Seeking Alpha: Macquarie Infrastructure Moves From Strength To Strength

I love high-quality "boring" infrastructure stories, as these companies can do very well for themselves by managing toll-taking operations that function as virtual monopolies. Macquarie Infrastructure (NYSE:MIC) has shown itself to be adept at both managing the operations it has and redeploying capital into new operations that generate incremental cash flow, and I'm not surprised that the shares are up about 15% from when I last wrote about them in the summer of 2014.

Up almost 40% over the past year and more than 160% over the past three years, I don't think these shares are the bargain they once were, but I think there's still a worthwhile long-term opportunity here. I have some concerns as to whether the shares can support a mid-teens forward EBITDA ratio over the long haul, but the company's incremental growth investments are coming at a 7x multiple, suggesting significant upside to new investments. What's more, Macquarie Infrastructure has access to capital that others don't and that could allow the company to pluck away assets from distressed players at attractive prices.

Read the full article here:
Macquarie Infrastructure Moves From Strength To Strength