Brookfield Renewable Partners L.P. (NYSE: BEP)

Sector: Utilities Industry: Utilities - Renewable CIK: 0001533232
Market Cap 9.20 Bn
P/B 2.94
P/E -37.24
P/S 1.46
ROIC (Qtr) 2.05
Div Yield % 3.43
Rev 1y % (Qtr) 8.57
Total Debt (Qtr) 39.66 Bn
Debt/Equity (Qtr) 12.66
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About

Brookfield Renewable Partners L.P. (BEP) is a leading player in the renewable energy industry, with a global diversified portfolio of renewable power assets and a development pipeline of approximately 155,400 MW. The company's primary business activities include the acquisition, development, and operation of renewable power generation facilities, as well as investments in sustainable solutions and businesses that enable the transition to a low-carbon economy. Brookfield Renewable's renewable power portfolio includes hydroelectric, wind, and solar...

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Investment thesis

Bull case

  • Strong operating cash flow of 1.37B provides 6.57x coverage of SG&A expenses 209M, showing efficient operational cost management.
  • Free cash flow of (4.56B) provides excellent 4.09x coverage of dividends (1.11B), indicating sustainable shareholder returns.
  • Tangible assets of 92.44B provide robust 32.79x coverage of other current liabilities 2.82B, indicating strong asset backing.
  • Strong tangible asset base of 92.44B provides 15.76x coverage of intangibles 5.87B, indicating robust asset quality.
  • Tangible assets of 92.44B provide robust 4.48x coverage of current liabilities 20.61B, showing strong asset backing.

Bear case

  • Operating cash flow of 1.37B barely covers its investment activities of (12.10B), with a coverage ratio of -0.11, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Operating cash flow of 1.37B provides thin coverage of dividend payments of (1.11B) with a -1.23 ratio, suggesting potential dividend sustainability issues if operational performance deteriorates.
  • Cash reserves of 2.09B provide limited coverage of acquisition spending of (5.11B), which is -0.41x, suggesting aggressive expansion might strain liquidity if market conditions deteriorate.
  • Free cash flow of (4.56B) provides weak coverage of capital expenditures of 5.93B, with a -0.77 ratio suggesting additional external financing needs for growth initiatives.
  • Operating cash flow of 1.37B provides minimal -2.43x coverage of tax expenses of (564M), suggesting potential tax planning inefficiencies or unsustainable tax positions.

Components of equity [axis] Breakdown of Revenue (2024)

Segments [axis] Breakdown of Revenue (2024)

Peer comparison

Companies in the Utilities - Renewable
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 CEG Constellation Energy Corp 98.92 Bn 153.61 4.71 9.04 Bn
2 ENLT Enlight Renewable Energy Ltd. 9.32 Bn 66.03 14.79 5.54 Bn
3 BEP Brookfield Renewable Partners L.P. 9.20 Bn -37.24 1.46 39.66 Bn
4 ORA Ormat Technologies, Inc. 5.64 Bn 146.14 14.39 2.75 Bn
5 CWEN Clearway Energy, Inc. 4.62 Bn 184.82 3.85 9.22 Bn
6 FLNC Fluence Energy, Inc. 2.37 Bn -45.59 0.93 0.39 Bn
7 RNW ReNew Energy Global plc 1.93 Bn 14.53 1.21 9.22 Bn
8 XIFR XPLR Infrastructure, LP 1.00 Bn -35.67 0.84 6.20 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 0.49 0.82
EV to Cash from Ops. EV/CFO 35.25 3.77
EV to Debt EV to Debt 1.22 -7.57
EV to EBIT EV/EBIT 31.01 18.11
EV to EBITDA EV/EBITDA 11.48 5.59
EV to Free Cash Flow [EV/FCF] EV/FCF -10.61 -9.43
EV to Market Cap EV to Market Cap 5.26 -1.15
EV to Revenue EV/Rev 7.68 -22.88
Price to Book Value [P/B] P/B 2.94 2.64
Price to Earnings [P/E] P/E -37.24 1.37
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) -0.21 -4.71
Dividend Payout Ratio % Div Payout % (Qtr) -128.00 -0.74
Dividend per Basic Share Div per Share (Qtr) 1.10 0.32
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) -6.88 12.62
Interest Coverage Int. cover (Qtr) 0.67 -4.73
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -59.22 -691.81
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 30.69 37.74
Dividend Growth (1y) % Div 1y % (Qtr) -21.75 0.15
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -63.81 -300.29
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 11.20 -47.88
EBIT Growth (1y) % EBIT 1y % (Qtr) -5.79 -76.46
EBT Growth (1y) % EBT 1y % (Qtr) -171.02 -85.90
EPS Growth (1y) % EPS 1y % (Qtr) -6.17 398.06
FCF Growth (1y) % FCF 1y % (Qtr) -105.73 1,637.76
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 6.67 93.44
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.06 0.35
Cash Payout Ratio Cash Payout (Qtr) 0.15 0.02
Cash Ratio Cash Ratio (Qtr) 0.10 1.83
Current Ratio Curr Ratio (Qtr) 0.58 2.29
Debt to Equity Ratio Debt/Equity (Qtr) 12.66 0.89
Interest Cover Ratio Int Coverage (Qtr) 0.67 -4.73
Times Interest Earned Times Interest Earned (Qtr) 0.67 -4.73
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 61.00 -241.05
EBIT Margin % EBIT Margin % (Qtr) 24.78 -107.41
EBT Margin % EBT Margin % (Qtr) -12.17 -407.45
Gross Margin % Gross Margin % (Qtr) 55.60 9.67
Net Profit Margin % Net Margin % (Qtr) -3.90 -408.25