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Brookfield Infrastructure (BIP)
NYSE:BIP

Brookfield Infrastructure (BIP) AI Stock Analysis

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Brookfield Infrastructure

(NYSE:BIP)

Rating:64Neutral
Price Target:
$36.00
▲(7.43%Upside)
Brookfield Infrastructure's strong financial performance and bullish technical momentum contribute positively to its stock score. However, high leverage and negative P/E ratio reflect significant financial risks, tempered by a high dividend yield. The lack of current earnings guidance or notable corporate events means these factors have no impact on the evaluation.
Positive Factors
Digitalization impact
Digitalization has significant value creation potential across BIP's business to support established and growing areas of data infrastructure like data centers.
Investor sentiment
There is bullishness around BIP's data center growth among investors.
Negative Factors
Refinancing risk
Refinancing risk with higher bond yields should be considered.
Tariff exposure
Tariff exposure presents significant risk, impacting the overall outlook.

Brookfield Infrastructure (BIP) vs. SPDR S&P 500 ETF (SPY)

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 Earnings Call Summary

Earnings Call Date:Apr 30, 2025
(Q3-2024)
|
% Change Since: 15.27%|
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
81
Very Positive
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.
Balance Sheet
76
Positive
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.
Cash Flow
72
Positive
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.
Breakdown
TTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
21.24B21.04B17.93B14.43B11.54B8.88B
Gross Profit
5.52B5.36B4.46B3.92B3.29B4.04B
EBIT
5.11B4.96B4.05B3.59B4.72B2.39B
EBITDA
8.87B8.60B7.02B5.94B6.75B3.95B
Net Income Common Stockholders
107.00M57.00M367.00M1.38B2.72B904.00M
Balance SheetCash, Cash Equivalents and Short-Term Investments
1.16B2.60B2.44B1.28B1.41B867.00M
Total Assets
29.17B104.59B100.78B72.97B73.96B61.33B
Total Debt
9.46B56.56B49.57B33.80B29.25B23.18B
Net Debt
8.57B54.49B47.93B32.52B27.85B22.31B
Total Liabilities
15.56B74.74B66.77B47.41B47.57B39.66B
Stockholders Equity
13.61B5.62B6.24B25.55B26.39B21.67B
Cash FlowFree Cash Flow
771.00M-322.00M1.59B397.00M790.00M1.10B
Operating Cash Flow
4.68B4.65B4.08B3.13B2.77B2.53B
Investing Cash Flow
-5.58B-6.90B-12.99B-3.37B-1.17B-4.61B
Financing Cash Flow
885.00M2.61B9.42B56.00M-995.00M2.13B

Brookfield Infrastructure Technical Analysis

Technical Analysis Sentiment
Positive
Last Price33.51
Price Trends
50DMA
30.37
Positive
100DMA
30.52
Positive
200DMA
31.46
Positive
Market Momentum
MACD
0.86
Negative
RSI
71.33
Negative
STOCH
81.15
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BIP, the sentiment is Positive. The current price of 33.51 is above the 20-day moving average (MA) of 32.52, above the 50-day MA of 30.37, and above the 200-day MA of 31.46, indicating a bullish trend. The MACD of 0.86 indicates Negative momentum. The RSI at 71.33 is Negative, neither overbought nor oversold. The STOCH value of 81.15 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 (64)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
CICIG
82
Outperform
$6.21B4.1726.38%15.35%-4.14%13.02%
ELELP
78
Outperform
$6.47B12.639.22%4.95%-7.02%17.33%
SRSRE
72
Outperform
$50.12B16.919.76%3.26%-0.39%0.75%
BKBKH
68
Neutral
$4.15B14.608.02%4.64%3.28%-3.49%
BIBIP
64
Neutral
$21.84B2,867.590.47%4.98%12.40%-108.27%
64
Neutral
$8.54B10.304.24%4.37%4.14%-13.04%
AEAES
54
Neutral
$7.75B5.9529.79%6.40%-3.22%141.11%
* Utilities Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
BIP
Brookfield Infrastructure
33.51
6.34
23.33%
BKH
Black Hills
57.17
6.03
11.79%
CIG
Companhia Energetica Minas Gerais
1.84
0.24
15.00%
ELP
Companhia Paranaense de Energia Pfd
8.89
2.35
35.93%
SRE
Sempra Energy
76.85
4.11
5.65%
AES
AES
10.89
-8.77
-44.61%
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.