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Clearway Energy, Inc. (CWEN.A)
:CWEN.A
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Clearway Energy
(NYSE:CWEN.A)
Rating:61Neutral
Price Target:
$29.00
▲(6.85% Upside)
Clearway Energy (CWEN.A) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$5.75B
Dividend Yield6.42%
Average Volume (3M)222.18K
Price to Earnings (P/E)42.1
Beta (1Y)0.42
Revenue Growth-0.27%
EPS Growth-16.25%
CountryUS
Employees60
SectorUtilities
Sector Strength62
IndustryRenewable Utilities
Share Statistics
EPS (TTM)0.28
Shares Outstanding34,613,853
10 Day Avg. Volume200,785
30 Day Avg. Volume222,180
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap2.76
Enterprise Value/Revenue11.08
Enterprise Value/Gross Profit20.95
Enterprise Value/Ebitda14.99
Forecast
1Y Price Target
$29.00Price Target Upside6.85% Upside
Rating ConsensusHold
Number of Analyst Covering1
Clearway Energy Business Overview & Revenue Model
Company DescriptionClearway Energy, Inc. operates in the renewable energy business in the United States. It has approximately 5,000 net megawatts (MW) of installed wind and solar generation projects; and approximately 2,500 net MW of natural gas generation facilities. The company was formerly known as NRG Yield, Inc. and changed its name to Clearway Energy, Inc. in August 2018. Clearway Energy, Inc. was incorporated in 2012 and is based in Princeton, New Jersey. Clearway Energy, Inc. is a subsidiary of Clearway Energy Group LLC.
How the Company Makes MoneyClearway Energy generates revenue primarily through the sale of electricity produced by its renewable energy assets. The company enters into long-term Power Purchase Agreements (PPAs) with utilities and other energy buyers, which provide a stable and predictable revenue stream. Additionally, Clearway may earn revenue from the sale of Renewable Energy Certificates (RECs) and tax incentives associated with renewable energy production. The company's strategic partnerships with various stakeholders in the energy sector, including governmental entities and private companies, further enhance its earnings potential by expanding its project development capabilities and market reach.
Clearway Energy Earnings Call Summary
Earnings Call Date:Aug 05, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Oct 30, 2025
Earnings Call Sentiment Positive
The earnings call highlighted Clearway Energy's strong growth prospects, updated financial targets, and successful project execution. However, it also noted challenges related to wind resources and facility availability, as well as the need for equity issuance to fund growth. Overall, the positive aspects slightly outweigh the negative ones.Q2-2025 Updates
Positive Updates
Updated 2025 CAFD Guidance
Clearway Energy updated its 2025 CAFD guidance to a range of $405 million to $440 million, raising the bottom end to reflect contributions from recently closed project acquisitions.
Increased 2027 CAFD Per Share Target
Clearway Energy increased its 2027 CAFD per share target range to $2.50 to $2.70, indicating strong growth prospects and execution on committed or potential investments.
Progress on Fleet Optimization and Expansion
The company is advancing its fleet optimization through repowerings and battery storage projects, with significant investment opportunities and expected CAFD yields above 10%.
Strong Battery Storage Pipeline
Clearway Group's development pipeline includes a significant volume of renewable projects with safe harbor qualifications through 2029, with battery storage representing over 40% of all project capacity in development.
Successful M&A Execution
Clearway closed the Catalina solar project and demonstrated efficient financial execution on the Tuolumne Wind project, effectuated at attractive long-term CAFD yields.
Negative Updates
Lower-than-Anticipated Wind Resources
Second quarter results reflected lower-than-anticipated wind resources in certain regions, impacting financial performance.
Maintenance and Availability Challenges
There was low availability for certain facilities where maintenance was optimized prior to near-term repowering, affecting performance in the second quarter.
Equity Issuance Required for Growth
Clearway Energy anticipates issuing equity through common infrastructure financing methods to fund growth, indicating reliance on external funding.
Company Guidance
During the Clearway Energy, Inc. second quarter 2025 earnings call, the company updated its 2025 Cash Available for Distribution (CAFD) guidance range to $405 million to $440 million, reflecting contributions from recent project acquisitions such as Catalina Solar. Clearway aims for the higher end of this range and has also increased its 2027 CAFD per share target to $2.50 to $2.70. The company continues to focus on growth through multiple pathways, including fleet optimization, sponsor-enabled growth, and third-party M&A. Clearway plans to fund these growth investments by retaining CAFD, leveraging excess debt capacity, and potentially issuing $50 million to $100 million in equity. The company is poised to meet its long-term objective of 5% to 8% CAFD per share growth while maintaining a payout ratio at the low end of its 70% to 80% target range.Clearway Energy Financial Statement Overview
Summary
Clearway Energy demonstrates strong revenue growth and operational efficiency with healthy margins and cash flow generation. However, its reliance on debt financing could be a potential risk factor. Overall, the company is positioned well in the Renewable Utilities industry, capitalizing on growth opportunities while managing leverage effectively.Income Statement
Clearway Energy shows strong revenue growth with a 2.55% increase in TTM compared to the previous year. Gross profit margin is robust at 50.79%, indicating efficient cost management. However, the net profit margin is relatively low at 6.68%, suggesting room for improvement in cost control or pricing strategy. The EBIT and EBITDA margins are solid at 36.49% and 55.11% respectively, reflecting operational efficiency.75
Positive
Balance Sheet
The debt-to-equity ratio stands at 1.52, indicating moderate leverage. The return on equity is strong at 17.34%, demonstrating effective use of equity to generate profits. However, the equity ratio is somewhat low at 37.01%, suggesting a reliance on debt financing. This could pose risks in terms of interest obligations in a rising rate environment.65
Positive
Cash Flow
Clearway Energy's operating cash flow to net income ratio is high at 8.34, indicating strong cash generation relative to accounting profits. The free cash flow to net income ratio is robust at 5.73, reflecting solid cash flow after capital expenditures. Free cash flow grew by 11.59%, showcasing the company's ability to generate cash for reinvestment or dividends.70
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.43B | 1.37B | 1.31B | 1.19B | 1.29B | 1.20B |
| Gross Profit | 757.00M | 870.00M | 841.00M | 755.00M | 835.00M | 833.00M |
| EBITDA | 1.06B | 1.08B | 1.03B | 2.31B | 958.00M | 835.00M |
| Net Income | 76.00M | 88.00M | 79.00M | 1.06B | -75.00M | -62.00M |
Balance Sheet | ||||||
| Total Assets | 16.03B | 14.33B | 14.70B | 12.31B | 12.81B | 10.59B |
| Cash, Cash Equivalents and Short-Term Investments | 260.00M | 332.00M | 575.00M | 657.00M | 179.00M | 268.00M |
| Total Debt | 9.35B | 7.75B | 8.66B | 7.36B | 8.27B | 7.31B |
| Total Liabilities | 10.45B | 8.77B | 9.71B | 8.28B | 9.51B | 7.88B |
| Stockholders Equity | 1.85B | 2.06B | 2.10B | 2.23B | 1.83B | 1.82B |
Cash Flow | ||||||
| Free Cash Flow | 562.00M | 483.00M | 408.00M | 675.00M | 550.00M | 421.00M |
| Operating Cash Flow | 779.00M | 770.00M | 702.00M | 787.00M | 701.00M | 545.00M |
| Investing Cash Flow | -476.00M | -725.00M | -523.00M | 1.06B | -865.00M | -62.00M |
| Financing Cash Flow | -87.00M | -363.00M | -124.00M | -1.51B | 367.00M | -435.00M |
Clearway Energy Technical Analysis
Negative
27.14
Price Trends
28.82
Negative
28.12
Negative
26.42
Positive
Market Momentum
-0.41
Negative
38.09
Neutral
16.24
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CWEN.A, the sentiment is Negative. The current price of 27.14 is below the 20-day moving average (MA) of 27.46, below the 50-day MA of 28.82, and above the 200-day MA of 26.42, indicating a neutral trend. The MACD of -0.41 indicates Negative momentum. The RSI at 38.09 is Neutral, neither overbought nor oversold. The STOCH value of 16.24 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CWEN.A.
Clearway Energy Risk Analysis
Clearway Energy disclosed 49 risk factors in its most recent earnings report. Clearway Energy reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Clearway Energy Peers Comparison
Overall Rating
UnderperformOutperform
Sector (66)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
70 Outperform | $5.57B | 42.25 | 5.40% | 0.52% | 2.23% | -0.82% | |
67 Neutral | $2.77B | 25.38 | 8.27% | ― | 33.19% | 486.74% | |
67 Neutral | $2.72B | 22.48 | 6.19% | 1.10% | 9.86% | 22.04% | |
66 Neutral | $17.25B | 17.99 | 5.54% | 3.64% | 6.63% | 11.55% | |
61 Neutral | $5.75B | 42.08 | 3.80% | 6.42% | -0.27% | -16.25% | |
48 Neutral | $6.04B | 32.67 | -63.28% | 4.44% | 12.46% | -388.89% | |
42 Neutral | $10.61B | ― | -29.93% | ― | 305.08% | -17.22% |
* Utilities Sector Average
Performance Comparison
CWEN.A
Clearway Energy
27.14
3.17
13.22%
ORA
Ormat Techno
91.10
19.53
27.29%
BEPC
Brookfield Renewable
33.21
7.21
27.73%
SMR
NuScale Power
34.53
26.96
356.14%
RNW
ReNew Energy Global
7.80
1.82
30.43%
EE
Excelerate Energy, Inc. Class A
23.70
5.36
29.23%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.