Clearway Energy (CWEN) AI Stock Analysis

• Market Cap: $7.68B
• Dividend Yield: 5.29%
• Average Volume (3M): 917.51K
• Price to Earnings (P/E): 23.4
• Beta (1Y): 0.24
• Revenue Growth: 2.54%
• EPS Growth: 124.89%
• Country: US
• Employees: 60
• Sector: Utilities
• Sector Strength: 65
• Industry: Renewable Utilities
• EPS (TTM): -0.88
• Shares Outstanding: 86,290,180
• 10 Day Avg. Volume: 893,159
• 30 Day Avg. Volume: 917,507
• PEG Ratio: 0.26
• Price to Book (P/B): 2.06
• Price to Sales (P/S): 2.77
• P/FCF Ratio: 10.73
• Enterprise Value/Market Cap: 2.22
• Enterprise Value/Revenue: 11.90
• Enterprise Value/Gross Profit: 23.66
• Enterprise Value/Ebitda: 15.68
• 1Y Price Target: $43.60
• Price Target Upside: 16.45% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5
• EPS Forecast (FY): 0.82
• Revenue Forecast (FY): $1.64B

• Rating: 61 Neutral
• Price Target: $40.00 ▲(6.84% Upside)
• Action: Reiterated Date: 03/10/26
• Date: Action: Reiterated 03/10/26

The score is held back primarily by balance-sheet leverage and some earnings/cash-flow volatility, despite steady revenue growth and solid operating cash generation. The latest earnings call was a key positive, with reiterated CAFD guidance, strong commercialization progress, and clear long-term per-share targets. Technically the trend is improving versus longer-term averages, while valuation is supported by the dividend but tempered by a mid-20s P/E.

Positive Factors

Cash Generation

Clearway produces durable operating cash flow and positive free cash flow, providing a structural funding source to support dividends, reinvestment in growth projects and debt servicing. Consistent CAFD supports long‑term capital allocation and reduces dependence on short‑term market funding.

Commercialized Development Pipeline

A large, well‑commercialized pipeline and multi‑GW of contracted PPAs create durable growth visibility and predictable future cash flows. High pipeline commercialization reduces execution uncertainty and underpins management's multi‑year CAFD targets and capacity to scale repowerings and new builds.

Funding Access and Capital Actions

Recent successful capital raises demonstrate market access and improved funding flexibility, supporting investment in repowerings and growth projects. Establishing longer‑dated debt and measured equity issuance enhances ability to execute multi‑year deployment plans and manage refinancing risk.

Negative Factors

High Leverage

The business remains meaningfully debt‑funded for an asset‑heavy, rate‑sensitive renewable utility. Elevated leverage constrains financial flexibility, amplifies refinancing and interest‑rate risk, and limits optionality for M&A or opportunistic deployment during adverse market/resource cycles.

Material Control Weakness

A reported material weakness in HLBV review introduces governance and reporting risk that can undermine investor confidence, delay financial close processes, and require sustained remediation. Persistent control issues can increase audit scrutiny and raise financing costs over time.

CAFD/FCF Volatility

A year‑over‑year step‑down in free cash flow and weaker cash conversion signals earnings and cash volatility tied to resources and timing of growth investments. Persistent FCF variability increases reliance on external capital for growth and dividends and raises sensitivity to operational and weather risks.

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 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 Money

Clearway Energy generates revenue primarily through the sale of electricity generated from its renewable energy assets, which are typically contracted under long-term power purchase agreements (PPAs). These agreements provide a stable and predictable revenue stream by securing customers for the electricity produced, often at fixed prices. Additionally, Clearway benefits from the sale of renewable energy certificates (RECs) and tax equity financing, which provides financial incentives for investments in renewable energy projects. The company also engages in partnerships with other energy firms and utilities to expand its operational footprint and enhance its service offerings, further contributing to its earnings.

Clearway Energy Financial Statement Overview

Summary

Operations look stable-to-improving with steady revenue growth and better 2025 profitability, and cash generation remains solid with positive free cash flow. The main constraint is elevated leverage for an asset-heavy utility model, plus some year-to-year earnings volatility and a 2025 step-down in free cash flow.

Income Statement

Revenue has grown steadily from 2023–2025 (2025 up ~3.9% year over year), and profitability improved in 2025 with net margin rising to ~11.8% (vs. ~6.4% in 2024). However, operating profitability appears volatile across years (notably an outsized 2022 profit profile versus more normalized 2023–2025 results), which lowers confidence in earnings consistency. 2025 also shows weaker operating leverage than prior years despite revenue growth.

Balance Sheet

Leverage remains the key constraint. Total debt is high (about $9.4B in 2025) and, while the debt-to-equity ratio improved to ~1.6x in 2025 from ~3.8–4.5x in 2020–2024, the business is still meaningfully debt-funded. The improvement in equity base in 2025 is a positive, but the capital structure remains a risk factor for a rate-sensitive, asset-heavy renewable utility model.

Cash Flow

Cash generation is solid: operating cash flow remained strong in 2025 (~$688M) with positive free cash flow (~$369M). That said, free cash flow declined in 2025 (down ~16%), and cash conversion softened versus 2024 as free cash flow was about ~54% of net income (vs. ~63% in 2024). Overall cash flow looks resilient, but the recent step-down in free cash flow is a watch item.

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

• Technical Analysis Sentiment: Neutral
• Last Price: 37.44
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CWEN, the sentiment is Neutral. The current price of 37.44 is below the 20-day moving average (MA) of 38.28, above the 50-day MA of 37.16, and above the 200-day MA of 32.46, indicating a neutral trend. The MACD of 0.40 indicates Positive momentum. The RSI at 45.21 is Neutral, neither overbought nor oversold. The STOCH value of 62.08 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for CWEN.

Clearway Energy Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
EE	67 Neutral	$3.76B	21.38	12.18%	0.99%	45.09%	50.54%
Sector *	66 Neutral	$17.65B	18.10	5.60%	3.62%	6.62%	11.55%
CWEN	61 Neutral	$7.68B	23.42	5.91%	5.29%	2.54%	124.89%
ORA	56 Neutral	$6.48B	54.13	4.95%	0.42%	6.07%	12.07%
BEPC	55 Neutral	$6.96B	-2.94	-1196.72%	3.84%	5.93%	-39.88%
RNW	55 Neutral	$1.85B	-231.49	10.05%	―	42.09%	219.69%
SMR	47 Neutral	$3.87B	-6.52	-41.93%	―	765.67%	-202.81%

Clearway Energy Corporate Events

Clearway Energy Proposes Charter Change to Unify Share Classes

On March 9, 2026, Clearway Energy, Inc. announced that its board approved a proposal to amend the company’s charter to convert each share of Class A common stock into one share of Class C common stock, subject to shareholder approval at the 2026 annual meeting. The move would consolidate the company’s dual public share classes into a single class and is structured to preserve the collective voting power of public investors through a voting trust arrangement with Clearway Energy Group LLC.

The company said the simplification responds to investor feedback and is expected to address the persistent valuation discount and lower liquidity of Class A shares, which last traded at $35.57 versus $37.94 for Class C on March 9, 2026. Management argues that a unified, more liquid Class C stock with a larger public float should broaden the investor base and support Clearway’s capital allocation strategy, though the conversion’s tax treatment, while intended to be tax-free, is not backed by an IRS ruling.

The most recent analyst rating on (CWEN) stock is a Hold with a $39.00 price target. To see the full list of analyst forecasts on Clearway Energy stock, see the CWEN Stock Forecast page.

Clearway Energy completes $600 million senior notes offering

On January 13, 2026, Clearway Energy Operating LLC, a subsidiary of Clearway Energy, Inc., completed a private offering of $600 million in 5.750% senior unsecured notes due 2034, sold to institutional investors under Rule 144A and Regulation S in a transaction exempt from U.S. registration requirements. The notes, governed by an indenture with CSC Delaware Trust Company as trustee, carry semiannual interest payments beginning July 15, 2026, feature a series of optional redemption provisions before and after January 15, 2029, and impose customary covenants restricting liens, major asset transfers, and certain corporate actions, with standard events of default that allow acceleration if payment failures, covenant breaches, cross‑defaults, or insolvency events occur, shaping the company’s capital structure and creditor protections going forward.

The most recent analyst rating on (CWEN) stock is a Hold with a $34.00 price target. To see the full list of analyst forecasts on Clearway Energy stock, see the CWEN Stock Forecast page.

Clearway Energy Upsizes Senior Notes Offering for Growth

On January 8, 2026, Clearway Energy Operating LLC, a subsidiary of Clearway Energy, Inc., announced a proposed offering of senior unsecured notes due 2034, initially targeted at $500 million and subsequently upsized the same day to $600 million after pricing. The company plans to allocate an amount equal to the net proceeds to repay borrowings under its revolving credit facility, finance or refinance certain indebtedness, and support the acquisition of renewable energy generation and storage assets, moves that are expected to strengthen its balance sheet while further expanding its clean energy portfolio and reinforcing its position in the U.S. renewable power market.

The most recent analyst rating on (CWEN) stock is a Hold with a $36.00 price target. To see the full list of analyst forecasts on Clearway Energy stock, see the CWEN Stock Forecast page.

Clearway Energy Reports Control Weakness in HLBV Calculations

In a filing covering its quarterly periods ended March 31, June 30 and September 30, 2025, Clearway Energy, Inc. and Clearway Energy LLC disclosed that they had identified and corrected immaterial errors in the hypothetical liquidation at book value (HLBV) calculations used to allocate net income and loss to redeemable noncontrolling interests and noncontrolling interests in tax equity partnerships. The company concluded under SEC guidance that these errors were not material to any prior reporting period and therefore did not require restatement of previously issued financial statements, and the adjustments did not affect reported net income or cash flow from operations, though prior-period figures will be revised when presented in future filings. Management also reported that in the fourth quarter of 2025 it had identified a material weakness in internal control over financial reporting related to the review of these HLBV calculations, and while Clearway has begun remediation efforts and plans process changes to strengthen controls, it acknowledged that the weakness will remain until the new controls are fully tested and may require additional measures, underscoring ongoing governance and reporting risk for investors and other stakeholders.

The most recent analyst rating on (CWEN) stock is a Buy with a $38.00 price target. To see the full list of analyst forecasts on Clearway Energy stock, see the CWEN Stock Forecast page.