MIC

Macquarie Infrastructure Corp

Industrial/Transportation


Presented:09/22/2020
Price:$27.03
Cap:$2.35B
Current Price:$4.09
Cap:$0.36B

Presented

Date09/22/2020
Price$27.03
Market Cap$2.35B
Ent Value$5.39B
P/E Ratio29.98x
Book Value$31.43
Div Yield7.4%
Shares O/S87.02M
Ave Daily Vol675,310
Short IntN/A

Current

Price$4.09
Market Cap$0.36B
Macquarie Infrastructure Corp. owns and operates a diversified group of businesses providing basic services to customers in the U. S. It operates through the following business segments: Bulk Liquid Terminals Business, International-Matex Tank Terminals (IMTT), Atlantic Aviation and MIC Hawaii. The IMTT segment provides bulk liquid terminalling to third parties in the U.S. and Canada. The Atlantic Aviation segment provides airport services. The MIC Hawaii segment comprises energy services, production and distribution. The company was founded on April 13, 2004 and is headquartered in New York, NY.

Publicly traded companies mentioned herein: Macquarie Infrastructure Corp (MIC), Signature Aviation PLC (SIG LN)

Highlights

The presenter is long shares of Macquarie Infrastructure Corp (MIC), which announced its plan to break up and sell the company in October 2019. The company consists of three assets: IMTT (46% of EBITDA), a commodity storage business that the presenter views as high quality, stable, and mostly recovered from COVID-19 slowdowns; Atlantic Aviation (44% of EBITDA), the second largest private jet terminal operator in the country (trailing SIG LN); and MIC Hawaii (10% of EBITDA), a local gas utility. He is bullish on all three assets and finds the current ~$26 share price cheap. In the event of a sale, he values these assets at 10x – 12x normalized EBITDA, which yields a $50 – $60 price target. 

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Idea Discussion

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