BROOKFIELD RENEWABLE PARTNER (BEP) Stock Fundamental Analysis
NYSE:BEP - New York Stock Exchange, Inc. - BMG162581083 - Currency: USD
BEP gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 20 industry peers in the Independent Power and Renewable Electricity Producers industry. There are concerns on the financial health of BEP while its profitability can be described as average. BEP is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
BEP had negative earnings in the past year.
In the past year BEP had a positive cash flow from operations.
In the past 5 years BEP always reported negative net income.
Each year in the past 5 years BEP had a positive operating cash flow.
1.2 Ratios
BEP's Return On Assets of -0.30% is in line compared to the rest of the industry. BEP outperforms 45.00% of its industry peers.
Looking at the Return On Equity, with a value of -7.11%, BEP is doing worse than 60.00% of the companies in the same industry.
BEP has a Return On Invested Capital (2.15%) which is comparable to the rest of the industry.
Measured over the past 3 years, the Average Return On Invested Capital for BEP is below the industry average of 3.71%.
The 3 year average ROIC (1.59%) for BEP is below the current ROIC(2.15%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.3% | ||
| ROE | -7.11% | ||
| ROIC | 2.15% |
ROA(3y)-0.22%
ROA(5y)-0.27%
ROE(3y)-3.79%
ROE(5y)-3.8%
ROIC(3y)1.59%
ROIC(5y)1.39%
1.3 Margins
With an excellent Operating Margin value of 35.68%, BEP belongs to the best of the industry, outperforming 90.00% of the companies in the same industry.
In the last couple of years the Operating Margin of BEP has declined.
BEP has a Gross Margin of 56.05%. This is in the better half of the industry: BEP outperforms 70.00% of its industry peers.
BEP's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 35.68% | ||
| PM (TTM) | N/A | ||
| GM | 56.05% |
OM growth 3Y5.06%
OM growth 5Y-6.86%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-1%
GM growth 5Y-0.45%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so BEP is destroying value.
Compared to 1 year ago, BEP has less shares outstanding
BEP has more shares outstanding than it did 5 years ago.
The debt/assets ratio for BEP has been reduced compared to a year ago.
2.2 Solvency
BEP has a Debt/Equity ratio of 7.27. This is a high value indicating a heavy dependency on external financing.
BEP has a worse Debt to Equity ratio (7.27) than 75.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 7.27 | ||
| Debt/FCF | N/A | ||
| Altman-Z | N/A |
ROIC/WACC0.34
WACC6.34%
2.3 Liquidity
BEP has a Current Ratio of 0.51. This is a bad value and indicates that BEP is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Current ratio value of 0.51, BEP is not doing good in the industry: 80.00% of the companies in the same industry are doing better.
A Quick Ratio of 0.50 indicates that BEP may have some problems paying its short term obligations.
The Quick ratio of BEP (0.50) is worse than 80.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.51 | ||
| Quick Ratio | 0.5 |
3. Growth
3.1 Past
BEP shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -119.57%.
BEP shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 17.40%.
BEP shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 14.66% yearly.
EPS 1Y (TTM)-119.57%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-52.17%
Revenue 1Y (TTM)17.4%
Revenue growth 3Y13.01%
Revenue growth 5Y14.66%
Sales Q2Q%-42.56%
3.2 Future
Based on estimates for the next years, BEP will show a very strong growth in Earnings Per Share. The EPS will grow by 24.18% on average per year.
Based on estimates for the next years, BEP will show a quite strong growth in Revenue. The Revenue will grow by 11.32% on average per year.
EPS Next Y38.44%
EPS Next 2Y25.93%
EPS Next 3Y37.03%
EPS Next 5Y24.18%
Revenue Next Year19.63%
Revenue Next 2Y12.98%
Revenue Next 3Y13.79%
Revenue Next 5Y11.32%
3.3 Evolution
Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
4. Valuation
4.1 Price/Earnings Ratio
BEP reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
Besides the negative Price/Earnings Ratio, also the Forward Price/Earnings Ratio is negative for BEP. No positive earnings are expected for the next year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, BEP is valued cheaper than 85.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 9.55 |
4.3 Compensation for Growth
A more expensive valuation may be justified as BEP's earnings are expected to grow with 37.03% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y25.93%
EPS Next 3Y37.03%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.20%, BEP is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 6.76, BEP pays a bit more dividend than its industry peers.
BEP's Dividend Yield is rather good when compared to the S&P500 average which is at 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.2% |
5.2 History
The dividend of BEP decreases each year by -0.06%.
BEP has been paying a dividend for at least 10 years, so it has a reliable track record.
BEP has decreased its dividend recently.
Dividend Growth(5Y)-0.06%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
The earnings of BEP are negative and hence is the payout ratio. BEP will probably not be able to sustain this dividend level.
DP-162.28%
EPS Next 2Y25.93%
EPS Next 3Y37.03%
23.56
+0.69 (+3.02%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryIndependent Power and Renewable Electricity Producers
Earnings (Last)
Earnings (Next)
Inst Owners39.86%
Inst Owner Change-4.37%
Ins Owners0.02%
Ins Owner ChangeN/A
Market Cap6.71B
Analysts74.74
Price Target20.4 (-13.41%)
Short Float %0.38%
Short Ratio1.27
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.2% |
Yearly Dividend1.61
Dividend Growth(5Y)-0.06%
DP-162.28%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)18.33%
Min EPS beat(2)-27.34%
Max EPS beat(2)64%
EPS beat(4)1
Avg EPS beat(4)-1042.45%
Min EPS beat(4)-4056.34%
Max EPS beat(4)64%
EPS beat(8)1
Avg EPS beat(8)-647.28%
EPS beat(12)1
Avg EPS beat(12)-685.1%
EPS beat(16)1
Avg EPS beat(16)-621.59%
Revenue beat(2)0
Avg Revenue beat(2)-23.46%
Min Revenue beat(2)-45.06%
Max Revenue beat(2)-1.85%
Revenue beat(4)1
Avg Revenue beat(4)-10.7%
Min Revenue beat(4)-45.06%
Max Revenue beat(4)6.6%
Revenue beat(8)5
Avg Revenue beat(8)-0.36%
Revenue beat(12)9
Avg Revenue beat(12)9.77%
Revenue beat(16)11
Avg Revenue beat(16)6.51%
PT rev (1m)3.15%
PT rev (3m)-3.51%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)0%
EPS NY rev (3m)-175.14%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0.87%
Revenue NY rev (3m)9.26%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A | ||
| P/S | 1.13 | ||
| P/FCF | N/A | ||
| P/OCF | 5.2 | ||
| P/B | 1.65 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.55 |
EPS(TTM)-1.01
EYN/A
EPS(NY)-0.37
Fwd EYN/A
FCF(TTM)-11.05
FCFYN/A
OCF(TTM)4.53
OCFY19.25%
SpS20.93
BVpS14.26
TBVpS-5.67
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.3% | ||
| ROE | -7.11% | ||
| ROCE | 2.72% | ||
| ROIC | 2.15% | ||
| ROICexc | 2.2% | ||
| ROICexgc | 2.37% | ||
| OM | 35.68% | ||
| PM (TTM) | N/A | ||
| GM | 56.05% | ||
| FCFM | N/A |
ROA(3y)-0.22%
ROA(5y)-0.27%
ROE(3y)-3.79%
ROE(5y)-3.8%
ROIC(3y)1.59%
ROIC(5y)1.39%
ROICexc(3y)1.63%
ROICexc(5y)1.42%
ROICexgc(3y)1.7%
ROICexgc(5y)1.47%
ROCE(3y)2.02%
ROCE(5y)1.76%
ROICexcg growth 3Y5.11%
ROICexcg growth 5Y-4.01%
ROICexc growth 3Y3.39%
ROICexc growth 5Y-4.87%
OM growth 3Y5.06%
OM growth 5Y-6.86%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-1%
GM growth 5Y-0.45%
F-Score4
Asset Turnover0.06
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 7.27 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 7 | ||
| Cap/Depr | 212.29% | ||
| Cap/Sales | 74.43% | ||
| Interest Coverage | 1.05 | ||
| Cash Conversion | 30.62% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.51 | ||
| Quick Ratio | 0.5 | ||
| Altman-Z | N/A |
F-Score4
WACC6.34%
ROIC/WACC0.34
Cap/Depr(3y)158.58%
Cap/Depr(5y)127.9%
Cap/Sales(3y)56.2%
Cap/Sales(5y)45.77%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-119.57%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-52.17%
EPS Next Y38.44%
EPS Next 2Y25.93%
EPS Next 3Y37.03%
EPS Next 5Y24.18%
Revenue 1Y (TTM)17.4%
Revenue growth 3Y13.01%
Revenue growth 5Y14.66%
Sales Q2Q%-42.56%
Revenue Next Year19.63%
Revenue Next 2Y12.98%
Revenue Next 3Y13.79%
Revenue Next 5Y11.32%
EBIT growth 1Y39.82%
EBIT growth 3Y18.73%
EBIT growth 5Y6.79%
EBIT Next Year40.61%
EBIT Next 3Y20.79%
EBIT Next 5Y11.27%
FCF growth 1Y-1174.09%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-37.37%
OCF growth 3Y19.37%
OCF growth 5Y0.54%