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Brookfield Renewable (BEPC)
NYSE:BEPC
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Brookfield Renewable
(NYSE:BEPC)
Rating:56Neutral
Price Target:
$30.00
▲(2.08%Upside)
Brookfield Renewable (BEPC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$5.28B
Dividend Yield4.96%
Average Volume (3M)826.89K
Price to Earnings (P/E)32.7
Beta (1Y)0.86
Revenue Growth1.01%
EPS Growth-110.78%
CountryUS
Employees2,416
SectorUtilities
Sector Strength89
IndustryRenewable Utilities
Share Statistics
EPS (TTM)-0.49
Shares Outstanding144,885,800
10 Day Avg. Volume771,124
30 Day Avg. Volume826,886
Financial Highlights & Ratios
PEG Ratio0.08
Price to Book (P/B)2.81
Price to Sales (P/S)0.00
P/FCF Ratio-9.76
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$33.00Price Target Upside12.28% 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 Earnings Call Summary
Earnings Call Date:Jan 31, 2025
(Q1-2025)
| % Change Since: 3.78%|
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 | ||||
| 668.00M | 392.00M | 627.00M | 642.00M | 410.00M | 355.00M | Total Assets |
| 44.24B | 44.13B | 49.42B | 43.29B | 41.99B | 39.47B | Total Debt |
| 14.52B | 14.09B | 16.57B | 15.14B | 13.51B | 12.82B | Net Debt |
| 13.85B | 13.70B | 16.13B | 14.50B | 13.10B | 12.47B | Total Liabilities |
| 28.22B | 32.02B | 32.29B | 26.46B | 27.76B | 27.75B | Stockholders Equity |
| 6.09B | 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
29.39
Price Trends
27.80
Positive
27.20
Positive
28.18
Positive
Market Momentum
0.38
Positive
53.72
Neutral
51.75
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 29.39 is above the 20-day moving average (MA) of 28.68, above the 50-day MA of 27.80, and above the 200-day MA of 28.18, indicating a bullish trend. The MACD of 0.38 indicates Positive momentum. The RSI at 53.72 is Neutral, neither overbought nor oversold. The STOCH value of 51.75 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 (64)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | $6.15B | 38.44 | 4.70% | 5.47% | -1.34% | 21.62% | |
69 Neutral | $4.51B | 36.00 | 5.21% | 0.65% | 1.95% | -6.57% | |
68 Neutral | $6.15B | 36.04 | 4.70% | 5.83% | -1.34% | 21.62% | |
65 Neutral | $2.47B | 98.41 | 2.00% | ― | -1.77% | -41.65% | |
64 Neutral | $8.60B | 10.31 | 4.70% | 4.39% | 4.14% | -13.05% | |
56 Neutral | $5.28B | 32.67 | -4.65% | 4.96% | 1.01% | -110.78% | |
42 Neutral | $9.10B | ― | -32.34% | ― | 62.41% | -85.81% |
* Utilities Sector Average
Performance Comparison
BEPC
Brookfield Renewable
28.96
-1.10
-3.66%
ORA
Ormat Techno
73.75
-1.67
-2.21%
CWEN
Clearway Energy
30.36
4.36
16.77%
CWEN.A
Clearway Energy
28.43
4.62
19.40%
SMR
NuScale Power
32.03
24.40
319.79%
RNW
ReNew Energy Global
6.75
0.64
10.47%
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.