Switch to:
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 4 indicating the company's financial situation is typical for a stable company.

BIP' s 10-Year Piotroski F-Score Range
Min: 3   Max: 7
Current: 4

3
7

During the past 8 years, the highest Piotroski F-Score of Brookfield Infrastructure Partners LP was 7. The lowest was 3. 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 (Sep14) TTM:Last Year (Sep13) TTM:
Net Income was -137 + 26 + 12 + 47 = $-52 Mil.
Cash Flow from Operations was 163 + 140 + 156 + 232 = $691 Mil.
Revenue was 470 + 480 + 488 + 491 = $1,929 Mil.
Gross Profit was 258 + 268 + 273 + 275 = $1,074 Mil.
Average Total Assets from the begining of this year (Sep13)
to the end of this year (Sep14) was
(15465 + 15682 + 15755 + 16302 + 16123) / 5 = $15865.4 Mil.
Total Assets at the begining of this year (Sep13) was $15,465 Mil.
Long-Term Debt was $6,825 Mil.
Total Current Assets was $531 Mil.
Total Current Liabilities was $581 Mil.
Net Income was 36 + -18 + 97 + 26 = $141 Mil.

Revenue was 451 + 463 + 462 + 431 = $1,807 Mil.
Gross Profit was 222 + 241 + 260 + 244 = $967 Mil.
Average Total Assets from the begining of last year (Sep12)
to the end of last year (Sep13) was
(14835 + 19718 + 19514 + 17744 + 15465) / 5 = $17455.2 Mil.
Total Assets at the begining of last year (Sep12) was $14,835 Mil.
Long-Term Debt was $6,210 Mil.
Total Current Assets was $1,454 Mil.
Total Current Liabilities was $732 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 -52. ==> Negative ==> Score 0.

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 691. ==> 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 -0.00336243. Brookfield Infrastructure Partners LP's return on assets of last year was 0.00950455. ==> Last year is higher ==> Score 0.

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 -52. Brookfield Infrastructure Partners LP's current cash flow from operations (TTM) was 691. ==> 691 > -52 ==> 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: Sep14)=Long-Term Debt/Average Total Assets from Sep13 to Sep14
=6825/15865.4
=0.4301814

Gearing (Last Year: Sep13)=Long-Term Debt/Average Total Assets from Sep12 to Sep13
=6210/17455.2
=0.35576791

Brookfield Infrastructure Partners LP's gearing of this year was 0.4301814. Brookfield Infrastructure Partners LP's gearing of last year was 0.35576791. ==> 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: Sep14)=Total Current Assets/Total Current Liabilities
=531/581
=0.91394148

Current Ratio (Last Year: Sep13)=Total Current Assets/Total Current Liabilities
=1454/732
=1.9863388

Brookfield Infrastructure Partners LP's current ratio of this year was 0.91394148. Brookfield Infrastructure Partners LP's current ratio of last year was 1.9863388. ==> 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 150.3. Brookfield Infrastructure Partners LP's number of shares in issue last year was 150.1. ==> There is larger number of shares in issue this year. ==> Score 0.

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
=1074/1929
=0.55676516

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=967/1807
=0.53514112

Brookfield Infrastructure Partners LP's gross margin of this year was 0.55676516. Brookfield Infrastructure Partners LP's gross margin of last year was 0.53514112. ==> This year's gross margin is higher. ==> Score 1.

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 (Sep13)
=1929/15465
=0.12473327

Asset Turnover (Last Year)=Revenue (TTM)/Total Assets at the Beginning of Last Year (Sep12)
=1807/14835
=0.12180654

Brookfield Infrastructure Partners LP's asset turnover of this year was 0.12473327. Brookfield Infrastructure Partners LP's asset turnover of last year was 0.12180654. ==> 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
=0+1+0+1+0+0+0+1+1
=4

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

Brookfield Infrastructure Partners LP has an F-score of 4 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

Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
Question 1 1101
Question 2 1111
Question 3 0001
Question 4 1111
Question 5 1010
Question 6 1010
Question 7 0000
Question 8 1111
Question 9 1001
F-score 7456

Brookfield Infrastructure Partners LP Quarterly Data

Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14
Question 1 1111101001
Question 2 1111111111
Question 3 0001100001
Question 4 1111111111
Question 5 1001011000
Question 6 0011111000
Question 7 1100000000
Question 8 1111111111
Question 9 0001000011
F-score 6557656340
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
Free 7-day Trial
FEEDBACK