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Brookfield Infrastructure (BIP)
NYSE:BIP
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Brookfield Infrastructure
(NYSE:BIP)
Rating:61Neutral
Price Target:
$33.00
▲(5.03%Upside)
Positive Factors
Acquisitions
The acquisition of Hotwire adds another high-growth platform to BIP's data infrastructure segment and augments other recent deals for Wells Fargo Rail and the Colonial Pipeline.
New Investments
Active period for new investments and expecting strong margin and FCF in Q2.
Negative Factors
Refinancing Risk
Refinancing risk with higher bond yields should be considered.
Tariff Exposure
Tariff downside outweighs potential U.S. natural gas upside, leading to a downgrade in recommendation.
Brookfield Infrastructure (BIP) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$20.61B
Dividend Yield5.32%
Average Volume (3M)413.50K
Price to Earnings (P/E)2867.6
Beta (1Y)1.25
Revenue Growth12.40%
EPS Growth-108.27%
CountryUS
Employees52,000
SectorUtilities
Sector Strength75
IndustryDiversified Utilities
Share Statistics
EPS (TTM)0.04
Shares Outstanding462,022,430
10 Day Avg. Volume428,014
30 Day Avg. Volume413,502
Financial Highlights & Ratios
PEG Ratio3.43
Price to Book (P/B)2.72
Price to Sales (P/S)0.00
P/FCF Ratio19.44
Enterprise Value/Market Cap3.36
Enterprise Value/Revenue9.36
Enterprise Value/Gross Profit65.17
Enterprise Value/Ebitda15.06
Forecast
1Y Price Target
$42.38Price Target Upside34.88% 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 high-quality, long-life assets across the utilities, transport, midstream, and data sectors. With a focus on providing essential services and facilities that support economic growth and quality of life, BIP invests in assets that are critical to the functioning of modern societies, such as ports, railways, pipelines, and communication towers.
How the Company Makes MoneyBrookfield Infrastructure generates revenue through the ownership and operation of a diversified portfolio of infrastructure assets. Its revenue model is based on long-term contracts, regulated or contracted cash flows, and operational efficiencies. Key revenue streams include user fees, tariffs, and service charges collected from the operation of its assets. The company benefits from strategic partnerships and joint ventures that enhance its market reach and operational capabilities. Additionally, BIP leverages its expertise in asset management and operational optimization to enhance profitability and ensure stable cash flow generation, often reinvesting in growth opportunities to expand its asset base and enter new markets.
Brookfield Infrastructure Earnings Call Summary
Earnings Call Date:Apr 30, 2025
(Q3-2024)
| % Change Since: 8.08%|
Next Earnings Date:Jul 31, 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.Q3-2024 Updates
Positive Updates
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.
Negative Updates
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.Brookfield Infrastructure Financial Statement Overview
Summary
Brookfield Infrastructure has demonstrated strong revenue growth and operational efficiency. However, high leverage poses potential risks, and while cash generation is robust, capital expenditure management remains a challenge.Income Statement
Brookfield Infrastructure's revenue has shown consistent growth, with a significant increase from 2020 to TTM 2025. The gross profit margin remains strong, though slightly declining, indicating effective cost management. The net profit margin is relatively low, primarily due to high interest and other expenses, but it shows improvement in the TTM. EBIT and EBITDA margins are robust, reflecting operational efficiency.81
Very Positive
Balance Sheet
The company exhibits a high debt-to-equity ratio, which suggests heavy reliance on debt financing. However, the equity ratio has been decreasing, indicating a reliance on external financing. Despite these leverage concerns, the return on equity remains positive, though it has fluctuated over the years.76
Positive
Cash Flow
Operating cash flow has consistently supported net income, showing strong cash generation capability. Free cash flow has been volatile, impacted by significant capital expenditures. However, recent improvements in free cash flow suggest better capital management.72
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 | 2.34B |
| EBITDA | 8.60B | 7.02B | 5.69B | 6.75B | 3.95B |
| Net Income | 57.00M | 367.00M | 341.00M | 766.00M | 324.00M |
Balance Sheet | |||||
| Total Assets | 104.59B | 100.78B | 72.97B | 73.96B | 61.33B |
| Cash, Cash Equivalents and Short-Term Investments | 2.60B | 2.44B | 2.52B | 1.81B | 1.32B |
| Total Debt | 56.56B | 49.57B | 33.80B | 33.12B | 27.20B |
| 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 | -322.00M | 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
31.42
Price Trends
32.85
Negative
30.96
Positive
31.66
Negative
Market Momentum
-0.30
Positive
31.39
Neutral
9.02
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 31.42 is below the 20-day moving average (MA) of 32.61, below the 50-day MA of 32.85, and below the 200-day MA of 31.66, indicating a bearish trend. The MACD of -0.30 indicates Positive momentum. The RSI at 31.39 is Neutral, neither overbought nor oversold. The STOCH value of 9.02 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 (62)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $6.09B | 4.10 | 26.38% | 4.62% | -4.14% | 13.02% | |
74 Outperform | $52.38B | 17.67 | 9.76% | 3.12% | -0.39% | 0.75% | |
72 Outperform | $6.01B | 11.84 | 9.22% | 6.64% | -7.02% | 17.33% | |
68 Neutral | $4.05B | 14.26 | 8.02% | 4.75% | 3.28% | -3.49% | |
62 Neutral | €6.88B | 4.24 | -1.70% | 4.94% | 9.30% | -11.67% | |
61 Neutral | $9.62B | 7.38 | 29.79% | 5.19% | -3.22% | 141.11% | |
61 Neutral | $20.61B | 2,867.59 | 0.47% | 5.32% | 12.40% | -108.27% |
* Utilities Sector Average
Performance Comparison
BIP
Brookfield Infrastructure
31.42
1.67
5.61%
BKH
Black Hills
56.53
0.16
0.28%
CIG
Companhia Energetica Minas Gerais
1.83
0.18
10.91%
ELP
Companhia Paranaense de Energia Pfd
8.41
1.60
23.49%
SRE
Sempra Energy
81.15
3.46
4.45%
AES
AES
13.43
-3.50
-20.67%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.