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Clearway Energy, Inc. (CWEN.A)
:CWEN.A
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Clearway Energy
(NYSE:CWEN.A)
Rating:75Outperform
Price Target:
$33.00
▲(10.00%Upside)
Clearway Energy (CWEN.A) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$6.36B
Dividend Yield5.7%
Average Volume (3M)172.09K
Price to Earnings (P/E)38.0
Beta (1Y)0.51
Revenue Growth-1.34%
EPS Growth21.62%
CountryUS
Employees60
SectorUtilities
Sector Strength77
IndustryRenewable Utilities
Share Statistics
EPS (TTM)0.03
Shares Outstanding34,613,853
10 Day Avg. Volume166,159
30 Day Avg. Volume172,086
Financial Highlights & Ratios
PEG Ratio6.19
Price to Book (P/B)0.71
Price to Sales (P/S)0.00
P/FCF Ratio12.04
Enterprise Value/Market Cap2.26
Enterprise Value/Revenue2.57
Enterprise Value/Gross Profit24.28
Enterprise Value/Ebitda3.71
Forecast
1Y Price Target
$33.00Price Target Upside10.00% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering0
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 generated from its wind, solar, and natural gas-fired power plants. The company enters into long-term power purchase agreements (PPAs) with utilities, corporations, and other energy purchasers, which provide stable and predictable cash flows. These agreements often include fixed pricing terms, mitigating market price volatility. Additionally, Clearway Energy benefits from government incentives and tax credits related to renewable energy production, further enhancing its revenue streams. Strategic partnerships and joint ventures also play a role in expanding its asset base and increasing earnings potential.
Clearway Energy Earnings Call Summary
Earnings Call Date:Apr 30, 2025
(Q1-2025)
| % Change Since: 11.40%|
Next Earnings Date:Aug 05, 2025
Earnings Call Sentiment Positive
The earnings call reflects a strong position for Clearway Energy with promising growth through various pathways, including robust pipeline development, successful acquisitions, and strategic risk management. However, challenges such as tariff impacts on battery storage and permitting uncertainties present potential headwinds.Q1-2025 Updates
Positive Updates
Solid First Quarter Results
Clearway Energy delivered strong first quarter results with adjusted EBITDA of $252 million and CAFD of $77 million, reflecting strong wind resources and contributions from 2024 growth investments.
Strong Pipeline Development
Clearway Group's late-stage pipeline has over 9 gigawatts of CWEN compatible projects, with intentions to complete safe harbor investments for approximately 13 gigawatts of projects that could achieve COD through 2029.
Advancement in Battery Storage Projects
The Spindle project, a 199 MW battery storage project, signed a long-term contract with an investment-grade utility, showcasing the company's commitment to expanding its storage capabilities.
Successful Third-Party M&A
Clearway closed the acquisition of Tuolumne Wind and signed a binding agreement to acquire an operational solar project in California, reflecting an approximately 10% to 13% CAFD yield over five and ten years respectively.
Mitigation of Interest Rate Risks
Clearway has hedged the majority of the principal amount of its $850 million corporate bonds with forward starting interest rate swaps to manage potential interest rate volatility.
Negative Updates
Timing of Debt Service and Distributions
First quarter CAFD was higher than seasonally expected due in part to the timing of debt service and distributions to non-controlling partners shifted into the second quarter.
Tariff Challenges for Battery Storage
The current tariff environment could impact the cost of battery storage projects, with potential increases in capital expenses of about 30%, affecting the overall cost structure.
Permitting Uncertainties
Concerns around federal permits for wind projects and potential impacts of changes to the Inflation Reduction Act (IRA) could affect the future repowering projects.
Company Guidance
During Clearway Energy, Inc.'s first quarter 2025 earnings call, the company reaffirmed its 2025 financial guidance range, with expectations to achieve the upper half or potentially exceed it through strong fleet performance and contributions from new investments. Clearway Energy reported first quarter adjusted EBITDA of $252 million and CAFD of $77 million, supported by a 4.7% improvement in solar capacity factors and a 2.9% increase for wind. The company continues to target a 2025 CAFD guidance range of $400 million to $440 million, aiming for the high end. Clearway highlighted progress in repowering projects like Mt. Storm and Goat Mountain, and announced the acquisition of Tuolumne Wind and a solar project in California, expecting these to yield a 10%-11% CAFD over five years. The fiscal strategy involves retaining $250 million in CAFD from 2025 to 2027 and leveraging $400 million in debt capacity to fund growth, while planning modest equity issuances through an ATM facility.Clearway Energy Financial Statement Overview
Summary
Clearway Energy demonstrates strong revenue growth and operational efficiency with healthy margins and cash flow generation. However, reliance on debt financing poses a potential risk.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 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 1.37B | 1.31B | 1.19B | 1.29B | 1.20B |
| Gross Profit | 870.00M | 841.00M | 755.00M | 835.00M | 833.00M |
| EBITDA | 1.13B | 1.03B | 2.31B | 958.00M | 835.00M |
| Net Income | 88.00M | 79.00M | 1.06B | -75.00M | -62.00M |
Balance Sheet | |||||
| Total Assets | 14.33B | 14.70B | 12.31B | 12.81B | 10.59B |
| Cash, Cash Equivalents and Short-Term Investments | 332.00M | 575.00M | 657.00M | 179.00M | 268.00M |
| Total Debt | 7.75B | 8.66B | 7.36B | 8.27B | 7.31B |
| Total Liabilities | 8.77B | 9.71B | 8.28B | 9.51B | 7.88B |
| Stockholders Equity | 2.06B | 2.10B | 2.23B | 1.83B | 1.82B |
Cash Flow | |||||
| Free Cash Flow | 483.00M | 408.00M | 675.00M | 550.00M | 421.00M |
| Operating Cash Flow | 770.00M | 702.00M | 787.00M | 701.00M | 545.00M |
| Investing Cash Flow | -725.00M | -523.00M | 1.06B | -865.00M | -62.00M |
| Financing Cash Flow | -363.00M | -124.00M | -1.51B | 367.00M | -435.00M |
Clearway Energy Technical Analysis
Neutral
30.00
Price Trends
29.40
Positive
28.05
Positive
26.24
Positive
Market Momentum
0.30
Positive
48.80
Neutral
26.12
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CWEN.A, the sentiment is Neutral. The current price of 30 is below the 20-day moving average (MA) of 30.41, above the 50-day MA of 29.40, and above the 200-day MA of 26.24, indicating a neutral trend. The MACD of 0.30 indicates Positive momentum. The RSI at 48.80 is Neutral, neither overbought nor oversold. The STOCH value of 26.12 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 (67)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | $6.36B | 38.02 | 4.70% | 5.70% | -1.34% | 21.62% | |
67 Neutral | $16.87B | 17.02 | 4.48% | 3.26% | 4.72% | 5.95% | |
65 Neutral | $2.75B | 50.87 | 4.18% | ― | -1.77% | -41.65% | |
65 Neutral | $5.40B | 43.15 | 5.21% | 0.54% | 1.95% | -6.57% | |
63 Neutral | $2.82B | 21.03 | 7.58% | 0.83% | -15.82% | 36.15% | |
60 Neutral | $6.56B | 32.67 | -4.65% | 3.99% | 1.01% | -110.78% | |
42 Neutral | $14.51B | ― | -32.34% | ― | 62.41% | -85.81% |
* Utilities Sector Average
Performance Comparison
CWEN.A
Clearway Energy
29.58
6.68
29.17%
ORA
Ormat Techno
89.48
11.82
15.22%
BEPC
Brookfield Renewable
36.45
9.37
34.60%
SMR
NuScale Power
51.67
40.82
376.22%
RNW
ReNew Energy Global
7.47
1.75
30.59%
EE
Excelerate Energy, Inc. Class A
23.85
4.82
25.33%
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.