Brookfield Renewable Partners (BEP.UN) AI Stock Analysis

• Market Cap: $26.55B
• Dividend Yield: 5.29%
• Average Volume (3M): 332.44K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.00
• Revenue Growth: 14.78%
• EPS Growth: -9.37%
• Country: CA
• Employees: 5,270
• Sector: Utilities
• Sector Strength: 65
• Industry: Renewable Utilities
• EPS (TTM): -0.32
• Shares Outstanding: 298,954,400
• 10 Day Avg. Volume: 335,379
• 30 Day Avg. Volume: 332,443
• PEG Ratio: -0.17
• Price to Book (P/B): 1.53
• Price to Sales (P/S): 1.11
• P/FCF Ratio: -2.78
• Enterprise Value/Market Cap: 3.70
• Enterprise Value/Revenue: 15.61
• Enterprise Value/Gross Profit: 28.09
• Enterprise Value/Ebitda: 23.05
• 1Y Price Target: $48.00
• Price Target Upside: 22.39% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 12
• EPS Forecast (FY): 0.22
• Revenue Forecast (FY): $9.25B

• Rating: 56 Neutral
• Price Target: C$41.00 ▲(4.54% Upside)

Brookfield Renewable Partners' overall score reflects solid strategic initiatives and partnerships, particularly in nuclear expansion, which are positive for long-term growth. However, financial challenges, including high leverage and negative profitability, weigh heavily on the score. The technical indicators suggest weak momentum, and valuation concerns persist due to negative earnings, despite a strong dividend yield.

Positive Factors

Strategic Partnership

This partnership positions Brookfield Renewable Partners to capitalize on nuclear energy expansion, enhancing its market position and diversifying its energy portfolio, which could lead to long-term growth and stability.

Revenue Growth

Consistent growth in funds from operations indicates strong operational performance and ability to generate cash, supporting sustainable business expansion and shareholder returns.

Hydroelectric Segment Growth

The significant growth in the hydroelectric segment underscores the company's strength in renewable energy generation, contributing to stable cash flows and reinforcing its competitive advantage in the sector.

Negative Factors

High Leverage

High leverage can increase financial risk, limiting flexibility and potentially impacting the company's ability to invest in new opportunities or weather economic downturns.

Negative Profitability

Persistent unprofitability may hinder the company's ability to reinvest in growth initiatives and could challenge its long-term financial health and shareholder value.

Cash Flow Challenges

Weak cash flow generation limits the company's ability to fund operations and growth internally, potentially necessitating additional debt or equity financing, which could dilute shareholder value.

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 from its renewable energy assets. The company operates long-term power purchase agreements (PPAs) with utilities and corporations, which provide stable cash flows by locking in prices for power sold over extended periods. Key revenue streams include hydroelectric power generation, onshore and offshore wind projects, and solar energy installations. Additionally, BEP.UN benefits from government incentives and renewable energy credits that enhance profitability. The company also engages in strategic partnerships and joint ventures to expand its asset base and market reach, further contributing to its earnings.

Brookfield Renewable Partners Financial Statement Overview

Summary

Brookfield Renewable Partners shows solid revenue growth and operational efficiency, with strong EBITDA margins. However, it faces significant challenges with profitability and cash flow management. The high leverage and negative returns on equity highlight potential financial stability risks.

Income Statement

Brookfield Renewable Partners shows a steady revenue growth trajectory with a TTM revenue growth rate of 1.96%. However, the company is struggling with profitability, as indicated by a negative net profit margin of -3.87% in the TTM. The gross profit margin remains healthy at 56.24%, and the EBIT margin is stable at 30.61%, suggesting operational efficiency. The EBITDA margin is strong at 65.97%, indicating good cash flow generation from operations.

Balance Sheet

The company has a high debt-to-equity ratio of 9.54 in the TTM, reflecting significant leverage, which could pose financial risks. The return on equity is negative at -5.92%, indicating challenges in generating returns for shareholders. The equity ratio is relatively low, suggesting a heavy reliance on debt financing. These factors highlight potential stability concerns despite the company's asset base.

Cash Flow

Brookfield Renewable Partners faces challenges with cash flow, as evidenced by a negative free cash flow and a free cash flow to net income ratio of -2.41 in the TTM. The operating cash flow to net income ratio is low at 0.08, indicating limited cash flow relative to net income. Although there is a positive free cash flow growth rate of 26.01%, the overall cash flow position remains weak.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	6.30B	5.88B	5.04B	4.71B	4.10B	3.82B
Gross Profit	3.50B	3.30B	3.10B	3.28B	2.73B	2.55B
EBITDA	4.27B	3.80B	4.06B	2.96B	2.44B	2.32B
Net Income	-213.00M	-218.00M	-50.00M	-122.00M	-136.00M	-250.00M
Balance Sheet
Total Assets	98.30B	94.81B	76.13B	64.11B	55.87B	49.72B
Cash, Cash Equivalents and Short-Term Investments	2.39B	3.70B	1.36B	1.24B	987.00M	639.00M
Total Debt	36.32B	35.90B	30.92B	25.73B	21.99B	18.52B
Total Liabilities	65.46B	58.35B	46.15B	37.83B	31.87B	27.95B
Stockholders Equity	8.67B	9.75B	10.53B	10.96B	11.08B	4.87B
Cash Flow
Free Cash Flow	-4.53B	-2.34B	-961.31M	-460.02M	-1.22B	893.85M
Operating Cash Flow	1.37B	1.21B	1.90B	1.64B	727.54M	1.36B
Investing Cash Flow	-9.15B	-4.54B	-2.05B	-3.16B	-1.80B	-74.75M
Financing Cash Flow	8.37B	5.35B	255.60M	1.63B	1.44B	-1.22B

Brookfield Renewable Partners Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 39.22
• 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 39.22 is below the 20-day moving average (MA) of 39.83, below the 50-day MA of 39.65, and above the 200-day MA of 34.40, indicating a neutral trend. The MACD of -0.24 indicates Positive momentum. The RSI at 45.51 is Neutral, neither overbought nor oversold. The STOCH value of 35.19 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
Sector *	66 Neutral	$17.65B	18.10	5.60%	3.62%	6.62%	11.55%
NPI	60 Neutral	$4.51B	―	-7.06%	6.96%	-4.86%	-86.64%
LCFS	57 Neutral	C$156.21M	-0.43	8.55%	―	-30.92%	―
BEP.UN	56 Neutral	$26.55B	―	-5.58%	5.29%	14.78%	-9.37%
AQN	54 Neutral	$6.24B	―	2.04%	4.51%	-4.72%	96.98%
BLX	52 Neutral	C$2.89B	-288.59	-1.47%	2.70%	-11.91%	-132.41%
PIF	51 Neutral	C$265.76M	-16.40	-4.69%	7.10%	8.26%	-267.17%

Brookfield Renewable Partners Corporate Events

Brookfield Renewable Partners Announces $650 Million Equity Raise to Fuel Growth

Brookfield Renewable Partners announced a US$650 million equity raise through a public offering and a concurrent private placement. The funds will be used to support the company’s recent acquisition of an increased stake in Isagen, future investment opportunities, and general corporate purposes. This move is expected to enhance Brookfield Renewable’s investment capabilities in essential power generation and grid-stabilizing technologies, potentially strengthening its market position and growth prospects.