companies in the same industry.
BIP had an Average Return On Invested Capital over the past 3 years of 3.40%. This is in line with the industry average of 3.73%.
Industry RankSector Rank
ROA 0.19%
ROE 2.25%
ROIC 3.23%
ROA(3y)0.38%
ROA(5y)0.33%
ROE(3y)3.52%
ROE(5y)2.81%
ROIC(3y)3.4%
ROIC(5y)3.19%

1.3 Margins

With a Profit Margin value of 1.10%, BIP is not doing good in the industry: 84.62% of the companies in the same industry are doing better.
In the last couple of years the Profit Margin of BIP has grown nicely.
Looking at the Operating Margin, with a value of 22.00%, BIP is in the better half of the industry, outperforming 73.08% of the companies in the same industry.
In the last couple of years the Operating Margin of BIP has declined.
The Gross Margin of BIP (39.37%) is comparable to the rest of the industry.
BIP's Gross Margin has declined in the last couple of years.
Industry RankSector Rank
OM 22%
PM (TTM) 1.1%
GM 39.37%
OM growth 3Y-2.31%
OM growth 5Y-5.22%
PM growth 3Y9.86%
PM growth 5YN/A
GM growth 3Y-4.63%
GM growth 5Y-5.98%

3

2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so BIP is destroying value.
There is no outstanding debt for BIP. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.

2.2 Solvency

BIP has an Altman-Z score of 0.30. This is a bad value and indicates that BIP is not financially healthy and even has some risk of bankruptcy.
BIP has a worse Altman-Z score (0.30) than 92.31% of its industry peers.
The Debt to FCF ratio of BIP is 36.78, which is on the high side as it means it would take BIP, 36.78 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of BIP (36.78) is better than 96.15% of its industry peers.
A Debt/Equity ratio of 5.06 is on the high side and indicates that BIP has dependencies on debt financing.
BIP has a Debt to Equity ratio of 5.06. This is amonst the worse of the industry: BIP underperforms 96.15% of its industry peers.
Industry RankSector Rank
Debt/Equity 5.06
Debt/FCF 36.78
Altman-Z 0.3
ROIC/WACC0.56
WACC5.74%

2.3 Liquidity

A Current Ratio of 0.70 indicates that BIP may have some problems paying its short term obligations.
BIP's Current ratio of 0.70 is fine compared to the rest of the industry. BIP outperforms 61.54% of its industry peers.
A Quick Ratio of 0.66 indicates that BIP may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.66, BIP belongs to the top of the industry, outperforming 84.62% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 0.7
Quick Ratio 0.66

8

3. Growth

3.1 Past

The Earnings Per Share has grown by an nice 8.14% over the past year.
Measured over the past years, BIP shows a very strong growth in Earnings Per Share. The EPS has been growing by 51.82% on average per year.
Looking at the last year, BIP shows a quite strong growth in Revenue. The Revenue has grown by 19.31% in the last year.
BIP shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 32.48% yearly.
EPS 1Y (TTM)8.14%
EPS 3Y51.82%
EPS 5YN/A
EPS growth Q2Q-40%
Revenue 1Y (TTM)19.31%
Revenue growth 3Y29.8%
Revenue growth 5Y32.48%
Revenue growth Q2Q23.71%

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 72.52% on average per year.
The Revenue is expected to grow by 12.75% on average over the next years. This is quite good.
EPS Next Y321.32%
EPS Next 2Y126.55%
EPS Next 3Y94.98%
EPS Next 5Y72.52%
Revenue Next Year19.09%
Revenue Next 2Y-21%
Revenue Next 3Y-12.07%
Revenue Next 5Y12.75%

3.3 Evolution

The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.

4

4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 96.65, the valuation of BIP can be described as expensive.
BIP's Price/Earnings ratio is rather expensive when compared to the industry. BIP is more expensive than 96.15% of the companies in the same industry.
When comparing the Price/Earnings ratio of BIP to the average of the S&P500 Index (26.42), we can say BIP is valued expensively.
A Price/Forward Earnings ratio of 35.74 indicates a quite expensive valuation of BIP.
BIP's Price/Forward Earnings ratio is rather expensive when compared to the industry. BIP is more expensive than 88.46% of the companies in the same industry.
BIP's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 22.74.
Industry RankSector Rank
PE 96.65
Fwd PE 35.74

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 69.23% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of BIP indicates a rather cheap valuation: BIP is cheaper than 96.15% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 10.67
EV/EBITDA 9.49

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 94.98% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.3
PEG (5Y)N/A
EPS Next 2Y126.55%
EPS Next 3Y94.98%

7

5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 5.44%, BIP is a good candidate for dividend investing.
BIP's Dividend Yield is rather good when compared to the industry average which is at 4.41. BIP pays more dividend than 80.77% of the companies in the same industry.
BIP's Dividend Yield is rather good when compared to the S&P500 average which is at 2.34.
Industry RankSector Rank
Dividend Yield 5.44%

5.2 History

On average, the dividend of BIP grows each year by 8.67%, which is quite nice.
BIP has paid a dividend for at least 10 years, which is a reliable track record.
BIP has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)8.67%
Div Incr Years3
Div Non Decr Years3

5.3 Sustainability

BIP pays out 663.59% 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.
DP663.59%
EPS Next 2Y126.55%
EPS Next 3Y94.98%

BROOKFIELD INFRASTRUCTURE PA

NYSE:BIP (3/28/2024, 9:35:13 AM)

29.96

-0.02 (-0.07%)

Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryMulti-Utilities
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap13.85B
Analysts
Price Target
Dividend
Industry RankSector Rank
Dividend Yield 5.44%
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
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EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
Industry RankSector Rank
PE 96.65
Fwd PE 35.74
P/S
P/FCF
P/OCF
P/B
P/tB
EV/EBITDA
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.3
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA 0.19%
ROE 2.25%
ROCE
ROIC
ROICexc
ROICexgc
OM 22%
PM (TTM) 1.1%
GM 39.37%
FCFM
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.17
Health
Industry RankSector Rank
Debt/Equity 5.06
Debt/FCF
Debt/EBITDA
Cap/Depr
Cap/Sales
Interest Coverage
Cash Conversion
Profit Quality
Current Ratio 0.7
Quick Ratio 0.66
Altman-Z
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)8.14%
EPS 3Y51.82%
EPS 5Y
EPS growth Q2Q
EPS Next Y321.32%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)19.31%
Revenue growth 3Y29.8%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y