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.

Snowflake

Fundamentals

Moderate growth potential second-rate dividend payer.

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

1.0%

MIC

0.5%

US Infrastructure

3.4%

US Market


1 Year Return

-9.7%

MIC

-41.9%

US Infrastructure

5.4%

US Market

Return vs Industry: MIC exceeded the US Infrastructure industry which returned -41.9% over the past year.

Return vs Market: MIC underperformed the US Market which returned 5.4% over the past year.


Shareholder returns

MICIndustryMarket
7 Day1.0%0.5%3.4%
30 Day-0.2%-2.9%-1.0%
90 Day-6.0%-15.9%-0.4%
1 Year-0.3%-9.7%-38.9%-41.9%7.7%5.4%
3 Year-39.2%-53.7%-45.9%-57.4%46.2%36.8%
5 Year-13.8%-41.8%-15.5%-42.5%65.6%47.5%

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?

38.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: MIC ($38.83) is trading below our estimate of fair value ($63.01)

Significantly Undervalued: MIC is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: MIC is poor value based on its PE Ratio (79.1x) compared to the Infrastructure industry average (10.8x).

PE vs Market: MIC is poor value based on its PE Ratio (79.1x) compared to the US market (17.7x).


Price to Earnings Growth Ratio

Low PEG Ratio: MIC is poor value based on its PEG Ratio (2.8x)


Price to Book Ratio

PB vs Industry: MIC is overvalued based on its PB Ratio (1.2x) compared to the US Infrastructure industry average (0.8x).


Next Steps

Future Growth

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

28.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MIC's forecast earnings growth (28.2% per year) is above the savings rate (2.7%).

Earnings vs Market: MIC's earnings (28.2% 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 (2.4% per year) is forecast to grow slower than the US market (7.3% per year).

High Growth Revenue: MIC's revenue (2.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High 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?

-25.7%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: MIC's earnings have declined by -25.7% 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 (-91.1%) over the past year, making it difficult to compare to the Infrastructure industry average (36.9%).


Return on Equity

High ROE: MIC's Return on Equity (2.2%) is considered low.


Return on Assets

ROA vs Industry: MIC's Return on Assets is below or equal to the Infrastructure industry average last year.


Return on Capital Employed

ROCE Improving: MIC's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Macquarie Infrastructure's financial position?


Financial Position Analysis

Short Term Liabilities: MIC's short term assets ($1.5B) exceeds its short term liabilities ($941.0M)

Long Term Liabilities: MIC's short term assets (1.5B) do not cover its long term liabilities (3.8B)


Debt to Equity History and Analysis

Debt Level: MIC's debt to equity ratio (99.3%) is considered high

Reducing Debt: MIC's debt to equity ratio has increased from 96% to 99.3% over the past 5 years.

Debt Coverage: MIC's debt is not well covered by operating cash flow (16.6%).

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 0.5x debt).


Next Steps

Dividend

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

10.30%

Current Dividend Yield


Dividend Yield vs Market

company10.3%marketbottom25%1.5%markettop25%3.8%industryaverage3.3%forecastin3Years10.3%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: MIC's dividend (10.3%) is higher than the bottom 25% of dividend payers in the US market (1.46%).

High Dividend: MIC's dividend (10.3%) is in the top 25% of dividend payers in the US market (3.77%)

Stable Dividend: MIC's dividend payments have been volatile in the past 10 years.

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


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (815.1%), 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 (207.1% 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?

4.5yrs

Average management tenure


CEO

Christopher Frost (50yo)

1.8yrs

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 has recently become CEO, making it difficult to compare their total compensation against companies of similar size in the US market.

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


Management Age and Tenure

4.5yrs

Average Tenure

55yo

Average Age

Experienced Management: MIC's management team is considered experienced (4.5 years average tenure).


Board Age and Tenure

3.0yrs

Average Tenure

59.5yo

Average Age

Experienced Board: MIC's board of directors are not considered experienced ( 3 years average tenure), which suggests a new board.


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
BuyUS$999,60728 Nov 18
Macquarie Group, Ltd., Banking & Securities Investments
EntityCompany
Shares25,160
Max PriceUS$39.73
BuyUS$468,48006 Nov 18
Martin Stephen William Stanley
EntityIndividual
Role
Chairman of the Board
Chairman
Shares12,000
Max PriceUS$39.04

Ownership Breakdown


Management Team

  • Christopher Frost (50yo)

    CEO & Director

    • Tenure: 1.8yrs
    • Compensation: US$1.15m
  • Liam Stewart (41yo)

    Chief Financial Officer

    • Tenure: 4.3yrs
    • Compensation: US$1.01m
  • Michael Kernan (60yo)

    General Counsel & Secretary

    • Tenure: 9.8yrs
  • Rick Courtney

    CEO & President of International-Matex Tank Terminals

    • Tenure: 4.7yrs
  • Robert Choi

    Principal Accounting Officer

    • Tenure: 4.3yrs
  • Jay Davis (60yo)

    VP & Head of Investor Relations

    • Tenure: 11.6yrs

Board Members

  • Jack Lentz (74yo)

    Independent Director

    • Tenure: 8.2yrs
    • Compensation: US$254.34k
  • Mandy Brock (58yo)

    Independent Director

    • Tenure: 1.1yrs
    • Compensation: US$129.94k
  • Ron Kirk (65yo)

    Independent Director

    • Tenure: 2.9yrs
    • Compensation: US$254.34k
  • Ouma Sananikone (61yo)

    Independent Director

    • Tenure: 6.7yrs
    • Compensation: US$256.34k
  • Norman Brown (72yo)

    Lead Independent Director

    • Tenure: 3yrs
    • Compensation: US$279.34k
  • Martin Stephen William Stanley (55yo)

    Chairman

    • Tenure: 6.3yrs
  • Christopher Frost (50yo)

    CEO & Director

    • Tenure: 1.8yrs
    • Compensation: US$1.15m
  • Maria Dreyfus (39yo)

    Independent Director

    • Tenure: 1.1yrs
    • 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$3.349b
  • Shares outstanding: 86.26m
  • 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 Ta ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/16 00:01
End of Day Share Price2019/10/15 00:00
Earnings2019/06/30
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.