NYSE:HIFR

Stock Analysis Report

Executive Summary

InfraREIT is engaged in owning and leasing rate-regulated electric transmission assets in the state of Texas and is structured as a real estate investment trust.

Snowflake

Fundamentals

Undervalued with solid track record.


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Share Price & News

How has InfraREIT (REIT)'s share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

0.2%

HIFR

1.5%

US REITs

0.5%

US Market


1 Year Return

0%

HIFR

20.3%

US REITs

6.8%

US Market


Shareholder returns

HIFRIndustryMarket
7 Day0.2%1.5%0.5%
30 Day0.4%1.7%-0.8%
90 Day-0.09%7.6%-0.9%
1 Year4.9%0%25.7%20.3%9.2%6.8%
3 Year46.3%25.3%35.8%18.5%45.6%36.2%
5 Yearn/a64.6%29.8%63.2%45.4%

Price Volatility Vs. Market

How volatile is InfraREIT (REIT)'s share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is InfraREIT (REIT) undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: HIFR ($21.12) is trading below our estimate of fair value ($44.15)

Significantly Below Fair Value: HIFR is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: HIFR is good value based on its PE Ratio (14.8x) compared to the REITs industry average (36.2x).

PE vs Market: HIFR is good value based on its PE Ratio (14.8x) compared to the US market (17.7x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate HIFR's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: HIFR is good value based on its PB Ratio (1.4x) compared to the US REITs industry average (2x).


Next Steps

Future Growth

How is InfraREIT (REIT) forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

-1.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: HIFR's earnings are forecast to decline over the next 3 years (-1.3% per year).

Earnings vs Market: HIFR's earnings are forecast to decline over the next 3 years (-1.3% per year).

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

Revenue vs Market: HIFR's revenue (6.1% per year) is forecast to grow slower than the US market (7.2% per year).

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


Earnings per Share Growth Forecasts


Future Return on Equity

Information is not available.


Next Steps

Past Performance

How has InfraREIT (REIT) performed over the past 5 years?

18.6%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: HIFR's earnings have grown by 18.6% per year over the past 5 years.

Accelerating Growth: HIFR's earnings growth over the past year (263.3%) exceeds its 5-year average (18.6% per year).

Earnings vs Industry: HIFR earnings growth over the past year (263.3%) exceeded the REITs industry 17.6%.


Return on Equity

High ROE: HIFR's Return on Equity (9.3%) is considered low.


Return on Assets

ROA vs Industry: HIFR has a higher Return on Assets than the REITs industry average last year.


Return on Capital Employed

ROCE Improving: HIFR has improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is InfraREIT (REIT)'s financial position?


Financial Position Analysis

Short Term Liabilities: HIFR's short term assets ($47.8M) do not cover its short term liabilities ($152.8M)

Long Term Liabilities: HIFR's short term assets (47.8M) do not cover its long term liabilities (949.9M)


Debt to Equity History and Analysis

Debt Level: HIFR's debt to equity ratio (101.7%) is considered high

Reducing Debt: HIFR's debt to equity ratio has reduced from 135% to 101.7% over the past 5 years.

Debt Coverage: HIFR's debt is not well covered by operating cash flow (13.4%).

Interest Coverage: HIFR's interest payments on its debt are not well covered by EBIT (3x coverage).


Balance Sheet

Information is not available.

Information is not available.


Next Steps

Dividend

What is InfraREIT (REIT)'s current dividend yield, its reliability and sustainability?

4.73%

Current Dividend Yield


Dividend Yield vs Market

company4.7%marketbottom25%1.4%markettop25%3.7%industryaverage3.6%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: HIFR's dividend (4.73%) is higher than the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: HIFR's dividend (4.73%) is in the top 25% of dividend payers in the US market (3.73%)

Stable Dividend: Whilst dividend payments have been stable, HIFR has been paying a dividend for less than 10 years.

Growing Dividend: HIFR's dividend payments have increased, but the company has only paid a dividend for 4 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (45%), HIFR's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

What is the CEO of InfraREIT (REIT)'s salary, the management and board of directors tenure and is there insider trading?

4.7yrs

Average management tenure


CEO

David Campbell (50yo)

4.8yrs

Tenure

0

Mr. David A. Campbell has been President & Chief Executive Officer of InfraREIT Inc. (REIT) since August 2014 and its Board Member since September 2014. Mr. Campbell serves as President and Chief Executive ...


Management Age and Tenure

4.7yrs

Average Tenure

48.5yo

Average Age

Experienced Management: HIFR's management team is considered experienced (4.7 years average tenure).


Board Age and Tenure

4.3yrs

Average Tenure

60yo

Average Age

Experienced Board: HIFR's board of directors are considered experienced (4.3 years average tenure).


Insider Trading

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


Ownership Breakdown


Management Team

  • Greg Imhoff (61yo)

    VP, General Tax Counsel & Corporate Secretary

    • Tenure: 0yrs
  • David Campbell (50yo)

    President

    • Tenure: 4.8yrs
  • Stacey Doré (45yo)

    Senior VP & General Counsel

    • Tenure: 2.5yrs
  • Brant Meleski (47yo)

    Senior VP & CFO

    • Tenure: 4.7yrs
  • Brook Wootton

    Vice President

    • Tenure: 0yrs

Board Members

  • Ellen Wolf (64yo)

    Independent Director

    • Tenure: 4.3yrs
    • Compensation: US$188.99k
  • Hal Logan (74yo)

    Chairman of the Board

    • Tenure: 1.3yrs
    • Compensation: US$204.99k
  • Hunter Hunt (49yo)

    Director

    • Tenure: 5.7yrs
  • John Gates (53yo)

    Independent Director

    • Tenure: 4.3yrs
    • Compensation: US$163.99k
  • David Campbell (50yo)

    President

    • Tenure: 4.8yrs
  • Trudy Harper (56yo)

    Independent Director

    • Tenure: 4.3yrs
    • Compensation: US$157.99k
  • Harvey Rosenblum (75yo)

    Independent Director

    • Tenure: 4.3yrs
    • Compensation: US$163.99k
  • Storrow Gordon (65yo)

    Independent Director

    • Tenure: 4.3yrs
    • Compensation: US$182.99k

Company Information

InfraREIT, Inc. (REIT)'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: InfraREIT, Inc. (REIT)
  • Ticker: HIFR
  • Exchange: NYSE
  • Founded: 2001
  • Industry: Specialized REITs
  • Sector: Real Estate
  • Implied Market Cap: US$1.283b
  • Market Cap: US$929.393m
  • Shares outstanding: 60.71m
  • Website: https://www.InfraREITInc.com

Location

  • InfraREIT, Inc. (REIT)
  • 1900 North Akard Street
  • Dallas
  • Texas
  • 75201
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
HIFRNYSE (New York Stock Exchange)YesCommon StockUSUSDJan 2015

Biography

InfraREIT is engaged in owning and leasing rate-regulated electric transmission assets in the state of Texas and is structured as a real estate investment trust. The Company is externally managed by Hunt U ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/05/16 02:41
End of Day Share Price2019/05/15 00:00
Earnings2019/03/31
Annual Earnings2018/12/31


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.