Brookfield Renewable Partners (BEP.UN) AI Stock Analysis

• Market Cap: $22.86B
• Dividend Yield: 5.75%
• Average Volume (3M): 273.59K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.13
• Revenue Growth: 20.05%
• EPS Growth: -54.69%
• Country: CA
• Employees: 5,270
• Sector: Utilities
• Sector Strength: 78
• Industry: Renewable Utilities
• EPS (TTM): -0.30
• Shares Outstanding: 283,832,180
• 10 Day Avg. Volume: 298,769
• 30 Day Avg. Volume: 273,593
• PEG Ratio: -0.17
• Price to Book (P/B): 0.67
• Price to Sales (P/S): 1.11
• P/FCF Ratio: -2.64
• Enterprise Value/Market Cap: 4.33
• Enterprise Value/Revenue: 16.02
• Enterprise Value/Gross Profit: 28.49
• Enterprise Value/Ebitda: 24.34
• 1Y Price Target: $41.42
• Price Target Upside: 20.28% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 16

• Rating: 55 Neutral
• Price Target: C$35.00 ▲(1.63% Upside)

Brookfield Renewable Partners has a mixed outlook. The most significant factor is the financial performance, which is hindered by high leverage and profitability issues. The technical analysis indicates bearish momentum. However, the positive earnings call and strategic positioning in the renewable sector provide some optimism. The attractive dividend yield is a notable positive for income investors.

Positive Factors

Capital and Portfolio Strength

Brookfield Renewable Energy Partners is recognized as a best-in-class renewable player supported by a deep pool of capital and high-quality cash yields.

Earnings Outlook

Earnings outlook remains constructive, with more than 10% FFO per unit growth targeted despite macroeconomic volatility.

Renewable Demand

Demand for renewables remains robust, with large tech company demand accelerating, and BEP indicated its confidence in potentially announcing another agreement.

Negative Factors

Interest Rates and Leverage

Key risks include rising interest rates, with BEP’s high leverage and relatively low EBITDA interest coverage.

Market Performance

BEP shares fell, reflecting market underperformance and concerns about future growth in FFO/share and acquisition integrations.

Brookfield Renewable Partners Business Overview & Revenue Model

Company Description

Brookfield Renewable Partners L.P. owns a portfolio of renewable power generating facilities primarily in North America, Colombia, Brazil, Europe, India, and China. The company generates electricity through hydroelectric, wind, solar, distributed generation, pumped storage, cogeneration, and biomass sources. Its portfolio consists of approximately 21,000 megawatts of installed capacity. Brookfield Renewable Partners Limited operates as the general partner of Brookfield Renewable Partners L.P. The company was formerly known as Brookfield Renewable Energy Partners L.P. and changed its name to Brookfield Renewable Partners L.P. in May 2016. Brookfield Renewable Partners L.P. was founded in 1999 and is headquartered in Hamilton, Bermuda.

How the Company Makes Money

Brookfield Renewable Partners generates revenue primarily through the sale of electricity produced by its renewable energy facilities. The company has long-term power purchase agreements (PPAs) with utilities and other customers, providing it with stable cash flows. Additionally, Brookfield Renewable earns revenue from the operation and maintenance of its renewable energy assets. Its diverse portfolio allows for risk mitigation and capitalizes on various regional energy markets. Strategic partnerships with local governments and energy companies further enhance its market position and revenue potential, as they often secure favorable contracts and access to additional resources.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	6.17B	5.88B	5.04B	4.71B	4.04B	3.81B
Gross Profit	3.47B	3.30B	1.17B	3.28B	2.73B	2.54B
EBITDA	4.06B	3.80B	3.94B	2.96B	2.44B	2.16B
Net Income	-239.00M	-218.00M	-50.00M	-122.00M	-134.80M	-130.00M
Balance Sheet
Total Assets	98.60B	94.81B	76.13B	64.08B	55.87B	49.72B
Cash, Cash Equivalents and Short-Term Investments	2.12B	3.20B	1.09B	998.00M	764.00M	431.00M
Total Debt	37.81B	35.55B	30.47B	27.48B	21.99B	18.08B
Total Liabilities	65.27B	58.35B	46.15B	37.80B	31.87B	27.95B
Stockholders Equity	3.97B	9.75B	4.70B	26.29B	24.00B	21.77B
Cash Flow
Free Cash Flow	-3.61B	-2.46B	-944.00M	-478.00M	-1.23B	849.00M
Operating Cash Flow	1.49B	1.27B	1.86B	1.71B	734.00M	1.30B
Investing Cash Flow	-10.92B	-6.80B	-2.05B	-5.07B	-2.50B	-426.00M
Financing Cash Flow	10.09B	7.65B	2.60B	3.49B	2.14B	-792.00M

Brookfield Renewable Partners Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 34.44
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:BEP.UN, the sentiment is Neutral. The current price of 34.44 is below the 20-day moving average (MA) of 35.43, below the 50-day MA of 35.58, and above the 200-day MA of 32.80, indicating a neutral trend. The MACD of -0.49 indicates Positive momentum. The RSI at 43.69 is Neutral, neither overbought nor oversold. The STOCH value of 57.05 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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
INE	72 Outperform		―		―	0.97%	―
Sector *	67 Neutral	$17.69B	18.14	5.29%	3.53%	7.33%	12.21%
PIF	61 Neutral	C$263.64M	59.81	-4.34%	6.52%	4.98%	-244.98%
BEP.UN	55 Neutral	$22.86B	―	-5.97%	5.75%	20.05%	-54.69%
BLX	54 Neutral	C$3.12B	271.12	-0.61%	2.22%	-13.45%	-112.19%
AQN	―	$4.46B	―	1.50%	4.47%	―	―
NPIFF	―	$4.21B	22.35	-1.19%	5.37%	―	―

Brookfield Renewable Partners Corporate Events

Brookfield Renewable Expands Stake in Colombian Hydro Assets

Brookfield Renewable has announced a significant investment of up to $1 billion to increase its stake in Isagen, a major hydro asset operator in Colombia, to approximately 38%. This strategic move is expected to enhance Brookfield’s cash flow from its hydro portfolio and is anticipated to be accretive to its funds from operations. The transaction, which also includes a $500 million investment from Qatar Investment Authority, underscores Brookfield’s commitment to renewable energy and supports Colombia’s power grid reliability.

The most recent analyst rating on ($TSE:BEP.UN) stock is a Buy with a C$31.00 price target. To see the full list of analyst forecasts on Brookfield Renewable Partners stock, see the TSE:BEP.UN Stock Forecast page.

Brookfield Renewable Issues C$250 Million in Green Hybrid Notes

Brookfield Renewable announced the issuance of C$250 million in Green Subordinated Hybrid Notes, which will bear interest at a fixed rate and reset every five years. This marks the company’s seventeenth green securities issuance in North America and aligns with its 2024 Green Financing Framework, with proceeds intended for eligible investments, including debt repayment.

The most recent analyst rating on ($TSE:BEP.UN) stock is a Buy with a C$31.00 price target. To see the full list of analyst forecasts on Brookfield Renewable Partners stock, see the TSE:BEP.UN Stock Forecast page.