Jamie Murray Brookfield Renewable EnergyBEP.UN.TODON'T BUYNov 08, 2023

Owns shares of company in portfolio. Likes renewable sector. Higher interest rates tough on business. If interest rates fall, will be good for bottom line. Lots of support from parent company allows for lots of options. Would recommend holding and/or buying. 

Her play in the space. More diversified with wind, solar, and hydro. Global. Positive growth prospects long term. Move towards renewables isn't going to change. Impacted by interest rates. Well managed, access to capital.

Unsure of fundamentals of company. Does not own stock. Trend line is down. Not a good time to buy. Wait for trend to reverse before buying. 

Good tail winds for the business at this time. Recent bottoming of share price a good time to buy. Strong parent company. Well positioned for 10% growth. 72% payout ratio. Price to growth ratio very good. Good time to buy. 

Cost of capital makes a lot of projects uneconomic. Increased costs can be passed through, but rate changes can take 3-5 years to be approved. Good franchise. Doesn't want to be in the space. Take some money off the table.

Brookfield in general keeps restructuring, so watch which assets they're moving around. He's owned many of the Brookfield companies, but not BEP right now. Renewables are suffering stretched PEs, driven by ESG investing, but ESG is seeing some pushback in the U.S. given the political divide there. Also, renewables are suffering under high rates, but over the long haul such rates are a plus. Doesn't expect much upside here. 

BEP.UN has struggled along with most income stocks, with higher rates the main reason. It is still growing its revenue and cash flow nicely. Payout ratio is about 80% currently (last 12 months). The distribution was raised in February. We do not think it is at any risk in the medium term. 
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Long-term, an attractive sector. Renewable space facing headwinds from interest rates and project costs. Diversified in wind, solar, hydro, and uranium. Large cap, global scale.

Concerns that Europeans have capped returns on some assets. Pretty solid company that does a good job acquiring. Don't invest just because of the Westinghouse partnership with CCO, as nuclear faces headwinds right now. See his Top Picks for his choice in the sector.

Higher interest rates have been a headwind on the company.
Debt on balance sheet expensive with rising interest rates.
Still owns shares - will continue to stand behind company.
Global company with scale.
Buyers market with renewable sector becoming out of favor.
Recent equity raise creating an overhang on shares.
Expanding into nuclear energy - very promising. 

Expecting further annual returns with dividends.
Will keep shares in company for next 50 years.
Good long term investment.
Believes future of renewables very bright. 

BEPC is now trading at 13.3x times' EV/EBITDA. BEPC generates predictable revenue and solid cash flow due to the recurring nature of its renewable power assets. The balance sheet is leveraged with $13.1B in net debt, and the net debt/EBITDA is around 5.1x. We think BEPC is trading quite cheap with an attractive yield which is covered quite well by cash flow. High interest rates are headwinds for leveraged companies and capital intensive businesses. However, given the track record of healthy cash flow profile, we would be comfortable averaging into BEPC over time.
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It is one of the largest owners of renewable assets. The renewables space has been under pressure lately with increasing interest rates and commodity prices but he still likes it. The company is able to pass along the costs of inflation. The dividend is 6%.

Rallied when Democrats got into power, got ahead of itself. Higher interest rates have been a headwind. Likes it. Quite large, global player, involved in different sources of renewable energy. Westinghouse gives them niche entry into nuclear. Most cashflows are inflation-protected. Relatively attractive yield of 4.5%.