Clearway Energy (CWEN) AI Stock Analysis

• Market Cap: $7.26B
• Dividend Yield: 5.35%
• Average Volume (3M): 1.24M
• Price to Earnings (P/E): 15.4
• Beta (1Y): 0.26
• Revenue Growth: 2.54%
• EPS Growth: 124.89%
• Country: US
• Employees: 60
• Sector: Utilities
• Sector Strength: 65
• Industry: Renewable Utilities
• EPS (TTM): 2.00
• Shares Outstanding: 84,844,930
• 10 Day Avg. Volume: 1,435,096
• 30 Day Avg. Volume: 1,238,459
• PEG Ratio: 3.39
• Price to Book (P/B): 1.49
• Price to Sales (P/S): 2.24
• P/FCF Ratio: 6.35
• Enterprise Value/Market Cap: 2.16
• Enterprise Value/Revenue: 11.35
• Enterprise Value/Gross Profit: 22.42
• Enterprise Value/Ebitda: 14.89
• 1Y Price Target: $37.29
• Price Target Upside: 3.61% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 7
• EPS Forecast (FY): 0.43
• Revenue Forecast (FY): $1.42B

• Rating: 70 Neutral
• Price Target: $38.00 ▲(5.58% Upside)

Clearway Energy's overall stock score reflects a combination of strong technical momentum and positive earnings call insights, tempered by mixed financial performance and valuation concerns. The company's strategic growth initiatives and robust dividend yield are significant positives, but challenges in revenue growth and cash flow generation need to be addressed.

Positive Factors

Strong Profitability Margins

High gross profit margins indicate efficient cost management, which supports sustainable profitability and competitive positioning in the renewable energy sector.

2030 Growth Targets

Clearway's long-term growth targets reflect strategic planning and potential for sustained financial performance, driven by acquisitions and project expansions.

Development Pipeline Expansion

A robust development pipeline positions Clearway for future growth, enhancing its market position and ability to meet increasing demand for renewable energy.

Negative Factors

Declining Revenue Growth

Negative revenue growth indicates challenges in expanding sales, which could impact future earnings and necessitates strategic adjustments to reverse the trend.

Free Cash Flow Decline

A decline in free cash flow limits the company's ability to reinvest in growth opportunities and could strain financial flexibility over the long term.

Equity Issuance for Growth

Reliance on equity issuance may dilute existing shareholders, which could impact shareholder value if not managed effectively alongside growth initiatives.

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 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 a mixed financial performance with strong profitability margins and improved leverage management. However, challenges include declining revenue growth and free cash flow, which need addressing to sustain financial health.

Income Statement

Clearway Energy's income statement shows a mixed performance. The TTM (Trailing-Twelve-Months) gross profit margin is strong at 50.5%, indicating efficient cost management. However, the net profit margin has decreased to 20.1% from the previous year's 6.4%, suggesting improved profitability. Revenue growth is negative at -3.98%, indicating a decline in sales, which is a concern. The EBIT and EBITDA margins are healthy at 15.6% and 73.1%, respectively, reflecting solid operational efficiency.

Balance Sheet

The balance sheet presents a stable yet leveraged financial position. The debt-to-equity ratio has improved to 1.61 from a high of 4.51 in previous years, indicating better leverage management. However, the return on equity has decreased to 2.0%, showing less effective use of equity to generate profits. The equity ratio stands at 35.6%, suggesting a balanced asset financing structure.

Cash Flow

Cash flow analysis reveals some challenges. The free cash flow growth rate is negative at -21.7%, indicating a decline in available cash for reinvestment. The operating cash flow to net income ratio is stable at 1.02, showing adequate cash generation relative to net income. The free cash flow to net income ratio is 62.6%, suggesting a reasonable conversion of net income into free cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.38B	1.37B	1.31B	1.19B	1.29B	1.20B
Gross Profit	698.00M	870.00M	841.00M	755.00M	835.00M	833.00M
EBITDA	1.05B	1.08B	1.03B	2.20B	904.00M	879.00M
Net Income	276.00M	88.00M	79.00M	582.00M	51.00M	25.00M
Balance Sheet
Total Assets	16.07B	14.33B	14.70B	12.31B	12.81B	10.59B
Cash, Cash Equivalents and Short-Term Investments	251.00M	332.00M	535.00M	657.00M	179.00M	268.00M
Total Debt	9.22B	7.75B	8.66B	7.36B	8.27B	7.31B
Total Liabilities	10.28B	8.77B	9.71B	8.28B	9.51B	7.88B
Stockholders Equity	5.71B	2.06B	2.10B	2.23B	1.83B	1.82B
Cash Flow
Free Cash Flow	440.00M	483.00M	408.00M	675.00M	550.00M	421.00M
Operating Cash Flow	703.00M	770.00M	702.00M	787.00M	701.00M	545.00M
Investing Cash Flow	-790.00M	-725.00M	-523.00M	1.13B	88.00M	-62.00M
Financing Cash Flow	54.00M	-363.00M	-124.00M	-1.57B	-600.00M	-435.00M

Clearway Energy Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 35.99
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

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 35.99 is above the 20-day moving average (MA) of 33.18, above the 50-day MA of 31.08, and above the 200-day MA of 29.50, indicating a bullish trend. The MACD of 1.34 indicates Negative momentum. The RSI at 77.66 is Negative, neither overbought nor oversold. The STOCH value of 94.77 is Negative, 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
EE	74 Outperform	$3.14B	24.26	6.96%	1.00%	45.09%	50.54%
ORA	71 Outperform	$6.91B	52.02	5.45%	0.44%	6.07%	12.07%
CWEN	70 Neutral	$7.26B	15.39	13.20%	5.35%	2.54%	124.89%
Sector *	66 Neutral	$17.65B	18.10	5.60%	3.62%	6.62%	11.55%
RNW	61 Neutral	$2.71B	26.10	7.64%	―	42.09%	219.69%
BEPC	51 Neutral	$7.59B	―	-38.17%	3.32%	5.93%	-39.88%
SMR	42 Neutral	$6.70B	―	-76.85%	―	765.67%	-202.81%

Clearway Energy Corporate Events

Clearway Energy’s Earnings Call Highlights Growth and Strategy

Clearway Energy’s recent earnings call painted a picture of robust performance and promising growth prospects. The company expressed optimism with strategic expansions and clear financial targets, though it acknowledged some challenges, particularly related to equity issuance and long-term PPA extensions.

Clearway Energy Reports Strong Q3 2025 Results

Clearway Energy, Inc. is a leading U.S. company in the clean energy sector, owning a diverse portfolio of renewable energy generation assets, including wind, solar, and energy storage facilities, aimed at providing stable and growing dividend income to its investors.

Clearway Energy Subsidiary Acquires Solar Projects for $225.8M

On October 3, 2025, Clearway Energy‘s subsidiary, Cardinal Purchaser LLC, entered into agreements to acquire solar energy projects from Deriva Energy, LLC and others for approximately $225.8 million. The transaction includes acquiring interests in companies managing solar projects generating 386 MWac. Additionally, Clearway’s JV Purchaser and Fengate Purchasers agreed to acquire 50% stakes in solar projects generating 227 MWac for $79.5 million each, with the transactions expected to close in the first half of 2026.

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’s Optimistic Earnings Call Highlights Growth

Clearway Energy’s recent earnings call revealed a positive outlook for the company’s growth and future prospects. The sentiment during the call was notably optimistic, with significant progress highlighted in CAFD guidance updates, increased target ranges, and a robust battery storage pipeline. While challenges with wind resources and operational availability were acknowledged, the overall tone was upbeat, reflecting confidence in the company’s strategic direction.

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.

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.

Clearway Energy Reports Strong Q2 2025 Results

Clearway Energy, Inc. is a prominent player in the clean energy sector, owning and operating a diverse portfolio of renewable energy generation assets across the United States. The company is committed to leading the transition to a clean energy future, with a focus on wind, solar, and energy storage solutions.