Brookfield Infrastructure Partners L.P. owns and operates electric transmission systems in Brazil, Chile, and Canada and timberlands in Canada and the United States.
Investment Impacts (help)
Canada Country Analysis ► (edit / improve) Canada (CAD) has a capitalist, service-based, economy and is one of the wealthiest countries in the world. The services and materials industry are the two main employers. Currency Analysis: the Canadian dollar has the potential to decrease in value especially if export markets for materials do not perform well. Investor Survey: the economic environment is very favorable for long term economic growth due to high scores on economic freedom and SWOT strengths. Trade Analysis: China, UK, Japan, Mexico and the US are Canada’s top trading partners, while the leading exports are energy and materials. Commodity Analysis: Canada has the capacity to produce a significant amount of crude oil. Other commodities include Uranium, lumber, zinc, and nickel. SWOT Analysis: The Leading Canadian strengths include Canada’s free trade policy, oil reserves, and universal health system. Profit Conclusion: An overvalued currency and low investment flow potential are negatives, while the favorable business environment is a significant positive. Canada’s potential is neutral.
Brazil Country Analysis ► (edit / improve) Brazil (BRL) is a member of the BRIC nations and has the largest economy in South America. Brazil has significant agricultural and industrial industries. Currency Analysis: the Brazilian currency has the potential to increase in value especially versus many developed market currencies. Brazil has high interest rates, low inflation and positive investment flow potential. Investor Survey: the economic environment is moderate, with low government transparency and high SWOT opportunities. Trade Analysis: China, Netherlands, Argentina and USA are the top trading partners. Brazil has significant export capabilities in agriculture and industrial products such as ethanol, sugar, oats, pork, corn, soybean and airplanes. Commodity Analysis: A favorable growth environment and car fuel demand create a significant and growing industry for Ethanol. SWOT Analysis: Ethanol is the leading US strength, while education, crime and income inequality are major weaknesses. A recent oil discovery is a major opportunity for Brazil, while the threat of HIV could slow growth and burden the health system. Profit Conclusion: An undervalued currency, moderate investment flow potential and positive SWOT opportunities help Brazil, but fundamental weaknesses and government issues hold back Brazil’s potential.
Chile Country Analysis ► (edit / improve) Chile (CLP) occupies a large portion of South America’s western coast. They have a well governed, capitalist economy with a significant reliance on Copper exports. Currency Analysis: the Chilean currency has the potential to increase in value according to the purchase price party analysis. Investor Survey: the economic environment is favorable for long term economic growth due to high scores on economic freedom, government stability and SWOT attributes. Trade Analysis: Brazil, Japan, and USA are the top trading partners, while the leading exports are copper and silver. Commodity Analysis: Chile’s main export is copper; they are also the largest producer in the world. Much of Chile’s economic development depends on the utilization of copper. SWOT Analysis: The leading strength is Chile’s government fiscal policy, while the main weakness is the quality of education. Renewable energy offers significant opportunities, but environmental deterioration is a potential threat. Profit Conclusion: An undervalued currency, favorable business environment and favorable strengths and opportunities lead to a positive outlook for Chilean investments.
Latest News
Top 10 Utility Stocks with Highest Dividend Yield: HGT, RGNC, EDE, BIP, PGN, UIL, POM, UTL, CPL, WES (Feb 21, 2010) 1266758832|%e %b %Y, %H:%M %Z|agohover
Brookfield Infrastructure Partners L.P. engages in… ► (edit / improve)
Importance of the Industry Analysis? WikiWealth's industry analysis evaluates the major industry characteristics that affect investments within that industry. Company specific factors drive the performance of individual companies, but macro-economic industry factors can affect the performance of entire groups of stocks.
Warren Buffett Quote: "When a management with a reputation for brilliance tackles a business with a reputation for bad economics, it is the reputation of the business that remains intact."
No matter the quality of your business, industry economics is an important factor in any investment decision.
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WikiWealth.com Industry Description: The utility industry includes companies whose sales come from the administration of public services such as water and power. ... Read more about the utility industry. Also see the Industry Analysis Home Page.
WikiWealth.com Profit Analysis: The best way to profit from utilities stock investments is to find the most undervalued investments (Wall Street and Main Street buy ratings) before economic recessions. Those investments should be undervalued (see Wall Street Analysis on left side), and have high Main Street Common Sense investment ratings (see Main Street Analysis on right side). When an economic recovery occurs, utility stocks tend to underperform the general stock market, because consumers quickly resume spending on items they wanted, but resisted buying during tougher economic times. Utilities are generally items that consumers bought during a recession, but don't increase purchases during economic expansions. Eventually other stock investments become overvalued, because profits and stock prices increase past their fair values. During the last stages of an economic business cycle, just before a recession, it is best to buy utilities stocks, because they are the least risky equity investments in a declining stock market. As investors search for safe (less risky) stock investments, they tend to buy utilities. Expensive (overvalued) stocks with low Main Street Common Sense ratings should be sold at any time to invest in better stocks. Two buys ratings are the best and two sell ratings are the worst possible stock investments. Click for more information: stock research ratings.
WikiWealth.com Industry Analysis: Utilities tend to be less sensitive to economic changes. During economic recessions, consumers tend to decrease discretionary expenses to save money, but they can not decrease utility purchases, because they are needed for everyday living. Spending on utilities generally remains constant, so during economic recessions, investors tend to buy utility stocks, which causes stock prices to increase. During economic recoveries, utilities stock prices generally underperform the general stock market. Investor who bought utilities stocks during the recession, tend to make new investments in faster growing industries. During longer economic expansions, utilities tend to grow at the same rate as the general stock market.
| Utility Industry Statistic |
Stat |
Notes |
| Stock Rating |
Hold |
… |
| Potential (safety margin) |
40% |
High ~ Good for investors |
| WACC Analysis |
6% |
Low ~ Good for investors |
| Comparative Industry Multiples |
Stat |
Notes |
| Revenue EV Multiple |
2.3x |
… |
| EBITDA EV Multiple |
8.5x |
… |
| EBIT EV Multiple |
7.3x |
… |
| Cash Flow EV Multiple |
-5.3x |
Low ~ Bad for investors |
| Book Value EV Multiple |
1.9x |
… |
| Discounted Cash Flow |
Stat |
Notes |
| Revenue Growth |
10% |
… |
| EBITDA Margin |
30% |
High ~ Good for investors |
| EBIT Margin |
20% |
High ~ Good for investors |
| Cash Flow Margin |
5% |
… |
| Taxes Rate |
23% |
… |
| Debt-Equity Ratio |
96% |
High ~ Bad for investors |
| ROIC |
5% |
… |
| Reinvestment Rate |
13% |
Low ~ Good for investors |
| WACC Discount Rate |
Stat |
Notes |
| Risk Free Rate |
4% |
Low ~ Good for Investors |
| Cost of Debt |
7% |
Low ~ Good for Investors |
| Equity Risk Premium |
5% |
… |
| Debt Required Return of Debt |
5% |
Low ~ Good for Investors |
| Required Return of Equity |
7% |
Low ~ Good for Investors |
1 WikiWealth.com only uses the largest 30 companies in each industry for the basis of these financial measures. Each statistic is the market weighted average of the 30 companies.
2 Investment potential (margin of safety) is a weighted average of the discounted cash flow analysis (DCF), the enterprise value (EV) market multiple analysis, and the Warren Buffett investment analysis. WikiWealth obtains 80% of their quantitative investment potential from fundamental investment analysis.
3 The weighted average cost of capital (WACC) analysis for the industry is a broad representation of the WACC for each individual company. A sub-industry WACC analysis offers both stability and accuracy for each individual company.
What is a SWOT Analysis? The SWOT Analysis evaluates the strengths, weaknesses, opportunities, and threats involved in a business or project. The SWOT analysis is essential to understanding the many different risk and rewards of any investment. Add your content to the SWOT Analysis, below. Also see our SWOT Analysis tutorial for help.
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Strength (helpful to business - internal origin)
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Stable Business (Votes:0) Low discount rates and stable businesses…
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How does this work? The WACC Discount Rate (weighted average cost of capital) is the rate used to determine business risk of a company. WikiWealth uses an industry average WACC calculation to increase the stability and accuracy of this calculation. Click on the Experimental Mode to form your own conclusion. Also see the experimental mode tutorial.
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The result of this calculation is an essential input for the discounted cash flow analysis. This method is widely used by investment professionals to determine the correct price of investments using the discounted cash flow analysis.
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How does this work? The Discounted Cash Flow (DCF) analysis computes a value based on the present value of all future cash flows generated by the business. The DCF tool is widely used by professionals in the financial services industries. Click on the Experimental Mode to form your own conclusion. Also see the experimental mode tutorial.
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How does this work? The Comparative Value Analysis helps to determine the value of a company by comparing their financial ratios to the ratios of relevant peer groups. This method is also referred to as the relative value or Enterprise Value Multiple analysis. Click on the Experimental Mode to form your own conclusion. Also see the experimental mode tutorial.
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