NYSE:MIC

Stock Analysis Report

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Executive Summary

Macquarie Infrastructure Corporation owns and operates a portfolio of infrastructure and infrastructure-like businesses that provide services to corporations, government agencies and individual customers primarily in the United States. More Details


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

-0.4%

MIC

-1.0%

US Infrastructure

-1.4%

US Market


1 Year Return

-31.4%

MIC

-35.6%

US Infrastructure

17.8%

US Market

Return vs Industry: MIC exceeded the US Infrastructure industry which returned -35.4% over the past year.

Return vs Market: MIC underperformed the US Market which returned 18.5% over the past year.


Shareholder returns

MICIndustryMarket
7 Day-0.4%-1.0%-1.4%
30 Day1.6%-0.1%4.7%
90 Day-11.9%-13.8%8.2%
1 Year-28.1%-31.4%-33.0%-35.6%20.5%17.8%
3 Year-48.9%-60.3%-43.4%-54.2%42.2%32.7%
5 Year-48.3%-64.9%-46.7%-63.7%83.4%62.7%

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?

44.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: MIC ($27.52) is trading below our estimate of fair value ($49.53)

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 (70.1x) compared to the XX Infrastructure industry average (16.9x).

PE vs Market: MIC is poor value based on its PE Ratio (70.1x) compared to the US market (19x).


Price to Earnings Growth Ratio

PEG Ratio: MIC is poor value based on its PEG Ratio (1.4x)


Price to Book Ratio

PB vs Industry: MIC is overvalued based on its PB Ratio (0.9x) compared to the US Infrastructure industry average (0.4x).


Next Steps

Future Growth

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

50.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MIC's forecast earnings growth (50.8% per year) is above the savings rate (2.2%).

Earnings vs Market: MIC's earnings (50.8% per year) are forecast to grow faster than the US market (22.2% per year).

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

Revenue vs Market: MIC's revenue (5.8% per year) is forecast to grow slower than the US market (10.1% per year).

High Growth Revenue: MIC's revenue (5.8% 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?

-9.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MIC has a large one-off loss of $60.3M impacting its June 30 2020 financial results.

Growing Profit Margin: MIC's current net profit margins (2.3%) are lower than last year (4.1%).


Past Earnings Growth Analysis

Earnings Trend: MIC's earnings have declined by 9.2% 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 (-52.2%) over the past year, making it difficult to compare to the Infrastructure industry average (-21.2%).


Return on Equity

High ROE: MIC's Return on Equity (1.2%) is considered low.


Next Steps

Financial Health

How is Macquarie Infrastructure's financial position?


Financial Position Analysis

Short Term Liabilities: MIC's short term assets ($1.0B) exceed its short term liabilities ($180.0M).

Long Term Liabilities: MIC's short term assets ($1.0B) do not cover its long term liabilities ($4.4B).


Debt to Equity History and Analysis

Debt Level: MIC's debt to equity ratio (119.1%) is considered high.

Reducing Debt: MIC's debt to equity ratio has increased from 83% to 119.1% over the past 5 years.

Debt Coverage: MIC's debt is not well covered by operating cash flow (10.5%).

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


Balance Sheet


Next Steps

Dividend

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

0.60%

Forecast Dividend Yield


Dividend Yield vs Market

Notable Dividend: Unable to evaluate MIC's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate MIC's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if MIC's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if MIC's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: MIC is not paying a notable dividend for the US market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of MIC's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

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

5.5yrs

Average management tenure


CEO

Christopher Frost (51 yo)

2.75yrs

Tenure

US$2,921,211

Compensation

Mr. Christopher Timothy Frost has been Chief Executive Officer of Macquarie Infrastructure Corporation since January 1, 2018 and served as its President and Chief Operating Officer since October 26, 2017 u ...


CEO Compensation Analysis

Compensation vs Market: Christopher's total compensation ($USD2.92M) is below average for companies of similar size in the US market ($USD4.48M).

Compensation vs Earnings: Christopher's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Christopher Frost
Chief Executive Officer2.75yrsUS$2.92mno data
Nicholas O'Neil
Chief Financial Officer0.083yrno data0.010%
$ 239.5k
Robert Choi
Principal Accounting Officer5.33yrsno datano data
Jay Davis
VP & Head of Investor Relations12.58yrsno datano data
Michael Kernan
General Counsel & Secretary10.75yrsno datano data
Richard Courtney
CEO & President of International-Matex Tank Terminals5.67yrsno datano data

5.5yrs

Average Tenure

56yo

Average Age

Experienced Management: MIC's management team is seasoned and experienced (5.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Henry Lentz
Independent Director9.17yrsUS$252.27k0.041%
$ 977.8k
Amanda Brock
Independent Director2.08yrsUS$249.77k0.0066%
$ 158.8k
Ronald Kirk
Independent Director3.92yrsUS$256.03k0.013%
$ 310.6k
Ouma Sananikone
Independent Director7.67yrsUS$256.77k0.024%
$ 582.4k
Norman Brown
Lead Independent Director4yrsUS$277.27k0.059%
$ 1.4m
Martin Stephen William Stanley
Chairman7.25yrsno data0.037%
$ 880.6k
Maria Dreyfus
Independent Director2.08yrsUS$252.27k0.0066%
$ 158.8k

4.0yrs

Average Tenure

62yo

Average Age

Experienced Board: MIC's board of directors are considered experienced (4 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 not been meaningfully diluted in the past year.


Top Shareholders

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$2.395b
  • Shares outstanding: 87.02m
  • 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 infrastructure and infrastructure-like businesses that provide services to corporations, government agencies and individual customers p ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/21 23:34
End of Day Share Price2020/10/21 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


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.