Clearway Energy (CWEN) AI Stock Analysis

• Market Cap: $6.68B
• Dividend Yield: 5.29%
• Average Volume (3M): 910.48K
• Price to Earnings (P/E): 14.2
• Beta (1Y): 0.22
• 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: 924,140
• 30 Day Avg. Volume: 910,476
• 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: 2.34
• Enterprise Value/Revenue: 11.38
• Enterprise Value/Gross Profit: 17.97
• Enterprise Value/Ebitda: 14.85
• 1Y Price Target: $39.29
• Price Target Upside: 18.56% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 7
• EPS Forecast (FY): 0.77
• Revenue Forecast (FY): $1.63B

• Rating: 63 Neutral
• Price Target: $35.00 ▲(5.61% Upside)

CWEN scores highest on valuation and forward outlook (attractive yield and moderate P/E; tightened CAFD guidance and clear long-term CAFD/share growth targets). The overall score is held back by mixed financial performance (revenue and free-cash-flow decline, low ROE) and a neutral-to-weak technical picture (negative MACD, below the 50-day average), with additional pressure from the reported internal-control material weakness.

Positive Factors

High operational margins

Sustained high gross and EBITDA margins indicate durable operational efficiency across Clearway's wind, solar and thermal assets. Strong margins support internal cash generation, fund reinvestment and acquisitions, and provide resilience to variability in power prices over multiple years.

Improving leverage profile

A materially lower debt-to-equity ratio enhances financial flexibility and lowers refinancing risk for long‑dated projects. Improved leverage supports the company's ability to finance growth, pursue acquisitions and repowering while preserving capacity to withstand interest and capital market cycles.

Sizeable development pipeline and explicit CAFD targets

A multi‑GW late‑stage pipeline combined with a clear 2030 CAFD/share target provides a tangible growth runway. Explicit medium‑term CAFD goals, backed by acquisitions and repowering, create visibility into future cash available for distribution and strategic capital allocation.

Negative Factors

Weak revenue and free cash flow trends

Declining revenue and sharply negative FCF growth constrain the company’s ability to self‑fund development and dividends over the medium term. Low ROE signals limited profit generation on equity, increasing reliance on external financing for sustaining growth initiatives.

Material internal control weakness

A reported material weakness in HLBV calculations raises governance and reporting risk, potentially undermining investor confidence and increasing remediation costs. Prolonged control issues could delay financings, tax equity allocations and deal closings that underpin long‑term growth.

Dependence on equity issuance and delayed PPA growth

Reliance on modest equity issuance increases dilution risk and cost of capital for multi‑year buildouts. Limited near‑term PPA extensions push meaningful contracted revenue growth beyond 2030, raising execution and market exposure risks for the company’s intermediate cash flow profile.

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

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	871.00M	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: 33.14
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 33.14 is above the 20-day moving average (MA) of 33.14, below the 50-day MA of 33.94, and above the 200-day MA of 30.62, indicating a bullish trend. The MACD of 0.02 indicates Negative momentum. The RSI at 64.41 is Neutral, neither overbought nor oversold. The STOCH value of 63.00 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
EE	74 Outperform	$3.69B	28.55	6.96%	0.99%	45.09%	50.54%
ORA	71 Outperform	$7.28B	54.70	5.45%	0.42%	6.07%	12.07%
Sector *	66 Neutral	$17.65B	18.10	5.60%	3.62%	6.62%	11.55%
CWEN	63 Neutral	$6.68B	14.17	13.20%	5.29%	2.54%	124.89%
RNW	61 Neutral	$1.97B	18.89	7.64%	―	42.09%	219.69%
SMR	52 Neutral	$6.00B	-6.61	-76.85%	―	765.67%	-202.81%
BEPC	51 Neutral	$6.96B	-5.80	-38.17%	3.84%	5.93%	-39.88%

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.