NYSE:MIC

Stock Analysis Report

Executive Summary

Macquarie Infrastructure Corporation owns and operates a portfolio of businesses that provide services to other businesses, government agencies, and individuals.

Rewards

Trading at 39.8% below its fair value

Earnings are forecast to grow 27.62% per year

Risk Analysis

Interest payments are not well covered by earnings

Dividend of 8.76% is not well covered by earnings or forecast to be in the next 3 years

Profit margins (3.2%) are lower than last year (26.3%)



Snowflake Analysis

Moderate growth potential and slightly overvalued.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: MIC has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-2.1%

MIC

-2.4%

US Infrastructure

0.6%

US Market


1 Year Return

7.1%

MIC

-6.3%

US Infrastructure

24.6%

US Market

Return vs Industry: MIC exceeded the US Infrastructure industry which returned -3.7% over the past year.

Return vs Market: MIC underperformed the US Market which returned 24.7% over the past year.


Shareholder returns

MICIndustryMarket
7 Day-2.1%-2.4%0.6%
30 Day2.6%1.6%3.0%
90 Day12.2%16.2%10.6%
1 Year18.1%7.1%0.2%-6.3%27.3%24.6%
3 Year-28.6%-46.1%-38.1%-51.4%50.5%40.8%
5 Year-7.2%-38.0%-7.6%-38.0%78.9%59.1%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

40.6%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: MIC ($45.65) is trading below our estimate of fair value ($75.83)

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


Price To Earnings Ratio

PE vs Industry: MIC is poor value based on its PE Ratio (71.3x) compared to the Infrastructure industry average (12.3x).

PE vs Market: MIC is poor value based on its PE Ratio (71.3x) compared to the US market (18.9x).


Price to Earnings Growth Ratio

PEG Ratio: MIC is poor value based on its PEG Ratio (2.6x)


Price to Book Ratio

PB vs Industry: MIC is overvalued based on its PB Ratio (1.4x) compared to the US Infrastructure industry average (1.1x).


Next Steps

Future Growth

How is Macquarie Infrastructure forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

27.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MIC's forecast earnings growth (27.6% per year) is above the savings rate (1.7%).

Earnings vs Market: MIC's earnings (27.6% per year) are forecast to grow faster than the US market (14.3% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: MIC's revenue (2.7% per year) is forecast to grow slower than the US market (7.5% per year).

High Growth Revenue: MIC's revenue (2.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if MIC's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Macquarie Infrastructure performed over the past 5 years?

-34.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MIC has high quality earnings.

Growing Profit Margin: MIC's current net profit margins (3.2%) are lower than last year (26.3%).


Past Earnings Growth Analysis

Earnings Trend: MIC's earnings have declined by -34.4% per year over the past 5 years.

Accelerating Growth: MIC's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: MIC had negative earnings growth (-87.3%) over the past year, making it difficult to compare to the Infrastructure industry average (3.5%).


Return on Equity

High ROE: MIC's Return on Equity (2.8%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Macquarie Infrastructure's financial position?


Financial Position Analysis

Short Term Liabilities: MIC's short term assets ($630.0M) exceed its short term liabilities ($249.0M).

Long Term Liabilities: MIC's short term assets ($630.0M) do not cover its long term liabilities ($3.8B).


Debt to Equity History and Analysis

Debt Level: MIC's debt to equity ratio (92.4%) is considered high.

Reducing Debt: MIC's debt to equity ratio has increased from 70.7% to 92.4% over the past 5 years.

Debt Coverage: MIC's debt is not well covered by operating cash flow (17.5%).

Interest Coverage: MIC's interest payments on its debt are not well covered by EBIT (1.8x coverage).


Balance Sheet

Inventory Level: MIC has a high level of physical assets or inventory.

Debt Coverage by Assets: MIC's debt is not covered by short term assets (assets are 0.2x debt).


Next Steps

Dividend

What is Macquarie Infrastructure's current dividend yield, its reliability and sustainability?

8.96%

Current Dividend Yield


Dividend Yield vs Market

company9.0%marketbottom25%1.4%markettop25%3.7%industryaverage3.3%forecastin3Years9.0%

Current dividend yield vs market & industry

Notable Dividend: MIC's dividend (8.76%) is higher than the bottom 25% of dividend payers in the US market (1.4%).

High Dividend: MIC's dividend (8.76%) is in the top 25% of dividend payers in the US market (3.66%)


Stability and Growth of Payments

Stable Dividend: MIC has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: MIC's dividend payments have increased, but the company has only paid a dividend for 9 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (624.3%), MIC's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: MIC's dividends in 3 years are not forecast to be well covered by earnings (198.2% payout ratio).


Next Steps

Management

What is the CEO of Macquarie Infrastructure's salary, the management and board of directors tenure and is there insider trading?

4.8yrs

Average management tenure


CEO

Christopher Frost (50yo)

2yrs

Tenure

US$1,151,280

Compensation

Mr. Christopher Timothy Frost had been the President and Chief Operating Officer of Macquarie Infrastructure Corporation since October 26, 2017 until December 31, 2017 and has been its Chief Executive Offi ...


CEO Compensation Analysis

Compensation vs Market: Christopher's total compensation ($USD1.15M) is below average for companies of similar size in the US market ($USD4.99M).

Compensation vs Earnings: Insufficient data to compare Christopher's compensation with company performance.


Management Age and Tenure

4.8yrs

Average Tenure

55yo

Average Age

Experienced Management: MIC's management team is considered experienced (4.8 years average tenure).


Board Age and Tenure

3.2yrs

Average Tenure

59.5yo

Average Age

Experienced Board: MIC's board of directors are considered experienced (3.2 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.


Recent Insider Transactions

BuyUS$17,83525 Jun 19
Macquarie Group, Ltd., Banking & Securities Investments
EntityCompany
Shares443
Max PriceUS$40.26
SellUS$179,01425 Jun 19
Macquarie Group, Ltd., Banking & Securities Investments
EntityCompany
Shares4,443
Max PriceUS$40.91
BuyUS$40,61020 Mar 19
Macquarie Group, Ltd., Banking & Securities Investments
EntityCompany
Shares1,000
Max PriceUS$40.61

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Christopher Frost (50yo)

    CEO & Director

    • Tenure: 2yrs
    • Compensation: US$1.15m
  • Liam Stewart (41yo)

    Chief Financial Officer

    • Tenure: 4.6yrs
    • Compensation: US$1.01m
  • Michael Kernan (60yo)

    General Counsel & Secretary

    • Tenure: 10yrs
  • Rick Courtney

    CEO & President of International-Matex Tank Terminals

    • Tenure: 4.9yrs
  • Robert Choi

    Principal Accounting Officer

    • Tenure: 4.6yrs
  • Jay Davis (60yo)

    VP & Head of Investor Relations

    • Tenure: 11.8yrs

Board Members

  • Jack Lentz (74yo)

    Independent Director

    • Tenure: 8.4yrs
    • Compensation: US$254.34k
  • Mandy Brock (58yo)

    Independent Director

    • Tenure: 1.3yrs
    • Compensation: US$129.94k
  • Ron Kirk (65yo)

    Independent Director

    • Tenure: 3.2yrs
    • Compensation: US$254.34k
  • Ouma Sananikone (61yo)

    Independent Director

    • Tenure: 6.9yrs
    • Compensation: US$256.34k
  • Norman Brown (72yo)

    Lead Independent Director

    • Tenure: 3.3yrs
    • Compensation: US$279.34k
  • Martin Stephen William Stanley (55yo)

    Chairman

    • Tenure: 6.5yrs
  • Christopher Frost (50yo)

    CEO & Director

    • Tenure: 2yrs
    • Compensation: US$1.15m
  • Maria Dreyfus (38yo)

    Independent Director

    • Tenure: 1.3yrs
    • Compensation: US$132.44k

Company Information

Macquarie Infrastructure Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Macquarie Infrastructure Corporation
  • Ticker: MIC
  • Exchange: NYSE
  • Founded: 2004
  • Industry: Airport Services
  • Sector: Transportation
  • Market Cap: US$3.861b
  • Shares outstanding: 86.46m
  • Website: https://www.macquarie.com/mgl/com/mic

Number of Employees


Location

  • Macquarie Infrastructure Corporation
  • 125 West 55th Street
  • 15th Floor
  • New York
  • New York
  • 10019
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
MICNYSE (New York Stock Exchange)YesCommon SharesUSUSDDec 2004
14MDB (Deutsche Boerse AG)YesCommon SharesDEEURDec 2004
0JXBLSE (London Stock Exchange)YesCommon SharesGBUSDDec 2004

Biography

Macquarie Infrastructure Corporation owns and operates a portfolio of businesses that provide services to other businesses, government agencies, and individuals. It operates through: International-Matex Tank Terminals (IMTT), Atlantic Aviation, and MIC Hawaii segments. The IMTT segment offers bulk liquid storage, handling, and other services for petroleum products, specialty chemicals, renewable fuels, and vegetable and tropical oils through a network of 19 terminals, including 17 in the United States and 2 in Canada. The Atlantic Aviation segment offers fuel delivery, de-icing, aircraft parking, aircraft cleaning and catering, and hangar rental services to owners/operators of jet aircraft, as well as for commercial, military, freight, and government aviation customers. The MIC Hawaii segment processes, distributes, and sells synthetic and renewable natural gas; and distributes and sells liquefied natural gas and petroleum gas to residential, commercial, hospitality, military, and wholesale customers, as well as to the public sector in Oahu, Hawaii, Maui, Kauai, Molokai, and Lanai. This segment’s products are used in various commercial and residential applications, such as water heating, drying, cooking, emergency power generation, and other uses. The company was founded in 2004 and is based in New York, New York. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/01/23 23:58
End of Day Share Price2020/01/23 00:00
Earnings2019/09/30
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.