Brookfield BRP Holdings Canada 4.875% Perpetual Subordinated Notes
Brookfield BRP Holdings Canada 4.875% Perpetual Subordinated Notes Fundamental Analysis
Brookfield BRP Holdings Canada 4.875% Perpetual Subordinated Notes (BEPI) shows weak financial fundamentals with a PE ratio of 45.33, profit margin of 3.30%, and ROE of 2.67%. The company generates $9.3B 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 -2.1/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze BEPI's fundamental strength across five key dimensions:
Efficiency Score
WeakBEPI struggles to generate sufficient returns from assets.
Valuation Score
ModerateBEPI shows balanced valuation metrics.
Growth Score
ModerateBEPI shows steady but slowing expansion.
Financial Health Score
WeakBEPI carries high financial risk with limited liquidity.
Profitability Score
WeakBEPI struggles to sustain strong margins.
Key Financial Metrics
Is BEPI Expensive or Cheap?
P/E Ratio
BEPI trades at 45.33 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, BEPI's PEG of 0.26 indicates potential undervaluation.
Price to Book
The market values Brookfield BRP Holdings Canada 4.875% Perpetual Subordinated Notes at 2.09 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at -4.63 times EBITDA. This is generally considered low.
How Well Does BEPI Make Money?
Net Profit Margin
For every $100 in sales, Brookfield BRP Holdings Canada 4.875% Perpetual Subordinated Notes 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 BRP Holdings Canada 4.875% Perpetual Subordinated Notes generates $0.22 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Brookfield BRP Holdings Canada 4.875% Perpetual Subordinated Notes produces operating cash flow of $2.16B, showing steady but balanced cash generation.
Free Cash Flow
Brookfield BRP Holdings Canada 4.875% Perpetual Subordinated Notes generates weak or negative free cash flow of $-7.37B, restricting financial flexibility.
FCF Per Share
Each share generates $-17.84 in free cash annually.
FCF Yield
BEPI converts -49.94% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
45.33
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.26
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.09
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.60
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
7.78
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.57
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 BEPI Stacks Against Its Sector Peers
| Metric | BEPI Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 45.33 | 22.50 | Worse (Expensive) |
| ROE | 2.67% | 700.00% | Weak |
| Net Margin | 3.30% | -37372.00% (disorted) | Weak |
| Debt/Equity | 7.78 | -20.81 (disorted) | Distorted |
| Current Ratio | 0.57 | 1949.79 | Weak Liquidity |
| ROA | 0.22% | -1322.00% (disorted) | Weak |
BEPI 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 BRP Holdings Canada 4.875% Perpetual Subordinated Notes's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
39.30%
Industry Style: Income, Inflation Hedge, REIT
High GrowthEPS CAGR
-356.53%
Industry Style: Income, Inflation Hedge, REIT
DecliningFCF CAGR
-22.82%
Industry Style: Income, Inflation Hedge, REIT
Declining