Brookfield Renewable Partners L.P.
Brookfield Renewable Partners L.P. Fundamental Analysis
Brookfield Renewable Partners L.P. (BEP-PA) shows weak financial fundamentals with a PE ratio of 43.11, profit margin of 3.30%, and ROE of 2.67%. The company generates $8.1B in annual revenue with strong year-over-year growth of 16.63%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of -2.3/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze BEP-PA's fundamental strength across five key dimensions:
Efficiency Score
WeakBEP-PA struggles to generate sufficient returns from assets.
Valuation Score
ModerateBEP-PA shows balanced valuation metrics.
Growth Score
ModerateBEP-PA shows steady but slowing expansion.
Financial Health Score
WeakBEP-PA carries high financial risk with limited liquidity.
Profitability Score
WeakBEP-PA struggles to sustain strong margins.
Key Financial Metrics
Is BEP-PA Expensive or Cheap?
P/E Ratio
BEP-PA trades at 43.11 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, BEP-PA's PEG of 0.25 indicates potential undervaluation.
Price to Book
The market values Brookfield Renewable Partners L.P. at 1.99 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at -4.57 times EBITDA. This is generally considered low.
How Well Does BEP-PA Make Money?
Net Profit Margin
For every $100 in sales, Brookfield Renewable Partners L.P. keeps $3.30 as profit after all expenses.
Operating Margin
Core operations generate 13.32 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $2.67 in profit for every $100 of shareholder equity.
ROA
Brookfield Renewable Partners L.P. generates $0.22 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Brookfield Renewable Partners L.P. produces operating cash flow of $1.89B, showing steady but balanced cash generation.
Free Cash Flow
Brookfield Renewable Partners L.P. generates weak or negative free cash flow of $-6.47B, restricting financial flexibility.
FCF Per Share
Each share generates $-17.84 in free cash annually.
FCF Yield
BEP-PA converts -52.64% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
43.11
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.25
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.99
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.52
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
7.58
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.54
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.03
vs 25 benchmark
ROA
Return on assets percentage
0.002
vs 25 benchmark
ROCE
Return on capital employed
0.01
vs 25 benchmark
How BEP-PA Stacks Against Its Sector Peers
| Metric | BEP-PA Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 43.11 | 19.14 | Worse (Expensive) |
| ROE | 2.67% | 1002.00% | Weak |
| Net Margin | 3.30% | 9090.00% | Weak |
| Debt/Equity | 7.58 | 1.75 | Weak (High Leverage) |
| Current Ratio | 0.54 | 1.28 | Weak Liquidity |
| ROA | 0.22% | -252.00% (disorted) | Weak |
BEP-PA outperforms its industry in 0 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Brookfield Renewable Partners L.P.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
14.15%
Industry Style: Defensive, Dividend, Income
High GrowthEPS CAGR
-282.21%
Industry Style: Defensive, Dividend, Income
DecliningFCF CAGR
-24.56%
Industry Style: Defensive, Dividend, Income
Declining