BROOKFIELD INFRASTRUCTURE-A (BIPC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:BIPC - CA11276H1064 - Common Stock
46.09 USD
+0.87 (+1.92%)
46.09 USD
0 (0%)
We assign a fundamental rating of 4 out of 10 to BIPC. BIPC was compared to 14 industry peers in the Gas Utilities industry. While BIPC is still in line with the averages on profitability rating, there are concerns on its financial health. BIPC has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
- In the past year BIPC has reported negative net income.
- BIPC had a positive operating cash flow in the past year.
- The reported net income has been mixed in the past 5 years: BIPC reported negative net income in multiple years.
- BIPC had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- Looking at the Return On Assets, with a value of -0.65%, BIPC is doing worse than 92.86% of the companies in the same industry.
- BIPC's Return On Invested Capital of 10.38% is amongst the best of the industry. BIPC outperforms 92.86% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for BIPC is significantly above the industry average of 6.27%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.65% | ||
| ROE | N/A | ||
| ROIC | 10.38% |
ROA(3y)2.88%
ROA(5y)-0.18%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)12.2%
ROIC(5y)13.75%
1.3 Margins
- BIPC has a better Operating Margin (60.53%) than 100.00% of its industry peers.
- BIPC's Operating Margin has been stable in the last couple of years.
- With an excellent Gross Margin value of 82.08%, BIPC belongs to the best of the industry, outperforming 85.71% of the companies in the same industry.
- In the last couple of years the Gross Margin of BIPC has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 60.53% | ||
| PM (TTM) | N/A | ||
| GM | 82.08% |
OM growth 3Y-2.44%
OM growth 5Y-1.18%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y0.48%
GM growth 5Y-0.33%
2. Health
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so BIPC is still creating some value.
- BIPC has about the same amout of shares outstanding than it did 1 year ago.
- The number of shares outstanding for BIPC has been increased compared to 5 years ago.
- Compared to 1 year ago, BIPC has a worse debt to assets ratio.
2.2 Solvency
- Based on the Altman-Z score of 0.42, we must say that BIPC is in the distress zone and has some risk of bankruptcy.
- Looking at the Altman-Z score, with a value of 0.42, BIPC is doing worse than 78.57% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.42 |
ROIC/WACC1.43
WACC7.28%
2.3 Liquidity
- BIPC has a Current Ratio of 0.41. This is a bad value and indicates that BIPC is not financially healthy enough and could expect problems in meeting its short term obligations.
- With a Current ratio value of 0.41, BIPC is not doing good in the industry: 85.71% of the companies in the same industry are doing better.
- BIPC has a Quick Ratio of 0.41. This is a bad value and indicates that BIPC is not financially healthy enough and could expect problems in meeting its short term obligations.
- BIPC has a Quick ratio (0.41) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.41 | ||
| Quick Ratio | 0.41 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an impressive 69.07% over the past year.
- Looking at the last year, BIPC shows a small growth in Revenue. The Revenue has grown by 0.47% in the last year.
- Measured over the past years, BIPC shows a quite strong growth in Revenue. The Revenue has been growing by 17.76% on average per year.
EPS 1Y (TTM)69.07%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%108.39%
Revenue 1Y (TTM)0.47%
Revenue growth 3Y30.67%
Revenue growth 5Y17.76%
Sales Q2Q%0.55%
3.2 Future
- Based on estimates for the next years, BIPC will show a very strong growth in Earnings Per Share. The EPS will grow by 92.38% on average per year.
- The Revenue is expected to grow by 3.35% on average over the next years.
EPS Next Y198.66%
EPS Next 2Y160.41%
EPS Next 3Y92.38%
EPS Next 5YN/A
Revenue Next Year-0.95%
Revenue Next 2Y2.29%
Revenue Next 3Y3.35%
Revenue Next 5YN/A
3.3 Evolution
- 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 negative for BIPC. In the last year negative earnings were reported.
- The Price/Forward Earnings ratio is 4.22, which indicates a rather cheap valuation of BIPC.
- BIPC's Price/Forward Earnings ratio is rather cheap when compared to the industry. BIPC is cheaper than 100.00% of the companies in the same industry.
- BIPC is valuated cheaply when we compare the Price/Forward Earnings ratio to 25.95, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 4.22 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, BIPC is valued cheaply inside the industry as 92.86% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 6.53 |
4.3 Compensation for Growth
- BIPC's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
- BIPC's earnings are expected to grow with 92.38% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y160.41%
EPS Next 3Y92.38%
5. Dividend
5.1 Amount
- BIPC has a Yearly Dividend Yield of 3.96%. Purely for dividend investing, there may be better candidates out there.
- BIPC's Dividend Yield is a higher than the industry average which is at 3.96.
- Compared to an average S&P500 Dividend Yield of 1.82, BIPC pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.96% |
5.2 History
- BIPC has been paying a dividend for over 5 years, so it has already some track record.
- The dividend of BIPC decreased in the last 3 years.
Dividend Growth(5Y)N/A
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
DPN/A
EPS Next 2Y160.41%
EPS Next 3Y92.38%
BROOKFIELD INFRASTRUCTURE-A / BIPC FAQ
Can you provide the ChartMill fundamental rating for BROOKFIELD INFRASTRUCTURE-A?
ChartMill assigns a fundamental rating of 4 / 10 to BIPC.
Can you provide the valuation status for BROOKFIELD INFRASTRUCTURE-A?
ChartMill assigns a valuation rating of 5 / 10 to BROOKFIELD INFRASTRUCTURE-A (BIPC). This can be considered as Fairly Valued.
How profitable is BROOKFIELD INFRASTRUCTURE-A (BIPC) stock?
BROOKFIELD INFRASTRUCTURE-A (BIPC) has a profitability rating of 5 / 10.