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Clearway Energy Inc (CWEN)
NYSE:CWEN
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Clearway Energy
(NYSE:CWEN)
72Outperform
Positive Factors
Guidance
There is a strong likelihood that CWEN might raise its 2025 guidance or deliver CAFD toward the high-end, which is seen as very bullish.
Performance
CWEN is one of the best performing stocks in the clean energy sector, showing resilience despite a high-uncertainty environment.
Negative Factors
Financial Results
Adjusted EBITDA was below both consensus and Morgan Stanley estimates.
Legislation
Uncertainty over potential revisions to the Inflation Reduction Act continues to be an overhang to correcting valuation.
Clearway Energy (CWEN) vs. S&P 500 (SPY)
Market Cap
$5.82B
Dividend Yield5.79%
Average Volume (3M)993.32K
Price to Earnings (P/E)36.3
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 Outstanding83,257,150
10 Day Avg. Volume804,984
30 Day Avg. Volume993,315
Financial Highlights & Ratios
PEG Ratio5.51
Price to Book (P/B)0.63
Price to Sales (P/S)0.00
P/FCF Ratio10.73
Enterprise Value/Market Cap2.35
Enterprise Value/Revenue2.45
Enterprise Value/Gross Profit23.14
Enterprise Value/Ebitda3.53
Forecast
1Y Price Target
$36.14Price Target Upside23.89% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering7
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 makes money primarily through the sale of electricity generated from its renewable energy assets. The company enters into long-term power purchase agreements (PPAs) with utilities, corporations, and other entities, ensuring a stable and predictable revenue stream. These PPAs typically have fixed or escalating pricing terms, which provide Clearway Energy with consistent cash flow. Additionally, Clearway Energy benefits from federal and state incentives for renewable energy projects, such as tax credits and subsidies, which enhance its financial performance. The company also engages in strategic partnerships and joint ventures to expand its asset base, further driving revenue growth.
Clearway Energy Financial Statement Overview
Summary
Clearway Energy shows strong revenue growth and effective cash flow management. The income statement and cash flow metrics are positive, while the balance sheet indicates higher risk due to significant leverage. Managing debt and maintaining operational efficiency are crucial.Income Statement
Clearway Energy's income statement reflects a strong performance in the TTM (Trailing-Twelve-Months) with a notable increase in total revenue and net income compared to previous years. The gross profit margin is solid, indicating efficient cost management. However, the net profit margin is relatively low due to high operational costs. Revenue growth has been consistent, showing a positive trajectory. EBIT and EBITDA margins are healthy, highlighting good operational efficiency.75
Positive
Balance Sheet
The balance sheet reveals a moderate financial position with a high debt-to-equity ratio, indicating reliance on debt financing. However, the company's return on equity is improving, suggesting effective use of shareholder funds. The equity ratio is stable, providing some cushion against financial volatility. Overall, the balance sheet reflects a mix of strengths in equity utilization and risks associated with high leverage.68
Positive
Cash Flow
Clearway Energy has demonstrated robust cash flow management with substantial operating cash flow and consistent free cash flow generation. The free cash flow growth rate is impressive, and the operating cash flow to net income ratio is favorable, indicating strong cash conversion from earnings. The company's ability to generate cash flow efficiently supports its financial flexibility and operational stability.80
Positive
| Breakdown | |||||
| TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 1.41B | 1.37B | 1.31B | 1.19B | 1.29B | 1.20B |
| Gross Profit | |||||
| 592.00M | 870.00M | 841.00M | 755.00M | 835.00M | 833.00M |
| EBIT | |||||
| 228.00M | 196.00M | 263.00M | 247.00M | 267.00M | 333.00M |
| EBITDA | |||||
| 1.05B | 1.13B | 1.03B | 2.31B | 958.00M | 835.00M |
| Net Income Common Stockholders | |||||
| 94.00M | 88.00M | 79.00M | 1.06B | -75.00M | -62.00M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 297.00M | 332.00M | 575.00M | 657.00M | 179.00M | 268.00M |
| Total Assets | |||||
| 14.65B | 14.33B | 14.70B | 12.31B | 12.81B | 10.59B |
| Total Debt | |||||
| 8.22B | 7.75B | 8.66B | 7.36B | 8.27B | 7.31B |
| Net Debt | |||||
| 7.92B | 7.42B | 8.13B | 6.70B | 8.09B | 7.05B |
| Total Liabilities | |||||
| 9.23B | 8.77B | 9.71B | 8.28B | 9.51B | 7.88B |
| Stockholders Equity | |||||
| 5.42B | 2.06B | 2.10B | 2.23B | 1.83B | 1.82B |
| Cash Flow | Free Cash Flow | ||||
| 539.00M | 483.00M | 408.00M | 675.00M | 550.00M | 421.00M |
| Operating Cash Flow | |||||
| 784.00M | 770.00M | 702.00M | 787.00M | 701.00M | 545.00M |
| Investing Cash Flow | |||||
| -775.00M | -725.00M | -523.00M | 1.06B | -865.00M | -62.00M |
| Financing Cash Flow | |||||
| -1.66B | -363.00M | -124.00M | -1.51B | 367.00M | -435.00M |
Clearway Energy Technical Analysis
Positive
29.17
Price Trends
28.98
Positive
27.40
Positive
27.37
Positive
Market Momentum
0.05
Negative
53.97
Neutral
54.92
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CWEN, the sentiment is Positive. The current price of 29.17 is above the 20-day moving average (MA) of 28.80, above the 50-day MA of 28.98, and above the 200-day MA of 27.37, indicating a bullish trend. The MACD of 0.05 indicates Negative momentum. The RSI at 53.97 is Neutral, neither overbought nor oversold. The STOCH value of 54.92 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CWEN.
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 (63)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $3.40B | 36.17 | 7.58% | 0.57% | -15.82% | 36.15% | |
72 Outperform | $5.82B | 36.33 | 4.70% | 5.79% | -1.34% | 21.62% | |
69 Neutral | $4.45B | 35.54 | 5.21% | 0.65% | 1.95% | -6.57% | |
65 Neutral | $2.42B | 96.10 | 2.00% | ― | -1.77% | -41.65% | |
63 Neutral | $8.39B | 10.63 | 5.35% | 4.38% | 3.68% | -10.94% | |
54 Neutral | $5.28B | 32.67 | -4.65% | 4.89% | 1.01% | -110.78% | |
42 Neutral | $6.15B | ― | -32.34% | ― | 62.41% | -85.81% |
* Utilities Sector Average
Performance Comparison
CWEN
Clearway Energy
29.17
3.64
14.26%
ORA
Ormat Techno
73.04
1.03
1.43%
BEPC
Brookfield Renewable
29.30
-0.63
-2.10%
SMR
NuScale Power
22.94
16.85
276.68%
RNW
ReNew Energy Global
6.65
0.20
3.10%
EE
Excelerate Energy, Inc. Class A
29.34
10.84
58.59%
Clearway Energy Earnings Call Summary
Earnings Call Date:Apr 30, 2025
(Q1-2025)
| % Change Since: -0.58%|
Next Earnings Date:Aug 05, 2025
Earnings Call Sentiment Positive
The earnings call for Clearway Energy, Inc. highlighted strong first quarter results and a clear pathway towards achieving and potentially exceeding their 2025 and 2027 financial objectives. The company demonstrated successful execution of growth initiatives, including repowering projects, battery storage advancements, and strategic acquisitions. Despite some concerns about increased capital expenditure due to tariffs and timing shifts in CAFD, the overall sentiment remains highly positive.Q1-2025 Updates
Positive Updates
Strong First Quarter Results
Clearway delivered solid first quarter results across all segments, reaffirming their 2025 guidance range. The company achieved an adjusted EBITDA of $252 million and CAFD of $77 million, with strong wind resources in California and contributions from 2024 growth investments.
Accretive Growth Pathways
Clearway executed initiatives for future long-term growth, including fleet enhancements, sponsor-enabled dropdown investments, and asset-centered third-party M&A. They closed the Tuolumne Wind acquisition and signed a binding agreement to acquire an operational solar project in California.
Successful Repowering Projects
Progress continues on repowerings for Mt. Storm, Goat Mountain, and San Juan Mesa, which are expected to extend and enhance the value of Clearway's existing wind fleet. These projects contribute to a solid CAFD per share growth outlook beyond 2027.
Positive Battery Storage Developments
Naming of the Spindle project, a 199 MW battery storage project, with a long-term contract signed with an investment-grade utility. Clearway Group's late-stage pipeline includes over 13 GW of projects that could achieve COD through 2029.
Interest Rate Risk Mitigation
Clearway mitigated interest rate risk for refinancing corporate bonds maturing in 2028 by opportunistic hedging of base rates, solidifying their financial strategy.
Negative Updates
Increased Capital Expenditure Due to Tariffs
The currently enacted tariffs could have an impact on CapEx of about 30% for battery projects, which could affect the cost of constructing projects and the pricing to customers.
CAFD Timing Shifts
First quarter CAFD was higher than seasonally expected due to timing of debt service and distributions to non-controlling partners shifting into the second quarter.
Company Guidance
In the recent earnings call, Clearway Energy, Inc. reaffirmed its 2025 guidance range and expressed confidence in potentially achieving the top half or better, driven by typical annual resource and fleet performance strength, alongside contributions from newly committed investments. The company continues to pursue growth through fleet enhancements, sponsor-enabled dropdown investments, and asset-centered third-party M&A. Clearway Group's pipeline has been bolstered with over 9 gigawatts of late-stage projects compatible with CWEN, featuring safe harbor investments potentially reaching 13 gigawatts by 2029. The company also highlighted significant progress in repowering projects, such as Mt. Storm, Goat Mountain, and San Juan Mesa, and successfully closed the Tuolumne Wind acquisition. Financially, Clearway reported Q1 adjusted EBITDA of $252 million and CAFD of $77 million, reiterating its 2025 CAFD guidance range of $400 million to $440 million, aiming for the higher end. The firm maintains a strategic focus on disciplined growth, intending to utilize retained CAFD and debt capacity for funding, with modest equity issuances through an ATM facility to support accretive growth towards achieving the high end of its 2027 CAFD per share growth target.Clearway Energy Corporate Events
Executive/Board Changes
Clearway Energy Appoints TotalEnergies Executive to Board
Neutral
Dec 6, 2024
Clearway Energy, Inc. has appointed Marc-Antoine Pignon, Chief Executive Officer of TotalEnergies Renewables USA, to its board of directors following the resignation of Guillaume Hédiard. Pignon brings a wealth of experience from his roles at TotalEnergies in various international markets, particularly in renewables. He will not initially serve on any board committee or receive separate compensation for his new role.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.