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Brookfield Renewable (BEPC)
NYSE:BEPC
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Brookfield Renewable
(NYSE:BEPC)
Rating:60Neutral
Price Target:
$33.00
▲(2.14%Upside)
Brookfield Renewable (BEPC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$5.32B
Dividend Yield4.58%
Average Volume (3M)910.40K
Price to Earnings (P/E)32.7
Beta (1Y)0.85
Revenue Growth1.01%
EPS Growth-110.78%
CountryUS
Employees2,416
SectorUtilities
Sector Strength73
IndustryRenewable Utilities
Share Statistics
EPS (TTM)-0.49
Shares Outstanding144,885,800
10 Day Avg. Volume1,038,441
30 Day Avg. Volume910,402
Financial Highlights & Ratios
PEG Ratio0.26
Price to Book (P/B)0.89
Price to Sales (P/S)0.00
P/FCF Ratio9.00
Enterprise Value/Market Cap4.00
Enterprise Value/Revenue1.30
Enterprise Value/Gross Profit10.86
Enterprise Value/Ebitda1.55
Forecast
1Y Price Target
$33.00Price Target Upside2.14% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
Brookfield Renewable Business Overview & Revenue Model
Company DescriptionBrookfield Renewable Corporation owns and operates a portfolio of renewable energy power generating facilities primarily in the United States, Europe, Colombia, and Brazil. It operates hydroelectric, wind, and solar power plants with an installed capacity of approximately 12,723 megawatts. The company was incorporated in 2019 and is headquartered in New York, New York.
How the Company Makes MoneyBrookfield Renewable makes money primarily through the generation and sale of renewable energy. The company owns and operates hydroelectric, wind, and solar facilities, selling the electricity generated to utilities, corporations, and other power purchasers under long-term power purchase agreements (PPAs). These contracts provide a stable and predictable revenue stream. Additionally, Brookfield Renewable earns revenue from energy trading and grid services, taking advantage of fluctuations in energy prices. The company also engages in strategic partnerships and joint ventures to expand its asset portfolio and leverage its expertise in renewable energy development and management. Furthermore, Brookfield Renewable benefits from government incentives and regulatory support for renewable energy projects, contributing to its financial performance.
Brookfield Renewable Earnings Call Summary
Earnings Call Date:Jan 31, 2025
(Q1-2025)
| % Change Since: 14.09%|
Next Earnings Date:May 02, 2025
Earnings Call Sentiment Positive
The earnings call reflects a largely positive outlook for Brookfield Renewables, with strong financial performance, strategic acquisitions, and robust commercial initiatives. Despite some challenges due to tariffs and permitting delays, the company is well-positioned to leverage its global platform and capitalize on market opportunities.Q1-2025 Updates
Positive Updates
Strong Financial Performance
Funds from Operations (FFO) per unit increased by 15% year-over-year. The FFO per unit was $0.48, with an overall increase of 7% year-over-year.
Significant Growth in Renewable Energy Capacity
Commissioned approximately 800 megawatts of renewable energy capacity in Q1 and expect to bring approximately 8 gigawatts online in 2025, doubling the commissioning rate from three years ago.
Robust Commercial Initiatives
Secured contracts for an additional 4,500 gigawatt hours per year of generation. Progressed delivery of projects to Microsoft under a renewable energy framework agreement.
Strategic Acquisitions and Investments
Committed or deployed $4.6 billion, highlighted by the privatization of Neoen and the acquisition of National Grid Renewables.
Successful Capital Recycling
Closed the sale of a stake in First Hydro and part of the India portfolio, generating almost three times the invested capital and 20% investment returns.
Strong Demand for Hydro Generation
Hydroelectric segment benefits from favorable pricing, with 6,000 gigawatt hours available for recontracting over the next five years.
Solid Financial Position
Ended the quarter with $4.5 billion of available liquidity, providing flexibility for growth.
Negative Updates
Challenges Due to Tariffs
Announced tariffs on goods have led to market volatility and concern over development project returns and pace of development.
Permitting Delays in the U.S.
Federal permits for some projects on private lands are slower due to executive orders, affecting the development pipeline.
Company Guidance
In the Brookfield Renewables First Quarter 2025 Results Conference Call, the company provided optimistic guidance based on strong performance metrics. Brookfield Renewables reported a 15% increase in funds from operations (FFO) per unit, adjusted for prior-year hydro generation, and a 7% increase on an all-in basis compared to the previous year. The company highlighted its successful commissioning of approximately 800 megawatts of renewable energy capacity in the quarter and expects to bring approximately 8 gigawatts online in 2025. Brookfield also secured contracts for an additional 4,500 gigawatt hours of annual generation, demonstrating robust demand. The company is positioned to capitalize on lower public market valuations for renewables, having committed or deployed $4.6 billion during the quarter, including the privatization of Neoen and National Grid Renewables. Additionally, Brookfield Renewables maintains a strong liquidity position with $4.5 billion in available resources, emphasizing its ability to pursue growth and deliver 12% to 15% long-term total returns to investors.Brookfield Renewable Financial Statement Overview
Summary
Brookfield Renewable shows operational strengths with robust gross profit and EBITDA margins, but it faces profitability challenges with negative net income. High leverage and low equity ratios highlight financial risk, while negative free cash flow underscores liquidity concerns. The company must address these financial pressures to enhance overall stability and growth prospects.Income Statement
The income statement reveals mixed results. The TTM (Trailing-Twelve-Months) gross profit margin is approximately 49.98%, indicating strong profitability from operations. However, the net profit margin is negative due to a net loss, suggesting profitability challenges. Revenue growth has been inconsistent, showing a decline in the most recent TTM period compared to the previous year. EBITDA margin remains robust, reflecting effective cost management despite revenue pressures.45
Neutral
Balance Sheet
The balance sheet indicates a high debt-to-equity ratio of approximately 9.83, reflecting significant leverage. The equity ratio is low at 3.19%, suggesting a heavy reliance on debt financing. Return on equity is negative due to net losses, posing concerns over shareholder value creation. However, the company maintains substantial total assets, which could support future growth if profitability improves.50
Neutral
Cash Flow
Cash flow analysis shows challenges with negative free cash flow in the TTM period, indicating cash outflows exceeding operational cash inflows. The operating cash flow to net income ratio is unfavorable due to net losses. Additionally, the free cash flow to net income ratio reinforces liquidity concerns. Positive operating cash flow suggests underlying operational strength, but capital expenditures remain high.40
Negative
| Breakdown | |||||
| TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 3.92B | 4.14B | 3.97B | 3.78B | 3.37B | 3.09B | Gross Profit |
| 1.96B | 2.38B | 177.08M | 2.60B | 2.18B | 2.03B | EBIT |
| 941.00M | 1.01B | 313.00M | 3.07B | 1.94B | -2.15B | EBITDA |
| 4.08B | 3.53B | 3.00B | 5.43B | 3.80B | -1.35B | Net Income Common Stockholders |
| -250.00M | 236.00M | -181.00M | 1.50B | 946.00M | -2.82B |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 355.00M | 392.00M | 627.00M | 642.00M | 410.00M | 355.00M | Total Assets |
| 39.47B | 44.13B | 49.42B | 43.29B | 41.99B | 39.47B | Total Debt |
| 12.82B | 14.09B | 16.57B | 15.14B | 13.51B | 12.82B | Net Debt |
| 12.47B | 13.70B | 16.13B | 14.50B | 13.10B | 12.47B | Total Liabilities |
| 27.75B | 32.02B | 32.29B | 26.46B | 27.76B | 27.75B | Stockholders Equity |
| 1.18B | 1.34B | 5.79B | 5.87B | 3.67B | 1.18B |
| Cash Flow | Free Cash Flow | ||||
| -413.00M | -400.00M | 575.00M | 437.00M | -959.00M | 619.00M | Operating Cash Flow |
| 402.00M | 549.00M | 1.60B | 1.28B | 395.00M | 992.00M | Investing Cash Flow |
| -546.00M | -665.00M | -1.02B | -738.00M | -984.00M | -478.00M | Financing Cash Flow |
| 116.00M | 192.00M | -636.00M | -402.00M | 678.00M | -475.00M |
Brookfield Renewable Technical Analysis
Positive
32.31
Price Trends
28.08
Positive
27.46
Positive
28.29
Positive
Market Momentum
0.79
Negative
68.68
Neutral
78.36
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 32.31 is above the 20-day moving average (MA) of 29.51, above the 50-day MA of 28.08, and above the 200-day MA of 28.29, indicating a bullish trend. The MACD of 0.79 indicates Negative momentum. The RSI at 68.68 is Neutral, neither overbought nor oversold. The STOCH value of 78.36 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 (64)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | $6.12B | 38.22 | 4.70% | 5.52% | -1.34% | 21.62% | |
69 Neutral | $4.72B | 37.67 | 5.21% | 0.62% | 1.95% | -6.57% | |
68 Neutral | $6.12B | 35.97 | 4.70% | 5.86% | -1.34% | 21.62% | |
65 Neutral | $2.54B | 101.16 | 2.00% | ― | -1.77% | -41.65% | |
64 Neutral | $8.52B | 10.39 | 4.24% | 4.38% | 4.14% | -13.04% | |
60 Neutral | $5.32B | 32.67 | -4.65% | 4.58% | 1.01% | -110.78% | |
42 Neutral | $9.77B | ― | -32.34% | ― | 62.41% | -85.81% |
* Utilities Sector Average
Performance Comparison
BEPC
Brookfield Renewable
32.31
3.06
10.46%
ORA
Ormat Techno
79.00
4.04
5.39%
CWEN
Clearway Energy
30.59
5.12
20.10%
CWEN.A
Clearway Energy
28.79
5.64
24.36%
SMR
NuScale Power
34.55
26.10
308.88%
RNW
ReNew Energy Global
7.00
0.70
11.11%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.