Clearway Energy (CWEN) AI Stock Analysis

• Market Cap: $7.73B
• Dividend Yield: 5.29%
• Average Volume (3M): 948.13K
• Price to Earnings (P/E): 27.0
• Beta (1Y): 0.23
• 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: 1,035,286
• 30 Day Avg. Volume: 948,128
• 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: 12.00
• Enterprise Value/Gross Profit: 23.84
• Enterprise Value/Ebitda: 15.80
• 1Y Price Target: $41.00
• Price Target Upside: 7.67% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 8
• EPS Forecast (FY): 1.12
• Revenue Forecast (FY): $1.68B

• Rating: 69 Neutral
• Price Target: $44.00 ▲(15.55% Upside)
• Action: Reiterated Date: 02/24/26
• Date: Action: Reiterated 02/24/26

The score is driven by strong technical momentum and a constructive earnings-call outlook (reaffirmed guidance, above-guidance 2025 CAFD, and visible pipeline), supported by a reasonable P/E and attractive dividend yield. The primary offset is financial risk from a still-leveraged capital structure and earnings/cash-flow volatility that reduces predictability for a yield-focused profile.

Positive Factors

Cash Generation

Consistent operating cash flow (~$688M) and positive free cash flow (~$369M) in 2025 indicate durable internal funding capacity. Reliable cash generation supports dividends, funds repowerings and organic growth, and reduces reliance on dilutive financing when capital allocation remains disciplined.

Commercialized Pipeline & Contracted PPAs

A sizable, well‑commercialized pipeline with ~1.3 GW added, ~2 GW of new PPAs with hyperscalers, and >900 MW of repowerings provides multi‑year visibility to cash flows. Long‑term contracted volumes and repowering yields (>11%) underpin sustainable CAFD growth and lower execution risk versus greenfield exposure.

Improved Funding Flexibility

Successful $600M senior note issuance and $100M equity raise broaden funding sources and extend maturities, enhancing capital flexibility. This strengthens the company’s ability to finance accretive projects, support targeted deployment plans, and pursue sponsor/drop‑down opportunities without immediate strain on liquidity.

Negative Factors

High Leverage

An elevated absolute debt burden (~$9.4B) and a still‑meaningful leverage profile constrain financial flexibility in an asset‑heavy, rate‑sensitive utility model. High leverage increases refinancing and interest rate exposure, which can squeeze CAFD, limit opportunistic investment capacity, and pressure future payout policies.

Operational & Cash-Flow Volatility

Renewable output and timing effects create material variability in earnings and CAFD across periods. Resource seasonality, solar timing and recontracting cadence reduce predictability of distributable cash, complicating long‑term payout planning and making achievement of multi‑year CAFD targets more execution‑sensitive.

Internal Control Weakness

A disclosed material weakness in HLBV allocation controls signals governance and reporting vulnerabilities. Until remediation and testing are complete, there is heightened risk of misstatements or restatements, which can impair stakeholder confidence and complicate capital markets access or pricing for future financings.

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 and cash generation are stable-to-improving (revenue growth through 2025, higher net margin in 2025, and positive free cash flow), but the balance sheet remains a meaningful constraint given high absolute debt and a leveraged, rate-sensitive capital structure. Earnings/cash metrics also show some year-to-year and quarter-to-quarter volatility, which lowers predictability despite improved 2025 performance.

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: 38.08
• 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 38.08 is below the 20-day moving average (MA) of 38.75, above the 50-day MA of 35.92, and above the 200-day MA of 32.12, indicating a neutral trend. The MACD of 0.81 indicates Positive momentum. The RSI at 52.36 is Neutral, neither overbought nor oversold. The STOCH value of 31.54 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
CWEN	69 Neutral	$7.73B	26.98	8.48%	5.29%	2.54%	124.89%
EE	67 Neutral	$4.79B	31.45	6.70%	0.99%	45.09%	50.54%
Sector *	66 Neutral	$17.65B	18.10	5.60%	3.62%	6.62%	11.55%
ORA	56 Neutral	$6.52B	51.36	4.99%	0.42%	6.07%	12.07%
BEPC	55 Neutral	$7.75B	-2.38	-38.17%	3.84%	5.93%	-39.88%
RNW	55 Neutral	$2.01B	13.61	11.20%	―	42.09%	219.69%
SMR	47 Neutral	$3.94B	-5.79	-39.81%	―	765.67%	-202.81%

Clearway Energy Corporate Events

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.

Clearway Energy Acquires Interests in Battery Storage

On November 24, 2025, Clearway Energy‘s subsidiary, RS2-Spindle Purchaser LLC, entered into a Membership Interest Purchase Agreement to acquire interests in RS2-Spindle TargetCo LLC. This acquisition will make Clearway the indirect owner of Spindle Battery LLC and Golden Fields Solar VI, LLC, which are developing significant battery energy storage systems in Colorado and California, respectively. The transaction, valued at approximately $92.9 million, is expected to close in the second half of 2026, subject to customary conditions and third-party actions.

The most recent analyst rating on (CWEN) stock is a Buy with a $40.00 price target. To see the full list of analyst forecasts on Clearway Energy stock, see the CWEN Stock Forecast page.