Clearway Energy, Inc. (CWEN.A)
NYSE:CWEN.A
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Clearway Energy
(NYSE:CWEN.A)
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Rating:69Neutral
Price Target:
$44.00
▲(29.95% Upside)
Action:DowngradedDate:02/24/26
The score is supported by strong technical momentum and a constructive earnings-call outlook (reiterated guidance, long-term CAFD per-share targets, and pipeline execution), plus attractive income characteristics (high dividend yield with a mid-teens P/E). The primary offset is financial risk from a debt-heavy capital structure and some variability in earnings/cash conversion.
Positive Factors
Contracted PPAs and offtake portfolio
Large, multiyear PPAs (including ~2 GW with hyperscalers) provide predictable revenue and reduce merchant exposure. Durable offtake contracts underpin stable CAFD and help secure project-level financing, improving long-term cash flow visibility and credit standing.
Negative Factors
High leverage / debt-heavy balance sheet
Elevated absolute debt (~$9.4B) and historically high leverage constrain financial flexibility and increase refinancing and interest-rate sensitivity. Persistent leverage limits ability to fund growth internally and raises reliance on capital markets, heightening structural funding risk.
Read all positive and negative factors
Positive Factors
Negative Factors
Contracted PPAs and offtake portfolio
Large, multiyear PPAs (including ~2 GW with hyperscalers) provide predictable revenue and reduce merchant exposure. Durable offtake contracts underpin stable CAFD and help secure project-level financing, improving long-term cash flow visibility and credit standing.
Read all positive factors
Clearway Energy (CWEN.A) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$8.36B
Dividend Yield5.6%
Average Volume (3M)303.23K
Price to Earnings (P/E)23.4
Beta (1Y)0.20
Revenue Growth2.54%
EPS Growth124.89%
CountryUS
Employees60
SectorUtilities
Sector Strength65
IndustryRenewable Utilities
Share Statistics
EPS (TTM)-0.88
Shares Outstanding34,613,853
10 Day Avg. Volume166,256
30 Day Avg. Volume303,233
Financial Highlights & Ratios
PEG Ratio0.26
Price to Book (P/B)2.06
Price to Sales (P/S)2.77
P/FCF Ratio10.73
Enterprise Value/Market Cap2.12
Enterprise Value/Revenue12.42
Enterprise Value/Gross Profit24.68
Enterprise Value/Ebitda16.36
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)0.77
Revenue Forecast (FY)$1.64B
Clearway Energy Business Overview & Revenue Model
Company Description
Clearway 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 facilitie...
How the Company Makes Money
Clearway Energy makes money primarily by owning interests in power generation projects and earning contracted cash flows from selling electricity (and, where applicable, capacity and renewable attributes) to customers under long-term contracts. Th...
Clearway Energy Earnings Call Summary
Earnings Call Date:Feb 23, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 30, 2026
Earnings Call Sentiment Positive
The call emphasized strong execution on growth commercialization, meaningful capacity additions, robust sponsor-enabled opportunities, a deep late‑stage pipeline and disciplined capital markets execution (e.g., $600M notes, $100M equity), all supporting reiterated 2026 guidance and clear 2030 CAFD per share targets. Near-term challenges include below‑median wind in Q4, timing-related solar impacts, modest immediate CAFD uplift from some recontracting transactions, and continued dependence on successful permitting, interconnection and capital raises to fully realize targets. On balance, the positive operational and pipeline progress and solid funding execution outweigh the near-term operational and funding execution risks.Positive Updates
Full-Year CAFD Above Guidance Midpoint
Clearway delivered full-year cash available for distribution (CAFD) of $430 million, above the original guidance midpoint of $420 million (guidance range $400M–$440M), approximately +2.4% above the midpoint. Management reaffirmed 2026 CAFD guidance of $470M–$510M and reiterated a 2027 CAFD per share target of $2.70 or better.
Negative Updates
Quarterly Renewable Resource Shortfall
In Q4 wind resource was below median expectations across the fleet (including California), and solar performance was impacted by the timing of debt service related to growth investments, contributing to comparatively modest quarterly CAFD of $35 million.
Read all updates
Q4-2025 Updates
Positive
Negative
Full-Year CAFD Above Guidance Midpoint
Clearway delivered full-year cash available for distribution (CAFD) of $430 million, above the original guidance midpoint of $420 million (guidance range $400M–$440M), approximately +2.4% above the midpoint. Management reaffirmed 2026 CAFD guidance of $470M–$510M and reiterated a 2027 CAFD per share target of $2.70 or better.
Read all positive updates
Company Guidance
Clearway reiterated 2026 CAFD guidance of $470M–$510M (midpoint assuming P50 renewable production) after reporting 2025 CAFD of $430M (above the $400M–$440M range) and Q4 adjusted EBITDA of $237M with Q4 CAFD/FCF of $35M; the company affirmed a 2027 CAFD per share target of $2.70+ and a 2030 CAFD per share target of $2.90–$3.10 (a 7%–8% CAGR from 2025) with expected 5%–8%+ CAGR beyond 2030. Execution metrics include 1.3 GW added in 2025, ~2 GW of PPAs signed with hyperscalers in 2025, repowerings >900 MW (targeting >11% CAFD yields) and 100% commercialization of 2026–2027 planned projects; Clearway has identified ~$1.3B of 2027/2028 corporate capital opportunities at ~10.5%+ CAFD yield, >7 GW of 2029 development activity with potential to deploy >$600M in 2029, and at least $650M of incremental capital available for 2028–2030. Financial policy targets include a long-term payout ratio <70% after 2030, maintaining ~4.0x–4.5x leverage and a BB credit rating goal; recent funding actions include a $600M senior unsecured note due 2034 and ~$100M of equity issued since late August.Clearway Energy Financial Statement Overview
Summary
Income Statement
66
Positive
Balance Sheet
48
Neutral
Cash Flow
58
Neutral
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 1.43B | 1.37B | 1.31B | 1.19B | 1.29B |
| Gross Profit | 217.00M | 870.00M | 841.00M | 755.00M | 835.00M |
| EBITDA | 1.10B | 1.08B | 1.03B | 2.20B | 904.00M |
| Net Income | 169.00M | 88.00M | 79.00M | 582.00M | 51.00M |
Balance Sheet | |||||
| Total Assets | 16.66B | 14.33B | 14.70B | 12.31B | 12.81B |
| Cash, Cash Equivalents and Short-Term Investments | 818.00M | 332.00M | 535.00M | 657.00M | 179.00M |
| Total Debt | 10.20B | 7.75B | 8.66B | 7.36B | 8.27B |
| Total Liabilities | 10.74B | 8.77B | 9.71B | 8.28B | 9.51B |
| Stockholders Equity | 1.92B | 2.06B | 2.10B | 2.23B | 1.83B |
Cash Flow | |||||
| Free Cash Flow | 369.00M | 483.00M | 408.00M | 675.00M | 550.00M |
| Operating Cash Flow | 688.00M | 770.00M | 702.00M | 787.00M | 701.00M |
| Investing Cash Flow | 321.00M | -725.00M | -523.00M | 1.13B | 88.00M |
| Financing Cash Flow | -924.00M | -363.00M | -124.00M | -1.57B | -600.00M |
Clearway Energy Technical Analysis
Positive
33.86
Price Trends
36.94
Positive
34.31
Positive
31.26
Positive
Market Momentum
0.94
Negative
66.24
Neutral
67.90
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CWEN.A, the sentiment is Positive. The current price of 33.86 is below the 20-day moving average (MA) of 39.00, below the 50-day MA of 36.94, and above the 200-day MA of 31.26, indicating a bullish trend. The MACD of 0.94 indicates Negative momentum. The RSI at 66.24 is Neutral, neither overbought nor oversold. The STOCH value of 67.90 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CWEN.A.
Clearway Energy Risk Analysis
Clearway Energy disclosed 50 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 |
|---|---|---|---|---|---|---|---|
69 Neutral | $8.36B | 23.42 | 5.91% | 5.60% | 2.54% | 124.89% | |
67 Neutral | $3.96B | 21.38 | 12.18% | 0.99% | 45.09% | 50.54% | |
66 Neutral | $17.65B | 18.10 | 5.60% | 3.62% | 6.62% | 11.55% | |
56 Neutral | $6.93B | 54.13 | 4.95% | 0.42% | 6.07% | 12.07% | |
55 Neutral | $7.63B | -2.94 | -1196.72% | 3.84% | 5.93% | -39.88% | |
55 Neutral | $1.73B | -231.49 | 10.05% | ― | 42.09% | 219.69% | |
46 Neutral | $2.49B | -14.43 | -12.87% | ― | -16.15% | -324.40% |
* Utilities Sector Average
CWEN.A
Clearway Energy
40.65
16.28
66.81%
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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.