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Brookfield Renewable (BEPC)
NYSE:BEPC
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Brookfield Renewable
(NYSE:BEPC)
Rating:48Neutral
Price Target:
$33.00
▼(-2.71% Downside)
Brookfield Renewable (BEPC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$6.00B
Dividend Yield4.35%
Average Volume (3M)813.42K
Price to Earnings (P/E)32.7
Beta (1Y)0.91
Revenue Growth12.46%
EPS Growth-388.89%
CountryUS
Employees2,416
SectorUtilities
Sector Strength56
IndustryRenewable Utilities
Share Statistics
EPS (TTM)-0.49
Shares Outstanding144,885,600
10 Day Avg. Volume831,337
30 Day Avg. Volume813,424
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap0.00
Enterprise Value/Revenue0.00
Enterprise Value/Gross Profit0.00
Enterprise Value/Ebitda0.00
Forecast
1Y Price Target
$36.33Price Target Upside7.10% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
Brookfield Renewable Business Overview & Revenue Model
Company DescriptionBrookfield Renewable (BEPC) is a global leader in renewable power and energy transition solutions. The company operates one of the world's largest publicly traded renewable power platforms, with a diverse portfolio of hydroelectric, wind, solar, and storage facilities across North America, South America, Europe, and Asia. Brookfield Renewable's core services include the development, operation, and management of renewable energy projects, focusing on sustainable and long-term value creation for its stakeholders.
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: |
Next Earnings Date:May 02, 2025
Earnings Call Sentiment Positive
The earnings call presented a strong financial performance with significant growth in renewable projects and strategic acquisitions. However, recent tariffs have negatively impacted market sentiment and could potentially affect project costs, though the company feels well-positioned to navigate these challenges.Q1-2025 Updates
Positive Updates
Strong Financial Performance
FFO per unit increased by 15% year-over-year, and on an all-in basis, it increased by 7% year-over-year. The company delivered funds from operations of $315 million or $0.48 per unit.
Significant Progress with Renewable Projects
The company commissioned approximately 800 megawatts of renewable energy capacity in the quarter and expects to bring approximately 8 gigawatts online in 2025.
Strategic Acquisitions
Brookfield completed the privatization of Neoen and reached an agreement to acquire National Grid Renewables, deploying $4.6 billion or $500 million net to Brookfield Renewable.
Positive Outlook for Hydro Segment
Hydroelectric segment continues to benefit from favorable all-in pricing with strong demand for clean power and a healthy snowpack and reservoir levels near long-term average.
Negative Updates
Impact of Tariffs on Market Sentiment
Recent tariffs have led to lower public market valuations for renewable energy companies, despite strong fundamentals for energy demand.
Potential Permit Delays in the U.S.
There are still some delays in the receipt of federal permits for certain projects in the U.S., though it's noted that this is expected to have a minimal impact.
Company Guidance
In the first quarter of 2025, Brookfield Renewables reported robust financial performance with funds from operations (FFO) of $315 million or $0.48 per unit, reflecting a 15% year-over-year increase when adjusting for strong hydro generation in the prior year, and a 7% increase on an all-in basis. The company highlighted its progress in securing contracts to deliver an additional 4,500 gigawatt-hours per year of generation and its successful commissioning of approximately 800 megawatts of renewable energy capacity. Brookfield also emphasized its strategic moves, including the privatization of Neoen and an agreement to acquire National Grid Renewables, committing or deploying $4.6 billion in investments. Despite market volatility and tariffs, the company remains optimistic about achieving its growth and return targets, supported by a diversified global platform and strong supplier relationships.Brookfield Renewable Financial Statement Overview
Summary
Brookfield Renewable is experiencing revenue growth but faces significant challenges in profitability and financial stability. High leverage and negative profitability margins are major concerns. While there are some improvements in cash flow, the overall financial health of the company is under pressure.Income Statement
Brookfield Renewable's income statement shows mixed results. The TTM data indicates a revenue growth rate of 8.37%, which is positive. However, the company is experiencing significant challenges with profitability, as evidenced by a negative net profit margin of -43.72% and a negative EBIT margin of -28.32%. These figures suggest that despite revenue growth, the company is struggling to convert sales into profits, which is a concern for long-term sustainability.45
Neutral
Balance Sheet
The balance sheet reveals high financial leverage, with a debt-to-equity ratio of 124.04 in the TTM period, indicating a heavy reliance on debt financing. This is a potential risk, especially given the negative return on equity of -95.21%, which suggests that the company is not generating sufficient returns on shareholders' equity. The equity ratio is also low, highlighting a weak capital structure.30
Negative
Cash Flow
Cash flow analysis shows some areas of concern. The TTM free cash flow is negative, and the free cash flow to net income ratio is -1.51, indicating that the company is not generating positive cash flow relative to its net income. However, there is a positive free cash flow growth rate of 65.90%, suggesting some improvement in cash flow generation. The operating cash flow to net income ratio is low at 0.02, which further emphasizes cash flow challenges.40
Negative
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 4.25B | 4.14B | 3.97B | 3.78B | 3.43B | 3.09B |
| Gross Profit | 2.09B | 2.38B | 2.50B | 2.60B | 2.24B | 2.03B |
| EBITDA | 149.35M | 3.53B | 3.00B | 2.44B | 2.07B | -1.35B |
| Net Income | -1.86B | 236.00M | -181.00M | 1.50B | 946.00M | -2.74B |
Balance Sheet | ||||||
| Total Assets | 62.81B | 44.13B | 49.42B | 43.29B | 41.99B | 39.47B |
| Cash, Cash Equivalents and Short-Term Investments | 800.96M | 392.00M | 627.00M | 929.50M | 702.31M | 355.00M |
| Total Debt | 19.63B | 14.09B | 16.57B | 14.08B | 13.88B | 13.21B |
| Total Liabilities | 48.14B | 32.02B | 32.29B | 26.46B | 27.76B | 27.75B |
| Stockholders Equity | 158.28M | 1.34B | 5.79B | 5.87B | 3.67B | 1.18B |
Cash Flow | ||||||
| Free Cash Flow | -685.15M | -400.00M | 575.00M | 437.00M | -959.00M | 619.00M |
| Operating Cash Flow | 455.05M | 549.00M | 1.60B | 1.28B | 395.00M | 992.00M |
| Investing Cash Flow | -462.94M | -665.00M | -1.02B | -738.00M | -984.00M | -478.00M |
| Financing Cash Flow | -90.23M | 192.00M | -636.00M | -402.00M | 678.00M | -475.00M |
Brookfield Renewable Technical Analysis
Positive
33.92
Price Trends
33.96
Negative
31.55
Positive
29.34
Positive
Market Momentum
-0.07
Negative
53.23
Neutral
38.49
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 33.92 is above the 20-day moving average (MA) of 33.36, below the 50-day MA of 33.96, and above the 200-day MA of 29.34, indicating a neutral trend. The MACD of -0.07 indicates Negative momentum. The RSI at 53.23 is Neutral, neither overbought nor oversold. The STOCH value of 38.49 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 5 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 3 New Risks
1.
Dividends on BEPC exchangeable shares (2) Q4, 2024
2.
Remeasurement of BEPC exchangeable and BEPC class B shares Q4, 2024
3.
Interest expense (2) Q4, 2024
Brookfield Renewable Peers Comparison
Overall Rating
UnderperformOutperform
Sector (66)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
70 Outperform | $5.50B | 41.99 | 5.40% | 0.53% | 2.23% | -0.82% | |
67 Neutral | $2.83B | 25.38 | 8.27% | ― | 33.19% | 486.74% | |
66 Neutral | $17.06B | 17.77 | 5.60% | 3.68% | 6.63% | 11.55% | |
63 Neutral | $5.75B | 44.52 | 3.80% | 6.06% | -0.27% | -16.25% | |
61 Neutral | $5.69B | 41.83 | 3.80% | 6.39% | -0.27% | -16.25% | |
48 Neutral | $6.00B | 32.67 | -63.28% | 4.35% | 12.46% | -388.89% | |
42 Neutral | $9.67B | ― | -29.93% | ― | 305.08% | -17.22% |
* Utilities Sector Average
Performance Comparison
BEPC
Brookfield Renewable
33.92
6.22
22.45%
ORA
Ormat Techno
90.26
17.01
23.22%
CWEN
Clearway Energy
28.72
2.02
7.57%
CWEN.A
Clearway Energy
27.22
2.61
10.61%
SMR
NuScale Power
35.34
26.60
304.35%
RNW
ReNew Energy Global
7.65
1.41
22.60%
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.