NZSE:IFT

Stock Analysis Report

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Executive Summary

Infratil Limited owns and operates infrastructure businesses and investments primarily in New Zealand, Australia, the United States, and Europe. More Details


Snowflake Analysis

Fair value second-rate dividend payer.

Share Price & News

How has Infratil's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: IFT is more volatile than 75% of NZ stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: IFT's weekly volatility (6%) has been stable over the past year, but is still higher than 75% of NZ stocks.


Market Performance


7 Day Return

7.3%

IFT

3.9%

NZ Electric Utilities

3.9%

NZ Market


1 Year Return

44.1%

IFT

29.8%

NZ Electric Utilities

10.6%

NZ Market

Return vs Industry: IFT exceeded the NZ Electric Utilities industry which returned 29.8% over the past year.

Return vs Market: IFT exceeded the NZ Market which returned 10.6% over the past year.


Shareholder returns

IFTIndustryMarket
7 Day7.3%3.9%3.9%
30 Day4.7%8.3%3.2%
90 Day40.4%29.6%11.0%
1 Year49.3%44.1%36.8%29.8%14.7%10.6%
3 Year182.2%144.1%126.5%90.1%56.9%36.1%
5 Year225.0%150.0%128.7%69.9%112.7%61.1%

Long-Term Price Volatility Vs. Market

How volatile is Infratil's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Infratil undervalued compared to its fair value and its price relative to the market?

21.84x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: IFT (NZ$7.75) is trading above our estimate of fair value (NZ$4.27)

Significantly Below Fair Value: IFT is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: IFT is good value based on its PE Ratio (21.8x) compared to the NZ Electric Utilities industry average (48.5x).

PE vs Market: IFT is good value based on its PE Ratio (21.8x) compared to the NZ market (25.1x).


Price to Earnings Growth Ratio

PEG Ratio: IFT's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: IFT is good value based on its PB Ratio (2.2x) compared to the NZ Electric Utilities industry average (2.5x).


Next Steps

Future Growth

How is Infratil forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?

-46.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: IFT's earnings are forecast to decline over the next 3 years (-46.8% per year).

Earnings vs Market: IFT's earnings are forecast to decline over the next 3 years (-46.8% per year).

High Growth Earnings: IFT's earnings are forecast to decline over the next 3 years.

Revenue vs Market: IFT's revenue (6.1% per year) is forecast to grow faster than the NZ market (5.1% per year).

High Growth Revenue: IFT's revenue (6.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: IFT's Return on Equity is forecast to be low in 3 years time (4.6%).


Next Steps

Past Performance

How has Infratil performed over the past 5 years?

53.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: IFT has a large one-off gain of NZ$525.2M impacting its September 30 2020 financial results.

Growing Profit Margin: IFT became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: IFT's earnings have grown significantly by 53.9% per year over the past 5 years.

Accelerating Growth: IFT has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: IFT has become profitable in the last year, making it difficult to compare its past year earnings growth to the Electric Utilities industry (-21.9%).


Return on Equity

High ROE: IFT's Return on Equity (13.4%) is considered low.


Next Steps

Financial Health

How is Infratil's financial position?


Financial Position Analysis

Short Term Liabilities: IFT's short term assets (NZ$747.2M) exceed its short term liabilities (NZ$502.7M).

Long Term Liabilities: IFT's short term assets (NZ$747.2M) do not cover its long term liabilities (NZ$3.8B).


Debt to Equity History and Analysis

Debt Level: IFT's debt to equity ratio (89.5%) is considered high.

Reducing Debt: IFT's debt to equity ratio has reduced from 89.6% to 89.5% over the past 5 years.

Debt Coverage: IFT's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: Insufficient data to determine if IFT's interest payments on its debt are well covered by EBIT.


Balance Sheet


Next Steps

Dividend

What is Infratil current dividend yield, its reliability and sustainability?

2.23%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: IFT's dividend (2.23%) isn’t notable compared to the bottom 25% of dividend payers in the NZ market (2.24%).

High Dividend: IFT's dividend (2.23%) is low compared to the top 25% of dividend payers in the NZ market (4.1%).


Stability and Growth of Payments

Stable Dividend: IFT's dividends per share have been stable in the past 10 years.

Growing Dividend: IFT's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (48.6%), IFT's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: IFT's dividends in 3 years are not forecast to be well covered by earnings (114% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

7.3yrs

Average board tenure


CEO

Marko Bogoievski (54 yo)

10yrs

Tenure

NZ$112,000

Compensation

Mr. Marko Bogoievski, BCA, MBA, ACA, FCA, serves as the Non-Independent Director & Chief Executive Officer of Infratil Limited and HRL Morrison & Co Limited. He is Chairman of Vodafone New Zealand. Mr. Bog...


Board Members

NamePositionTenureCompensationOwnership
Marko Bogoievski
CEO & Non-Independent Director10yrsNZ$112.00k0.28%
NZ$ 15.3m
Paul Newfield
Chief Investment Officer of H.R.L. Morrison & Co.no datano data0.041%
NZ$ 2.2m
David McKinnon
Head of Social Infrastructure - HRL Morrison & Co and Director-ANU Student Accommodation Concessionno datano datano data
Paul Gough
Independent Director8.08yrsNZ$147.50k0.027%
NZ$ 1.5m
Bruce Harker
Chairman of Tilt Renewablesno datano datano data
Peter Springford
Independent Director4.17yrsNZ$129.00k0.0048%
NZ$ 260.8k
Paul Ridley-Smith
Chair of Trustpowerno datano data0.011%
NZ$ 589.1k
Roger Crawford
Chairman of Perth Energyno datano datano data
Kevin Baker
Chair of NZ Bus and Director of Canberra Data Centres & Infratil Infrastructure Propertyno datano data0.033%
NZ$ 1.8m
Tim Brown
Chair of Wellington Airportno datano datano data
Mark Tume
Independent Chairman7.25yrsNZ$239.80k0.0078%
NZ$ 428.5k
Alison Gerry
Independent Director6.5yrsNZ$156.50k0.0038%
NZ$ 206.6k

7.3yrs

Average Tenure

56yo

Average Age

Experienced Board: IFT's board of directors are considered experienced (7.3 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 9.4%.


Top Shareholders

Company Information

Infratil Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Infratil Limited
  • Ticker: IFT
  • Exchange: NZSE
  • Founded: 1994
  • Industry: Electric Utilities
  • Sector: Utilities
  • Market Cap: NZ$5.480b
  • Shares outstanding: 722.95m
  • Website: https://infratil.com

Number of Employees


Location

  • Infratil Limited
  • 5 Market Lane
  • PO Box 320
  • Wellington
  • 6140
  • New Zealand

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
IFTNZSE (New Zealand Stock Exchange)YesOrdinary SharesNZNZDNov 1994
IFUU.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDNov 1994
IFTASX (Australian Securities Exchange)YesOrdinary SharesAUAUDNov 1994

Biography

Infratil Limited owns and operates infrastructure businesses and investments primarily in New Zealand, Australia, the United States, and Europe. It operates through Trustpower, Tilt Renewables, Wellington ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/01/26 06:01
End of Day Share Price2021/01/26 00:00
Earnings2020/09/30
Annual Earnings2020/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.