{"id":61667,"date":"2025-06-16T16:52:38","date_gmt":"2025-06-16T14:52:38","guid":{"rendered":"https:\/\/www.captrader.com\/?post_type=analyse&#038;p=61667"},"modified":"2026-02-20T08:27:20","modified_gmt":"2026-02-20T07:27:20","slug":"dgi-sample-portfolio-the-brookfield-renewable-stock","status":"publish","type":"analyse","link":"https:\/\/www.captrader.com\/en\/analyse\/dgi-musterdepot-die-brookfield-renewable-aktie\/","title":{"rendered":"DGI SAMPLE PORTFOLIO: THE BROOKFIELD RENEWABLE SHARE"},"content":{"rendered":"<style id=\"bricks-inline-css-component-lnntzm\">\n\/* BREAKPOINT: Desktop (BASE) *\/\n.block-editor-iframe__body .brxe-rtliac:not(.tag), .block-editor-iframe__body .brxe-rtliac img{aspect-ratio: 1; object-fit: contain}\n.block-editor-iframe__body .brxe-rtliac{width: 65px}\n\n\n\/* BREAKPOINT: Desktop (BASE) *\/\n.block-editor-iframe__body .brxe-lkidxf{border: 3px solid #F6F6F8; margin-top: -60px; background-color: var(--light)}\n\n\n\/* BREAKPOINT: Desktop (BASE) *\/\n.block-editor-iframe__body .brxe-jzmkoh{font-weight: 600; font-size: var(--text-xl); text-transform: uppercase}\n\n\n\/* BREAKPOINT: Desktop (BASE) *\/\n.block-editor-iframe__body .brxe-umltno ul li{ list-style: none; position: relative; padding-left: 30px;} .block-editor-iframe__body .brxe-umltno ul li::before{ content: ''; position: absolute; left: 0; top: 0.4em; width: 15px; height: 15px; background-image: url('\/wp-content\/uploads\/2024\/02\/square-full-solid.svg'); background-size: contain; background-repeat: no-repeat;}\n\n\n\/* BREAKPOINT: Mobil Hochformat *\/\n@media (max-width: 478px){\n.block-editor-iframe__body .brxe-xowhkb{margin-top: 20px}\n}\n\n\/* BREAKPOINT: Desktop (BASE) *\/\n.block-editor-iframe__body .brxe-lnntzm{background-color: #F6F6F8; align-items: center; position: relative; margin-top: 60px; padding-right: var(--space-l); padding-bottom: var(--space-l); padding-left: var(--space-l)}\n\n\n\/* Disable links in editor *\/\n.block-editor-iframe__body a.brxe-lnntzm, .block-editor-iframe__body .brxe-lnntzm a{ pointer-events: none; }\n<\/style><div class=\"brxe-lnntzm brxe-block\"><div class=\"brxe-lkidxf brxe-div radius-full padding-s\"><img decoding=\"async\" src=\"https:\/\/www.captrader.com\/wp-content\/uploads\/2025\/06\/Icons_Uebersicht-blau.svg\" class=\"brxe-rtliac brxe-image css-filter size-full\" alt=\"A simple outline of a document with horizontal lines and a yellow magnifying glass in front of it, symbolizing the document check or search.\" \/><\/div><div class=\"brxe-xowhkb brxe-block\"><h2 class=\"brxe-jzmkoh brxe-heading\">The most important in a nutshell<\/h2><div class=\"brxe-umltno brxe-text\"><ul>\n<li>Brookfield Renewable (BEPC) is one of the world's largest producers of renewable energy. The supply of low-cost energy meets rising global demand<\/li>\n<li>Brookfield Renewable's experienced management team pursues a stringent corporate strategy that is fully geared towards growth. A multi-layered pipeline of new projects is the basis for steadily growing cash flows<\/li>\n<li>Brookfield Renewable is a core part of the Brookfield conglomerate. The main shareholder's strong position as one of the largest asset managers for alternative investments with an extensive network and established access to institutional investors is an undeniable competitive advantage for BEPC<\/li>\n<li>The participation of shareholders in the company's economic success is anchored in the form of annual dividend growth of 5 to 9%. This has been increased every year since the first distribution in 2011<\/li>\n<li>Click here for the <a href=\"https:\/\/www.captrader.com\/en\/dividend-custody-account\/portfolio\/\"><strong>DGI model portfolio<\/strong><\/a><strong><\/strong>and here to the overview of this series <a href=\"https:\/\/www.captrader.com\/en\/dividend-custody-account\/\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>The dividend custody account<\/strong><\/a><\/li>\n<\/ul>\n<\/div><\/div><\/div>\n\n\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"1006\" height=\"461\" src=\"https:\/\/www.captrader.com\/wp-content\/uploads\/2025\/06\/Aktienchart-BEPC.jpg\" alt=\"Line chart showing the share price of Brookfield Renewable A from 2020 to 2025. It peaks at the beginning of 2021, then falls and stabilizes at around USD 30-35 by mid-2025.\" class=\"wp-image-61663\" srcset=\"https:\/\/www.captrader.com\/wp-content\/uploads\/2025\/06\/Aktienchart-BEPC.jpg 1006w, https:\/\/www.captrader.com\/wp-content\/uploads\/2025\/06\/Aktienchart-BEPC-300x137.jpg 300w, https:\/\/www.captrader.com\/wp-content\/uploads\/2025\/06\/Aktienchart-BEPC-768x352.jpg 768w, https:\/\/www.captrader.com\/wp-content\/uploads\/2025\/06\/Aktienchart-BEPC-18x8.jpg 18w\" sizes=\"auto, (max-width: 1006px) 100vw, 1006px\" \/><figcaption class=\"wp-element-caption\"><em>Brookfield Renewable share chart (source: aktien.guide)<\/em><\/figcaption><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Company profile and business model: Who is Brookfield Renewable and what does it do?<\/strong><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">The history of Brookfield began at the end of the century before last, in Brazil in the late 1890s. At that time, the railroad entrepreneur <strong>William Mackenzie<\/strong> and the qualified electrical engineer <strong>Frederick Stark Pearson<\/strong> - to enter the utility business alongside other infrastructure services. The company made use of hydropower to generate electricity and expanded its business activities in North America in the Ontario region over the next few decades.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">After several takeovers and name changes, the <strong>Brascan<\/strong> Limited - the name is a historical reference to the two core countries <strong>Bras<\/strong>ilies and K(<strong>C)an<\/strong>ada - Brookfield Asset Management (BAM) in 2005.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">For a long time, BAM managed its investments in the field of renewable energies in two different vehicles or companies. The assets were held in Brookfield Renewable Power Fund (formerly Great Lakes Hydro Income Fund) and Brookfield Renewable Power Incorporated, before BAM decided to combine all of its hydro, wind, solar, distributed generation, pumped storage and biomass businesses under Brookfield Renewable (Energy) Partners Limited, headquartered in Hamilton, Bermuda. Upon completion of the transaction, BAM owned nearly 73 percent of the combined company, which trades on the Toronto Stock Exchange under the symbol BEP-UN and on the New York Stock Exchange under BEP.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The <strong>Brookfield conglomerate<\/strong> today is made up of the five cornerstones listed below. As mentioned, the spin-off Brookfield Asset Management Limited now trades under the ticker symbol BAM, while the \"old\" BAM has been trading under the name <strong>Brookfield Corporation (BN)<\/strong> acts as the holding company.<\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"720\" height=\"413\" src=\"https:\/\/www.captrader.com\/wp-content\/uploads\/2025\/06\/Organisationsstruktur-BEPC.jpg\" alt=\"Organizational chart of Brookfield Asset Management&#039;s business divisions: real estate, infrastructure, renewable energy, private equity and credit, with subsidiaries, private funds and public securities.\" class=\"wp-image-61652\" srcset=\"https:\/\/www.captrader.com\/wp-content\/uploads\/2025\/06\/Organisationsstruktur-BEPC.jpg 720w, https:\/\/www.captrader.com\/wp-content\/uploads\/2025\/06\/Organisationsstruktur-BEPC-300x172.jpg 300w, https:\/\/www.captrader.com\/wp-content\/uploads\/2025\/06\/Organisationsstruktur-BEPC-18x10.jpg 18w\" sizes=\"auto, (max-width: 720px) 100vw, 720px\" \/><figcaption class=\"wp-element-caption\"><em>The old organizational structure of the Brookfield Group (source: <\/em><a href=\"https:\/\/bn.brookfield.com\/sites\/brookfield-ir\/files\/brookfield\/bam\/annual-reports\/2019\/mda-of-financial-results.pdf\" rel=\"nofollow noopener\" target=\"_blank\"><em>BAM Annual Report, p. 24<\/em><\/a><em>)<\/em><\/figcaption><\/figure>\n\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"488\" src=\"https:\/\/www.captrader.com\/wp-content\/uploads\/2025\/06\/Neue-Organisationsstruktur-BEPC-1024x488.jpg\" alt=\"Organization chart of Brookfield Corporation with ownership interests in subsidiaries, including asset management, reinsurance, operations and other investments as of September 30, 2023.\" class=\"wp-image-61651\" srcset=\"https:\/\/www.captrader.com\/wp-content\/uploads\/2025\/06\/Neue-Organisationsstruktur-BEPC-1024x488.jpg 1024w, https:\/\/www.captrader.com\/wp-content\/uploads\/2025\/06\/Neue-Organisationsstruktur-BEPC-300x143.jpg 300w, https:\/\/www.captrader.com\/wp-content\/uploads\/2025\/06\/Neue-Organisationsstruktur-BEPC-768x366.jpg 768w, https:\/\/www.captrader.com\/wp-content\/uploads\/2025\/06\/Neue-Organisationsstruktur-BEPC-18x9.jpg 18w, https:\/\/www.captrader.com\/wp-content\/uploads\/2025\/06\/Neue-Organisationsstruktur-BEPC.jpg 1039w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><figcaption class=\"wp-element-caption\"><em>The new organizational structure of the Brookfield Group (Source: <\/em><a href=\"https:\/\/docsend.com\/view\/296vetwtk8xvvup5\" rel=\"nofollow noopener\" target=\"_blank\"><em>Silver Beech, p. 3<\/em><\/a><em>)<\/em><\/figcaption><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">Why did I actually invest in the <strong>Brookfield Renewable Corporation<\/strong> with the ticker BEPC? In 2018, the management decided to split Brookfield Renewable into two separate companies. Assets from the existing BEP were transferred to the newly established BEPC, which was set up as a company domiciled in Canada and has been traded on the stock exchange since 2020. Distributions from trusts and limited partnerships are subject to different taxation than conventional shares. Due to their tax complexity, they are generally less popular with private investors, ETFs and investment funds. To provide more flexibility and liquidity, Brookfield decided to create company shares (C shares). One ulterior motive was to increase the attractiveness for US retail investors due to more favorable tax characteristics. BEPC's dividends are variable in amount and schedule (ex-dividend, payday, etc.). <strong>Identical<\/strong> with the distributions from BEP.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"624\" src=\"https:\/\/www.captrader.com\/wp-content\/uploads\/2025\/06\/Gruendung-BEPC-1024x624.jpg\" alt=\"One chart lists three benefits of creating BEPC: expanded investor base, broader index and ETF inclusion, and tax benefits for some.\" class=\"wp-image-61647\" srcset=\"https:\/\/www.captrader.com\/wp-content\/uploads\/2025\/06\/Gruendung-BEPC-1024x624.jpg 1024w, https:\/\/www.captrader.com\/wp-content\/uploads\/2025\/06\/Gruendung-BEPC-300x183.jpg 300w, https:\/\/www.captrader.com\/wp-content\/uploads\/2025\/06\/Gruendung-BEPC-768x468.jpg 768w, https:\/\/www.captrader.com\/wp-content\/uploads\/2025\/06\/Gruendung-BEPC-18x12.jpg 18w, https:\/\/www.captrader.com\/wp-content\/uploads\/2025\/06\/Gruendung-BEPC.jpg 1186w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><figcaption class=\"wp-element-caption\"><em>The founding of Brookfield Renewable Corporation (source: <\/em><a href=\"https:\/\/bep.brookfield.com\/\" rel=\"nofollow noopener\" target=\"_blank\"><em>BEPC Investor Presentation, p. 5<\/em><\/a><em>)<\/em><\/figcaption><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">What stands out when looking at the share charts is the <strong>Different price trends<\/strong> after the BEPC shares were issued at the same price as the BEP units in 2020. The price difference is explained by the high level of interest in the company's shares. As demand for company shares increased, all Brookfield C shares rose in price faster than the trust and LP units. As a result, BEPC shares trade roughly at a ten percent premium, which in turn translates into a lower dividend yield by the same proportion.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"640\" src=\"https:\/\/www.captrader.com\/wp-content\/uploads\/2025\/06\/Gruendungsstruktur-BEPC-1024x640.jpg\" alt=\"A flowchart showing the ownership and dividend flows between BEP Public Investors, Brookfield Asset Management, BEPC Public Investors, Brookfield Renewable Partners and Brookfield Renewable Corporation.\" class=\"wp-image-61648\" srcset=\"https:\/\/www.captrader.com\/wp-content\/uploads\/2025\/06\/Gruendungsstruktur-BEPC-1024x640.jpg 1024w, https:\/\/www.captrader.com\/wp-content\/uploads\/2025\/06\/Gruendungsstruktur-BEPC-300x187.jpg 300w, https:\/\/www.captrader.com\/wp-content\/uploads\/2025\/06\/Gruendungsstruktur-BEPC-768x480.jpg 768w, https:\/\/www.captrader.com\/wp-content\/uploads\/2025\/06\/Gruendungsstruktur-BEPC-18x12.jpg 18w, https:\/\/www.captrader.com\/wp-content\/uploads\/2025\/06\/Gruendungsstruktur-BEPC.jpg 1180w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><figcaption class=\"wp-element-caption\"><em>The structure of Brookfield Renewable Corporation (source:<\/em> <a href=\"https:\/\/bep.brookfield.com\/\" rel=\"nofollow noopener\" target=\"_blank\"><em>BEPC Investor Presentation, p. 17<\/em><\/a><em>)<\/em><\/figcaption><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">The core of the <strong>Gesch\u00e4ftsmodells<\/strong> of Brookfield Renewable comprises the generation of electricity from predominantly renewable energy sources. Let us first take a look at the energy mix, i.e. what proportion of the portfolio is made up of the individual energy sources and what value contribution they make to economic success. At the same time, the geographical distribution reveals the relatively dominant position of North America for the two central segments of hydropower and wind power.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"529\" src=\"https:\/\/www.captrader.com\/wp-content\/uploads\/2025\/06\/Energieportfolio-BEPC-1024x529.jpg\" alt=\"A financial summary table showing Brookfield Renewable&#039;s key performance indicators by segment and region for 2023-2025, including energy production, revenue, EBITDA and FFO.\" class=\"wp-image-61641\" srcset=\"https:\/\/www.captrader.com\/wp-content\/uploads\/2025\/06\/Energieportfolio-BEPC-1024x529.jpg 1024w, https:\/\/www.captrader.com\/wp-content\/uploads\/2025\/06\/Energieportfolio-BEPC-300x155.jpg 300w, https:\/\/www.captrader.com\/wp-content\/uploads\/2025\/06\/Energieportfolio-BEPC-768x397.jpg 768w, https:\/\/www.captrader.com\/wp-content\/uploads\/2025\/06\/Energieportfolio-BEPC-18x9.jpg 18w, https:\/\/www.captrader.com\/wp-content\/uploads\/2025\/06\/Energieportfolio-BEPC.jpg 1162w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><figcaption class=\"wp-element-caption\"><em>The energy portfolio of Brookfield Renewable (source: <\/em><a href=\"https:\/\/bep.brookfield.com\/sites\/bep-brookfield-ir\/files\/Brookfield-BEP-IR-V2\/2024\/Q4\/bep-q4-2024-supplemental.pdf\" rel=\"nofollow noopener\" target=\"_blank\"><em>2024 Q4 Supplemental Information, p. 13<\/em><\/a><em>)<\/em><\/figcaption><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">At this point, a necessary reference to the data and facts used in this chapter from now on. I refer exclusively to the aggregated figures that the company summarizes under \"Brookfield Renewable\" (i.e. BEP and BEPC). I am thus adopting the approach practiced by Brookfield in its external presentation and corporate communications.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"758\" src=\"https:\/\/www.captrader.com\/wp-content\/uploads\/2025\/06\/Geographie-Assets-BEPC-1024x758.jpg\" alt=\"World map showing Brookfield Renewable&#039;s global operations, total energy assets by region and statistics: Total asset value $126 billion, 46,200 MW capacity, 8,164 assets, over 35 markets in 25 countries.\" class=\"wp-image-61646\" srcset=\"https:\/\/www.captrader.com\/wp-content\/uploads\/2025\/06\/Geographie-Assets-BEPC-1024x758.jpg 1024w, https:\/\/www.captrader.com\/wp-content\/uploads\/2025\/06\/Geographie-Assets-BEPC-300x222.jpg 300w, https:\/\/www.captrader.com\/wp-content\/uploads\/2025\/06\/Geographie-Assets-BEPC-768x568.jpg 768w, https:\/\/www.captrader.com\/wp-content\/uploads\/2025\/06\/Geographie-Assets-BEPC-16x12.jpg 16w, https:\/\/www.captrader.com\/wp-content\/uploads\/2025\/06\/Geographie-Assets-BEPC.jpg 1116w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><figcaption class=\"wp-element-caption\"><em>The geographical distribution of Brookfield Renewable's assets (source: <\/em><a href=\"https:\/\/bep.brookfield.com\/sites\/bep-brookfield-ir\/files\/Brookfield-BEP-IR-V2\/2024\/Q4\/bep-q4-2024-supplemental.pdf\" rel=\"nofollow noopener\" target=\"_blank\"><em>2024 Q4 Supplemental Information, p. 5<\/em><\/a><em>)<\/em><\/figcaption><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">As reliable as the power supply should be, a <strong>Long-term planning<\/strong> for the energy producer is essential for the operation and, in particular, the development of new projects. Typical for the industry, a so-called \"<a href=\"https:\/\/www.next-kraftwerke.de\/wissen\/power-purchase-agreement-ppa\" rel=\"nofollow noopener\" target=\"_blank\">Power Purchase Agreement<\/a>\" (PPA) between the electricity producers and (wholesale) customers or electricity traders. These <strong>long-term electricity supply contracts<\/strong> regulate the conditions regarding the amount of electricity that can be supplied, payment processing and, of course, the fixed price. The average remaining term at Brookfield Renewable is 14 years.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Due to the \"<a href=\"https:\/\/en.wikipedia.org\/wiki\/Inflation_Reduction_Act_of_2022\" rel=\"nofollow noopener\" target=\"_blank\">Inflation Reduction Act<\/a>\" of the former US administration under Joe Biden and strong demand from the private sector, Brookfield is actively driving forward development projects in the United States. Since 2022, the portfolio of global projects has <strong>Pipeline <\/strong>for the development of renewable energy plants has more than doubled to around 227,000 megawatts.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"321\" src=\"https:\/\/www.captrader.com\/wp-content\/uploads\/2025\/06\/Projekt-Pipeline-BEPC-1024x321.jpg\" alt=\"Table showing the expected commissioning plan for renewable energy and sustainable solutions by region, totaling 227,246 MW across all categories, with annualized expected FFO and investment figures.\" class=\"wp-image-61654\" srcset=\"https:\/\/www.captrader.com\/wp-content\/uploads\/2025\/06\/Projekt-Pipeline-BEPC-1024x321.jpg 1024w, https:\/\/www.captrader.com\/wp-content\/uploads\/2025\/06\/Projekt-Pipeline-BEPC-300x94.jpg 300w, https:\/\/www.captrader.com\/wp-content\/uploads\/2025\/06\/Projekt-Pipeline-BEPC-768x241.jpg 768w, https:\/\/www.captrader.com\/wp-content\/uploads\/2025\/06\/Projekt-Pipeline-BEPC-18x6.jpg 18w, https:\/\/www.captrader.com\/wp-content\/uploads\/2025\/06\/Projekt-Pipeline-BEPC.jpg 1123w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><figcaption class=\"wp-element-caption\"><em>Brookfield Renewable's project pipeline (source: <\/em><a href=\"https:\/\/bep.brookfield.com\/sites\/bep-brookfield-ir\/files\/Brookfield-BEP-IR-V2\/2024\/Q4\/bep-q4-2024-supplemental.pdf\" rel=\"nofollow noopener\" target=\"_blank\"><em>2024 Q4 Supplemental Information, p. 19<\/em><\/a><em>)<\/em><\/figcaption><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">Diese <strong>Growth ambitions<\/strong> go hand in hand with Brookfield's strategy of positioning itself on the capital market as a company with a strong cash flow. The management's objective is to achieve a 12 to 15 percent return on capital employed.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"498\" src=\"https:\/\/www.captrader.com\/wp-content\/uploads\/2025\/06\/Strategische-Ambitionen-BEPC-1024x498.jpg\" alt=\"A slide from Brookfield outlines three strategies for value creation: Acquiring assets, operating and adding value, and recycling assets, emphasizing return targets and growth projections.\" class=\"wp-image-61656\" srcset=\"https:\/\/www.captrader.com\/wp-content\/uploads\/2025\/06\/Strategische-Ambitionen-BEPC-1024x498.jpg 1024w, https:\/\/www.captrader.com\/wp-content\/uploads\/2025\/06\/Strategische-Ambitionen-BEPC-300x146.jpg 300w, https:\/\/www.captrader.com\/wp-content\/uploads\/2025\/06\/Strategische-Ambitionen-BEPC-768x373.jpg 768w, https:\/\/www.captrader.com\/wp-content\/uploads\/2025\/06\/Strategische-Ambitionen-BEPC-18x9.jpg 18w, https:\/\/www.captrader.com\/wp-content\/uploads\/2025\/06\/Strategische-Ambitionen-BEPC.jpg 1212w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><figcaption class=\"wp-element-caption\"><em>The strategic ambitions of Brookfield Renewable (source: <\/em><a href=\"https:\/\/bep.brookfield.com\/sites\/bep-brookfield-ir\/files\/Brookfield-BEP-IR-V2\/2025\/bep-corp-profile-june-2025.pdf\" rel=\"nofollow noopener\" target=\"_blank\"><em>June 2025 Investor Presentation, p. 6<\/em><\/a><em>)<\/em><\/figcaption><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">In October 2022 <strong>Brookfield Business Partners<\/strong> announced that the subsidiary specializing in nuclear technology <strong>Westinghouse Electric <\/strong>to a consortium consisting of <strong>Cameco<\/strong> and <strong>Brookfield Renewable Partners<\/strong> for sale. Cameco is one of the world's largest suppliers of uranium fuel for nuclear power and has extensive uranium mining, refining and conversion facilities. Brookfield Renewable, together with its institutional partners, holds a stake of <strong>51 percent<\/strong> to Westinghouse and Cameco the remainder. The resulting equity costs were split pro rata between Brookfield Renewable and its institutional partners (approximately USD 2.3 billion) and Cameco (approximately USD 2.2 billion).<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">As an original equipment manufacturer, Westinghouse supplies more than the <strong>Half of the world's nuclear reactors<\/strong>. As an industry leader, the company has a workforce of around <strong>9,000 employees<\/strong>which have been used for years in these highly regulated markets around the world. In 2018, Brookfield bought the then insolvent manufacturer of nuclear power plants for USD 4.6 billion.<\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"949\" height=\"700\" src=\"https:\/\/www.captrader.com\/wp-content\/uploads\/2025\/06\/Westinghouse-Transaktion-BEPC.jpg\" alt=\"A slide outlining the positioning of a partnership in the energy transition, with sections on benefits, offerings and opportunities; also a diagram showing four areas of the nuclear lifecycle and the roles of the partners.\" class=\"wp-image-61662\" srcset=\"https:\/\/www.captrader.com\/wp-content\/uploads\/2025\/06\/Westinghouse-Transaktion-BEPC.jpg 949w, https:\/\/www.captrader.com\/wp-content\/uploads\/2025\/06\/Westinghouse-Transaktion-BEPC-300x221.jpg 300w, https:\/\/www.captrader.com\/wp-content\/uploads\/2025\/06\/Westinghouse-Transaktion-BEPC-768x566.jpg 768w, https:\/\/www.captrader.com\/wp-content\/uploads\/2025\/06\/Westinghouse-Transaktion-BEPC-16x12.jpg 16w\" sizes=\"auto, (max-width: 949px) 100vw, 949px\" \/><\/figure>\n\n\n\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"945\" height=\"706\" src=\"https:\/\/www.captrader.com\/wp-content\/uploads\/2025\/06\/Westinghouse-Transaktion-2-BEPC.jpg\" alt=\"The diagram summarizes Westinghouse&#039;s services in the life cycle of nuclear energy: Nuclear Fuel, Plant Services, Energy Systems and Environmental Services. 85 % of revenue comes from recurring maintenance and outages.\" class=\"wp-image-61661\" srcset=\"https:\/\/www.captrader.com\/wp-content\/uploads\/2025\/06\/Westinghouse-Transaktion-2-BEPC.jpg 945w, https:\/\/www.captrader.com\/wp-content\/uploads\/2025\/06\/Westinghouse-Transaktion-2-BEPC-300x224.jpg 300w, https:\/\/www.captrader.com\/wp-content\/uploads\/2025\/06\/Westinghouse-Transaktion-2-BEPC-768x574.jpg 768w, https:\/\/www.captrader.com\/wp-content\/uploads\/2025\/06\/Westinghouse-Transaktion-2-BEPC-16x12.jpg 16w\" sizes=\"auto, (max-width: 945px) 100vw, 945px\" \/><figcaption class=\"wp-element-caption\"><em>Westinghouse transaction at a glance (Source: <\/em><a href=\"https:\/\/bep.brookfield.com\/sites\/bep-brookfield-ir\/files\/2022-10\/bep-westinghouse-transaction-summary-october-11-2022.pdf\" rel=\"nofollow noopener\" target=\"_blank\"><em>Investor Presentation October 2022<\/em><\/a><em>)<\/em><\/figcaption><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">In May 2024, a significant <a href=\"https:\/\/bep.brookfield.com\/press-releases\/bep\/brookfield-and-microsoft-collaborating-deliver-over-105-gw-new-renewable-power\" rel=\"nofollow noopener\" target=\"_blank\">Cooperation<\/a> between Brookfield Renewable and <strong>Microsoft<\/strong> was announced. The two companies have entered into an agreement to develop and deliver more than 10.5 gigawatts of renewable energy. This partnership includes the development of new wind and solar projects in the US and Europe and is recognized as one of the largest single agreements in the renewable energy sector.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"514\" src=\"https:\/\/www.captrader.com\/wp-content\/uploads\/2025\/06\/Kunden-BEPC-1024x514.jpg\" alt=\"A bar chart shows the ten largest corporate buyers of clean electricity. Amazon, Meta and Microsoft top the list. Brookfield and Microsoft announce a major clean power agreement.\" class=\"wp-image-61649\" srcset=\"https:\/\/www.captrader.com\/wp-content\/uploads\/2025\/06\/Kunden-BEPC-1024x514.jpg 1024w, https:\/\/www.captrader.com\/wp-content\/uploads\/2025\/06\/Kunden-BEPC-300x150.jpg 300w, https:\/\/www.captrader.com\/wp-content\/uploads\/2025\/06\/Kunden-BEPC-768x385.jpg 768w, https:\/\/www.captrader.com\/wp-content\/uploads\/2025\/06\/Kunden-BEPC-18x9.jpg 18w, https:\/\/www.captrader.com\/wp-content\/uploads\/2025\/06\/Kunden-BEPC.jpg 1204w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><figcaption class=\"wp-element-caption\"><em>Brookfield Renewable's customers (source: <\/em><a href=\"https:\/\/bep.brookfield.com\/sites\/bep-brookfield-ir\/files\/Brookfield-BEP-IR-V2\/2025\/bep-corp-profile-june-2025.pdf\" rel=\"nofollow noopener\" target=\"_blank\"><em>June 2025 Investor Presentation, p. 18<\/em><\/a><em>)<\/em><\/figcaption><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">The <strong>ownership structure<\/strong> of Brookfield is unsurprisingly more complex than that of other companies in the sample portfolio. Looking at the top 10 currently reported owners, one could get the impression that the parent company Brookfield Corporation holds just under a third of the outstanding Class A shares.<\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"710\" height=\"470\" src=\"https:\/\/www.captrader.com\/wp-content\/uploads\/2025\/06\/Eigentuemerstruktur-BEPC.jpg\" alt=\"Table listing the ten largest investors, the value of shares held in USD, the percentage of shares issued and the number of shares held by each investor.\" class=\"wp-image-61640\" srcset=\"https:\/\/www.captrader.com\/wp-content\/uploads\/2025\/06\/Eigentuemerstruktur-BEPC.jpg 710w, https:\/\/www.captrader.com\/wp-content\/uploads\/2025\/06\/Eigentuemerstruktur-BEPC-300x199.jpg 300w, https:\/\/www.captrader.com\/wp-content\/uploads\/2025\/06\/Eigentuemerstruktur-BEPC-18x12.jpg 18w\" sizes=\"auto, (max-width: 710px) 100vw, 710px\" \/><figcaption class=\"wp-element-caption\"><em>Ownership structure of Brookfield Renewable (source:<\/em> <em>tikr.com)<\/em><\/figcaption><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">However, a closer look at the annual report sheds light on the existence of the B class of shares in addition to the A shares (\"exchangeable shares\") traded on the stock exchanges in New York and Toronto. In particular the <strong>165 B shares <\/strong>have an exorbitant voting weight. This means that Brookfield Corporation, which holds all Class B shares via BEP, holds exactly 81.5 percent of the voting rights. In other words: without Brookfield's consent, no resolutions can be passed that would conflict with the interests of the majority shareholder.<\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"850\" height=\"601\" src=\"https:\/\/www.captrader.com\/wp-content\/uploads\/2025\/06\/Stimmrechte-BEPC.jpg\" alt=\"A table and the explanatory notes show that Brookfield Corporation holds 44,813,835 exchangeable shares, which corresponds to 25.0 %. The text on the voting rights and the total voting rights is highlighted.\" class=\"wp-image-61655\" srcset=\"https:\/\/www.captrader.com\/wp-content\/uploads\/2025\/06\/Stimmrechte-BEPC.jpg 850w, https:\/\/www.captrader.com\/wp-content\/uploads\/2025\/06\/Stimmrechte-BEPC-300x212.jpg 300w, https:\/\/www.captrader.com\/wp-content\/uploads\/2025\/06\/Stimmrechte-BEPC-768x543.jpg 768w, https:\/\/www.captrader.com\/wp-content\/uploads\/2025\/06\/Stimmrechte-BEPC-18x12.jpg 18w\" sizes=\"auto, (max-width: 850px) 100vw, 850px\" \/><figcaption class=\"wp-element-caption\"><em>The distribution of voting rights of Brookfield Renewable (source: <\/em><a href=\"https:\/\/bep.brookfield.com\/sites\/bep-brookfield-ir\/files\/brookfield\/bepc\/annual-reports\/notice-and-access\/bepc-management-information-circular-2024.pdf\" rel=\"nofollow noopener\" target=\"_blank\"><em>Management Information Circular 2024 ,p. 8<\/em><\/a><em>)<\/em><\/figcaption><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>The financial situation of Brookfield Renewable<\/strong><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">After gaining an overview of the industry in general and taking a closer look at the company, management and strategy as factors that influence decision-making, we take a look at the <strong>Bilanz <\/strong>and the <strong>Finanzkennzahlen <\/strong>from Brookfield Renewable. The focus here is on the <strong>Growth, debt situation<\/strong> and the <strong>Financing<\/strong>. To analyze the financial situation, we first look at the development of sales, funds from operations and liquidity.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">To the <strong>Sales development<\/strong> It can be stated that the top line has increased by an average of <strong>13.4 percent p.a.<\/strong> grew.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"282\" src=\"https:\/\/www.captrader.com\/wp-content\/uploads\/2025\/06\/Umsatzentwicklung-BEPC-1024x282.jpg\" alt=\"Line graph showing the increase in Brookfield Renewable Corporation&#039;s revenue from 1,916,000 on 12\/31\/16 to 4,142,000 on 12\/31\/23, with steady growth over the years.\" class=\"wp-image-61659\" srcset=\"https:\/\/www.captrader.com\/wp-content\/uploads\/2025\/06\/Umsatzentwicklung-BEPC-1024x282.jpg 1024w, https:\/\/www.captrader.com\/wp-content\/uploads\/2025\/06\/Umsatzentwicklung-BEPC-300x83.jpg 300w, https:\/\/www.captrader.com\/wp-content\/uploads\/2025\/06\/Umsatzentwicklung-BEPC-768x212.jpg 768w, https:\/\/www.captrader.com\/wp-content\/uploads\/2025\/06\/Umsatzentwicklung-BEPC-18x5.jpg 18w, https:\/\/www.captrader.com\/wp-content\/uploads\/2025\/06\/Umsatzentwicklung-BEPC.jpg 1510w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><figcaption class=\"wp-element-caption\"><em>Development of Brookfield Renewable's turnover (source: tikr.com)<\/em><\/figcaption><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">The resources available to the company <strong>Funds From Operations (FFO)<\/strong>which are also used by real estate investment trusts (REITs) as an indicator for evaluating the actual cash transactions in the financial year, can be used for capital investments in organic growth, research and development, repayment of debt, expansion via company acquisitions, distribution of (increasing) dividends or share buybacks. The latter hardly ever occurs with utilities and real estate companies. The opposite is the case, as issuing new shares is a proven instrument for raising capital to finance growth expansion in the form of new projects. In absolute figures - which I primarily like to refer to - the increase in FFO for the period 2011 to 2024 based on the BEPC figures is expressed as follows:<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"226\" src=\"https:\/\/www.captrader.com\/wp-content\/uploads\/2025\/06\/Funds-From-Operations-BEPC-1024x226.jpg\" alt=\"Line chart showing the annual cash flows from operating activities and adjusted funds from operating activities in CAD from 2013 to 2022, with both key figures showing an upward trend over time.\" class=\"wp-image-61644\" srcset=\"https:\/\/www.captrader.com\/wp-content\/uploads\/2025\/06\/Funds-From-Operations-BEPC-1024x226.jpg 1024w, https:\/\/www.captrader.com\/wp-content\/uploads\/2025\/06\/Funds-From-Operations-BEPC-300x66.jpg 300w, https:\/\/www.captrader.com\/wp-content\/uploads\/2025\/06\/Funds-From-Operations-BEPC-768x170.jpg 768w, https:\/\/www.captrader.com\/wp-content\/uploads\/2025\/06\/Funds-From-Operations-BEPC-1536x339.jpg 1536w, https:\/\/www.captrader.com\/wp-content\/uploads\/2025\/06\/Funds-From-Operations-BEPC-18x4.jpg 18w, https:\/\/www.captrader.com\/wp-content\/uploads\/2025\/06\/Funds-From-Operations-BEPC.jpg 1851w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><figcaption class=\"wp-element-caption\"><em>Development of the (adjusted) funds from operations of Brookfield Renewable Partners (source: Aktienfinder)<\/em><\/figcaption><\/figure>\n\n\n\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"924\" height=\"625\" src=\"https:\/\/www.captrader.com\/wp-content\/uploads\/2025\/06\/Funds-From-Operations-Entwicklung-BEPC.jpg\" alt=\"Bar chart showing the annual growth in FFO per unit from USD 347 in 2012 to USD 1,217 in 2024, with a compound annual growth rate (CAGR) of 11 %.\" class=\"wp-image-61645\" srcset=\"https:\/\/www.captrader.com\/wp-content\/uploads\/2025\/06\/Funds-From-Operations-Entwicklung-BEPC.jpg 924w, https:\/\/www.captrader.com\/wp-content\/uploads\/2025\/06\/Funds-From-Operations-Entwicklung-BEPC-300x203.jpg 300w, https:\/\/www.captrader.com\/wp-content\/uploads\/2025\/06\/Funds-From-Operations-Entwicklung-BEPC-768x519.jpg 768w, https:\/\/www.captrader.com\/wp-content\/uploads\/2025\/06\/Funds-From-Operations-Entwicklung-BEPC-18x12.jpg 18w\" sizes=\"auto, (max-width: 924px) 100vw, 924px\" \/><figcaption class=\"wp-element-caption\"><em>Development of Brookfield Renewable Partners' funds from operations (source: <\/em><a href=\"https:\/\/bep.brookfield.com\/sites\/bep-brookfield-ir\/files\/Brookfield-BEP-IR-V2\/2025\/Q1\/bep-Q1-2025-supplemental.pdf\" rel=\"nofollow noopener\" target=\"_blank\"><em>BEP Q1 2025 Supplemental, p. 8<\/em><\/a><em>)<\/em><\/figcaption><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">A look at the <strong>Debt situation<\/strong> shows us that BEPC has a share of interest-bearing financial liabilities of USD 14.1 billion, which in turn is offset by cash and cash equivalents and securities totaling USD 0.7 billion. If we now divide the remaining net debt after adjustment for other factors of USD 13.4 bn by the most recently generated EBITDA of USD 2.3 bn, we arrive at a ratio of 5.8. Although this value is well above the threshold value of 3, which is generally regarded as critical, if we include the industry context relevant to this specific investment case in our <strong>Financial analysis<\/strong> If we also take into account the costs of the utilities sector, it is not uncommon for values to deviate from the standard by twice the amount.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"281\" src=\"https:\/\/www.captrader.com\/wp-content\/uploads\/2025\/06\/Nettoschulden-EBITDA-BEPC-1024x281.jpg\" alt=\"Line chart showing Brookfield Renewable Corporation&#039;s net debt and EBITDA from 2016 to 2023, with net debt increasing sharply and EBITDA increasing steadily over this period.\" class=\"wp-image-61650\" srcset=\"https:\/\/www.captrader.com\/wp-content\/uploads\/2025\/06\/Nettoschulden-EBITDA-BEPC-1024x281.jpg 1024w, https:\/\/www.captrader.com\/wp-content\/uploads\/2025\/06\/Nettoschulden-EBITDA-BEPC-300x82.jpg 300w, https:\/\/www.captrader.com\/wp-content\/uploads\/2025\/06\/Nettoschulden-EBITDA-BEPC-768x211.jpg 768w, https:\/\/www.captrader.com\/wp-content\/uploads\/2025\/06\/Nettoschulden-EBITDA-BEPC-18x5.jpg 18w, https:\/\/www.captrader.com\/wp-content\/uploads\/2025\/06\/Nettoschulden-EBITDA-BEPC.jpg 1516w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><figcaption class=\"wp-element-caption\"><em>Development of Brookfield Renewable's net debt and EBITDA (source: tikr.com)<\/em><\/figcaption><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">At this point, I would like to draw attention to the capital-intensive infrastructure and the ongoing maintenance and repair costs in order to further analyze the balance sheet. If we only use the <strong>Anlageverm\u00f6gen<\/strong> (USD 38.7 billion) of BEPC in relation to the <strong>Net debt<\/strong> (USD 13.8 billion), this results in a passable value of 0.36. What is striking and positive is the <strong>Low goodwill<\/strong> of USD 0.7 billion, which is to be recognized as an intangible asset in the balance sheet for company acquisitions and which I had already deducted from fixed assets.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"576\" src=\"https:\/\/www.captrader.com\/wp-content\/uploads\/2025\/06\/Bilanz-BEPC-1024x576.jpg\" alt=\"A balance sheet table showing Brookfield Renewable Corporation&#039;s assets, liabilities and equity for 2024 and 2023, with key figures for property, plant and equipment and liabilities highlighted.\" class=\"wp-image-61639\" srcset=\"https:\/\/www.captrader.com\/wp-content\/uploads\/2025\/06\/Bilanz-BEPC-1024x576.jpg 1024w, https:\/\/www.captrader.com\/wp-content\/uploads\/2025\/06\/Bilanz-BEPC-300x169.jpg 300w, https:\/\/www.captrader.com\/wp-content\/uploads\/2025\/06\/Bilanz-BEPC-768x432.jpg 768w, https:\/\/www.captrader.com\/wp-content\/uploads\/2025\/06\/Bilanz-BEPC-18x10.jpg 18w, https:\/\/www.captrader.com\/wp-content\/uploads\/2025\/06\/Bilanz-BEPC.jpg 1218w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><figcaption class=\"wp-element-caption\"><em>Balance sheet of Brookfield Renewable Corporation (Source: <\/em><a href=\"https:\/\/bep.brookfield.com\/press-releases\/bepc\/brookfield-renewable-reports-record-results-and-announces-5-distribution-0\" rel=\"nofollow noopener\" target=\"_blank\"><em>Q4 2024 Earnings<\/em><\/a><em>)<\/em><\/figcaption><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">Finally, I would like to mention a valuation metric that is often used in the case of utilities to evaluate the liabilities in a balance sheet and to analyze leverage and financial stability. We are talking about the <strong>Total debt-to-capitalization ratio<\/strong>. The sum of all (short and long-term) interest-bearing financial liabilities is set as a percentage of the company's total capitalization. My heuristic approach: the higher the gearing ratio, the riskier the company is, all other factors being equal. This is because a higher leverage ratio means that the company is financed more by debt than equity, which in turn poses a greater risk to creditworthiness if the debt cannot be paid on time. For utilities, ratios between 50 and 60 percent are considered safe. Brookfield Renewable ends up with a respectable value of <strong>43 percent at overall Group level<\/strong>:<\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"586\" height=\"643\" src=\"https:\/\/www.captrader.com\/wp-content\/uploads\/2025\/06\/Total-Debt-to-Capitalization-BEPC.jpg\" alt=\"A financial table with capitalization data for the categories &quot;Company&quot; and &quot;Group&quot; in 2023 and 2024, highlighting the total capitalization and the percentages of debt in relation to total capitalization.\" class=\"wp-image-61658\" srcset=\"https:\/\/www.captrader.com\/wp-content\/uploads\/2025\/06\/Total-Debt-to-Capitalization-BEPC.jpg 586w, https:\/\/www.captrader.com\/wp-content\/uploads\/2025\/06\/Total-Debt-to-Capitalization-BEPC-273x300.jpg 273w, https:\/\/www.captrader.com\/wp-content\/uploads\/2025\/06\/Total-Debt-to-Capitalization-BEPC-11x12.jpg 11w\" sizes=\"auto, (max-width: 586px) 100vw, 586px\" \/><figcaption class=\"wp-element-caption\"><em>Total debt-to-capitalization of Brookfield Renewable (source: <\/em><a href=\"https:\/\/bep.brookfield.com\/sites\/bep-brookfield-ir\/files\/Brookfield-BEP-IR-V2\/2024\/Q4\/bep-q4-2024-supplemental.pdf\" rel=\"nofollow noopener\" target=\"_blank\"><em>2024 Q4 Supplemental Information, p. 17<\/em><\/a><em>)<\/em><\/figcaption><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">Around the topic <strong>Indebtedness<\/strong> and <strong>External financing<\/strong> it makes sense to look at the <strong>Interest profile<\/strong> and the <strong>Maturity structure<\/strong> of current liabilities. Finally, it is important to assess how vulnerable the company appears to be to the continuing rise in key interest rates. In the last quarterly report, the management pointed out that <strong>twelve percent<\/strong> of current loan liabilities <strong>Variable interest rate<\/strong> are. Brookfield Renewable also announces that the <strong>Loan liabilities at 90 percent<\/strong> into the individual project companies (<em>Special Purpose Vehicles<\/em>) in order to avoid concentrating the credit burden in the holding company. Standard &amp; Poor's and Fitch recently confirmed the company's credit rating of BBB+ with a stable outlook.<\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"1009\" height=\"460\" src=\"https:\/\/www.captrader.com\/wp-content\/uploads\/2025\/06\/Fremdkapitalstruktur-BEPC.jpg\" alt=\"Table comparing corporate loans and pro rata non-recourse loans by type, amount and weighted average interest rate for March 31, 2025 and December 31, 2024.\" class=\"wp-image-61643\" srcset=\"https:\/\/www.captrader.com\/wp-content\/uploads\/2025\/06\/Fremdkapitalstruktur-BEPC.jpg 1009w, https:\/\/www.captrader.com\/wp-content\/uploads\/2025\/06\/Fremdkapitalstruktur-BEPC-300x137.jpg 300w, https:\/\/www.captrader.com\/wp-content\/uploads\/2025\/06\/Fremdkapitalstruktur-BEPC-768x350.jpg 768w, https:\/\/www.captrader.com\/wp-content\/uploads\/2025\/06\/Fremdkapitalstruktur-BEPC-18x8.jpg 18w\" sizes=\"auto, (max-width: 1009px) 100vw, 1009px\" \/><figcaption class=\"wp-element-caption\"><em>Debt capital structure of Brookfield Renewable (source: <\/em><a href=\"https:\/\/bep.brookfield.com\/sites\/bep-brookfield-ir\/files\/Brookfield-BEP-IR-V2\/2025\/Q1\/bep-q1-2025-interim-report.pdf\" rel=\"nofollow noopener\" target=\"_blank\"><em>Q1 2025 Interim Report, p. 33<\/em><\/a><em>)<\/em><\/figcaption><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Opportunities &amp; risks<\/strong><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">The gradual expansion of the existing business provides reliable cash flows (or funds from operations (FFO)), which enable an owner-friendly capital allocation based on a conservative financing structure. Over the years, Brookfield Renewable has established itself as one of the world's largest players in the renewable energy sector. The broadly diversified supply, combined with low input costs, meets a global demand for energy that continues to rise. In addition, the strategic cooperation with Cameco in the acquisition of the nuclear power plant manufacturer Westinghouse enabled the company to enter a new business segment, which led to a further diversification of its sources of income.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The focus on multi-billion dollar subsidy programs such as the US \"Inflation Reduction Act\" has increased the flow of capital towards renewable energies to date. Brookfield has built up a formidable track record in the development, operation and execution of renewable energy assets over the past decades. It should be noted that the utility, as a core part of the Brookfield conglomerate, has direct access to an extensive network of institutional investors. This can be emphasized as a competitive advantage for raising capital.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Considering the various risks, the international diversification of assets entails a higher exposure and requires active management of various risks (e.g. currency risks, geopolitical risks). The operation of energy generation plants is associated with operational risks, including technical failures, natural disasters and other unforeseen events that can have a negative impact on production and costs. The generation of renewable energy, particularly from hydropower, wind and solar power, is heavily dependent on weather conditions. Unforeseeable weather events can affect energy production.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Although financing, and therefore primarily the bundling of risks, takes place at project level, Brookfield Renewable works with a decent level of leverage. Changes in interest rates or access to capital could increase financing costs and limit growth potential. Regulatory intervention in the energy market by federal, national or international institutions represents a permanent risk for energy suppliers. For example, subsidies for renewable energies could be reduced or new environmental regulations introduced.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Current valuation of the Brookfield Renewable share<\/strong><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">For the valuation of companies, I use the so-called <strong>Enterprise Value<\/strong> (EV) is used. In the case of a takeover, the EV indicates the amount required to purchase the assets required for operations and excludes the non-operating assets. I relate this key figure to operating profitability (before interest, taxes and investments (CAPEX)), expressed as EBITDA. The prevailing opinion is that a value of less than 10 indicates a \u201ehealthy valuation\u201c - as is always the case with generic <strong>Rules of thumb <\/strong>the company-specific context must be considered in the analysis by the careful investor himself. In the case of Brookfield Renewable, we saw the <strong>Valuation result of 16.3 <\/strong>more favorable multiples in the last twelve months:<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"325\" src=\"https:\/\/www.captrader.com\/wp-content\/uploads\/2025\/06\/Enterprise-Value-EBITDA-BEPC-1024x325.jpg\" alt=\"A line chart shows BEPC&#039;s EV\/EBITDA ratio from 2020 to 2024. It peaked at over 20 in 2021, fell until 2023 and gradually rose to around 16.34 in 2024.\" class=\"wp-image-61642\" srcset=\"https:\/\/www.captrader.com\/wp-content\/uploads\/2025\/06\/Enterprise-Value-EBITDA-BEPC-1024x325.jpg 1024w, https:\/\/www.captrader.com\/wp-content\/uploads\/2025\/06\/Enterprise-Value-EBITDA-BEPC-300x95.jpg 300w, https:\/\/www.captrader.com\/wp-content\/uploads\/2025\/06\/Enterprise-Value-EBITDA-BEPC-768x244.jpg 768w, https:\/\/www.captrader.com\/wp-content\/uploads\/2025\/06\/Enterprise-Value-EBITDA-BEPC-18x6.jpg 18w, https:\/\/www.captrader.com\/wp-content\/uploads\/2025\/06\/Enterprise-Value-EBITDA-BEPC.jpg 1090w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><figcaption class=\"wp-element-caption\"><em>Enterprise Value to EBITDA of Brookfield Renewable (Source: Seeking Alpha)<\/em><\/figcaption><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">The <strong>Maximum decrease<\/strong> in the last five years amounted to approx. <strong>64 percent<\/strong> in the year 2024:<\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"1007\" height=\"502\" src=\"https:\/\/www.captrader.com\/wp-content\/uploads\/2025\/06\/Unterwasser-Chart-BEPC.jpg\" alt=\"Line graph with downward trend from 2021 to 2025, with the value falling by around 48 % and fluctuating slightly towards the end.\" class=\"wp-image-61660\" srcset=\"https:\/\/www.captrader.com\/wp-content\/uploads\/2025\/06\/Unterwasser-Chart-BEPC.jpg 1007w, https:\/\/www.captrader.com\/wp-content\/uploads\/2025\/06\/Unterwasser-Chart-BEPC-300x150.jpg 300w, https:\/\/www.captrader.com\/wp-content\/uploads\/2025\/06\/Unterwasser-Chart-BEPC-768x383.jpg 768w, https:\/\/www.captrader.com\/wp-content\/uploads\/2025\/06\/Unterwasser-Chart-BEPC-18x9.jpg 18w\" sizes=\"auto, (max-width: 1007px) 100vw, 1007px\" \/><figcaption class=\"wp-element-caption\"><em>Underwater chart of Brookfield Renewable (source: aktien.guide)<\/em><\/figcaption><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">Over the last ten years, an investment in Brookfield Renewable has yielded<strong> Total Return<\/strong>, including dividends received, a <strong>Overall performance<\/strong> from <strong>190 percent <\/strong>for the investor:<\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"991\" height=\"456\" src=\"https:\/\/www.captrader.com\/wp-content\/uploads\/2025\/06\/Total-Return-BEPC.jpg\" alt=\"Line chart comparing two percentage trends from 2016 to 2025, with the yellow line peaking higher than the blue line and ending at 190.32 % and 68.44 % respectively.\" class=\"wp-image-61657\" srcset=\"https:\/\/www.captrader.com\/wp-content\/uploads\/2025\/06\/Total-Return-BEPC.jpg 991w, https:\/\/www.captrader.com\/wp-content\/uploads\/2025\/06\/Total-Return-BEPC-300x138.jpg 300w, https:\/\/www.captrader.com\/wp-content\/uploads\/2025\/06\/Total-Return-BEPC-768x353.jpg 768w, https:\/\/www.captrader.com\/wp-content\/uploads\/2025\/06\/Total-Return-BEPC-18x8.jpg 18w\" sizes=\"auto, (max-width: 991px) 100vw, 991px\" \/><figcaption class=\"wp-element-caption\"><em>Total return of Brookfield Renewable (source: aktien.guide)<\/em><\/figcaption><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Capital allocation of Brookfield Renewable<\/strong><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Due to the relatively recent history of the actual BEPC, I am referring to BEP for the evaluation of dividend quality. Why? Because when BEPC was founded, great importance was attached to ensuring that BEP's dividend continuity was handled in the same way. In fact, the distributions of both BEP and BEPC amount to the equivalent sum (currently USD 0.373 per quarter).<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">In the meantime, Brookfield Renewable has been <strong>16 years of continuous dividend<\/strong> to. This means that the Canadian supplier is a so-called <strong>Dividend Contender<\/strong>which increase the dividend between 10 and 24 years.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">At the current share price of USD 32.29, this results in a <strong>Dividend yield <\/strong>from<strong> 4.6 percent<\/strong>. The <strong>Five-year dividend growth rate<\/strong> amounts to <strong>5.3 percent<\/strong> p.a. or <strong>5.6 percent<\/strong> p.a. in the <strong>Ten-year period<\/strong>. The company last increased its dividend by 5.1% this January. To round things off, here is an overview of the last five dividend increases:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>2024<\/strong>: +5,2 %<\/li>\n\n\n\n<li><strong>2023<\/strong>: +5,5 %<\/li>\n\n\n\n<li><strong>2022<\/strong>: +5,3 %<\/li>\n\n\n\n<li><strong>2021<\/strong>: +5,0 %<\/li>\n\n\n\n<li><strong>2020<\/strong>: +5,4 %<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">The <strong>quartalsweise ausgesch\u00fcttete Dividende<\/strong> currently amounts to USD 0.373 per share and is paid out at the end of each quarter (March, June, September, December).<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Let's pull the <strong>Funds From Operations <\/strong>As a basis for determining the payout ratio, we end up with a payout ratio of 77%. This is currently above the target value of 70%. For us as investors, this could mean that the payout increases in the coming years will be somewhat lower compared to FFO growth until the company has reached its payout target.<\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"924\" height=\"557\" src=\"https:\/\/www.captrader.com\/wp-content\/uploads\/2025\/06\/Payout-ratio-BEPC.jpg\" alt=\"A financial report highlights a targeted payout ratio of over 70 % of FFO, with a table showing IFO payout ratios of 77 % for 2024 and 85 % for 2023. Important sections and figures are highlighted.\" class=\"wp-image-61653\" srcset=\"https:\/\/www.captrader.com\/wp-content\/uploads\/2025\/06\/Payout-ratio-BEPC.jpg 924w, https:\/\/www.captrader.com\/wp-content\/uploads\/2025\/06\/Payout-ratio-BEPC-300x181.jpg 300w, https:\/\/www.captrader.com\/wp-content\/uploads\/2025\/06\/Payout-ratio-BEPC-768x463.jpg 768w, https:\/\/www.captrader.com\/wp-content\/uploads\/2025\/06\/Payout-ratio-BEPC-18x12.jpg 18w\" sizes=\"auto, (max-width: 924px) 100vw, 924px\" \/><figcaption class=\"wp-element-caption\"><em>The payout ratio of Brookfield Renewable (source: <\/em><a href=\"https:\/\/bep.brookfield.com\/sites\/bep-brookfield-ir\/files\/Brookfield-BEP-IR-V2\/2024\/Q4\/bep-q4-2024-supplemental.pdf\" rel=\"nofollow noopener\" target=\"_blank\"><em>2024 Q4 Supplemental Information, p. 21<\/em><\/a><em>)<\/em><\/figcaption><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">As part of the capital allocation strategy, the element of <strong>Share buybacks<\/strong> rarely play a decisive role. It is therefore not surprising that Brookfield Renewable has made little use of share buybacks in the past. Nonetheless, the management has been granted the power to acquire own shares equivalent to five percent of the company's total issued shares until the end of 2025.<\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"1008\" height=\"133\" src=\"https:\/\/www.captrader.com\/wp-content\/uploads\/2025\/06\/Aktienrueckkaufprogramm-BEPC.jpg\" alt=\"According to a document, the company is authorized to repurchase up to 8,982,042 exchangeable BEPC shares or 5 % of its issued and outstanding shares until December 17, 2025.\" class=\"wp-image-61664\" srcset=\"https:\/\/www.captrader.com\/wp-content\/uploads\/2025\/06\/Aktienrueckkaufprogramm-BEPC.jpg 1008w, https:\/\/www.captrader.com\/wp-content\/uploads\/2025\/06\/Aktienrueckkaufprogramm-BEPC-300x40.jpg 300w, https:\/\/www.captrader.com\/wp-content\/uploads\/2025\/06\/Aktienrueckkaufprogramm-BEPC-768x101.jpg 768w, https:\/\/www.captrader.com\/wp-content\/uploads\/2025\/06\/Aktienrueckkaufprogramm-BEPC-18x2.jpg 18w\" sizes=\"auto, (max-width: 1008px) 100vw, 1008px\" \/><figcaption class=\"wp-element-caption\"><em>Brookfield Renewable share buyback program (source: <\/em><a href=\"https:\/\/bep.brookfield.com\/sites\/bep-brookfield-ir\/files\/Brookfield-BEP-IR-V2\/2025\/Q1\/bepc-q1-2025-Interim-Report.pdf\" rel=\"nofollow noopener\" target=\"_blank\"><em>BEPC Interim Report Q1 2025, p. 18<\/em><\/a><em>)<\/em><\/figcaption><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Conclusion: Considerations for my decision to invest in Brookfield Renewable<\/strong><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Brookfield Renewable is one of the world's largest listed companies in the renewable energy sector. As part of Brookfield Asset Management, the Group focuses on the acquisition, development and operation of energy generation assets. The company has an extensive and diversified portfolio of hydroelectric, wind, solar and energy storage assets. Thanks to the strategic cooperation with Cameco to acquire the nuclear power plant manufacturer Westinghouse and the associated entry into a new business area, Brookfield Renewable has diversified its sources of income. The use and generation of electricity from nuclear power will remain relevant as a bridging technology for the energy transition over the coming years (decades).<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">These plants are geographically distributed across the globe and are mainly located in North and South America, Europe and Asia. The company benefits from long-term contracts with built-in inflation protection and stable cash flows secured through the generation and sale of renewable energy. This provides investors with financial security and predictable returns for the development of new investment projects. As explained above, Brookfield Renewable is pursuing a growth strategy that includes both organic development and strategic acquisitions. This enables the company to expand its capacities.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Overall, Brookfield Renewable offers an attractive opportunity for investors looking to invest in the renewable energy sector combined with stable returns and long-term growth potential with a financially strong core shareholder.<\/p>","protected":false},"excerpt":{"rendered":"<p>Unternehmensprofil und Gesch\u00e4ftsmodell: Wer ist und was macht Brookfield Renewable Die Geschichte von Brookfield hat ihren Ursprung bereits zu Ende des vorletzten Jahrhunderts, in Brasilien der sp\u00e4ten 1890er Jahre, genommen. Damals begannen der Eisenbahnunternehmer William Mackenzie und der studierte Elektroingenieur Frederick Stark Pearson \u2013 nebst anderen Infrastrukturleistungen \u2013 in das Versorgergesch\u00e4ft einzusteigen. Man machte sich [&hellip;]<\/p>\n","protected":false},"author":45,"featured_media":47388,"template":"","analysen-kategorie":[4515,850],"class_list":["post-61667","analyse","type-analyse","status-publish","has-post-thumbnail","hentry","analysen-kategorie-brookfield-renewable","analysen-kategorie-dividenden-depot"],"acf":{"blog_summary":"","blog_faq_schalter":"nein","faq_uberschrift":"","blog_faq_loop":null},"_links":{"self":[{"href":"https:\/\/www.captrader.com\/en\/wp-json\/wp\/v2\/analyse\/61667","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.captrader.com\/en\/wp-json\/wp\/v2\/analyse"}],"about":[{"href":"https:\/\/www.captrader.com\/en\/wp-json\/wp\/v2\/types\/analyse"}],"author":[{"embeddable":true,"href":"https:\/\/www.captrader.com\/en\/wp-json\/wp\/v2\/users\/45"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.captrader.com\/en\/wp-json\/wp\/v2\/media\/47388"}],"wp:attachment":[{"href":"https:\/\/www.captrader.com\/en\/wp-json\/wp\/v2\/media?parent=61667"}],"wp:term":[{"taxonomy":"analysen-kategorie","embeddable":true,"href":"https:\/\/www.captrader.com\/en\/wp-json\/wp\/v2\/analysen-kategorie?post=61667"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}