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Brookfield Renewable (BEPC)
NYSE:BEPC
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Brookfield Renewable
(NYSE:BEPC)
71Outperform
Brookfield Renewable (BEPC) vs. S&P 500 (SPY)
Market Cap
$9.71B
Dividend Yield5.2%
Average Volume (3M)1.06M
Price to Earnings (P/E)32.0
Beta (1Y)0.97
Revenue Growth-8.26%
EPS GrowthN/A
CountryUS
Employees2,116
SectorUtilities
Sector Strength84
IndustryRenewable Energy Producers
Share Statistics
EPS (TTM)0.79
Shares Outstanding144,887,340
10 Day Avg. Volume977,582
30 Day Avg. Volume1,062,135
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)2.26
Price to Cash Flow (P/CF)N/A
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$32.50Price Target Upside13.60% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
Brookfield Renewable Business Overview & Revenue Model
Company DescriptionBrookfield Renewable (BEPC) is a leading global renewable energy company that operates one of the world's largest publicly traded, pure-play renewable power platforms. It is part of Brookfield Asset Management and focuses on producing electricity from renewable resources, including hydroelectric, wind, solar, and storage facilities across North and South America, Europe, and Asia. Brookfield Renewable is committed to sustainable development and provides clean, reliable, and cost-effective energy solutions.
How the Company Makes MoneyBrookfield Renewable makes money primarily through the sale of electricity generated from its renewable energy assets. Its revenue model is based on long-term power purchase agreements (PPAs) with utility companies, governments, and businesses, which provide predictable cash flows. The company also benefits from government incentives and renewable energy credits in various jurisdictions. Additionally, Brookfield Renewable engages in strategic partnerships and acquisitions to expand its asset base and enhance its revenue potential. Earnings are significantly influenced by factors such as energy production levels, market electricity prices, and favorable regulatory environments that support renewable energy investments.
Brookfield Renewable Financial Statement Overview
Summary
Brookfield Renewable has shown strong revenue growth and improved profitability. However, it faces challenges with operational margins and a high debt-to-equity ratio, indicating substantial leverage. Positive operating cash flow contrasts with declining free cash flow, highlighting potential cash management issues.Income Statement
Brookfield Renewable has shown a consistent revenue growth over the years, with a notable net income recovery in 2024 to $236 million from a loss of $181 million in 2023. However, the company's EBIT margin has been zero in the most recent year, indicating potential operational challenges. The gross profit margin is strong, reflecting efficient cost management. Despite the improvement in EBITDA margin, the fluctuations in net income highlight potential volatility in profitability.65
Positive
Balance Sheet
The balance sheet exhibits a high debt-to-equity ratio of 10.51 in 2024, indicating substantial leverage, which could pose financial risk. However, the equity ratio has improved slightly from prior years. The return on equity (ROE) is relatively low at 17.6%, suggesting moderate returns on invested capital. Overall, despite the increased leverage, the equity position has stabilized over recent years.55
Neutral
Cash Flow
The cash flow statement shows a concerning decline in free cash flow, resulting in a negative value in 2024. However, the operating cash flow remains positive, covering net income, which is a positive sign of operational efficiency. The free cash flow to net income ratio is unfavorable due to negative free cash flow, but operating cash flow trends suggest resilience in core operations.70
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 4.14B | 3.97B | 3.78B | 3.37B | 3.09B | Gross Profit |
| 2.38B | 177.08M | 2.60B | 2.18B | 2.03B | EBIT |
| 0.00 | 313.00M | 3.07B | 1.94B | -2.15B | EBITDA |
| 3.53B | 3.00B | 5.43B | 3.80B | -1.35B | Net Income Common Stockholders |
| 236.00M | -181.00M | 1.50B | 946.00M | -2.82B |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 392.00M | 627.00M | 642.00M | 410.00M | 355.00M | Total Assets |
| 44.13B | 49.42B | 43.29B | 41.99B | 39.47B | Total Debt |
| 14.09B | 16.57B | 15.14B | 13.51B | 12.82B | Net Debt |
| 13.70B | 16.13B | 14.50B | 13.10B | 12.47B | Total Liabilities |
| 32.02B | 32.29B | 26.46B | 27.76B | 27.75B | Stockholders Equity |
| 1.34B | 5.79B | 5.87B | 3.67B | 1.18B |
| Cash Flow | Free Cash Flow | |||
| -400.00M | 575.00M | 437.00M | -959.00M | 619.00M | Operating Cash Flow |
| 549.00M | 1.60B | 1.28B | 395.00M | 992.00M | Investing Cash Flow |
| -665.00M | -1.02B | -738.00M | -984.00M | -478.00M | Financing Cash Flow |
| 192.00M | -636.00M | -402.00M | 678.00M | -475.00M |
Brookfield Renewable Technical Analysis
Positive
28.61
Price Trends
26.83
Positive
28.55
Negative
28.60
Negative
Market Momentum
0.27
Negative
56.38
Neutral
73.75
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BEPC, the sentiment is Positive. The current price of 28.61 is above the 20-day moving average (MA) of 27.64, above the 50-day MA of 26.83, and above the 200-day MA of 28.60, indicating a neutral trend. The MACD of 0.27 indicates Negative momentum. The RSI at 56.38 is Neutral, neither overbought nor oversold. The STOCH value of 73.75 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for BEPC.
Brookfield Renewable Risk Analysis
Brookfield Renewable disclosed 93 risk factors in its most recent earnings report. Brookfield Renewable reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Brookfield Renewable Peers Comparison
Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $92.01B | 20.54 | 9.10% | 3.51% | 4.46% | 54.09% | |
74 Outperform | $37.66B | 19.78 | 8.44% | 3.22% | 4.23% | -27.02% | |
73 Outperform | $57.22B | 18.74 | 11.37% | 3.37% | 2.76% | 31.53% | |
73 Outperform | $156.66B | 21.59 | 14.24% | 2.77% | 26.91% | -6.43% | |
71 Outperform | $9.71B | 32.02 | 6.15% | 5.20% | -8.26% | ― | |
65 Neutral | $11.91B | 15.60 | 6.55% | 4.41% | 7.00% | 0.55% | |
64 Neutral | $45.26B | 15.69 | 9.55% | 3.58% | -18.00% | -7.54% |
* Utilities Sector Average
Performance Comparison
BEPC
Brookfield Renewable
28.30
4.91
20.99%
AEP
American Electric Power
104.43
24.13
30.05%
ED
Consolidated Edison
103.77
16.87
19.41%
DUK
Duke Energy
117.70
26.23
28.68%
NEE
NextEra Energy
74.03
18.45
33.20%
SRE
Sempra Energy
68.79
0.01
0.01%
Brookfield Renewable Earnings Call Summary
Earnings Call Date: Jan 31, 2025 | % Change Since: 13.67% | Next Earnings Date: May 2, 2025
Earnings Call Sentiment Positive
The earnings call highlighted Brookfield Renewable Partners' record financial performance, strategic partnerships, and robust financial position, despite challenges related to market sentiment and regulatory uncertainties in the US. The company remains optimistic about its growth prospects and continues to capitalize on demand for renewable energy.Highlights
Record Financial Performance
Brookfield Renewable Partners delivered their strongest operating and financial results ever in 2024, achieving a 10% FFO per unit growth year-on-year and a 21% increase in FFO for the fourth quarter.
Significant Capital Deployment
The company exceeded their capital deployment targets by investing $12.5 billion, including in Neoen, a leading global renewable platform.
Strategic Partnership with Microsoft
A landmark renewable energy framework agreement with Microsoft was signed, aiming to deliver 10.5 gigawatts of new renewable capacity between 2026 and 2030.
Record Capacity Commissioned
Commissioned a record 7,000 megawatts of new capacity globally in 2024.
Robust Financial Position
The company finished the year with $4.3 billion of liquidity and completed nearly $27 billion in financings.
Increased Annual Distribution
Announced an over 5% increase in annual distribution to $1.492 per unit, marking 14 consecutive years of distribution growth.
Lowlights
Weaker Public Market Sentiment
The renewable sector has traded down in public markets due to weaker sentiment stemming from potential policy changes and executive orders from the new US administration.
Exposure to Regulatory Changes
Potential regulatory changes in the US could affect the renewable sector, although the company believes the impact on their business will be limited.
Weaker Hydrology in North America
Hydroelectric business faced weaker hydrology in North America, although this was offset by strong performance in Colombia.
Company Guidance
During the Brookfield Renewable Partners Fourth Quarter 2024 Results Conference Call, the company outlined its strong performance metrics and strategic outlook. They achieved a record year with a 10% growth in Funds from Operations (FFO) per unit year-on-year and invested $12.5 billion, surpassing capital deployment targets. The company signed contracts for nearly 19,000 gigawatt hours per year of generation, and their landmark agreement with Microsoft aims to deliver 10.5 gigawatts of renewable energy between 2026 and 2030. Brookfield achieved a record $2.8 billion in asset rotation proceeds at a 25% internal rate of return (IRR) and a 2.5x multiple on invested capital. They finished the year with $4.3 billion in liquidity and announced a 5% increase in their annual distribution to $1.492 per unit, marking the 14th consecutive year of at least 5% annual distribution growth. The company expects to maintain momentum in 2025, leveraging its 200,000-megawatt development pipeline and strong balance sheet to capitalize on favorable market conditions.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.