Clearway Energy (CWEN) AI Stock Analysis

• Market Cap: $6.46B
• Dividend Yield: 5.5%
• Average Volume (3M): 867.23K
• Price to Earnings (P/E): 40.3
• Beta (1Y): 0.50
• Revenue Growth: -1.34%
• EPS Growth: 21.62%
• Country: US
• Employees: 60
• Sector: Utilities
• Sector Strength: 70
• Industry: Renewable Utilities
• EPS (TTM): 0.03
• Shares Outstanding: 83,257,150
• 10 Day Avg. Volume: 899,758
• 30 Day Avg. Volume: 867,231
• PEG Ratio: >-0.01
• Price to Book (P/B): 1.67
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 5.52
• Enterprise Value/Market Cap: 1.62
• Enterprise Value/Revenue: 1.86
• Enterprise Value/Gross Profit: 17.62
• Enterprise Value/Ebitda: 2.69
• 1Y Price Target: $34.80
• Price Target Upside: 9.19% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5

• Rating: 76 Outperform
• Price Target: $37.00 ▲(16.10%Upside)

Clearway Energy's strong financial performance and positive technical indicators contribute significantly to its score. The positive earnings call sentiment further boosts confidence. However, high leverage and valuation concerns slightly offset these strengths. Continued focus on debt management and maintaining operational efficiency will be crucial.

Positive Factors

Business Strategy

Management has significantly de-risked its business model by adapting to address structural risks.

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 Performance

Adjusted EBITDA was below both consensus and Morgan Stanley estimates.

Investment Thesis

There was a modest revision lower to the investment thesis due to financial results versus consensus.

Legislative 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. 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 produced by its portfolio of renewable and conventional energy assets. The company earns money by entering into long-term power purchase agreements (PPAs) with utilities, commercial and industrial customers, and other energy providers. These agreements secure a predictable revenue stream by locking in energy prices for extended periods, often ranging from 10 to 25 years. Additionally, Clearway Energy benefits from federal and state incentives for renewable energy production, such as tax credits and renewable energy certificates (RECs), which enhance the financial returns of its projects. The company's strategic partnerships with various stakeholders, including energy developers and financial institutions, further contribute to its earnings by facilitating the development and acquisition of new assets, thereby expanding its capacity and market reach.

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.

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	1.41B	1.37B	1.31B	1.19B	1.29B	1.20B
Gross Profit	592.00M	870.00M	841.00M	755.00M	835.00M	833.00M
EBITDA	1.05B	1.13B	1.03B	2.31B	958.00M	835.00M
Net Income	94.00M	88.00M	79.00M	1.06B	-75.00M	-62.00M
Balance Sheet
Total Assets	14.65B	14.33B	14.70B	12.31B	12.81B	10.59B
Cash, Cash Equivalents and Short-Term Investments	297.00M	332.00M	575.00M	657.00M	179.00M	268.00M
Total Debt	8.22B	7.75B	8.66B	7.36B	8.27B	7.31B
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

• Technical Analysis Sentiment: Positive
• Last Price: 31.87
• 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 Positive. The current price of 31.87 is below the 20-day moving average (MA) of 31.96, above the 50-day MA of 30.50, and above the 200-day MA of 27.79, indicating a neutral trend. The MACD of 0.45 indicates Positive momentum. The RSI at 53.27 is Neutral, neither overbought nor oversold. The STOCH value of 64.24 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CWEN.

Clearway Energy Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CWEN	76 Outperform	$6.46B	40.29	4.70%	5.50%	-1.34%	21.62%
RNW	65 Neutral	$2.71B	50.00	4.18%	―	-1.77%	-41.65%
ORA	65 Neutral	$5.37B	42.89	5.21%	0.54%	1.95%	-6.57%
Sector *	62 Neutral	£5.95B	6.66	6.40%	5.69%	-1.30%	-60.09%
BEPC	60 Neutral	$6.04B	32.67	-4.65%	4.47%	1.01%	-110.78%
EE	60 Neutral	$3.11B	23.21	7.58%	0.88%	-15.82%	36.15%
SMR	42 Neutral	$10.24B	―	-32.34%	―	62.41%	-85.81%

Clearway Energy Corporate Events

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.

The most recent analyst rating on (CWEN) stock is a Hold with a $30.00 price target. To see the full list of analyst forecasts on Clearway Energy stock, see the CWEN Stock Forecast page.