3 Undervalued Multi-Utilities Stocks for Tuesday, March 25

Why Focus on Undervalued Multi-Utilities Stocks?

Value investors seek to buy stocks at a discount to their intrinsic value. Long-term returns show that such strategies are advantageous. Value stocks, as a group, tend to outperform growth stocks over extended periods of time. Typically, value investors perform financial analysis of numerous metrics, don’t follow the herd and are long-term investors.

What Goes Into AAII’s Value Grade?

3 Undervalued Multi-Utilities Stocks

Of course, there are countless value stocks that are worth mentioning, but this is a concise list of the top 3 undervalued stocks in the Multi-Utilities industry for Tuesday, March 25, 2025. Let’s take a closer look at their individual scores to see how they measure up against each other and the Multi-Utilities industry median.

The Value Grade is assigned based on how each stock’s composite valuation compares to all other stocks.

The process for assigning grades starts with each variable for a given stock. The percentile rankings for all valid ratios that a stock has are calculated. So, for instance, a stock could have a price-to-book ranking in the 43rd percentile, a price-earnings ranking in the 67th percentile, a price-to-sales ranking in the 23rd percentile, etc. Then, those rankings are averaged for each stock. (A minimum of two valid variables are required, though all six will be used if available.)

Once the average of the individual variables is calculated, that average is ranked against all stocks. Put another way, each stock’s composite valuation is compared to all other stocks. These ranks are then sorted into quintiles from the cheapest 20% (a grade of A) to the most expensive 20% (a grade of F).

Value Grade:

Brookfield Infrastructure Partners L.P. engages in the utilities, transport, midstream, and data businesses. The Utilities segment operates approximately 2,900 kilometers (km) of electricity transmission lines; 3,900 km of natural gas pipelines; 8.4 million electricity and natural gas connections; 0.7 million long-term contracted sub-metering services; and 2.8 million meters under management. This segment also offers cooling, water heaters, solar, and energy storage solutions; gas distribution; heating, ventilation, air conditioner, and water products, including heating and purification, as well as other home services. The Transport segment consists of infrastructure assets that offers transportation, storage, and handling services for merchandise goods, commodities, and passengers through a network of approximately 21,000 km of track; 5,500 km of track; 9,800 km of rail; 3,300 km of motorways. The Midstream segment provides natural gas transmission, gathering and processing, and storage services through approximately 15,000 km of natural gas transmission pipelines; 570 billion cubic feet of natural gas storage; 16 natural gas and natural gas liquids processing plants; and 10,600 km of gas gathering pipelines, as well as 525,000 tonnes of polypropylene production capacity. The Data segment offers telecommunication, fiber, and data storage services through approximately 3,06,000 operational telecom towers; 28,000 km of fiber optic cables; 3,60,000 fiber-to-the-premise connections; two semiconductor manufacturing foundries; and 70 distributed antenna systems, as well as 140 data centers and 1 gigawatt of critical load capacity and an additional approximate 640 megawatts of contracted capacity. It operates in the United States, Canada, India, the United Kingdom, Brazil, Colombia, France, Australia, Germany, and internationally. The company was incorporated in 2007 and is based in Hamilton, Bermuda. Brookfield Infrastructure Partners L.P.is a subsidiary of Brookfield Corporation.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

Brookfield Infrastructure Partners L.P. has a Value Score of 70, which is considered to be undervalued.

When you look at Brookfield Infrastructure Partners L.P.’s price-to-sales ratio at 0.66 compared to the industry median at 2.65, this company has a lower price relative to revenue compared to its peers. This could make Brookfield Infrastructure Partners L.P.’s stock more attractive for value investors.

Brookfield Infrastructure Partners L.P.’s price-earnings ratio is 405.30 compared to the industry median at 22.00. This means it has a higher share price relative to earnings compared to its peers. This could make Brookfield Infrastructure Partners L.P. less attractive for value investors.

Now, let’s assess Brookfield Infrastructure Partners L.P.’s EV/EBITDA ratio, also known as enterprise multiple. At 10.1, when compared to the industry median of 11.8, the company may be considered undervalued in relation to its peers. Value investors could use the enterprise multiple to identify stocks that are considered overvalued or undervalued relative to their industry.

Shareholder yield is the sum of a stock’s dividend yield (paid over previous 12 months minus special dividends) and the percentage of net share buybacks over the previous 12 months. Brookfield Infrastructure Partners L.P.’s shareholder yield is higher than its industry median ratio of 2.90%. Value investors may look for an attractive shareholder yield because it can be a powerful tool for identifying if the company has a good management team.

As one of the most common value metrics, the price-to-book ratio evaluates a company’s current market price relative to its book value. Brookfield Infrastructure Partners L.P.’s price-to-book ratio is lower than its industry median ratio of 1.75. This could make Brookfield Infrastructure Partners L.P. more attractive to investors looking for a new addition to their portfolio.

NorthWestern Energy Group, Inc.’s Value Grade

Value Grade:

NorthWestern Energy Group, Inc. provides electricity and natural gas to residential, commercial, and various industrial customers. It generates, purchases, transmits, and distributes electricity; and produces, purchases, stores, transmits, and distributes natural gas, as well as owns municipal franchises to provide natural gas service in the communities. The company operates 6,596 miles of electric transmission and 18,794 miles of electric distribution lines with approximately 396 transmission and distribution substations; and 2,133 miles of natural gas transmission and 5,221 miles of natural gas distribution lines with approximately 135 city gate stations in Montana. It also operates 1,349 miles of electric transmission and 2,386 miles of electric distribution lines in South Dakota with approximately 123 transmission and distribution substations; and 55 miles of natural gas transmission, 1,796 miles of natural gas distribution lines in South Dakota, and 830 miles of natural gas distribution lines Nebraska. The company provides electricity and/or natural gas to approximately 787,000 customers in Montana, South Dakota, Nebraska, and Yellowstone National Park. NorthWestern Energy Group, Inc. was founded in 1923 and is based in Sioux Falls, South Dakota.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

NorthWestern Energy Group, Inc. has a Value Score of 67, which is considered to be undervalued.

NorthWestern Energy Group, Inc.’s price-earnings ratio is 15.2 compared to the industry median at 22.0. This means that it has a lower price relative to its earnings compared to its peers. This makes NorthWestern Energy Group, Inc. more attractive for value investors.

NorthWestern Energy Group, Inc.’s price-to-book ratio is higher than its peers. This could make NorthWestern Energy Group, Inc. less attractive for value investors when compared to the industry median at 1.75.

Value Grade:

Unitil Corporation, a public utility holding company, engages in the distribution of electricity and natural gas. It operates through two segments, Utility Electric Operations, Utility Gas Operations. The company distributes electricity in the southeastern seacoast and state capital regions of New Hampshire, and the greater Fitchburg area of north central Massachusetts; and distributes natural gas in southeastern New Hampshire and portions of southern and central Maine, including the city of Portland and the Lewiston-Auburn area, as well as electricity and natural gas in the greater Fitchburg area of north central Massachusetts. It also operates 85 miles of interstate underground natural gas transmission pipeline that provides interstate natural gas pipeline access and transportation services primarily in Maine and New Hampshire. In addition, the company provides real estate management services. It serves approximately 109,400 electric customers and 89,100 natural gas customers. Unitil Corporation was incorporated in 1984 and is headquartered in Hampton, New Hampshire.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

Unitil Corporation has a Value Score of 61, which is considered to be undervalued.

Unitil Corporation’s price-earnings ratio is 19.0 compared to the industry median at 22.0. This means that it has a lower price relative to its earnings compared to its peers. This makes Unitil Corporation more attractive for value investors.

Unitil Corporation’s price-to-book ratio is lower than its peers. This could make Unitil Corporation fairly attractive for value investors when compared to the industry median at 1.75.

Choosing Which of the 3 Best Multi-Utilities Stocks Is Right for You

Choosing which value stocks to invest in will ultimately depend on your individual goals and allocation; however, comparing similar value stocks in the same industry can help you analyze which might be better investments for you in the long run. So, let’s take a look at the Value Grade for all of our stocks.

• Brookfield Infrastructure Partners L.P. stock has a Value Grade of B.
• NorthWestern Energy Group, Inc. stock has a Value Grade of B.
• Unitil Corporation stock has a Value Grade of B.

Now that you have a bit more background about each of the 3 undervalued stocks in the Multi-Utilities industry as well as their overall grades, it’s time for you to conduct additional research to see if these could fit your portfolio needs based on your goals and risk tolerance. AAII can help you figure out both and identify which investments align with what works best for you.

We do so through a program of education that teaches you to invest for yourself and become an effective manager of your own wealth—no more relying on others for your financial independence. You can rely on AAII for timeless articles on financial planning and stock-picking, unbiased research and actionable analysis that makes you a better investor.

Additional Resources About Multi-Utilities Stocks

Want to learn more about Multi-Utilities stocks to see if they could be the right investment for you? Check out some additional resources and articles to help you on your financial journey.

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