BROOKFIELD RENEWABLE CORP (BEPC) Stock Fundamental Analysis
NYSE:BEPC - New York Stock Exchange, Inc. - CA11285B1085 - Common Stock - Currency: USD
We assign a fundamental rating of 3 out of 10 to BEPC. BEPC was compared to 19 industry peers in the Independent Power and Renewable Electricity Producers industry. There are concerns on the financial health of BEPC while its profitability can be described as average. While showing a medium growth rate, BEPC is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
BEPC had negative earnings in the past year.
BEPC had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: BEPC reported negative net income in multiple years.
In the past 5 years BEPC always reported a positive cash flow from operatings.
1.2 Ratios
BEPC has a worse Return On Assets (-0.56%) than 63.16% of its industry peers.
BEPC has a worse Return On Equity (-17.41%) than 68.42% of its industry peers.
BEPC has a Return On Invested Capital of 2.84%. This is in the better half of the industry: BEPC outperforms 73.68% of its industry peers.
The Average Return On Invested Capital over the past 3 years for BEPC is in line with the industry average of 3.75%.
The last Return On Invested Capital (2.84%) for BEPC is above the 3 year average (2.61%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.56% | ||
| ROE | -17.41% | ||
| ROIC | 2.84% |
ROA(3y)1.21%
ROA(5y)-0.21%
ROE(3y)13.35%
ROE(5y)-33.35%
ROIC(3y)2.61%
ROIC(5y)2.35%
1.3 Margins
In the last couple of years the Profit Margin of BEPC has grown nicely.
BEPC has a Operating Margin of 31.86%. This is in the better half of the industry: BEPC outperforms 78.95% of its industry peers.
In the last couple of years the Operating Margin of BEPC has declined.
With a decent Gross Margin value of 57.93%, BEPC is doing good in the industry, outperforming 73.68% of the companies in the same industry.
BEPC's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 31.86% | ||
| PM (TTM) | N/A | ||
| GM | 57.93% |
OM growth 3Y-1.35%
OM growth 5Y-5.8%
PM growth 3Y-41.25%
PM growth 5Y2.18%
GM growth 3Y-4%
GM growth 5Y-3.17%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so BEPC is destroying value.
BEPC has about the same amout of shares outstanding than it did 1 year ago.
BEPC has more shares outstanding than it did 5 years ago.
BEPC has a better debt/assets ratio than last year.
2.2 Solvency
A Debt/Equity ratio of 8.90 is on the high side and indicates that BEPC has dependencies on debt financing.
The Debt to Equity ratio of BEPC (8.90) is worse than 84.21% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 8.9 | ||
| Debt/FCF | N/A | ||
| Altman-Z | N/A |
ROIC/WACC0.31
WACC9.23%
2.3 Liquidity
BEPC has a Current Ratio of 0.25. This is a bad value and indicates that BEPC is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Current ratio value of 0.25, BEPC is not doing good in the industry: 89.47% of the companies in the same industry are doing better.
A Quick Ratio of 0.25 indicates that BEPC may have some problems paying its short term obligations.
BEPC's Quick ratio of 0.25 is on the low side compared to the rest of the industry. BEPC is outperformed by 89.47% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.25 | ||
| Quick Ratio | 0.25 |
3. Growth
3.1 Past
The earnings per share for BEPC have decreased strongly by -48.44% in the last year.
Measured over the past years, BEPC shows a decrease in Earnings Per Share. The EPS has been decreasing by -8.06% on average per year.
Looking at the last year, BEPC shows a small growth in Revenue. The Revenue has grown by 4.41% in the last year.
Measured over the past years, BEPC shows a small growth in Revenue. The Revenue has been growing by 5.13% on average per year.
EPS 1Y (TTM)-48.44%
EPS 3Y-37.71%
EPS 5Y-8.06%
EPS Q2Q%21.43%
Revenue 1Y (TTM)4.41%
Revenue growth 3Y7.15%
Revenue growth 5Y5.13%
Sales Q2Q%14.17%
3.2 Future
BEPC is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 61.02% yearly.
Based on estimates for the next years, BEPC will show a small growth in Revenue. The Revenue will grow by 5.66% on average per year.
EPS Next Y6.02%
EPS Next 2Y12.79%
EPS Next 3Y21.76%
EPS Next 5Y61.02%
Revenue Next Year5.87%
Revenue Next 2Y6.22%
Revenue Next 3Y6.08%
Revenue Next 5Y5.66%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings Ratio is negative for BEPC. In the last year negative earnings were reported.
Besides the negative Price/Earnings Ratio, also the Forward Price/Earnings Ratio is negative for BEPC. No positive earnings are expected for the next year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A |
4.2 Price Multiples
BEPC's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. BEPC is cheaper than 89.47% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 7.82 |
4.3 Compensation for Growth
A more expensive valuation may be justified as BEPC's earnings are expected to grow with 21.76% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y12.79%
EPS Next 3Y21.76%
5. Dividend
5.1 Amount
BEPC has a Yearly Dividend Yield of 4.35%, which is a nice return.
Compared to an average industry Dividend Yield of 5.81, BEPC pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.40, BEPC pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.35% |
5.2 History
BEPC has been paying a dividend for over 5 years, so it has already some track record.
BEPC has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)N/A
Div Incr Years4
Div Non Decr Years4
5.3 Sustainability
DPN/A
EPS Next 2Y12.79%
EPS Next 3Y21.76%
34.33
+0.31 (+0.91%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryIndependent Power and Renewable Electricity Producers
Earnings (Last)
Earnings (Next)
Inst Owners66.02%
Inst Owner Change0.53%
Ins Owners0.04%
Ins Owner ChangeN/A
Market Cap6.17B
Analysts80
Price Target33.85 (-1.4%)
Short Float %3.78%
Short Ratio4.02
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.35% |
Yearly Dividend1.39
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years4
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)14.07%
Min EPS beat(2)-40.06%
Max EPS beat(2)68.2%
EPS beat(4)1
Avg EPS beat(4)3.61%
Min EPS beat(4)-40.06%
Max EPS beat(4)68.2%
EPS beat(8)3
Avg EPS beat(8)8.3%
EPS beat(12)4
Avg EPS beat(12)-6.19%
EPS beat(16)4
Avg EPS beat(16)-58.79%
Revenue beat(2)0
Avg Revenue beat(2)-1.93%
Min Revenue beat(2)-2.85%
Max Revenue beat(2)-1%
Revenue beat(4)1
Avg Revenue beat(4)-0.43%
Min Revenue beat(4)-3.45%
Max Revenue beat(4)5.6%
Revenue beat(8)3
Avg Revenue beat(8)-2.17%
Revenue beat(12)4
Avg Revenue beat(12)-5.33%
Revenue beat(16)4
Avg Revenue beat(16)-8.54%
PT rev (1m)0%
PT rev (3m)-0.88%
EPS NQ rev (1m)9.09%
EPS NQ rev (3m)-25%
EPS NY rev (1m)0%
EPS NY rev (3m)-310%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.79%
Revenue NY rev (1m)-1.02%
Revenue NY rev (3m)4.1%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A | ||
| P/S | 1.57 | ||
| P/FCF | N/A | ||
| P/OCF | 15.3 | ||
| P/B | 4.29 | ||
| P/tB | 8.7 | ||
| EV/EBITDA | 7.82 |
EPS(TTM)-0.95
EYN/A
EPS(NY)-0.65
Fwd EYN/A
FCF(TTM)-2.88
FCFYN/A
OCF(TTM)2.24
OCFY6.54%
SpS21.85
BVpS8
TBVpS3.95
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.56% | ||
| ROE | -17.41% | ||
| ROCE | 3.71% | ||
| ROIC | 2.84% | ||
| ROICexc | 2.9% | ||
| ROICexgc | 2.97% | ||
| OM | 31.86% | ||
| PM (TTM) | N/A | ||
| GM | 57.93% | ||
| FCFM | N/A |
ROA(3y)1.21%
ROA(5y)-0.21%
ROE(3y)13.35%
ROE(5y)-33.35%
ROIC(3y)2.61%
ROIC(5y)2.35%
ROICexc(3y)2.68%
ROICexc(5y)2.41%
ROICexgc(3y)2.75%
ROICexgc(5y)2.48%
ROCE(3y)3.41%
ROCE(5y)3.07%
ROICexcg growth 3Y5.42%
ROICexcg growth 5Y-0.05%
ROICexc growth 3Y5.83%
ROICexc growth 5Y0.22%
OM growth 3Y-1.35%
OM growth 5Y-5.8%
PM growth 3Y-41.25%
PM growth 5Y2.18%
GM growth 3Y-4%
GM growth 5Y-3.17%
F-Score3
Asset Turnover0.09
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 8.9 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 5.17 | ||
| Cap/Depr | 75.16% | ||
| Cap/Sales | 23.45% | ||
| Interest Coverage | 0.78 | ||
| Cash Conversion | 16.29% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.25 | ||
| Quick Ratio | 0.25 | ||
| Altman-Z | N/A |
F-Score3
WACC9.23%
ROIC/WACC0.31
Cap/Depr(3y)74.55%
Cap/Depr(5y)76.02%
Cap/Sales(3y)23.75%
Cap/Sales(5y)24.71%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-48.44%
EPS 3Y-37.71%
EPS 5Y-8.06%
EPS Q2Q%21.43%
EPS Next Y6.02%
EPS Next 2Y12.79%
EPS Next 3Y21.76%
EPS Next 5Y61.02%
Revenue 1Y (TTM)4.41%
Revenue growth 3Y7.15%
Revenue growth 5Y5.13%
Sales Q2Q%14.17%
Revenue Next Year5.87%
Revenue Next 2Y6.22%
Revenue Next 3Y6.08%
Revenue Next 5Y5.66%
EBIT growth 1Y-18.14%
EBIT growth 3Y5.71%
EBIT growth 5Y-0.97%
EBIT Next Year124.79%
EBIT Next 3Y52.04%
EBIT Next 5Y27.13%
FCF growth 1Y-166.71%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-75.06%
OCF growth 3Y11.46%
OCF growth 5Y-16.6%