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Market Cap

US$5.7b

Last Updated

2021/04/17 23:14 UTC

Data Sources

Company Financials +

Executive Summary

Clearway Energy, Inc., through its subsidiaries, engages in the renewable energy businesses in the United States. More Details


Snowflake Analysis

Good value unattractive dividend payer.


Similar Companies

Share Price & News

How has Clearway Energy's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: CWEN.A is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: CWEN.A's weekly volatility (5%) has been stable over the past year.


Market Performance


7 Day Return

-0.5%

CWEN.A

2.2%

US Renewable Energy

1.3%

US Market


1 Year Return

47.3%

CWEN.A

64.1%

US Renewable Energy

53.9%

US Market

Return vs Industry: CWEN.A underperformed the US Renewable Energy industry which returned 64.1% over the past year.

Return vs Market: CWEN.A underperformed the US Market which returned 53.9% over the past year.


Shareholder returns

CWEN.AIndustryMarket
7 Day-0.5%2.2%1.3%
30 Day8.1%8.5%5.3%
90 Day-15.6%-10.8%8.9%
1 Year54.4%47.3%69.3%64.1%56.6%53.9%
3 Year82.7%55.8%73.6%58.9%64.4%53.6%
5 Year145.4%84.5%179.6%130.6%120.4%95.7%

Long-Term Price Volatility Vs. Market

How volatile is Clearway Energy's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Clearway Energy undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: CWEN.A ($26.92) is trading below our estimate of fair value ($74.98)

Significantly Below Fair Value: CWEN.A is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: CWEN.A is good value based on its PE Ratio (123.8x) compared to the US Renewable Energy industry average (221.1x).

PE vs Market: CWEN.A is poor value based on its PE Ratio (123.8x) compared to the US market (22.5x).


Price to Earnings Growth Ratio

PEG Ratio: CWEN.A is poor value based on its PEG Ratio (28.5x)


Price to Book Ratio

PB vs Industry: CWEN.A is good value based on its PB Ratio (1.7x) compared to the US Renewable Energy industry average (2.7x).


Future Growth

How is Clearway Energy forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

4.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CWEN.A's forecast earnings growth (4.3% per year) is above the savings rate (2%).

Earnings vs Market: CWEN.A's earnings (4.3% per year) are forecast to grow slower than the US market (18% per year).

High Growth Earnings: CWEN.A's earnings are forecast to grow, but not significantly.

Revenue vs Market: CWEN.A's revenue (6.9% per year) is forecast to grow slower than the US market (9.3% per year).

High Growth Revenue: CWEN.A's revenue (6.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: CWEN.A's Return on Equity is forecast to be low in 3 years time (7.2%).


Past Performance

How has Clearway Energy performed over the past 5 years?

-28.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CWEN.A has a large one-off loss of $27.0M impacting its December 31 2020 financial results.

Growing Profit Margin: CWEN.A became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: CWEN.A's earnings have declined by 28.3% per year over the past 5 years.

Accelerating Growth: CWEN.A has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: CWEN.A has become profitable in the last year, making it difficult to compare its past year earnings growth to the Renewable Energy industry (-31.3%).


Return on Equity

High ROE: CWEN.A's Return on Equity (-2.3%) is considered low.


Financial Health

How is Clearway Energy's financial position?


Financial Position Analysis

Short Term Liabilities: CWEN.A's short term assets ($708.0M) exceed its short term liabilities ($634.0M).

Long Term Liabilities: CWEN.A's short term assets ($708.0M) do not cover its long term liabilities ($7.2B).


Debt to Equity History and Analysis

Debt Level: CWEN.A's debt to equity ratio (232%) is considered high.

Reducing Debt: CWEN.A's debt to equity ratio has increased from 207.5% to 232% over the past 5 years.

Debt Coverage: CWEN.A's debt is not well covered by operating cash flow (8.7%).

Interest Coverage: CWEN.A's interest payments on its debt are not well covered by EBIT (0.9x coverage).


Balance Sheet


Dividend

What is Clearway Energy current dividend yield, its reliability and sustainability?

4.73%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: CWEN.A's dividend (4.73%) is higher than the bottom 25% of dividend payers in the US market (1.24%).

High Dividend: CWEN.A's dividend (4.73%) is in the top 25% of dividend payers in the US market (3.46%)


Stability and Growth of Payments

Stable Dividend: CWEN.A has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: CWEN.A's dividend payments have increased, but the company has only paid a dividend for 7 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (483.2%), CWEN.A's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

4.4yrs

Average management tenure


CEO

Chris Sotos (49 yo)

4.92yrs

Tenure

US$3,248,568

Compensation

Mr. Christopher S. Sotos, also known as Chris, has been the Chief Executive Officer and President at Clearway Energy, Inc. (formerly known as NRG Yield, Inc.) and at NRG Energy, Inc. since May 6, 2016. He ...


CEO Compensation Analysis

Compensation vs Market: Chris's total compensation ($USD3.25M) is below average for companies of similar size in the US market ($USD6.51M).

Compensation vs Earnings: Chris's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: CWEN.A's management team is considered experienced (4.4 years average tenure).


Board Members

Experienced Board: CWEN.A's board of directors are not considered experienced ( 2.7 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: CWEN.A insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Clearway Energy, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Clearway Energy, Inc.
  • Ticker: CWEN.A
  • Exchange: NYSE
  • Founded: 2012
  • Industry: Independent Power Producers and Energy Traders
  • Sector: Utilities
  • Implied Market Cap: US$5.658b
  • Market Cap: US$3.278b
  • Shares outstanding: 201.71m
  • Website: https://www.clearwayenergy.com

Number of Employees


Location

  • Clearway Energy, Inc.
  • 300 Carnegie Center
  • Suite 300
  • Princeton
  • New Jersey
  • 8540
  • United States

Listings


Biography

Clearway Energy, Inc., through its subsidiaries, engages in the renewable energy businesses in the United States. As of March 2, 2021, it had approximately 4,200 net megawatts (MW) of installed wind and so...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/04/17 23:14
End of Day Share Price2021/04/16 00:00
Earnings2020/12/31
Annual Earnings2020/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.