Brookfield Infrastructure Partners LP Limited Partnership Units (BIP)

FairStock Score: 43/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look for businesses that earn high returns on capital, carry manageable debt, and sell at a discount to intrinsic value. Brookfield Infrastructure owns long-lived utility, transport, midstream, and data assets, which can have barriers to entry. But the numbers as of the 2026-10-13 close tell a more complicated story. At $36.33, the market cap is $16.6B, yet the FairStock P/E is 58.60 and P/B is 3.77. FairStock's Graham Number is $12.52, so the price carries a -190.18% margin of safety — the opposite of what Graham would want. Returns are modest: FairStock ROE is 7.69% and ROCE is 3.36%, while D/E is 2.05 and Altman Z-Score is 0.19, pointing to financial fragility. Cash generation is a red flag: trailing free cash flow is -$1.2B, a -7.5% FCF yield. In the latest reported quarter, fiscal Q2 2026, revenue was $6.5B but net income only $62.0M, a 0.96% margin. The provided data show revenue growth of 19.40% and profit growth of -16.22%, so scale is not translating into earnings. The 5.05% dividend yield and Piotroski 7/9 are positives, and EV/EBITDA of 6.87 looks less demanding than the earnings multiple. Still, without positive free cash flow and better returns on capital, the margin of safety is thin. FairStock score is 43/100, and the Lynch category is none because only 0 years of filed results exist — need 3. I would need evidence of durable cash generation before calling this a value opportunity.

In plain English: Brookfield Infrastructure owns and runs large infrastructure assets like power lines, gas pipelines, toll roads, ports and data towers. In its latest reported quarter, revenue was $6.5B but profit was only $62.0M, and the company is using more cash than it generates. The shares look expensive compared with its earnings and book value, even though the dividend yield is high.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer