Brookfield Renewable Partners (TSX:BEP.UN) looked like the renewable energy stock to beat just a few years ago. Shares of BEP stock surged as renewable energy came into clear focus. Add in a new president in the United States focused on renewable energy growth, and the company climbed to all-time highs.
However, those highs are a thing of the past for now. So, with that in mind, what does an investor have just five years later if they invested $5,000 into this stock? Let’s take a look at earnings and see if that $5,000 can turn back into record highs.
Record earnings, not record share price
During BEP stock’s most recent earnings report, the renewable energy stock reported a “record year” for the business “on almost all metrics.” The company delivered record funds from operations per unit, added almost 5,000 megawatts of capacity, and “deployed or committed” US$9 billion into growth with partners.
“We delivered these results in a rising rate environment and one where supply chains were facing challenges … Going forward we are well positioned to continue benefiting from accelerating demand for clean power from corporate customers, and specifically the large global technology companies, whose increasing appetite for clean power is being driven by data center demand, with securing clean energy now squarely on their critical path to growth.”
Connor Teskey, CEO of Brookfield Renewable
Looking into results, the company went from a net loss of US$82 million to a profit of US$35 million year over year. The stock still traded at a net loss for the year at US$100 million, but this was an improvement from the US$295 million loss the year before. Add on as well that the company increased its dividend by 5%!
Yet that $5,000 hasn’t grown much
Despite record performance and coming back during a tough interest rate and supply-chain environment, shares of BEP stock haven’t grown all that much in five years. The stock started out at $20.80 per share and has since climbed to $32.20 per share. That’s an increase of 55% in that time. It’s certainly nothing to sneeze at, but is well below their all-time highs.
If we were to look at its heights reached in 2021, then that makes your stomach turn. Shares increased from $20.80 to $62.86 in that time. This came to an astounding increase of 202% in that time!
So, how much would you have today from that $5,000? That would bring your original 240 shares to $7,728. Sure, that’s great, but, indeed, that’s down from the all-time high of $15,086. Ouch.
Can we get there again?
In short, yes. BEP stock is likely to get to those heights again because it remains one of the largest and most diversified renewable energy companies in the world. Moreover, it’s partnering with other large renewable companies to create an even larger opportunity for investors.
So, while shares aren’t where they were, I would look at this stock as a huge opportunity. It has cash on hand for more acquisitions and investments, which will add up to more growth. The world continues to shift towards renewable energy solutions. Altogether, it’s a strong investment, offering strong growth.
It also provides a strong dividend yield! Investors can grab a 5.9% dividend yield as of writing to bring in cash while they wait. So all in all, BEP stock looks like a solid stock to buy and hold for at least the next few years.
