Brookfield Renewable (BEPC) AI Stock Analysis

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Brookfield Renewable

(NYSE:BEPC)

70Outperform

Brookfield Renewable Partners shows strong financial performance and strategic initiatives, supported by robust liquidity and growth prospects. The stock's upward technical momentum and attractive dividend yield are positive, but high leverage and potential overvaluation are concerns. Regulatory uncertainties and market sentiment pose risks, but the company remains optimistic about future growth.

Brookfield Renewable (BEPC) vs. S&P 500 (SPY)

Market Cap

$9.03B

Dividend Yield5.4%

Average Volume (3M)1.21M

Price to Earnings (P/E)30.8

Beta (1Y)0.89

Revenue Growth-8.26%

EPS GrowthN/A

CountryUS

Employees2,416

SectorUtilities

Sector Strength88

IndustryRenewable Utilities

Share Statistics

EPS (TTM)0.79

Shares Outstanding144,887,340

10 Day Avg. Volume1,714,312

30 Day Avg. Volume1,211,942

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)2.40

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

$33.25

Price Target Upside24.91% Upside

Rating ConsensusStrong Buy

Number of Analyst Covering4

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 shows robust revenue growth and improved profitability, with challenges in operational margins and high leverage. The substantial debt necessitates careful management, and while cash flow from operations remains strong, declining free cash flow signals potential cash management issues.

Income Statement

Positive

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.

Balance Sheet

Neutral

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.

Cash Flow

Positive

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.

Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
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

Technical Analysis Sentiment

Negative

Last Price26.62

Price Trends

50DMA

27.54

Negative

100DMA

27.87

Negative

200DMA

28.40

Negative

Market Momentum

MACD

0.22

Positive

RSI

54.40

Neutral

STOCH

26.73

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BEPC, the sentiment is Negative. The current price of 26.62 is below the 20-day moving average (MA) of 27.83, below the 50-day MA of 27.54, and below the 200-day MA of 28.40, indicating a bearish trend. The MACD of 0.22 indicates Positive momentum. The RSI at 54.40 is Neutral, neither overbought nor oversold. The STOCH value of 26.73 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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
CWEN.A	74 Outperform	$5.61B	35.17	4.23%	6.74%	1.15%	10.99%
CWEN	73 Outperform	$5.47B	36.66	4.23%	6.00%	1.15%	10.99%
BEPC	70 Outperform	$9.03B	30.80	6.15%	5.40%	-8.26%	―
ORA	66 Neutral	$4.21B	34.12	5.22%	0.72%	6.06%	-2.21%
Sector *	65 Neutral	$11.78B	15.57	6.20%	4.58%	5.53%	-8.93%
RNW	62 Neutral	$2.15B	85.55	2.00%	―	-1.77%	-41.65%
SMR	46 Neutral	$4.56B	―	-38.37%	―	62.41%	-85.81%

* Utilities Sector Average

Performance Comparison

BEPC

Brookfield Renewable

25.93

3.84

17.38%

ORA

Ormat Techno

68.53

2.88

4.39%

CWEN

Clearway Energy

27.55

5.39

24.32%

CWEN.A

Clearway Energy

25.81

5.26

25.60%

SMR

NuScale Power

14.85

9.53

179.14%

RNW

ReNew Energy Global

5.79

-0.06

-1.03%

Brookfield Renewable Earnings Call Summary

Earnings Call Date: Jan 31, 2025 | % Change Since: 5.76% | 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.