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

The zones of discrimination were as such:

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

Brookfield Infrastructure Partners LP has an F-score of 6 indicating the company's financial situation is typical for a stable company.

BIP' s Piotroski F-Score Range Over the Past 10 Years
Min: 2   Max: 8
Current: 4

2
8

During the past 9 years, the highest Piotroski F-Score of Brookfield Infrastructure Partners LP was 8. The lowest was 2. And the median was 6.


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 local exchange's currency.

This Year (Sep16) TTM:Last Year (Sep15) TTM:
Net Income was 29 + 61 + 116 + 62 = $268 Mil.
Cash Flow from Operations was 92 + 162 + 159 + 343 = $756 Mil.
Revenue was 455 + 454 + 462 + 522 = $1,893 Mil.
Gross Profit was 256 + 252 + 264 + 255 = $1,027 Mil.
Average Total Assets from the begining of this year (Sep15)
to the end of this year (Sep16) was
(15992 + 17735 + 18756 + 20443 + 21109) / 5 = $18807 Mil.
Total Assets at the begining of this year (Sep15) was $15,992 Mil.
Long-Term Debt was $8,545 Mil.
Total Current Assets was $1,601 Mil.
Total Current Liabilities was $1,395 Mil.
Net Income was 52 + 99 + 18 + 92 = $261 Mil.

Revenue was 465 + 466 + 466 + 468 = $1,865 Mil.
Gross Profit was 262 + 263 + 269 + 269 = $1,063 Mil.
Average Total Assets from the begining of last year (Sep14)
to the end of last year (Sep15) was
(16123 + 16495 + 16286 + 16952 + 15992) / 5 = $16369.6 Mil.
Total Assets at the begining of last year (Sep14) was $16,123 Mil.
Long-Term Debt was $6,333 Mil.
Total Current Assets was $1,769 Mil.
Total Current Liabilities was $1,052 Mil.

Profitability

Question 1. 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 (TTM) was 268. ==> Positive ==> Score 1.

Question 2. 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 (TTM) was 756. ==> Positive ==> Score 1.

Question 3. 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.

Brookfield Infrastructure Partners LP's return on assets of this year was 0.01675838. Brookfield Infrastructure Partners LP's return on assets of last year was 0.01618805. ==> This year is higher. ==> Score 1.

Question 4. 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 (TTM) was 268. Brookfield Infrastructure Partners LP's current cash flow from operations (TTM) was 756. ==> 756 > 268 ==> CFROA > ROA ==> Score 1.

Funding

Question 5. 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: Sep16)=Long-Term Debt/Average Total Assets from Sep15 to Sep16
=8545/18807
=0.4543521

Gearing (Last Year: Sep15)=Long-Term Debt/Average Total Assets from Sep14 to Sep15
=6333/16369.6
=0.38687567

Brookfield Infrastructure Partners LP's gearing of this year was 0.4543521. Brookfield Infrastructure Partners LP's gearing of last year was 0.38687567. ==> Last year is lower than this year ==> Score 0.

Question 6. 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: Sep16)=Total Current Assets/Total Current Liabilities
=1601/1395
=1.14767025

Current Ratio (Last Year: Sep15)=Total Current Assets/Total Current Liabilities
=1769/1052
=1.68155894

Brookfield Infrastructure Partners LP's current ratio of this year was 1.14767025. Brookfield Infrastructure Partners LP's current ratio of last year was 1.68155894. ==> Last year's current ratio is higher ==> Score 0.

Question 7. 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 243.4. Brookfield Infrastructure Partners LP's number of shares in issue last year was 244.5. ==> There is smaller number of shares in issue this year, or the same. ==> Score 1.

Efficiency

Question 8. 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: TTM)=Gross Profit/Revenue
=1027/1893
=0.54252509

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=1063/1865
=0.56997319

Brookfield Infrastructure Partners LP's gross margin of this year was 0.54252509. Brookfield Infrastructure Partners LP's gross margin of last year was 0.56997319. ==> Last year's gross margin is higher ==> Score 0.

Question 9. Change in asset turnover

Compare this year’s asset turnover (total sales for the year 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 (TTM)/Total Assets at the Beginning of This Year (Sep15)
=1893/15992
=0.11837169

Asset Turnover (Last Year)=Revenue (TTM)/Total Assets at the Beginning of Last Year (Sep14)
=1865/16123
=0.11567326

Brookfield Infrastructure Partners LP's asset turnover of this year was 0.11837169. Brookfield Infrastructure Partners LP's asset turnover of last year was 0.11567326. ==> This year's asset turnover is higher. ==> Score 1.

Evaluation

Piotroski F-Score= Que. 1+ Que. 2+ Que. 3+Que. 4+Que. 5+Que. 6+Que. 7+Que. 8+Que. 9
=1+1+1+1+0+0+1+0+1
=6

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

Brookfield Infrastructure Partners LP has an F-score of 6 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 local exchange's currency.

Brookfield Infrastructure Partners LP Annual Data

Dec09Dec10Dec11Dec12Dec13Dec14Dec15
Question 1 1111011
Question 2 0111111
Question 3 0100011
Question 4 0011111
Question 5 0110101
Question 6 0010100
Question 7 0000000
Question 8 0110111
Question 9 1001010
F-score 2564566

Brookfield Infrastructure Partners LP Quarterly Data

Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16
Question 1 0011111111
Question 2 1111111111
Question 3 0011111011
Question 4 1111111111
Question 5 0000111000
Question 6 0001110110
Question 7 0001000001
Question 8 1111111100
Question 9 0111100001
F-score 3468876556
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