BROOKFIELD RENEWABLE PARTNER (BEP) Stock Fundamental Analysis
NYSE:BEP - New York Stock Exchange, Inc. - BMG162581083 - Currency: USD
We assign a fundamental rating of 2 out of 10 to BEP. BEP was compared to 20 industry peers in the Independent Power and Renewable Electricity Producers industry. Both the profitability and financial health of BEP have multiple concerns. BEP is valued expensive and it does not seem to be growing.
1. Profitability
1.1 Basic Checks
BEP had negative earnings in the past year.
BEP had a positive operating cash flow in the past year.
BEP had negative earnings in each of the past 5 years.
Of the past 5 years BEP 4 years had a positive operating cash flow.
1.2 Ratios
The Return On Assets of BEP (-0.31%) is worse than 63.16% of its industry peers.
BEP has a Return On Equity of -6.04%. This is in the lower half of the industry: BEP underperforms 68.42% of its industry peers.
BEP has a Return On Invested Capital (2.01%) which is in line with its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for BEP is below the industry average of 4.21%.
The last Return On Invested Capital (2.01%) for BEP is above the 3 year average (1.55%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.31% | ||
| ROE | -6.04% | ||
| ROIC | 2.01% |
ROA(3y)-0.24%
ROA(5y)-0.23%
ROE(3y)-3.06%
ROE(5y)-2.72%
ROIC(3y)1.55%
ROIC(5y)1.48%
1.3 Margins
BEP has a better Operating Margin (29.89%) than 78.95% of its industry peers.
BEP's Operating Margin has declined in the last couple of years.
BEP's Gross Margin of 55.98% is in line compared to the rest of the industry. BEP outperforms 57.89% of its industry peers.
In the last couple of years the Gross Margin of BEP has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 29.89% | ||
| PM (TTM) | N/A | ||
| GM | 55.98% |
OM growth 3Y27.91%
OM growth 5Y-2.18%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-0.83%
GM growth 5Y-0.48%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), BEP is destroying value.
There is no outstanding debt for BEP. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
2.2 Solvency
A Debt/Equity ratio of 6.59 is on the high side and indicates that BEP has dependencies on debt financing.
The Debt to Equity ratio of BEP (6.59) is worse than 73.68% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 6.59 | ||
| Debt/FCF | N/A | ||
| Altman-Z | N/A |
ROIC/WACC0.39
WACC5.15%
2.3 Liquidity
BEP has a Current Ratio of 0.73. This is a bad value and indicates that BEP is not financially healthy enough and could expect problems in meeting its short term obligations.
BEP's Current ratio of 0.73 is on the low side compared to the rest of the industry. BEP is outperformed by 68.42% of its industry peers.
A Quick Ratio of 0.71 indicates that BEP may have some problems paying its short term obligations.
With a Quick ratio value of 0.71, BEP is not doing good in the industry: 68.42% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.73 | ||
| Quick Ratio | 0.71 |
3. Growth
3.1 Past
BEP shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -178.13%.
EPS 1Y (TTM)-178.13%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-700%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%18.94%
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 22.47% 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 11.49% on average per year.
EPS Next Y181.93%
EPS Next 2Y46.64%
EPS Next 3Y26.35%
EPS Next 5Y22.47%
Revenue Next Year9.28%
Revenue Next 2Y7.54%
Revenue Next 3Y11.55%
Revenue Next 5Y11.49%
3.3 Evolution
4. Valuation
4.1 Price/Earnings Ratio
BEP reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
The Price/Forward Earnings ratio is 32.14, which means the current valuation is very expensive for BEP.
Based on the Price/Forward Earnings ratio, BEP is valued a bit cheaper than 73.68% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.68, BEP is valued a bit more expensive.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 32.14 |
4.2 Price Multiples
BEP's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. BEP is cheaper than 94.74% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 9.43 |
4.3 Compensation for Growth
BEP's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as BEP's earnings are expected to grow with 26.35% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y46.64%
EPS Next 3Y26.35%
5. Dividend
5.1 Amount
BEP has a Yearly Dividend Yield of 4.20%, which is a nice return.
Compared to an average industry Dividend Yield of 4.61, 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 2.27.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.2% |
5.2 History
The dividend of BEP has a limited annual growth rate of 0.57%.
BEP has paid a dividend for at least 10 years, which is a reliable track record.
The dividend of BEP decreased recently.
Dividend Growth(5Y)0.57%
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.
BEP's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP-255.98%
EPS Next 2Y46.64%
EPS Next 3Y26.35%
23.44
-0.14 (-0.59%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryIndependent Power and Renewable Electricity Producers
Earnings (Last)
Earnings (Next)
Inst Owners39.86%
Inst Owner Change-0.83%
Ins Owners0.02%
Ins Owner ChangeN/A
Market Cap6.68B
Analysts77.78
Price Target21.14 (-9.81%)
Short Float %0.85%
Short Ratio2.29
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.2% |
Yearly Dividend1.56
Dividend Growth(5Y)0.57%
DP-255.98%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-2103.23%
Min EPS beat(2)-4056.34%
Max EPS beat(2)-150.12%
EPS beat(4)0
Avg EPS beat(4)-1110.23%
Min EPS beat(4)-4056.34%
Max EPS beat(4)-81.43%
EPS beat(8)0
Avg EPS beat(8)-910.26%
EPS beat(12)0
Avg EPS beat(12)-801.34%
EPS beat(16)0
Avg EPS beat(16)-952.5%
Revenue beat(2)1
Avg Revenue beat(2)2.05%
Min Revenue beat(2)-2.5%
Max Revenue beat(2)6.6%
Revenue beat(4)3
Avg Revenue beat(4)6.41%
Min Revenue beat(4)-2.5%
Max Revenue beat(4)20.04%
Revenue beat(8)7
Avg Revenue beat(8)11.71%
Revenue beat(12)10
Avg Revenue beat(12)12.32%
Revenue beat(16)12
Avg Revenue beat(16)9.46%
PT rev (1m)-28.55%
PT rev (3m)-31.45%
EPS NQ rev (1m)-65%
EPS NQ rev (3m)-125.01%
EPS NY rev (1m)81.98%
EPS NY rev (3m)64.6%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.49%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-3.61%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 32.14 | ||
| P/S | 1.18 | ||
| P/FCF | N/A | ||
| P/OCF | 4.62 | ||
| P/B | 1.73 | ||
| P/tB | 3.53 | ||
| EV/EBITDA | 9.43 |
EPS(TTM)-0.89
EYN/A
EPS(NY)0.73
Fwd EY3.11%
FCF(TTM)-7.99
FCFYN/A
OCF(TTM)5.08
OCFY21.66%
SpS19.81
BVpS13.59
TBVpS6.64
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.31% | ||
| ROE | -6.04% | ||
| ROCE | 2.55% | ||
| ROIC | 2.01% | ||
| ROICexc | 2.04% | ||
| ROICexgc | 2.1% | ||
| OM | 29.89% | ||
| PM (TTM) | N/A | ||
| GM | 55.98% | ||
| FCFM | N/A |
ROA(3y)-0.24%
ROA(5y)-0.23%
ROE(3y)-3.06%
ROE(5y)-2.72%
ROIC(3y)1.55%
ROIC(5y)1.48%
ROICexc(3y)1.58%
ROICexc(5y)1.5%
ROICexgc(3y)1.63%
ROICexgc(5y)1.54%
ROCE(3y)1.97%
ROCE(5y)1.87%
ROICexcg growth 3Y23.85%
ROICexcg growth 5Y-6.54%
ROICexc growth 3Y23.71%
ROICexc growth 5Y-6.61%
OM growth 3Y27.91%
OM growth 5Y-2.18%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-0.83%
GM growth 5Y-0.48%
F-Score5
Asset Turnover0.08
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 6.59 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 6.83 | ||
| Cap/Depr | 181.81% | ||
| Cap/Sales | 65.99% | ||
| Interest Coverage | 0.96 | ||
| Cash Conversion | 38.74% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.73 | ||
| Quick Ratio | 0.71 | ||
| Altman-Z | N/A |
F-Score5
WACC5.15%
ROIC/WACC0.39
Cap/Depr(3y)140.35%
Cap/Depr(5y)95.64%
Cap/Sales(3y)51.13%
Cap/Sales(5y)34.38%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-178.13%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-700%
EPS Next Y181.93%
EPS Next 2Y46.64%
EPS Next 3Y26.35%
EPS Next 5Y22.47%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%18.94%
Revenue Next Year9.28%
Revenue Next 2Y7.54%
Revenue Next 3Y11.55%
Revenue Next 5Y11.49%
EBIT growth 1Y14.47%
EBIT growth 3Y39.95%
EBIT growth 5Y8.17%
EBIT Next Year58.5%
EBIT Next 3Y23.79%
EBIT Next 5Y15.63%
FCF growth 1Y-87.11%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y3.72%
OCF growth 3Y13.25%
OCF growth 5Y11.24%