Clearway Energy (CWEN) AI Stock Analysis

• Market Cap: $6.07B
• Dividend Yield: 5.69%
• Average Volume (3M): 911.95K
• Price to Earnings (P/E): 47.1
• Beta (1Y): 0.43
• Revenue Growth: -0.27%
• EPS Growth: -16.25%
• Country: US
• Employees: 60
• Sector: Utilities
• Sector Strength: 78
• Industry: Renewable Utilities
• EPS (TTM): 0.28
• Shares Outstanding: 83,263,750
• 10 Day Avg. Volume: 1,071,631
• 30 Day Avg. Volume: 911,950
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 2.65
• Enterprise Value/Revenue: 11.22
• Enterprise Value/Gross Profit: 21.22
• Enterprise Value/Ebitda: 15.19
• 1Y Price Target: $37.11
• Price Target Upside: 24.82% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 9

• Rating: 63 Neutral
• Price Target: $32.00 ▲(7.64% Upside)

Clearway Energy's overall stock score is driven by a positive earnings call that highlights robust growth strategies and increased guidance. However, financial performance is hindered by declining profit margins and high leverage. Technical indicators suggest bearish momentum, and valuation metrics indicate the stock may be overvalued. The strong dividend yield provides some support to the valuation concerns.

Positive Factors

Financial Performance

Cash available for distribution was significantly higher than consensus estimates.

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

Uncertainty over potential revisions to the Inflation Reduction Act continues to be an overhang to correcting valuation.

Clearway Energy Business Overview & Revenue Model

Company Description

Clearway Energy, Inc. (CWEN) is a publicly traded energy infrastructure company that focuses on renewable energy and sustainable infrastructure solutions. The company operates primarily in the renewable energy sector, with significant investments in solar and wind power generation assets across the United States. Clearway Energy provides clean energy solutions through its portfolio of operational facilities, making it a key player in the transition to a low-carbon economy.

How the Company Makes Money

Clearway Energy generates revenue primarily through the sale of electricity produced by its renewable energy assets, which include wind and solar facilities. The company has long-term Power Purchase Agreements (PPAs) with various utilities and corporate customers, ensuring a steady stream of income. Additionally, Clearway benefits from renewable energy tax incentives and credits, which enhance its financial performance. The company may also engage in partnerships and joint ventures to expand its portfolio and operational capabilities, thereby increasing its revenue potential. Overall, the combination of stable contracts, government incentives, and a growing demand for clean energy drives Clearway Energy's earnings.

Clearway Energy Financial Statement Overview

Summary

Clearway Energy demonstrates strong revenue growth and effective cash flow management, with a solid gross profit margin. However, the high debt-to-equity ratio poses a risk, reflecting reliance on debt financing. Overall, the financial performance is positive but tempered by leverage concerns.

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.

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.

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.43B	1.37B	1.31B	1.19B	1.29B	1.20B
Gross Profit	757.00M	870.00M	841.00M	755.00M	835.00M	833.00M
EBITDA	1.06B	1.08B	1.03B	2.31B	958.00M	835.00M
Net Income	76.00M	88.00M	79.00M	1.06B	-75.00M	-62.00M
Balance Sheet
Total Assets	16.03B	14.33B	14.70B	12.31B	12.81B	10.59B
Cash, Cash Equivalents and Short-Term Investments	260.00M	332.00M	575.00M	657.00M	179.00M	268.00M
Total Debt	9.35B	7.75B	8.66B	7.36B	8.27B	7.31B
Total Liabilities	10.45B	8.77B	9.71B	8.28B	9.51B	7.88B
Stockholders Equity	1.85B	2.06B	2.10B	2.23B	1.83B	1.82B
Cash Flow
Free Cash Flow	562.00M	483.00M	408.00M	675.00M	550.00M	421.00M
Operating Cash Flow	779.00M	770.00M	702.00M	787.00M	701.00M	545.00M
Investing Cash Flow	-476.00M	-725.00M	-523.00M	1.06B	-865.00M	-62.00M
Financing Cash Flow	-87.00M	-363.00M	-124.00M	-1.51B	367.00M	-435.00M

Clearway Energy Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 29.73
• 50DMA: Negative
• 100DMA: Negative
• 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 29.73 is below the 20-day moving average (MA) of 30.64, below the 50-day MA of 31.50, and above the 200-day MA of 28.42, indicating a neutral trend. The MACD of -0.49 indicates Positive momentum. The RSI at 44.00 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
ORA	71 Outperform	$5.63B	43.00	5.40%	0.52%	2.23%	-0.82%
RNW	67 Neutral	$2.81B	25.60	8.27%	―	33.19%	486.74%
Sector *	67 Neutral	$17.69B	18.14	5.29%	3.53%	7.33%	12.21%
EE	67 Neutral	$2.69B	22.24	6.19%	1.10%	9.86%	22.04%
CWEN	63 Neutral	$6.07B	47.10	3.80%	5.69%	-0.27%	-16.25%
BEPC	51 Neutral	$6.03B	32.67	-63.28%	4.35%	12.46%	-388.89%
SMR	42 Neutral	$9.30B	―	-29.93%	―	305.08%	-17.22%

Clearway Energy Corporate Events

Clearway Energy Launches $100 Million ATM Equity Offering

On August 6, 2025, Clearway Energy, Inc. announced the initiation of a $100 million At-The-Market (ATM) equity offering program, entering into an Equity Distribution Agreement with several major financial institutions. The company plans to use the proceeds from this program for general corporate purposes, including debt repayment, working capital, capital expenditures, acquisitions, and investments, potentially impacting its financial flexibility and market positioning.

Clearway Energy Appoints Paige Goodwin to Board

On June 30, 2025, Clearway Energy, Inc. announced the resignation of Emmanuel Barrois from its board of directors, effective July 1, 2025. His departure was not due to any disagreement with the company. Subsequently, on July 7, 2025, the board appointed Paige Goodwin, who is currently serving as VP – U.S. Renewables Portfolio for TotalEnergies, to replace him. Ms. Goodwin brings extensive experience in business and legal leadership roles, and her appointment is expected to strengthen the company’s governance and risk management capabilities.