Brookfield Infrastructure (BIP) AI Stock Analysis

• Market Cap: $19.45B
• Dividend Yield: 5.6%
• Average Volume (3M): 476.73K
• Price to Earnings (P/E): 1536.6
• Beta (1Y): 1.20
• Revenue Growth: 8.86%
• EPS Growth: N/A
• Country: US
• Employees: 52,000
• Sector: Utilities
• Sector Strength: 83
• Industry: Diversified Utilities
• EPS (TTM): -0.03
• Shares Outstanding: 462,022,430
• 10 Day Avg. Volume: 530,925
• 30 Day Avg. Volume: 476,729
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 4.94
• Enterprise Value/Revenue: 4.46
• Enterprise Value/Gross Profit: 16.89
• Enterprise Value/Ebitda: 10.79
• 1Y Price Target: $41.75
• Price Target Upside: 40.05% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 8

• Rating: 63 Neutral
• Price Target: $33.00 ▲(10.70% Upside)

BIP's overall stock score reflects strong financial performance with notable revenue and profit growth, balanced by high leverage. The technical indicators point to bearish momentum, and the stock appears overvalued based on its high P/E ratio, though the dividend yield offers some investor appeal.

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.

Growth Potential

Solid start of Q3 indicating potential growth and stability.

Investment Strategy

Capital recycling is gaining momentum, which should provide significant resources for BIP to redeploy into attractive new investment opportunities.

Negative Factors

Financial Risk

Refinancing risk with higher bond yields should be considered.

Brookfield Infrastructure Business Overview & Revenue Model

Company Description

Brookfield Infrastructure Partners L.P. owns and operates utilities, transport, midstream, and data businesses in North and South America, Europe, and the Asia Pacific. The company's Utilities segment operates approximately 61,000 kilometers (km) of operational electricity transmission and distribution lines; 5,300 km of electricity transmission lines; 4,200 km of natural gas pipelines; 7.3 million electricity and natural gas connections; and 360,000 long-term contracted sub-metering services. This segment also offers heating and cooling solutions; gas distribution; water heaters; and heating, ventilation, and air conditioner rental, as well as other home services. Its Transport segment offers transportation, storage, and handling services for merchandise goods, commodities, and passengers through a network of approximately 22,000 km of track; 5,500 km of track network; 4,800 km of rail; 3,800 km of motorways; and 13 port terminals. The company's Midstream segment offers natural gas transmission, gathering and processing, and storage services through approximately 15,000 km of natural gas transmission pipelines; 600 billion cubic feet of natural gas storage; 17 natural gas processing plants; and 3,900 km of gas gathering pipelines, as well as one petrochemical processing complex. Its Data segment operates approximately 148,000 operational telecom towers; 8,000 multi-purpose towers and active rooftop sites; 10,000 km of fiber backbone; 1,600 cell sites and approximately 12,000 km of fiber optic cable; and 2,100 active telecom towers and 70 distributed antenna systems, as well as 50 data centers and 200 megawatts of critical load capacity. The company was founded in 2007 and is based in Hamilton, Bermuda. Brookfield Infrastructure Partners L.P. is a subsidiary of Brookfield Asset Management Inc.

How the Company Makes Money

Brookfield Infrastructure generates revenue primarily through the operation of its infrastructure assets, which provide essential services that are critical to the economy. Key revenue streams include regulated utility operations, transportation fees from toll roads and rail systems, and long-term contracts for energy generation and distribution. Additionally, the company benefits from stable cash flows driven by contractual agreements and regulatory frameworks. Significant partnerships with governments, municipalities, and private entities enhance its operational capabilities and expand its market reach, contributing to consistent earnings growth.

Brookfield Infrastructure Financial Statement Overview

Summary

Brookfield Infrastructure demonstrates strong revenue growth and improved profitability, with a significant increase in net profit margin and positive free cash flow. However, high leverage remains a concern, requiring a focus on debt management.

Income Statement

Brookfield Infrastructure demonstrates strong revenue growth with a TTM revenue of $21.54 billion, up from $14.43 billion in 2022. The gross profit margin has remained stable around 26-27%, while the net profit margin improved significantly in TTM to 0.99% from 0.27% in 2024. EBIT and EBITDA margins are healthy, reflecting efficient operations.

Balance Sheet

The company's balance sheet shows a high debt-to-equity ratio of about 10.00 in TTM, indicating significant leverage. However, the equity ratio is relatively low at 4.85%, suggesting high reliance on debt financing. Return on Equity (ROE) improved to 4.04% in TTM, showing better profitability.

Cash Flow

Free cash flow turned positive in TTM to $934 million from a negative $322 million in 2024, indicating improved cash management. Operating cash flow to net income ratio is robust at 22.59, reflecting strong cash generation relative to earnings.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	21.54B	21.04B	17.93B	14.43B	11.54B	8.88B
Gross Profit	5.69B	5.36B	4.46B	3.92B	3.29B	2.34B
EBITDA	8.90B	8.60B	7.02B	5.69B	6.75B	3.95B
Net Income	213.00M	57.00M	367.00M	341.00M	766.00M	324.00M
Balance Sheet
Total Assets	108.69B	104.59B	100.78B	72.97B	73.96B	61.33B
Cash, Cash Equivalents and Short-Term Investments	2.44B	2.43B	2.44B	2.27B	1.81B	1.32B
Total Debt	52.63B	56.35B	49.57B	33.83B	33.12B	27.20B
Total Liabilities	79.04B	74.74B	66.77B	47.41B	47.57B	39.66B
Stockholders Equity	5.27B	5.62B	6.24B	6.29B	6.84B	5.36B
Cash Flow
Free Cash Flow	934.00M	-322.00M	1.59B	397.00M	790.00M	1.10B
Operating Cash Flow	4.81B	4.65B	4.08B	3.13B	2.77B	2.53B
Investing Cash Flow	-4.12B	-6.90B	-12.99B	-3.37B	-1.17B	-4.61B
Financing Cash Flow	334.00M	2.61B	9.42B	56.00M	-995.00M	2.13B

Brookfield Infrastructure Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 29.81
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: 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 29.81 is below the 20-day moving average (MA) of 31.13, below the 50-day MA of 32.31, and below the 200-day MA of 31.46, indicating a bearish trend. The MACD of -0.67 indicates Positive momentum. The RSI at 27.15 is Positive, neither overbought nor oversold. The STOCH value of 11.01 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for BIP.

Brookfield Infrastructure Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ELP	79 Outperform	$6.48B	12.38	9.81%	6.28%	-5.28%	14.50%
CIG	75 Outperform	$6.39B	4.41	22.94%	4.63%	-4.14%	13.02%
SRE	75 Outperform	$53.00B	19.67	8.87%	3.11%	0.46%	-11.77%
BKH	72 Outperform	$4.49B	15.54	8.13%	4.30%	5.41%	-1.89%
Sector *	66 Neutral	$17.90B	18.75	8.12%	3.41%	7.32%	12.01%
AES	64 Neutral	$9.48B	9.40	21.17%	5.26%	-3.19%	30.48%
BIP	63 Neutral	$19.45B	1,536.60	1.06%	5.60%	8.86%	―