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Clearway Energy, Inc. (CWEN.A)
NYSE:CWEN.A
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Clearway Energy
(NYSE:CWEN.A)
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Rating:70Neutral
Price Target:
$36.00
▲(6.32% Upside)
Clearway Energy's overall stock score is driven by a positive earnings call and strong technical indicators. The company's financial performance is mixed, with concerns about revenue growth and leverage. Valuation is fair, with an attractive dividend yield. The stock's bullish momentum is tempered by overbought conditions, suggesting caution.
Positive Factors
Strong Development Pipeline
A robust development pipeline ensures long-term growth potential and strengthens market position, supporting future revenue and profitability.
Positive Earnings Outlook
A positive earnings outlook with clear growth targets enhances investor confidence and indicates a well-managed strategic direction.
Successful M&A Performance
Successful M&A activities with high yields demonstrate effective capital deployment and strategic expansion, boosting long-term financial health.
Negative Factors
High Leverage
High leverage can limit financial flexibility and increase risk, potentially impacting the company's ability to invest in growth opportunities.
Negative Revenue Growth
Negative revenue growth can signal declining market competitiveness and may hinder the company's ability to sustain profitability.
Decline in Free Cash Flow Growth
A decline in free cash flow growth may constrain the company's ability to fund new projects and return capital to shareholders, affecting long-term growth.
Clearway Energy (CWEN.A) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$6.46B
Dividend Yield5.6%
Average Volume (3M)247.06K
Price to Earnings (P/E)12.9
Beta (1Y)0.19
Revenue Growth2.54%
EPS Growth124.89%
CountryUS
Employees60
SectorUtilities
Sector Strength65
IndustryRenewable Utilities
Share Statistics
EPS (TTM)2.00
Shares Outstanding34,613,853
10 Day Avg. Volume215,836
30 Day Avg. Volume247,061
Financial Highlights & Ratios
PEG Ratio3.39
Price to Book (P/B)1.49
Price to Sales (P/S)2.24
P/FCF Ratio6.35
Enterprise Value/Market Cap2.40
Enterprise Value/Revenue11.27
Enterprise Value/Gross Profit17.79
Enterprise Value/Ebitda14.70
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
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 facilities. The company enters long-term power purchase agreements (PPAs) with utility companies and other customers, ensuring a stable revenue stream by locking in prices for the energy it generates. Key revenue streams include the sale of renewable energy certificates (RECs) and investment tax credits (ITCs) associated with its solar projects. Furthermore, Clearway Energy benefits from operational efficiencies and cost management, which enhance its profitability. Strategic partnerships with energy providers and utilities further bolster its market position and revenue-generating capabilities.
Clearway Energy Earnings Call Summary
Earnings Call Date:Nov 04, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Mar 02, 2026
Earnings Call Sentiment Positive
The earnings call reflects a positive outlook for Clearway Energy, with strong growth targets and a robust development pipeline. The company is well-positioned to meet its financial goals, though there are concerns about the potential environmental impact of flexible generation and the need for equity issuance.Q3-2025 Updates
Positive Updates
Narrowed Financial Guidance
Clearway Energy has narrowed its financial guidance for 2025 to the top half of its originally set range, driven by strong performance in the third quarter and successful acquisitions.
2030 Financial Target
Clearway Energy has established a 2030 CAFD per share goal of $2.90 to $3.10, translating to a 7% to 8% growth CAGR from the 2025 guidance midpoint.
Robust Development Pipeline
Clearway Group's development program for 2028 and 2029 includes over 6.5 gigawatts of projects, which is far more than needed to meet the top end of the 2030 goal.
Strong M&A Performance
Clearway has completed three transactions with CAFD yields above 12%, including the Deriva Solar portfolio acquisition, leveraging core strengths in solar assets.
Successful Sponsor-Enabled Growth
All previously committed investments are on track, with new opportunities identified for the 2026 COD year, including the Royal Slope project in Washington State.
Negative Updates
Reliance on Flexible Generation
The strategy includes developing natural gas resources alongside renewables, which may face challenges due to environmental concerns and market volatility.
Potential Equity Issuances
Clearway plans to issue moderate discrete amounts of equity, which may dilute existing shareholders. The timing and market conditions for these issuances remain uncertain.
Company Guidance
During Clearway Energy, Inc.'s Third Quarter 2025 Conference Call, the company provided a comprehensive update on its financial guidance and strategic outlook. For 2025, the company narrowed its financial guidance to the top half of its originally set range due to strong third-quarter performance and successful integration of new acquisitions. It set a 2030 CAFD per share target of $2.90 to $3.10, translating to a 7% to 8% CAGR from the 2025 midpoint. Clearway aims to achieve this by leveraging its late-stage pipeline, which has grown fourfold since 2017, and by strategically using retained cash flow, debt, and modest equity issuances to fund growth. The company also plans to maintain a long-term payout ratio below 70%, supporting competitive EPS growth. Looking beyond 2030, Clearway is well-positioned with a robust development pipeline, including over 6.5 gigawatts of projects for 2028 and 2029, expecting CAFD yields of 10.5% or better. The call emphasized Clearway's commitment to delivering sustainable growth through its diversified growth pathways and prudent capital management.Clearway Energy Financial Statement Overview
Summary
Clearway Energy shows mixed financial performance. While profitability has improved with a higher net profit margin, revenue growth is negative, and leverage remains high. Cash flow metrics indicate good cash generation, but the decline in free cash flow growth is concerning. Overall, the company needs to address revenue growth and leverage to enhance financial stability.Income Statement
Clearway Energy's income statement shows mixed results. The TTM gross profit margin is strong at 50.5%, but has declined from previous years. The net profit margin improved significantly to 20.1% TTM, indicating better profitability. However, revenue growth has been negative recently, with a -3.98% decline TTM, which is a concern. The EBIT and EBITDA margins are healthy, though they have decreased compared to prior periods.Balance Sheet
The balance sheet reveals high leverage with a debt-to-equity ratio of 1.61 TTM, which is an improvement from previous years but still indicates significant debt levels. The return on equity is low at 2.03% TTM, reflecting modest returns for shareholders. The equity ratio is stable, suggesting a balanced asset structure, but the high debt remains a risk.Cash Flow
Cash flow analysis shows a decline in free cash flow growth at -21.71% TTM, which is concerning. However, the operating cash flow to net income ratio is strong at 1.02, indicating good cash generation relative to net income. The free cash flow to net income ratio is also solid at 0.63, suggesting efficient cash utilization.| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.38B | 1.37B | 1.31B | 1.19B | 1.29B | 1.20B |
| Gross Profit | 871.00M | 870.00M | 841.00M | 755.00M | 835.00M | 833.00M |
| EBITDA | 1.05B | 1.08B | 1.03B | 2.20B | 904.00M | 879.00M |
| Net Income | 276.00M | 88.00M | 79.00M | 582.00M | 51.00M | 25.00M |
Balance Sheet | ||||||
| Total Assets | 16.07B | 14.33B | 14.70B | 12.31B | 12.81B | 10.59B |
| Cash, Cash Equivalents and Short-Term Investments | 251.00M | 332.00M | 535.00M | 657.00M | 179.00M | 268.00M |
| Total Debt | 9.22B | 7.75B | 8.66B | 7.36B | 8.27B | 7.31B |
| Total Liabilities | 10.28B | 8.77B | 9.71B | 8.28B | 9.51B | 7.88B |
| Stockholders Equity | 5.71B | 2.06B | 2.10B | 2.23B | 1.83B | 1.82B |
Cash Flow | ||||||
| Free Cash Flow | 440.00M | 483.00M | 408.00M | 675.00M | 550.00M | 421.00M |
| Operating Cash Flow | 703.00M | 770.00M | 702.00M | 787.00M | 701.00M | 545.00M |
| Investing Cash Flow | -790.00M | -725.00M | -523.00M | 1.13B | 88.00M | -62.00M |
| Financing Cash Flow | 54.00M | -363.00M | -124.00M | -1.57B | -600.00M | -435.00M |
Clearway Energy Technical Analysis
Neutral
33.86
Price Trends
31.78
Negative
29.81
Positive
28.71
Positive
Market Momentum
-0.23
Positive
47.38
Neutral
21.57
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 33.86 is above the 20-day moving average (MA) of 31.06, above the 50-day MA of 31.78, and above the 200-day MA of 28.71, indicating a neutral trend. The MACD of -0.23 indicates Positive momentum. The RSI at 47.38 is Neutral, neither overbought nor oversold. The STOCH value of 21.57 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
UnderperformOutperform
Sector (66)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $3.47B | 26.84 | 6.96% | 0.99% | 45.09% | 50.54% | |
71 Outperform | $7.01B | 52.70 | 5.45% | 0.42% | 6.07% | 12.07% | |
70 Neutral | $6.46B | 12.86 | 13.20% | 5.60% | 2.54% | 124.89% | |
66 Neutral | $17.65B | 18.10 | 5.60% | 3.62% | 6.62% | 11.55% | |
61 Neutral | $1.98B | 18.93 | 7.64% | ― | 42.09% | 219.69% | |
55 Neutral | $4.24B | -54.39 | -10.72% | ― | -16.15% | -324.40% | |
51 Neutral | $6.83B | -5.80 | -38.17% | 3.84% | 5.93% | -39.88% |
* Utilities Sector Average
CWEN.A
Clearway Energy
30.91
8.60
38.55%
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BEPC
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RNW
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FLNC
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EE
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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.