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Brookfield Infrastructure Partners LP (NYSE:BIP)
Piotroski F-Score
5 (As of Today)

The zones of discrimination were as such:

Good or high score = 8 or 9
Bad or low score = 0 or 1

Brookfield Infrastructure Partners LP has an F-score of 5 indicating the company's financial situation is typical for a stable company.

BIP' s 10-Year Piotroski F-Score Range
Min: 4   Max: 8
Current: 5

4
8

During the past 7 years, the highest Piotroski F-Score of Brookfield Infrastructure Partners LP was 8. The lowest was 4. And the median was 5.


Definition

How is the Piotroski F-Score calculated?

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

This Year (Mar14) TTM:Last Year (Mar13) TTM:
Net Income was 26 + -137 + 26 + 97 = $12 Mil.
Cash Flow from Operations was 140 + 163 + 161 + 223 = $687 Mil.
Revenue was 480 + 470 + 431 + 462 = $1,843 Mil.
Gross Profit was 268 + 258 + 244 + 260 = $1,030 Mil.
Total Assets at the begining of this year (Mar13) was $19,514 Mil.
Total Assets was $15,755 Mil.
Long-Term Debt was $6,069 Mil.
Total Current Assets was $1,141 Mil.
Total Current Liabilities was $730 Mil.
Net Income was -18 + 36 + 50 + -17 = $51 Mil.

Revenue was 463 + 451 + 374 + 368 = $1,656 Mil.
Gross Profit was 241 + 222 + 184 + 181 = $828 Mil.
Total Assets at the begining of last year (Mar12) was $14,204 Mil.
Total Assets was $19,514 Mil.
Long-Term Debt was $6,586 Mil.
Total Current Assets was $693 Mil.
Total Current Liabilities was $1,218 Mil.

Profitability

Q1. Return on Assets (ROA)

Net income before extraordinary items for the year divided by total assets at the beginning of the year.

Score 1 if positive, 0 if negative.

Brookfield Infrastructure Partners LP's current net income was 12. ==> Positive ==> Score 1.

Q2. Cash Flow Return on Assets (CFROA)

Net cash flow from operating activities (operating cash flow) divided by total assets at the beginning of the year.

Score 1 if positive, 0 if negative.

Brookfield Infrastructure Partners LP's current cash flow from operations was 687. ==> Positive ==> Score 1.

Q3. Change in Return on Assets

Compare this year’s return on assets (1) to last year’s return on assets.

Score 1 if it’s higher, 0 if it’s lower.

ROA (This Year)=Net Income/Total Assets at the beginning of this year (Mar13)
=12/19514
=0.00061494

ROA (Last Year)=Net Income/Total Assets at the beginning of last year (Mar12)
=51/14204
=0.00359054

Brookfield Infrastructure Partners LP's return on assets of this year was 0.00061494. Brookfield Infrastructure Partners LP's return on assets of last year was 0.00359054. ==> Last year is higher ==> Score 0.

Q4. Quality of Earnings (Accrual)

Compare Cash flow return on assets (2) to return on assets (1)

Score 1 if CFROA > ROA, 0 if CFROA =< ROA.

Brookfield Infrastructure Partners LP's current net income was 12. Brookfield Infrastructure Partners LP's current cash flow from operations was 687. ==> 687 > 12 ==> CFROA > ROA ==> Score 1.

Funding

Q5. Change in Gearing or Leverage

Compare this year’s gearing (long-term debt divided by average total assets) to last year’s gearing.

Score 0 if this year's gearing is higher, 1 otherwise.

Gearing (This Year)=Long-Term Debt/Total Assets
=6069/15755
=0.38521104

Gearing (Last Year)=Long-Term Debt/Total Assets
=6586/19514
=0.33750128

Brookfield Infrastructure Partners LP's gearing of this year was 0.38521104. Brookfield Infrastructure Partners LP's gearing of last year was 0.33750128. ==> Last year is lower than this year ==> Score 0.

Q6. Change in Working Capital (Liquidity)

Compare this year’s current ratio (current assets divided by current liabilities) to last year’s current ratio.

Score 1 if this year'’s current ratio is higher, 0 if it’s lower

Current Ratio (This Year)=Total Current Assets/Total Current Liabilities
=1141/730
=1.5630137

Current Ratio (Last Year)=Total Current Assets/Total Current Liabilities
=693/1218
=0.56896552

Brookfield Infrastructure Partners LP's current ratio of this year was 1.5630137. Brookfield Infrastructure Partners LP's current ratio of last year was 0.56896552. ==> This year's current ratio is higher. ==> Score 1.

Q7. Change in Shares in Issue

Compare the number of shares in issue this year, to the number in issue last year.

Score 0 if there is larger number of shares in issue this year, 1 otherwise.

Brookfield Infrastructure Partners LP's number of shares in issue this year was 150.3. Brookfield Infrastructure Partners LP's number of shares in issue last year was 150.2. ==> There is larger number of shares in issue this year. ==> Score 0.

Efficiency

Q8. Change in Gross Margin

Compare this year’s gross margin (gross profit divided by sales) to last year’s.

Score 1 if this year’s gross margin is higher, 0 if it’s lower.

Gross Margin (This Year)=Gross Profit/Revenue
=1030/1843
=0.55887141

Gross Margin (Last Year)=Gross Profit/Revenue
=828/1656
=0.5

Brookfield Infrastructure Partners LP's gross margin of this year was 0.55887141. Brookfield Infrastructure Partners LP's gross margin of last year was 0.5. ==> This year's gross margin is higher. ==> Score 1.

Q9. Change in asset turnover

Compare this year’s asset turnover (total sales divided by total assets at the beginning of the year) to last year’s asset turnover ratio.

Score 1 if this year’s asset turnover ratio is higher, 0 if it’s lower

Asset Turnover (This Year)=Revenue/Total Assets at the beginning of this year (Mar13)
=1843/19514
=0.09444501

Asset Turnover (Last Year)=Revenue/Total Assets at the beginning of last year (Mar12)
=1656/14204
=0.11658688

Brookfield Infrastructure Partners LP's asset turnover of this year was 0.09444501. Brookfield Infrastructure Partners LP's asset turnover of last year was 0.11658688. ==> Last year's asset turnover is higher ==> Score 0.

Evaluation

Piotroski F-Score=Q1+Q2+Q3+Q4+Q5+Q6+Q7+Q8+Q9
=1+1+0+1+0+1+0+1+0
=5

Good or high score = 8 or 9

Bad or low score = 0 or 1

Brookfield Infrastructure Partners LP has an F-score of 5 indicating the company's financial situation is typical for a stable company.


Explanation

The developer of the system is Joseph D. Piotroski is relatively unknown accounting professor who shuns publicity and rarely gives interviews.

He graduated from the University of Illinois with a B.S. in accounting in 1989, received an M.B.A. from Indiana University in 1994. Five years later, in 1999, after earning a Ph.D. in accounting from the University of Michigan, he became an associate professor of accounting at the University of Chicago.

In 2000, he wrote a research paper called "Value Investing: The Use of Historical Financial Statement Information to Separate Winners from Losers" (pdf).

He wanted to see if he can develop a system (using a simple nine-point scoring system) that can increase the returns of a strategy of investing in low price to book (referred to in the paper as high book to market) value companies.

What he found was something that exceeded his most optimistic expectations.

Buying only those companies that scored highest (8 or 9) on his nine-point scale, or F-Score as he called it, over the 20 year period from 1976 to 1996 led to an average out-performance over the market of 13.4%.

Even more impressive were the results of a strategy of investing in the highest F-Score companies (8 or 9) and shorting companies with the lowest F-Score (0 or 1).

Over the same period from 1976 to 1996 (20 years) this strategy led to an average yearly return of 23%, substantially outperforming the average S&P 500 index return of 15.83% over the same period.


Related Terms

Net Income, Cash Flow from Operations, Revenue, Gross Profit, Total Assets, Long-Term Debt, Total Current Assets, Total Current Liabilities


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

Brookfield Infrastructure Partners LP Annual Data

Dec07Dec08Dec09Dec10Dec11Dec12Dec13
Q1 110
Q2 111
Q3 000
Q4 111
Q5 000
Q6 101
Q7 000
Q8 111
Q9 100
F-score 644

Brookfield Infrastructure Partners LP Quarterly Data

Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14
Q1 1111111101
Q2 1111111111
Q3 0000001100
Q4 1111111111
Q5 0111001000
Q6 1000011111
Q7 0111100000
Q8 1111111111
Q9 1000001000
F-score 6666558645
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