TSX:BEPC

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Brookfield Renewable

Executive Summary

Brookfield Renewable Corporation operates renewable power assets in the United States, Brazil, and Colombia. More Details


Snowflake Analysis

Imperfect balance sheet with concerning outlook.

Share Price & News

How has Brookfield Renewable's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: BEPC is less volatile than 75% of Canadian stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: BEPC's weekly volatility (6%) has been stable over the past year.


Market Performance


7 Day Return

1.3%

BEPC

4.9%

CA Renewable Energy

-0.2%

CA Market


1 Year Return

n/a

BEPC

65.2%

CA Renewable Energy

1.4%

CA Market

Return vs Industry: Insufficient data to determine how BEPC performed against the Canadian Renewable Energy industry.

Return vs Market: Insufficient data to determine how BEPC performed against the Canadian Market.


Shareholder returns

BEPCIndustryMarket
7 Day1.3%4.9%-0.2%
30 Day-0.2%11.7%2.8%
90 Day32.1%29.7%12.4%
1 Yearn/a71.7%65.2%5.0%1.4%
3 Yearn/a157.0%122.6%13.4%2.7%
5 Yearn/a247.3%171.9%59.7%35.2%

Long-Term Price Volatility Vs. Market

How volatile is Brookfield Renewable's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Brookfield Renewable undervalued compared to its fair value and its price relative to the market?

13.53x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: BEPC (CA$74.66) is trading above our estimate of fair value (CA$41.04)

Significantly Below Fair Value: BEPC is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: BEPC is unprofitable, so we can't compare its PE Ratio to the CA Renewable Energy industry average.

PE vs Market: BEPC is unprofitable, so we can't compare its PE Ratio to the Canadian market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate BEPC's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: BEPC is overvalued based on its PB Ratio (13.5x) compared to the CA Renewable Energy industry average (2.7x).


Next Steps

Future Growth

How is Brookfield Renewable forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

11.7%

Forecasted annual revenue growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if BEPC's forecast earnings growth is above the savings rate (1.5%).

Earnings vs Market: Insufficient data to determine if BEPC's earnings are forecast to grow faster than the Canadian market

High Growth Earnings: Insufficient data to determine if earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: BEPC's revenue (11.7% per year) is forecast to grow faster than the Canadian market (8% per year).

High Growth Revenue: BEPC's revenue (11.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if BEPC's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Brookfield Renewable performed over the past 5 years?

-40.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: BEPC is currently unprofitable.

Growing Profit Margin: BEPC is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: BEPC is unprofitable, and losses have increased over the past 5 years at a rate of 40.7% per year.

Accelerating Growth: Unable to compare BEPC's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: BEPC is unprofitable, making it difficult to compare its past year earnings growth to the Renewable Energy industry (20.7%).


Return on Equity

High ROE: BEPC has a negative Return on Equity (-10.46%), as it is currently unprofitable.


Next Steps

Financial Health

How is Brookfield Renewable's financial position?


Financial Position Analysis

Short Term Liabilities: BEPC's short term assets ($1.6B) do not cover its short term liabilities ($8.6B).

Long Term Liabilities: BEPC's short term assets ($1.6B) do not cover its long term liabilities ($16.1B).


Debt to Equity History and Analysis

Debt Level: BEPC's debt to equity ratio (123%) is considered high.

Reducing Debt: Insufficient data to determine if BEPC's debt to equity ratio has reduced over the past 5 years.


Balance Sheet


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: Whilst unprofitable BEPC has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: BEPC is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 24% per year.


Next Steps

Dividend

What is Brookfield Renewable current dividend yield, its reliability and sustainability?

1.97%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: BEPC's dividend (1.97%) is higher than the bottom 25% of dividend payers in the Canadian market (1.55%).

High Dividend: BEPC's dividend (1.97%) is low compared to the top 25% of dividend payers in the Canadian market (4.91%).


Stability and Growth of Payments

Stable Dividend: Too early to tell whether BEPC's dividend payments have been stable as they only just started paying a dividend.

Growing Dividend: Too early to tell if BEPC's dividend payments are increasing as they only just started paying a dividend.


Current Payout to Shareholders

Dividend Coverage: BEPC is paying a dividend but the company is unprofitable.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

US$5m

CEO Compensation


CEO

Sachin Shah (43 yo)

no data

Tenure

US$4,711,911

Compensation

Mr. Sachin G. Shah, CPA serves as Chief Investment Officer at Brookfield Asset Management Inc. since October 5, 2020. He serves as Director at American Equity Investment Life Holding Company since November...


CEO Compensation Analysis

Compensation vs Market: Sachin's total compensation ($USD0.00) is below average for companies of similar size in the Canadian market ($USD6.59M).

Compensation vs Earnings: Insufficient data to compare Sachin's compensation with company performance.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: BEPC only recently listed within the past 12 months.


Top Shareholders

Company Information

Brookfield Renewable Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Brookfield Renewable Corporation
  • Ticker: BEPC
  • Exchange: TSX
  • Founded: 2019
  • Industry: Renewable Electricity
  • Sector: Utilities
  • Market Cap: CA$22.441b
  • Shares outstanding: 298.58m
  • Website: https://bep.brookfield.com/bepc

Location

  • Brookfield Renewable Corporation
  • 250 Vesey Street
  • 15th Floor
  • New York
  • New York
  • 10281-1023
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
BEPCNYSE (New York Stock Exchange)YesClass A Subordinate Voting SharesUSUSDJul 2020
BEPCTSX (The Toronto Stock Exchange)YesClass A Subordinate Voting SharesCACADJul 2020

Biography

Brookfield Renewable Corporation operates renewable power assets in the United States, Brazil, and Colombia. It operates hydroelectric, wind, and solar power plants with an installed capacity of approximat...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/01/23 00:14
End of Day Share Price2021/01/22 00:00
Earnings2020/09/30
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.