Author: Daniel Stewart
Date: April 2025
Rating: Long-Term Buy
Company Overview
Brookfield Renewable Corporation (BEPC) operates one of the world's largest publicly traded renewable power platforms, with assets in hydro, wind, solar, and storage. Its revenue is largely derived from long-term PPAs, offering stability and predictable cash flows.
Recent Developments
- Reorganization in Dec 2024 issued new Class A shares with same economic benefits.
- 2024: 10% FFO growth, 7,000 MW commissioned, $12.5B deployed.
- Issued C$450M in green bonds (March 2025).
Strategic Direction
BEPC is managed by Brookfield Asset Management and aims to drive long-term value creation by expanding renewable infrastructure globally, aligned with net-zero goals.
Industry and Market Analysis
- Renewables surpassed coal in U.S. energy mix for the first time in 2024.
- Global renewable capacity rose 15.1% to 4,448 GW.
- Data center boom will triple U.S. power demand by 2028.
Competitive Position
With 6,000 GWh in contracts expiring soon, BEPC is positioned to benefit from rising power prices. Their $12.5B M&A activity in 2024, including deals in PJM and talks to acquire Neoen, supports future growth.
Financial Highlights
- Revenue (2024): $4.57B; Net Income: $236M (vs. $-181M in 2023).
- P/E Ratio: 19.53; ROE: 1.81%; ROA: 2.23%.
- Current Ratio: 0.28; Total Debt/Equity: 116.39%.
Valuation
- Current Price: $25.58 (April 2025)
- DCF estimates range from $22.16 to $60.76 per share.
- Comps: EVRG (17.5), IDA (20.8), HE (4.8) — BEPC is fairly valued.
Risks and Catalysts
- Risks: Interest rates, currency, climate exposure, regulatory changes
- Catalysts: M&A, Microsoft partnership, May 2025 earnings, dividend growth
Final Recommendation
Brookfield Renewable offers an attractive long-term buy opportunity for investors seeking exposure to clean energy infrastructure, supported by diversified assets, disciplined growth, and rising power demand.
Confidence Level: ⚖ Moderate to High – Particularly for long-term investors with a 3–5+ year horizon.