* Note: Prices are in Million (M) USD.
Description:
Brookfield Infrastructure Corporation (BIPC) is a leading global infrastructure company that specializes in owning and operating regulated natural gas transmission systems, primarily in Brazil. Headquartered in New York, the company is part of Brookfield Asset Management's expansive portfolio, focusing on high-quality infrastructure assets that deliver stable cash flows and long-term growth. BIPC strategically invests in essential infrastructure that benefits from strong demand and regulatory frameworks, positioning the company to capitalize on the growing need for reliable energy solutions in emerging markets.
These criteria used Company's Cash, EBITDA and Debt balance to determines its fair value:
Cash : $1,217 M
Debt : $13,251 M
EBITDA : $3,798 M
Net Debt (Debt - Cash): $12,034 M
Since Net Debt is covered by EBITDA within 3 years, 1 points assigned.
This criteria used industry in which company operates:
Sector: Utilities
Industry: Utilities - regulated gas
Based on industry, 3 points assigned.
This criteria used Company's Price To Earning (P/E) Ratio to determines its fair value:
Message: Cannot calculate PE Ratio since EPS is either 0 or negative.
Using default values for calculation.
Forward PE Ratio (using default values): 20.00
Since Forward PE Ratio is between 20 - 25, 2 points assigned.
This criteria used Company's ability to convert Sales into free cash flow to determine fair value:
Using last 9 overlapping fiscal years (max 20).Average Free Cash Flow: $439 M
Average Revenue: $1,775 M
Revenue Converted To Free Cash Flow (%): 24.7%
Since Free Cash Flow (FCF) to Revenue percentage is greater than 15, 3 points assigned.
This criteria used company's growth potential to calculate its fair value:
Latest Revenue (2024-12-31): $3,666 M
Revenue 5 Years Ago (2019-12-31): $1,619 M
Total Growth over 5 Years: 126.4%
5-Year Revenue CAGR (Historical): 17.8%
Forward 5-Year CAGR (Tapered): 12.4%
Since historical Revenue CAGR is between 15 - 20, 4 points assigned.
This criteria used Company's ability to buy back its own share:
Latest Share Count (2024-12-31): $119 M
Share Count 5 Years Ago (2020-12-31): $67 M
Company is not buying back its own shares, 0 points assigned.
This criteria used Company's dividend payout ratio to determine its fair value:
Next Year Earnings Per Share (EPS): $-6.76
Trailing 12-Month Earnings Per Share (EPS): $0.00
Average Earnings Per Share (EPS): $0.00
Dividend Per Share (DPS): $2
Payout Ratio: 0%
Dividend Yield: 4%
⚠️ Caution: Negative earnings detected — Further research is recommended - Next Fiscal Yr EPS: $-6.76
EPS is non-positive; payout ratio not meaningful. 0 point assigned.
Since Dividend Yield is greater than 4, 4 points assigned.
This criteria used Company's Return On Equity (ROE%) to determine its fair value:
Using last 3 valid ROE years (max 20).Average ROE: 19.5%
Since Average ROE is between 10 - 20, 3 points assigned.
This criteria used Company's current price to its 52 week low price to determines its fair value:
Current Price: $42.37
52-Week Low: $31.39
Threshold Price (15% Above 52-Week Low): $36.10
Since Current price is not within 15% threshold, 0 point assigned.
This criteria used Company's Market Cap to determines its fair value:
Market Capitalization: $5,053 M
Since Market Cap is less than 10B, 1 point assigned.
% Exposure to Total Portfolio
Based on the market cap, we recommend do not exceed 2% exposure of Total Portfolio.
Warren Buffett's Owners' Earnings:
Owners' Earnings (FCF/Share) (TTM ending 2025-06-30): $6.88
Owners' Earnings (FCF/Share, latest positive annual) (2024-12-31): $5.50
Note: Many fast-growing companies reinvest heavily, so Owners' Earnings may appear low.
Consider other factors in your valuation.
Value-Trade has assigned 21 points to above Brookfield Infrastructure Corp (BIPC) stock.
Fair Value PE 15, Industry Based PE 15, Growth Based PE 15, RCFC Based PE 24.74, ROE Based PE 19.47, Risk-Free Anchored PE (25% MoS) 18.2. Based on these 6 values, average assigned is 17.90. The fair value of Brookfield Infrastructure Corp (BIPC) stock cannot be calculated since EBITDA and EPS are either 0 or negative.
