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Brookfield Infrastructure (BIP)
NYSE:BIP
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Brookfield Infrastructure
(NYSE:BIP)55Neutral
Positive Factors
Growth and financial performance
Return to growth and strong balance sheet are highlighted as key strengths.
Organic growth trends
The presentation by management reinforced the robust underlying organic growth trends across the portfolio.
Negative Factors
Tariff exposure
Tariff exposure presents significant risk, impacting the overall outlook.
Brookfield Infrastructure (BIP) vs. S&P 500 (SPY)
Market Cap
$18.68B
Dividend Yield5.74%
Average Volume (3M)532.22K
Price to Earnings (P/E)716.5
Beta (1Y)1.51
Revenue Growth17.33%
EPS Growth-14.76%
CountryUS
Employees240,000
SectorUtilities
Sector Strength79
IndustryRegulated Utilities
Share Statistics
EPS (TTM)0.12
Shares Outstanding461,512,000
10 Day Avg. Volume720,953
30 Day Avg. Volume532,222
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.67
Price to Cash Flow (P/CF)3.10
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$42.38Price Target Upside47.87% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering8
Brookfield Infrastructure Business Overview & Revenue Model
Company DescriptionBrookfield Infrastructure Partners (BIP) is a leading global infrastructure company that owns and operates a diverse portfolio of high-quality infrastructure assets across various sectors including utilities, transport, energy, and data infrastructure. The company focuses on long-life, high-quality assets that generate stable cash flows and have significant barriers to entry. BIP's core services include the ownership and management of infrastructure assets that provide essential services to both public and private sector clients around the world.
How the Company Makes MoneyBrookfield Infrastructure primarily makes money through the ownership and operation of infrastructure assets that generate stable, long-term cash flows. The company's revenue model is based on several key streams: regulated and contracted revenue from utilities, transportation infrastructure such as toll roads and ports, energy infrastructure including pipelines and storage facilities, and data infrastructure assets like telecom towers and data centers. BIP benefits from long-term contracts and regulatory frameworks that provide predictable cash flows, often indexed to inflation, ensuring revenue stability. Additionally, Brookfield Infrastructure may engage in strategic partnerships and joint ventures to enhance asset value and expand its portfolio, further contributing to its earnings. The company's global diversification and focus on essential services provide resilience against economic fluctuations and support consistent financial performance.
Brookfield Infrastructure Financial Statement Overview
Summary
Brookfield Infrastructure has shown strong revenue growth and operational performance. However, it faces challenges due to high leverage and recent negative free cash flow, which may impact its financial stability.Income Statement
Brookfield Infrastructure has shown significant revenue growth over the years, with a notable increase from $6.6 billion in 2019 to $21.0 billion in 2024. Despite this, net income has been volatile, with a sharp decline in 2024. The gross profit margin has been relatively stable, around 25% in 2024. The EBIT and EBITDA margins have been healthy, indicating strong operational performance, but the net profit margin is quite low, suggesting high interest or tax expenses.75
Positive
Balance Sheet
The company has a high debt-to-equity ratio, indicative of significant leverage, which is typical for the utilities industry but poses financial risk. The equity ratio has been declining, pointing to increased liabilities relative to assets. Return on equity has also decreased significantly in 2024 due to lower net income. Overall, the balance sheet reflects robust asset growth but also rising debt levels, which could affect financial flexibility.65
Positive
Cash Flow
Operating cash flow has grown steadily, but free cash flow turned negative in 2024 due to substantial capital expenditures. The operating cash flow to net income ratio is strong, indicating effective cash generation from operations. However, the negative free cash flow poses a concern for covering future investments without additional debt.70
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 21.04B | 17.93B | 14.43B | 11.54B | 8.88B | Gross Profit |
| 5.36B | 4.46B | 3.92B | 3.29B | 4.04B | EBIT |
| 4.96B | 4.05B | 3.59B | 4.72B | 2.39B | EBITDA |
| 8.60B | 7.02B | 5.94B | 6.75B | 3.95B | Net Income Common Stockholders |
| 57.00M | 367.00M | 1.38B | 2.72B | 904.00M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 2.07B | 2.44B | 1.28B | 1.41B | 867.00M | Total Assets |
| 104.59B | 100.78B | 72.97B | 73.96B | 61.33B | Total Debt |
| 51.09B | 49.57B | 33.80B | 29.25B | 23.18B | Net Debt |
| 49.02B | 47.93B | 32.52B | 27.85B | 22.31B | Total Liabilities |
| 74.74B | 66.77B | 47.41B | 47.57B | 39.66B | Stockholders Equity |
| 5.62B | 6.24B | 25.55B | 26.39B | 21.67B |
| Cash Flow | Free Cash Flow | |||
| -2.16B | 1.59B | 397.00M | 790.00M | 1.10B | Operating Cash Flow |
| 4.65B | 4.08B | 3.13B | 2.77B | 2.53B | Investing Cash Flow |
| -6.90B | -12.99B | -3.37B | -1.17B | -4.61B | Financing Cash Flow |
| 2.61B | 9.42B | 56.00M | -995.00M | 2.13B |
Brookfield Infrastructure Technical Analysis
Negative
28.66
Price Trends
31.77
Negative
32.71
Negative
31.24
Negative
Market Momentum
-0.74
Positive
27.74
Positive
12.40
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BIP, the sentiment is Negative. The current price of 28.66 is below the 20-day moving average (MA) of 31.74, below the 50-day MA of 31.77, and below the 200-day MA of 31.24, indicating a bearish trend. The MACD of -0.74 indicates Positive momentum. The RSI at 27.74 is Positive, neither overbought nor oversold. The STOCH value of 12.40 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for BIP.
Brookfield Infrastructure Risk Analysis
Brookfield Infrastructure disclosed 88 risk factors in its most recent earnings report. Brookfield Infrastructure reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Brookfield Infrastructure Peers Comparison
Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $90.64B | 20.54 | 9.10% | 3.56% | 4.46% | 54.09% | |
75 Outperform | $35.01B | 33.25 | 7.04% | 2.86% | -2.20% | -55.73% | |
73 Outperform | $55.78B | 18.74 | 11.37% | 3.46% | 2.76% | 31.53% | |
67 Neutral | $149.81B | 21.59 | 14.24% | 2.90% | 26.91% | -6.43% | |
65 Neutral | $12.05B | 15.92 | 6.71% | 4.32% | 8.04% | 3.76% | |
64 Neutral | $45.15B | 15.69 | 9.55% | 3.58% | -18.00% | -7.54% | |
55 Neutral | $18.68B | 716.50 | 0.96% | 5.74% | 17.33% | -14.76% |
* Utilities Sector Average
Performance Comparison
BIP
Brookfield Infrastructure
28.66
0.10
0.35%
AEP
American Electric Power
104.62
24.00
29.77%
DUK
Duke Energy
116.74
24.47
26.52%
ETR
Entergy
81.33
31.46
63.08%
NEE
NextEra Energy
72.83
16.55
29.41%
SRE
Sempra Energy
69.30
-1.02
-1.45%
Brookfield Infrastructure Earnings Call Summary
Earnings Call Date: Jan 30, 2025 | % Change Since: -9.59% | Next Earnings Date: Apr 30, 2025
Earnings Call Sentiment Positive
The earnings call presented a generally positive outlook with strong financial performance and strategic achievements, particularly in the Transport and Data segments. However, challenges in the Midstream segment and foreign exchange impacts were noted as areas of concern.Highlights
Strong Financial Performance
Brookfield Infrastructure reported a 7% increase in funds from operations (FFO) to $599 million for Q3 2024, driven by new investments and organic growth.
Transport Segment Growth
The Transport segment achieved a notable 50% increase in FFO, attributed to acquisitions and strong volume growth across networks.
Data Segment Expansion
Data segment FFO increased by 29% over the previous year, supported by new investments and the commissioning of additional capacity in the U.S. and Europe.
Capital Markets Success
Completed $3 billion in non-recourse financings, extending maturities and reducing costs, including a significant reduction in interest expenses through refinancing efforts.
Acquisition in India
Closed the acquisition of 76,000 Indian telecom tower sites, making Brookfield the largest telecom tower operator in India and second largest globally.
Capital Recycling Achievements
Secured $600 million in capital recycling proceeds in the quarter, achieving a total of $2 billion for the year.
Lowlights
Midstream Segment Decline
The Midstream segment saw a decrease in FFO to $147 million from $163 million due to capital recycling activities and higher interest costs.
Impact of Foreign Exchange
Results were partially offset by higher borrowing costs and foreign exchange impacts, notably the depreciation of the Brazilian Reais.
Company Guidance
In the third quarter of 2024, Brookfield Infrastructure Partners reported funds from operations (FFO) of $599 million, marking a 7% increase from the previous year, bolstered by new investments and organic growth. The Utilities segment achieved an FFO of $188 million, driven by inflation indexation and a $450 million capital commissioning. The Transport segment saw a significant 50% FFO increase to $308 million, owing to strategic acquisitions and strong volume growth. Meanwhile, the Midstream segment's FFO decreased to $147 million due to past capital recycling and higher interest costs, yet the underlying business remained robust. The Data segment excelled with a 29% FFO increase, reaching $85 million, supported by new investments like the acquisition of retail colocation data centers. The company also reinforced its capital strategy by completing $3 billion in nonrecourse financings, enhancing liquidity to $4.6 billion, and maintaining a strong balance sheet with no corporate debt maturities until 2027.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.