Clearway Energy (CWEN.A) AI Stock Analysis

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Clearway Energy

(NYSE:CWEN.A)

67Neutral

Clearway Energy demonstrates strong growth potential and operational efficiency, supported by robust earnings and strategic investments. Despite leverage concerns and valuation questions, the company's cash flow strength and positive earnings sentiment position it well for future growth.

Clearway Energy (CWEN.A) vs. S&P 500 (SPY)

Market Cap

$5.47B

Dividend Yield6.57%

Average Volume (3M)279.97K

Price to Earnings (P/E)34.3

Beta (1Y)0.52

Revenue Growth1.15%

EPS Growth10.99%

CountryUS

Employees60

SectorUtilities

Sector Strength86

IndustryRenewable Utilities

Share Statistics

EPS (TTM)0.75

Shares Outstanding34,613,853

10 Day Avg. Volume282,016

30 Day Avg. Volume279,972

Financial Highlights & Ratios

PEG Ratio3.12

Price to Book (P/B)N/A

Price to Sales (P/S)2.40

Price to Cash Flow (P/CF)4.30

P/FCF Ratio5.80

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price TargetN/A

Price Target UpsideN/A

Rating ConsensusN/A

Number of Analyst Covering0

Clearway Energy Business Overview & Revenue Model

Company DescriptionClearway 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 MoneyClearway Energy makes money primarily through the sale of electricity generated from its renewable energy assets. The company enters into long-term power purchase agreements (PPAs) with utility companies, businesses, and government entities, ensuring a stable and predictable revenue stream. These contracts allow Clearway to sell electricity at predetermined prices, mitigating market volatility risks. Additionally, the company may receive income from tax incentives and credits related to renewable energy production. Clearway Energy's strategic partnerships with financial institutions and energy companies also play a crucial role in financing and expanding its portfolio of clean energy projects, contributing to its overall financial performance.

Clearway Energy Financial Statement Overview

Summary

Clearway Energy shows strong revenue growth and operational efficiency. However, the high debt-to-equity ratio and low net profit margins indicate leverage risks and challenges in profitability. Nonetheless, robust cash flow management supports its financial health.

Income Statement

Positive

Clearway Energy's revenue has shown consistent growth with a 4.3% increase from 2023 to 2024. The gross profit margin is high at 100%, suggesting effective cost management. However, net profit margins have been relatively low, despite improvements, reflecting ongoing challenges in converting revenue into significant profit. The EBIT and EBITDA margins are reasonably strong, indicating good operational efficiency.

Balance Sheet

Positive

The company has a high debt-to-equity ratio, indicative of significant leverage, which could pose risks if earnings do not improve. Return on Equity has improved due to increased net income, but there's room for further enhancement. The equity ratio shows a solid capital structure with sufficient equity backing, which is a positive sign.

Cash Flow

Positive

Clearway Energy demonstrates strong cash flow management, with operating cash flow significantly exceeding net income, indicating robust cash generative capability. Free cash flow growth is evident but fluctuates, highlighting potential volatility in capital expenditures. The free cash flow to net income ratio is healthy, suggesting good cash conversion.

Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
1.37B	1.31B	1.19B	1.29B	1.20B
	Gross Profit
870.00M	841.00M	755.00M	835.00M	833.00M
	EBIT
196.00M	263.00M	247.00M	267.00M	333.00M
	EBITDA
1.08B	1.03B	2.31B	958.00M	835.00M
	Net Income Common Stockholders
88.00M	79.00M	1.06B	-75.00M	-62.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
332.00M	575.00M	657.00M	179.00M	268.00M
	Total Assets
14.33B	14.70B	12.31B	12.81B	10.59B
	Total Debt
7.75B	8.66B	7.36B	8.27B	7.31B
	Net Debt
7.42B	8.13B	6.70B	8.09B	7.05B
	Total Liabilities
8.77B	9.71B	8.28B	9.51B	7.88B
	Stockholders Equity
5.56B	2.10B	2.23B	1.83B	1.82B
Cash Flow		Free Cash Flow
483.00M	408.00M	675.00M	550.00M	421.00M
	Operating Cash Flow
770.00M	702.00M	787.00M	701.00M	545.00M
	Investing Cash Flow
-725.00M	-523.00M	1.06B	-865.00M	-62.00M
	Financing Cash Flow
-363.00M	-124.00M	-1.51B	367.00M	-435.00M

Clearway Energy Technical Analysis

Technical Analysis Sentiment

Negative

Last Price25.61

Price Trends

50DMA

26.48

Negative

100DMA

25.58

Positive

200DMA

25.19

Positive

Market Momentum

MACD

-0.12

Positive

RSI

40.97

Neutral

STOCH

68.33

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CWEN.A, the sentiment is Negative. The current price of 25.61 is below the 20-day moving average (MA) of 27.29, below the 50-day MA of 26.48, and above the 200-day MA of 25.19, indicating a neutral trend. The MACD of -0.12 indicates Positive momentum. The RSI at 40.97 is Neutral, neither overbought nor oversold. The STOCH value of 68.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CWEN.A.

Clearway Energy Risk Analysis

Clearway Energy disclosed 49 risk factors in its most recent earnings report. Clearway Energy reported the most risks in the “Finance & Corporate” category.

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added 0 New Risks

Clearway Energy Peers Comparison

Overall Rating

UnderperformOutperform

Sector (62)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
EE	80 Outperform	$2.96B	20.60	6.62%	0.64%	-26.53%	13.67%
CWEN.A	67 Neutral	$5.47B	34.34	4.23%	6.57%	1.15%	10.99%
ORA	66 Neutral	$4.29B	34.77	5.22%	0.67%	6.06%	-2.21%
RNW	65 Neutral	$2.25B	89.74	2.00%	―	-1.77%	-41.65%
BEPC	63 Neutral	$3.88B	31.01	6.15%	5.29%	-8.26%	―
Sector *	62 Neutral	$8.45B	11.88	6.29%	4.45%	3.04%	-9.39%
SMR	45 Neutral	$3.87B	―	-38.37%	―	62.41%	-85.81%

* Utilities Sector Average

Performance Comparison

CWEN.A

Clearway Energy

25.61

4.97

24.08%

ORA

Ormat Techno

72.50

7.75

11.97%

BEPC

Brookfield Renewable

27.54

5.13

22.89%

SMR

NuScale Power

15.09

9.61

175.36%

RNW

ReNew Energy Global

6.20

0.39

6.71%

Excelerate Energy, Inc. Class A

25.84

9.34

56.61%

Clearway Energy Earnings Call Summary

Earnings Call Date: Feb 24, 2025 | % Change Since: 0.83% | Next Earnings Date: Apr 30, 2025

Earnings Call Sentiment Positive

Clearway Energy exhibited strong financial performance in 2024, exceeding its targets and setting a robust growth outlook through 2027. The company made significant growth investments and secured new contracts, particularly in the data center segment. However, challenges such as lower wind resources and high capital costs present risks. Overall, the highlights outweigh the lowlights, indicating a healthy growth trajectory.

Highlights

Exceeded 2024 Financial Objectives

Clearway Energy exceeded its financial and operational results for 2024, delivering full-year CAFD ahead of guidance at $425 million compared to the guidance of $395 million.

Commitment to Growth Investments

Clearway committed approximately $450 million of growth investments in 2024 and brought online over 1 gigawatt of renewable power generation and energy storage capacity.

New Growth Prospects for 2027

Clearway reaffirms its 2025 guidance range and is confident in meeting the midpoint or better through committed investments and strong fleet performance. They aim for the top half of their 2027 target range of $2.40 to $2.60 per share.

Significant New Contracts

New RA contracts at El Segundo and a PPA extension at Wildorado collectively increase CAFD per share outlook without deploying incremental capital.

Strong Position with Data Center Segment

Clearway is developing 5 gigawatts of projects to serve data center demand and is establishing multi-technology gigawatt-scale clean-energy complexes across five states.

Lowlights

Challenges in Wind Resource

Fourth quarter results were impacted by lower wind resources across the portfolio, offset partially by strong wind resource at Alta.

Potential Risks from Policy Changes

Concerns exist regarding the impact of new political administration and tariffs affecting the supply chain, though mitigated by planning and relationships.

Cost of Capital Remains High

Despite executing growth plans and maintaining a strong financial position, Clearway's cost of capital has not subsided, affecting financing options.

Company Guidance

In the fourth quarter earnings call for Clearway Energy, Inc., several key performance metrics and future guidance points were highlighted. For the fiscal year 2024, Clearway exceeded its financial objectives, reporting a full-year adjusted EBITDA of $1.146 billion and a CAFD (Cash Available for Distribution) of $425 million, surpassing their guidance of $395 million. The company achieved its dividend per share growth commitment and delivered its full-year CAFD ahead of guidance. For 2025, Clearway reaffirmed its guidance range of $400 million to $440 million in CAFD, with expectations to reach the midpoint or better. The company committed to approximately $450 million in growth investments and brought online over 1 gigawatt of renewable power generation and energy storage capacity. It also expanded its portfolio with the acquisition of Tuolumne, contributing an expected 12% five-year average annual CAFD yield. Looking ahead to 2027, Clearway is targeting a CAFD per share range of $2.40 to $2.60, aiming for the top half of this range. The company plans further investments in its existing fleet, such as the Honeycomb storage projects and the repowering of Mt Storm, supported by a PPA with a major technology company. Additionally, Clearway strengthened its growth outlook through new revenue contracting in its existing fleet and continued development of a pipeline of CWEN compatible projects, positioning itself for robust growth in the coming years.

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.