Brookfield Infrastructure Partners L.P.

Large, diversified global infrastructure partnership with durable contracted cash flows but modest equity returns and heavy leverage.

Strengths

• Scaled, moaty utility/transport/midstream asset base with take-or-pay contracts; revenue growth 81st pct and net income growth 74th pct
• Strong cash position (95th pct) and solid operating margin (67th pct)

Risks

• Low ROE (7.1%, 39th pct) and ROA (47th pct); interest coverage of just 1.5x and negative FCF reflect high indebtedness
• External-manager conflicts, commodity-demand exposure, and reliance on distributions up a complex holding structure

Notable findings

• Cash burnNegative free cash flow (-53.0M)
• Weak liquidityCurrent ratio 0.78 (<1)
• Strong balance sheetStrong balance sheet — $3.2B cash & investments, ~242 quarters of runway