Brookfield Infrastructure (BIPC) AI Stock Analysis

• Market Cap: $6.16B
• Dividend Yield: 4.62%
• Average Volume (3M): 260.39K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.43
• Revenue Growth: 48.48%
• EPS Growth: -1203.41%
• Country: CA
• Employees: 1,300
• Sector: Utilities
• Sector Strength: 81
• Industry: Regulated Gas
• EPS (TTM): -6.11
• Shares Outstanding: 119,018,290
• 10 Day Avg. Volume: 175,900
• 30 Day Avg. Volume: 260,391
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 1.53
• Price to Cash Flow (P/CF): 2.50
• P/FCF Ratio: 4.50
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: C$64.38
• Price Target Upside: 24.49% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

Brookfield Infrastructure's financial performance is mixed, with strong revenue and cash flow growth overshadowed by negative net income and high leverage. Technical indicators show weak momentum, and the negative P/E ratio is concerning despite the attractive dividend yield. These factors suggest caution for potential investors.

Brookfield Infrastructure Business Overview & Revenue Model

Company Description

Brookfield Infrastructure Corporation (BIPC) is a leading global infrastructure company that owns and operates high-quality, long-life assets in utilities, transport, midstream, and data sectors across North and South America, Europe, and Asia Pacific. The company's core services include the management and development of essential infrastructure that supports economic growth, such as energy distribution, rail and toll road networks, communication towers, and data centers.

How the Company Makes Money

Brookfield Infrastructure Corporation generates revenue primarily through the ownership and operation of infrastructure assets that provide essential services. Key revenue streams include contracted and regulated cash flows from utility operations, such as electricity and natural gas distribution, which offer predictable and stable income. The company also earns revenue from its transport segment, which includes toll roads and rail operations, through user fees and tariffs. Additionally, BIPC's midstream operations contribute to earnings by providing energy transmission and distribution services. The data infrastructure segment, including communication towers and data centers, generates income from leasing and service agreements with telecommunications and technology companies. Strategic partnerships and joint ventures with local entities and governments further enhance BIPC's revenue opportunities by expanding its asset base and market reach.

Brookfield Infrastructure Financial Statement Overview

Summary

Brookfield Infrastructure's financial performance is mixed. The company shows strong revenue growth and operational efficiency, evidenced by healthy gross and EBIT margins. However, the net loss and negative equity position present significant financial risks. Despite these challenges, robust cash flow generation provides some stability.

Income Statement

Brookfield Infrastructure's income statement shows strong revenue growth, with TTM revenue increasing significantly from the previous year. However, the net profit margin is negative at -18.83% due to a net loss, impacting overall profitability. The gross profit margin is healthy at 63.09%, indicating efficient cost management. Both EBIT and EBITDA margins are strong at 22.60% and 45.80%, respectively, showing operational efficiency despite the net loss.

Balance Sheet

The balance sheet reveals a highly leveraged position with a negative stockholder's equity of -$764 million, resulting in a negative debt-to-equity ratio. The equity ratio is also negative at -3.17%, indicating liabilities outweigh assets. Return on Equity is not applicable due to negative equity. The high leverage and negative equity position pose significant financial risks.

Cash Flow

Cash flow analysis shows positive trends, with a robust operating cash flow to net income ratio of -3.54, indicating strong cash generation relative to net income. Free cash flow has grown substantially, benefiting from efficient capital expenditure management. The free cash flow to net income ratio is negative, reflecting the net loss but strong cash flow generation capabilities.

Breakdown
TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
3.64B	2.50B	1.89B	1.64B	1.43B	1.62B
	Gross Profit
2.30B	1.73B	1.34B	1.12B	1.19B	1.38B
	EBIT
822.00M	1.66B	2.34B	621.00M	312.00M	993.00M
	EBITDA
1.67B	2.04B	2.55B	857.00M	595.00M	1.30B
	Net Income Common Stockholders
-685.00M	111.00M	1.62B	27.00M	-232.00M	570.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
99.00M	577.00M	445.00M	469.00M	192.00M	204.00M
	Total Assets
9.24B	23.91B	10.18B	10.09B	9.34B	9.85B
	Total Debt
3.25B	12.05B	4.60B	3.69B	4.62B	3.53B
	Net Debt
3.15B	11.52B	4.16B	3.22B	4.43B	3.32B
	Total Liabilities
5.99B	19.84B	10.54B	11.51B	9.92B	6.58B
	Stockholders Equity
1.46B	-399.00M	-1.12B	-2.13B	-1.72B	1.65B
Cash Flow		Free Cash Flow
1.39B	465.00M	372.00M	424.00M	331.00M	628.00M
	Operating Cash Flow
2.43B	1.06B	893.00M	839.00M	730.00M	1.08B
	Investing Cash Flow
-2.83B	-3.17B	-1.05B	326.00M	-399.00M	-441.00M
	Financing Cash Flow
349.00M	2.18B	-4.00M	-868.00M	-317.00M	-514.00M

Brookfield Infrastructure Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 51.71
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:BIPC, the sentiment is Negative. The current price of 51.71 is below the 20-day moving average (MA) of 52.30, below the 50-day MA of 56.16, and below the 200-day MA of 54.61, indicating a bearish trend. The MACD of -1.32 indicates Negative momentum. The RSI at 40.91 is Neutral, neither overbought nor oversold. The STOCH value of 76.83 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:BIPC.

Brookfield Infrastructure Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FTS	73 Outperform	$32.36B	19.99	7.47%	3.82%	-0.08%	4.76%
ENB	73 Outperform	$138.64B	27.17	8.63%	5.96%	24.95%	-17.19%
TRP	71 Outperform	$71.52B	15.55	16.85%	5.63%	5.31%	61.02%
CU	70 Neutral	C$7.53B	24.75	6.93%	4.94%	-1.42%	-36.31%
EMA	69 Neutral	$17.96B	35.30	4.50%	4.95%	7.16%	-52.28%
Sector *	65 Neutral	$12.09B	16.10	6.13%	4.37%	5.50%	-7.50%
BIPC	40 Underperform	$6.16B	―	89.66%	4.62%	48.48%	-1203.41%

Brookfield Infrastructure Corporate Events

Brookfield Infrastructure Confirms Reorganization Approval

Brookfield Infrastructure has announced the completion of all necessary approvals for the reorganization of Brookfield Infrastructure Corporation, which will take effect on December 24, 2024. Shareholders will receive new exchangeable shares, maintaining the same economic benefits, which will be traded on major stock exchanges.