Brookfield Renewable Current Valuation vs. Operating Margin

BEP-PM Preferred Stock  CAD 22.50  0.14  0.63%   
Based on the measurements of profitability obtained from Brookfield Renewable's financial statements, Brookfield Renewable Partners may not be well positioned to generate adequate gross income at the moment. It has a very high risk of underperforming in January. Profitability indicators assess Brookfield Renewable's ability to earn profits and add value for shareholders.
For Brookfield Renewable profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Brookfield Renewable to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Brookfield Renewable Partners utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Brookfield Renewable's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Brookfield Renewable Partners over time as well as its relative position and ranking within its peers.
  
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Please note, there is a significant difference between Brookfield Renewable's value and its price as these two are different measures arrived at by different means. Investors typically determine if Brookfield Renewable is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Brookfield Renewable's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

Brookfield Renewable Operating Margin vs. Current Valuation Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Brookfield Renewable's current stock value. Our valuation model uses many indicators to compare Brookfield Renewable value to that of its competitors to determine the firm's financial worth.
Brookfield Renewable Partners is rated fourth in current valuation category among its peers. It also is rated fourth in operating margin category among its peers . The ratio of Current Valuation to Operating Margin for Brookfield Renewable Partners is about  295,818,756,129 . Comparative valuation analysis is a catch-all model that can be used if you cannot value Brookfield Renewable by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Brookfield Renewable's Preferred Stock. Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued.

Brookfield Current Valuation vs. Competition

Brookfield Renewable Partners is rated fourth in current valuation category among its peers. After adjusting for long-term liabilities, total market size of Utilities industry is currently estimated at about 310.96 Billion. Brookfield Renewable retains roughly 58.69 Billion in current valuation claiming about 19% of Utilities industry.

Brookfield Operating Margin vs. Current Valuation

Enterprise Value is a firm valuation proxy that approximates the current market value of a company. It is typically used to determine the takeover or merger price of a firm. Unlike Market Cap, this measure takes into account the entire liquid asset, outstanding debt, and exotic equity instruments that the company has on its balance sheet. When a takeover occurs, the parent company will have to assume the target company's liabilities but will take possession of all cash and cash equivalents.

Brookfield Renewable

Enterprise Value

 = 

Market Cap + Debt

-

Cash

 = 
58.69 B
Enterprise Value can be a useful tool to compare companies with different capital structures. Long term liability and current cash or cash equivalents can have a huge impact on market valuation of a given company.
Operating Margin shows how much operating income a company makes on each dollar of sales. It is one of the profitability indicators which helps analysts to understand whether the firm is successful or not making money from everyday operations.

Brookfield Renewable

Operating Margin

 = 

Operating Income

Revenue

X

100

 = 
0.20 %
A good Operating Margin is required for a company to be able to pay for its fixed costs or payout its debt, which implies that the higher the margin, the better. This ratio is most effective in evaluating the earning potential of a company over time when comparing it against a firm's competitors.

Brookfield Operating Margin Comparison

Brookfield Renewable is currently under evaluation in operating margin category among its peers.

Brookfield Renewable Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Brookfield Renewable, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Brookfield Renewable will eventually generate negative long term returns. The profitability progress is the general direction of Brookfield Renewable's change in net profit over the period of time. It can combine multiple indicators of Brookfield Renewable, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Brookfield Renewable Partners L.P. owns a portfolio of renewable power generating facilities primarily in North America, Colombia, Brazil, Europe, India, and China. Brookfield Renewable Partners L.P. was founded in 1999 and is headquartered in Toronto, Canada. BROOKFIELD RENEWABLE operates under Utilities - Independent Power Producers classification in Canada and is traded on Toronto Stock Exchange. It employs 2325 people.

Brookfield Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Brookfield Renewable. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Brookfield Renewable position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Brookfield Renewable's important profitability drivers and their relationship over time.

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Other Information on Investing in Brookfield Preferred Stock

To fully project Brookfield Renewable's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Brookfield Renewable at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Brookfield Renewable's income statement, its balance sheet, and the statement of cash flows.
Potential Brookfield Renewable investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Brookfield Renewable investors may work on each financial statement separately, they are all related. The changes in Brookfield Renewable's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Brookfield Renewable's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.