Fact based stock research
Brookfield Renewable (TSX:BEP.UN)
BMG162581083
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For every stock, we judge its performance against its peers and rank it on a scale of 1 to 100. The higher the rank, the better the stock performs than its peers. And, we do this for six investment strategies:
Value - shows how good of a value the stock is. Green is "inexpensive"; red is "expensive".
Growth - shows a company's growth potential. Green is "high growth" expected; red is "tough times ahead".
Safety - relates to the amount of debt a company has. Green is low debt level; red is high debt level.
Combined Financial - this isn't an average of the first three ranks but rather a consolidated view across several financial indicators. Green = good; red = tread carefully.
(NEW) Sentiment - quantifies professional analyst ratings and holdings as well as market pulse. Green = positive sentiment; red = skepticism (Only available to Premium Subscribers).
(NEW) 360° View - the ultimate rating with all financial and non-financial indicators.
Brookfield Renewable stock research in summary
ANALYSIS: With an Obermatt Combined Rank of 38 (worse than 62% compared with investment alternatives), Brookfield Renewable (Renewable Electricity, Canada) shares have somewhat below-average financial characteristics compared with similar stocks. Shares of Brookfield Renewable are a good value (attractively priced) with a consolidated Value Rank of 51 (better than 51% of alternatives), show above-average growth (Growth Rank of 57) but are riskily financed (Safety Rank of 24), which means above-average debt burdens. ...read more
RECOMMENDATION: A Combined Rank of 38, is a hold recommendation based on Brookfield Renewable's financial characteristics. As the company Brookfield Renewable's key financial metrics exhibit excellent performance in two areas, such as good value (Obermatt Value Rank of 51) and above-average growth (Obermatt Growth Rank of 57), it could be argued that the risk-taking in financing (Obermatt Safety Rank of only 24) indicates that the company is optimistic about the future and sees debt as an opportunity to boost returns. More debt means more shareholder returns if everything goes well. However, higher debt burdens are risky when interest rates rise or the business deteriorates in a crisis. If you believe the company's future is market-typical or even better, this could be an argument for a share purchase. Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more
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360° Viewnew| Country | Canada |
| Industry | Renewable Electricity |
| Index | Renewables Users, TSX Composite |
| Size class | X-Large |
19-Dec-2024. Stock data may be delayed. Log in or sign up to get the most recent research.
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Review the performance ranks of the individual metrics that form each investment strategy.
Research History: Brookfield Renewable
| RESEARCH HISTORY | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| VALUE | ||||||||
| VALUE | 15 |
|
79 |
|
45 |
|
51 |
|
| GROWTH | ||||||||
| GROWTH | 5 |
|
33 |
|
97 |
|
57 |
|
| SAFETY | ||||||||
| SAFETY | 16 |
|
37 |
|
35 |
|
24 |
|
| SENTIMENT | ||||||||
| SENTIMENT | n/a |
|
62 |
|
61 |
|
new |
|
| 360° VIEW | ||||||||
| 360° VIEW | n/a |
|
61 |
|
80 |
|
new |
|
Combined financial peformance in Detail
ANALYSIS: With an Obermatt Combined Rank of 38 (worse than 62% compared with investment alternatives), Brookfield Renewable (Renewable Electricity, Canada) shares have somewhat below-average financial characteristics compared with similar stocks. Shares of Brookfield Renewable are a good value (attractively priced) with a consolidated Value Rank of 51 (better than 51% of alternatives), show above-average growth (Growth Rank of 57) but are riskily financed (Safety Rank of 24), which means above-average debt burdens. ...read more
RECOMMENDATION: A Combined Rank of 38, is a hold recommendation based on Brookfield Renewable's financial characteristics. As the company Brookfield Renewable's key financial metrics exhibit excellent performance in two areas, such as good value (Obermatt Value Rank of 51) and above-average growth (Obermatt Growth Rank of 57), it could be argued that the risk-taking in financing (Obermatt Safety Rank of only 24) indicates that the company is optimistic about the future and sees debt as an opportunity to boost returns. More debt means more shareholder returns if everything goes well. However, higher debt burdens are risky when interest rates rise or the business deteriorates in a crisis. If you believe the company's future is market-typical or even better, this could be an argument for a share purchase. Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more
| RESEARCH HISTORY | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| VALUE | ||||||||
| VALUE | 15 |
|
79 |
|
45 |
|
51 |
|
| GROWTH | ||||||||
| GROWTH | 5 |
|
33 |
|
97 |
|
57 |
|
| SAFETY | ||||||||
| SAFETY | 16 |
|
37 |
|
35 |
|
24 |
|
| COMBINED | ||||||||
| COMBINED | 6 |
|
61 |
|
84 |
|
38 |
|
Value Metrics in Detail
ANALYSIS: With an Obermatt Value Rank of 51 (better than 51% compared with alternatives), Brookfield Renewable shares are more attractively priced than the majority of comparable stocks. The Value Rank is based on consolidating four value indicators, where half the indicators are below and half above average for Brookfield Renewable. Price-to-Sales (P/S) is 90, which means that the stock price compared with what market professionals expect for future sales is lower than for 90% of comparable companies, indicating a good value concerning Brookfield Renewable's revenue size. The same is valid for dividend yields with a Dividend Yield rank of 93, which means that dividends are expected to be higher than for 93% of comparable investments. On the other hand, the Price-to-Book Capital ratio (also referred to as market-to-book ratio) is less favorable than for 85% of alternatives (only 15% of peers have an even higher ratio). The same is valid for the Price-to-Profit (or Price / Earnings, P/E) ratio, which is higher than for 95% of comparable companies, making the stock more expensive compared with the company's expected profit levels. ...read more
RECOMMENDATION: The overall picture with a consolidated Value Rank of 51, is a buy recommendation based on Brookfield Renewable's stock price compared with the company's operational size and dividend yields. This is a somewhat surprising picture, because it means that profits are low while dividends are high. One interpretation could be that profits are expected to increase, justifying the high dividend payments. But it could also mean that the company desperately keeps the high dividends to avoid a collapsing share price. This would be a rather dangerous constellation. We recommend further analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks, including the 360° View, before making an investment decision, which is especially important in this case, as the financial indicators are inconclusive. ...read more
| VALUE METRICS | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| PRICE VS. REVENUES (P/S) | ||||||||
| PRICE VS. REVENUES (P/S) | 18 |
|
82 |
|
67 |
|
90 |
|
| PRICE VS. PROFITS (P/E) | ||||||||
| PRICE VS. PROFITS (P/E) | 1 |
|
1 |
|
1 |
|
5 |
|
| PRICE VS. CAPITAL (Market-to-Book) | ||||||||
| PRICE VS. CAPITAL (Market-to-Book) | 38 |
|
95 |
|
52 |
|
15 |
|
| DIVIDEND YIELD | ||||||||
| DIVIDEND YIELD | 46 |
|
83 |
|
70 |
|
93 |
|
| CONSOLIDATED RANK: VALUE | ||||||||
| CONSOLIDATED RANK: VALUE | 15 |
|
79 |
|
45 |
|
51 |
|
Growth Metrics in Detail
ANALYSIS: With an Obermatt Growth Rank of 57 (better than 57% compared with alternatives), Brookfield Renewable shows an above-average growth dynamic in its industry. Investors also speak of positive momentum. The Growth Rank is based on consolidating four value indicators, with half of the indicators below and half above average for Brookfield Renewable. Sales Growth has a rank of 86, which means that, currently, professionals expect the company to grow more than 86% of its competitors. Profit Growth with a rank of 96 is also above average. But Capital Growth has only a rank of 6, and Stock Returns with 29 are also below-average. Stock returns for Brookfield Renewable have recently been below 71% of alternative investments. ...read more
RECOMMENDATION: The overall picture with a consolidated Growth Rank of 57, is a buy recommendation for growth and momentum investors. Are investors forecasting troubles based on the lack of operating investment activity at the company? This could be one explanation as to why stock returns are low. But stock returns can also be the result of correcting an error in the past, in this case, an overly optimistic outlook on the future, which is now more realistic. The Value Ranks may confirm such a picture. The more important growth indicators are revenues and profits, which are both above average for Brookfield Renewable. This is a positive sign from the company's operational side and may give investors courage, despite the poor recent stock price performance. While momentum is a popular investment factor, the value aspect might be the more important one, in the longer term. We recommend analyzing the stock with the Obermatt Value, Safety, and Sentiment Ranks to arrive at a 360° View of the stock purchase case, especially since the growth performance is mixed here. ...read more
| GROWTH METRICS | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| REVENUE GROWTH | ||||||||
| REVENUE GROWTH | 11 |
|
62 |
|
88 |
|
86 |
|
| PROFIT GROWTH | ||||||||
| PROFIT GROWTH | 73 |
|
94 |
|
94 |
|
96 |
|
| CAPITAL GROWTH | ||||||||
| CAPITAL GROWTH | n/a |
|
4 |
|
7 |
|
6 |
|
| STOCK RETURNS | ||||||||
| STOCK RETURNS | 38 |
|
9 |
|
93 |
|
29 |
|
| CONSOLIDATED RANK: GROWTH | ||||||||
| CONSOLIDATED RANK: GROWTH | 5 |
|
33 |
|
97 |
|
57 |
|
Safety Metrics in Detail
ANALYSIS: With an Obermatt Safety Rank of 24 (better than 24% compared with alternatives), the company Brookfield Renewable has much riskier financing practices than comparable other companies, which means that their overall debt burden is significantly above the industry average. This doesn't mean that the business of Brookfield Renewable is also risky, it only means that the company is on the riskier side in respect to bankruptcy in case things turn sour, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators, with just one indicator above average for Brookfield Renewable and the other two below average. Leverage is at a rank of 80 meaning the company has a below-average debt-to-equity ratio. It has less debt than 80% of its competitors.Refinancing is at a rank of 4, which means that the portion of the debt about to be refinanced is above-average. It has more debt in the refinancing stage than 96% of its competitors. Liquidity is at a rank of 6, meaning that the company generates less profit to service its debt than 94% of its competitors. ...read more
RECOMMENDATION: With a consolidated Safety Rank of 24 (worse than 76% compared with alternatives), Brookfield Renewable has a financing structure that is significantly riskier than that of its competitors. This is an indication that the company is on the riskier side when it comes to debt service. There is only below-market average liquidity, and a short-term refinancing issue might be around the corner. But in the long-term, the debt levels of Brookfield Renewable are on the safer side. Investors may have a short-term debt challenge and liquidity issues with Brookfield Renewable and should also compare Obermatt’s Value, Growth, and Sentiment Ranks before making a decision. ...read more
| SAFETY METRICS | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| LEVERAGE | ||||||||
| LEVERAGE | 11 |
|
86 |
|
84 |
|
80 |
|
| REFINANCING | ||||||||
| REFINANCING | 64 |
|
31 |
|
13 |
|
4 |
|
| LIQUIDITY | ||||||||
| LIQUIDITY | 1 |
|
7 |
|
10 |
|
6 |
|
| CONSOLIDATED RANK: SAFETY | ||||||||
| CONSOLIDATED RANK: SAFETY | 16 |
|
37 |
|
35 |
|
24 |
|
Sentiment Metrics in Detail
| SENTIMENT | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| ANALYST OPINIONS | ||||||||
| ANALYST OPINIONS | n/a |
|
53 |
|
81 |
|
new |
|
| OPINIONS CHANGE | ||||||||
| OPINIONS CHANGE | n/a |
|
50 |
|
50 |
|
new |
|
| PRO HOLDINGS | ||||||||
| PRO HOLDINGS | n/a |
|
19 |
|
16 |
|
new |
|
| MARKET PULSE | ||||||||
| MARKET PULSE | n/a |
|
86 |
|
83 |
|
new |
|
| CONSOLIDATED RANK: SENTIMENT | ||||||||
| CONSOLIDATED RANK: SENTIMENT | n/a |
|
62 |
|
61 |
|
new |
|
Free stock analysis by the purely fact based Obermatt Method for Brookfield Renewable from December 19, 2024.
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