Clearway Energy (CWEN) AI Stock Analysis

• Market Cap: $5.73B
• Dividend Yield: 5.99%
• Average Volume (3M): 969.98K
• Price to Earnings (P/E): 37.0
• Beta (1Y): 0.70
• Revenue Growth: 1.15%
• EPS Growth: 10.99%
• Country: US
• Employees: 61
• Sector: Utilities
• Sector Strength: 79
• Industry: Renewable Energy Producers
• EPS (TTM): 0.75
• Shares Outstanding: 82,833,230
• 10 Day Avg. Volume: 1,275,175
• 30 Day Avg. Volume: 969,978
• PEG Ratio: 3.37
• Price to Book (P/B): N/A
• Price to Sales (P/S): 2.38
• Price to Cash Flow (P/CF): 4.20
• P/FCF Ratio: 5.70
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $35.00
• Price Target Upside: 22.25% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 7

Clearway Energy receives a score of 73, reflecting strong financial performance and positive earnings call outcomes. The company shows robust revenue growth and efficient cash flow management but faces challenges with high leverage and modest net profitability. Technical analysis indicates positive short-term trends, while valuation metrics suggest potential overvaluation. Overall, strong performance in renewable energy projects and strategic investments position the company for future growth, despite some regulatory and market challenges.

Positive Factors

Cash Flow

Cash available for distribution was significantly higher than consensus estimates.

Strategic Shift

CWEN may announce a significant strategic shift on the next call and could redefine how the YieldCo approaches its growth and capital allocation strategy.

Negative Factors

Financial Performance

Adjusted EBITDA was below both consensus and Morgan Stanley estimates.

Clearway Energy Business Overview & Revenue Model

Company Description

Clearway Energy, Inc. (CWEN) is one of the leading renewable energy companies in the United States, focusing on the development, ownership, and operation of utility-scale renewable energy projects. The company operates in the renewable energy sector, particularly in wind and solar energy, providing clean energy solutions to utilities, businesses, and other organizations. Clearway Energy’s portfolio includes wind farms, solar parks, and natural gas-fired energy facilities across various states, contributing to a sustainable energy future.

How the Company Makes Money

Clearway 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 utilities, corporations, and other entities, ensuring a stable and predictable revenue stream. These PPAs typically have fixed or escalating pricing terms, which provide Clearway Energy with consistent cash flow. Additionally, Clearway Energy benefits from federal and state incentives for renewable energy projects, such as tax credits and subsidies, which enhance its financial performance. The company also engages in strategic partnerships and joint ventures to expand its asset base, further driving revenue growth.

Clearway Energy Financial Statement Overview

Summary

Clearway Energy shows strong revenue growth and efficient cash flow management, positioning itself well in the Renewable Energy sector. However, high leverage and modest net profitability are concerns that could impact financial stability in the long term. The company's financials reflect a robust operating model, but attention to debt levels and profitability enhancement will be crucial for sustained performance.

Income Statement

Clearway Energy's revenue has shown a positive growth trend over recent years, with a notable increase from $1.19 billion in 2022 to $1.37 billion in 2024. The gross profit margin remains robust, reflecting strong operational efficiency. However, the net profit margin is relatively low, indicating limited profitability after accounting for all expenses. The EBIT and EBITDA margins are stable, supporting consistent operational performance. Overall, the income statement reflects a growing revenue base with stable operational margins but constrained bottom-line profitability.

Balance Sheet

The balance sheet shows a strong equity base, with stockholders' equity increasing significantly from 2022 to 2024. However, the company has a high debt-to-equity ratio, suggesting significant leverage which could pose risks in a rising interest rate environment. The equity ratio has improved, indicating a stronger financial position. While the return on equity is positive, it is not particularly high, suggesting moderate efficiency in utilizing equity to generate profits.

Cash Flow

Clearway Energy's cash flow statement demonstrates robust operating cash flows, which have increased steadily over the years, reflecting strong cash generation from core operations. The free cash flow has also grown, indicating effective management of capital expenditures. The operating cash flow to net income ratio is strong, highlighting efficient cash conversion. Overall, the cash flow position is solid, with increasing free cash flow supporting ongoing operations and potential growth opportunities.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
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: Positive
• Last Price: 28.63
• 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 28.63 is above the 20-day moving average (MA) of 26.73, above the 50-day MA of 25.97, and above the 200-day MA of 26.40, indicating a bullish trend. The MACD of 0.54 indicates Negative momentum. The RSI at 68.79 is Neutral, neither overbought nor oversold. The STOCH value of 75.25 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.A	74 Outperform	$5.73B	34.75	4.23%	6.38%	1.15%	10.99%
CWEN	73 Outperform	$5.73B	37.03	4.23%	5.99%	1.15%	10.99%
AEP	73 Outperform	$57.22B	18.74	11.37%	3.46%	2.76%	31.53%
NEE	73 Outperform	$156.66B	21.59	14.24%	2.90%	26.91%	-6.43%
D	71 Outperform	$48.17B	22.65	7.91%	4.83%	-10.79%	18.04%
Sector *	65 Neutral	$12.05B	15.92	6.71%	4.32%	8.04%	3.76%
PEG	56 Neutral	$39.43B	22.32	11.22%	3.03%	6.13%	-31.01%

Clearway Energy Corporate Events

Clearway Energy Appoints TotalEnergies Executive to Board

Clearway Energy, Inc. has appointed Marc-Antoine Pignon, Chief Executive Officer of TotalEnergies Renewables USA, to its board of directors following the resignation of Guillaume Hédiard. Pignon brings a wealth of experience from his roles at TotalEnergies in various international markets, particularly in renewables. He will not initially serve on any board committee or receive separate compensation for his new role.