Brookfield Renewable Partners (BEP.UN) AI Stock Analysis

• Market Cap: C$19.41B
• Dividend Yield: 6.98%
• Average Volume (3M): 389.42K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.98
• Revenue Growth: 22.01%
• EPS Growth: -183.73%
• Country: CA
• Employees: 5,270
• Sector: Utilities
• Sector Strength: 92
• Industry: Renewable Utilities
• EPS (TTM): -1.22
• Shares Outstanding: 284,915,600
• 10 Day Avg. Volume: 325,911
• 30 Day Avg. Volume: 389,418
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 2.59
• Price to Cash Flow (P/CF): 11.50
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: C$43.48
• Price Target Upside: 48.49% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 9

Brookfield Renewable Partners demonstrates strong operational capabilities and strategic planning, as evidenced by revenue growth and recent corporate initiatives like green bond issuance. However, significant financial risks, including negative net income and high leverage, weigh heavily on the stock's overall score. While the high dividend yield offers some investor appeal, the stock's technical indicators and valuation metrics suggest caution. Overall, the company needs to address its financial structure and profitability to improve its stock performance.

Positive Factors

Financial Strategy

BEP has a deep pool of capital, which helps to support its investment strategy without the need for equity issuance.

Growth and Development

Management reiterates FFO per unit growth of 10%, with a robust outlook supported by a development pipeline to bring 7GW in new capacity.

Renewable Energy Expansion

Renewable demand outlook remains robust with BEP’s 10.5GW Microsoft renewable built-out agreement exceeding expectations.

Negative Factors

Interest Rate Risks

Key risks include rising interest rates, with BEP’s high leverage and a relatively low EBITDA interest coverage of 2.4x, which is below peers’ median of 4.6x.

Storage Competitiveness

Storage is still a long way from being able to compete with nuclear baseload, and project risks associated with greenfield renewables are less able to contract at such a large premium.

Brookfield Renewable Partners Business Overview & Revenue Model

Company Description

Brookfield Renewable Partners (BEP.UN) is a global leader in renewable power, owning and operating a diverse portfolio of renewable energy assets across North America, South America, Europe, and Asia. The company primarily focuses on hydroelectric, wind, solar, and energy storage facilities, with a commitment to providing sustainable energy solutions. Brookfield Renewable Partners is part of Brookfield Asset Management, a leading global alternative asset manager.

How the Company Makes Money

Brookfield Renewable Partners generates revenue through the sale of electricity produced by its renewable energy assets. The company enters into long-term power purchase agreements (PPAs) with utilities, governments, and corporations, ensuring stable and predictable cash flows. Additionally, BEP.UN benefits from government incentives for renewable energy generation and participates in energy trading markets. The company's earnings are also influenced by its strategic investments and acquisitions aimed at expanding its renewable infrastructure and optimizing its asset portfolio. Brookfield Renewable Partners leverages its global scale and operational expertise to enhance the efficiency and profitability of its renewable energy assets.

Brookfield Renewable Partners Financial Statement Overview

Summary

Brookfield Renewable Partners shows revenue growth and operational efficiency but faces challenges with profitability and financial leverage. The negative net income and absence of stockholders' equity highlight significant financial risks. Positive operational cash flows and strategic investments may support future performance, yet the current financial instability and high leverage are concerns. Sustainable profitability improvements and capital structure rebalancing are crucial for long-term success.

Income Statement

The company's revenue has shown growth, with the TTM total revenue rising by 16.6% compared to the previous year. However, the net income has been negative for the TTM, indicating challenges in profitability. The gross profit margin for the TTM is 56.1%, showing a strong ability to cover production costs, but the net profit margin is negative at -3.7%, reflecting issues in managing other expenses. The EBIT margin for the TTM is 5.9%, and the EBITDA margin is robust at 60.6%, suggesting operational efficiency but potential concerns in financial or other non-operational areas.

Balance Sheet

The balance sheet reveals a significantly high leverage with a debt-to-equity ratio being undefined due to zero stockholders' equity for the TTM, a potential risk. The equity ratio is 0% for the TTM due to the same reason. The return on equity is not meaningful due to negative net income and zero equity, indicating financial instability. Although total assets have grown, the lack of equity presents a structural risk.

Cash Flow

Brookfield Renewable Partners exhibits a decline in free cash flow, which is negative for the TTM. However, the operating cash flow remains positive at $1.274 billion, suggesting operational stability. The operating cash flow to net income ratio is not useful due to negative net income, while free cash flow to net income is also not applicable in this scenario. The significant investment in capital expenditures could be a strategic move for future growth but currently pressures cash flow.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
5.88B	5.04B	4.71B	4.10B	3.81B
	Gross Profit
3.30B	3.10B	3.28B	2.73B	2.54B
	EBIT
0.00	2.90B	1.49B	836.00M	657.00M
	EBITDA
3.80B	4.06B	2.96B	2.44B	2.16B
	Net Income Common Stockholders
-218.00M	-50.00M	138.00M	-66.00M	-45.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
3.20B	1.36B	998.00M	764.00M	431.00M
	Total Assets
94.81B	76.13B	64.08B	55.87B	49.72B
	Total Debt
35.55B	30.47B	27.48B	21.99B	18.08B
	Net Debt
32.72B	29.58B	26.48B	21.23B	17.65B
	Total Liabilities
58.35B	46.15B	37.80B	31.87B	27.95B
	Stockholders Equity
0.00	10.53B	26.29B	24.00B	21.77B
Cash Flow		Free Cash Flow
-2.46B	-944.00M	-478.00M	-1.23B	849.00M
	Operating Cash Flow
1.27B	1.86B	1.71B	734.00M	1.30B
	Investing Cash Flow
-6.80B	-4.36B	-5.07B	-2.50B	-426.00M
	Financing Cash Flow
7.65B	2.60B	3.49B	2.14B	-792.00M

Brookfield Renewable Partners Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 29.28
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:BEP.UN, the sentiment is Negative. The current price of 29.28 is below the 20-day moving average (MA) of 32.65, below the 50-day MA of 31.89, and below the 200-day MA of 33.16, indicating a bearish trend. The MACD of 0.10 indicates Positive momentum. The RSI at 43.88 is Neutral, neither overbought nor oversold. The STOCH value of 8.73 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:BEP.UN.

Brookfield Renewable Partners Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FTS	73 Outperform	$32.96B	20.26	7.47%	3.75%	-0.08%	4.76%
NPI	73 Outperform	$4.84B	17.98	6.48%	6.61%	5.08%	―
INE	70 Outperform	C$2.73B	265.29	1.44%	2.68%	2.60%	―
Sector *	65 Neutral	$11.67B	15.52	6.23%	4.52%	5.50%	-9.06%
BLX	64 Neutral	C$2.66B	74.02	2.23%	2.54%	-16.54%	-53.85%
AQN	51 Neutral	$5.29B	―	1.65%	7.19%	-6.72%	-6766.85%
BEP.UN	47 Neutral	C$19.41B	―	-4.87%	6.98%	22.01%	-183.73%

Brookfield Renewable Partners Corporate Events

Brookfield Renewable Sets Dividend Rates for Series 1 and 2 Preference Shares

Brookfield Renewable Partners announced the fixed and floating dividend rates for its Series 1 and Series 2 Class A Preference Shares. The Series 1 Shares will have a fixed annual dividend rate of 5.203% for five years starting May 1, 2025, while the Series 2 Shares will have a floating rate based on the yield of three-month Canadian treasury bills plus 2.62%. Shareholders have the option to convert between the two series under certain conditions. This announcement provides clarity on returns for investors and highlights the company’s strategic financial planning.

Brookfield Renewable to Issue C$450 Million in Green Bonds

Brookfield Renewable announced the issuance of C$450 million in green bonds, due in 2035, with a 4.542% interest rate. The proceeds will fund eligible investments under their Green Financing Framework, enhancing their position in sustainable finance. The bonds, rated BBB+ by major agencies, are part of Brookfield’s ongoing commitment to renewable energy and sustainable solutions, potentially impacting stakeholders by reinforcing the company’s financial strategy and market presence.