NYSE:CWEN.A

Stock Analysis Report

Executive Summary

Clearway Energy, Inc., through its subsidiaries, acquires, owns, and operates contracted renewable energy and conventional generation, and thermal infrastructure assets in the United States.

Rewards

Trading at 67.8% below its fair value

Earnings are forecast to grow 73.28% per year

Risk Analysis

Interest payments are not well covered by earnings

Dividend of 3.9% is not well covered by earnings

Shareholders have been diluted in the past year



Snowflake Analysis

Reasonable growth potential and fair value.


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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

8.5%

CWEN.A

3.2%

US Renewable Energy

2.0%

US Market


1 Year Return

38.0%

CWEN.A

23.3%

US Renewable Energy

23.5%

US Market

Return vs Industry: CWEN.A exceeded the US Renewable Energy industry which returned 22.4% over the past year.

Return vs Market: CWEN.A exceeded the US Market which returned 24.7% over the past year.


Shareholder returns

CWEN.AIndustryMarket
7 Day8.5%3.2%2.0%
30 Day10.6%3.7%4.3%
90 Day9.6%4.8%12.2%
1 Year45.1%38.0%27.4%23.3%26.1%23.5%
3 Year52.8%27.4%61.6%44.7%53.1%43.2%
5 Year2.3%-23.4%37.7%5.6%75.5%56.1%

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 ($19.69) is trading below our estimate of fair value ($61.18)

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 unprofitable, so we can't compare its PE Ratio to the Renewable Energy industry average.

PE vs Market: CWEN.A is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate CWEN.A's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: CWEN.A is good value based on its PB Ratio (1.2x) compared to the US Renewable Energy industry average (1.7x).


Next Steps

Future Growth

How is Clearway Energy forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

78.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CWEN.A is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.7%).

Earnings vs Market: CWEN.A is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: CWEN.A's is expected to become profitable in the next 3 years.

Revenue vs Market: CWEN.A's revenue (11% per year) is forecast to grow faster than the US market (7.5% per year).

High Growth Revenue: CWEN.A's revenue (11% 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 (12.7%).


Next Steps

Past Performance

How has Clearway Energy performed over the past 5 years?

-24.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CWEN.A is currently unprofitable.

Growing Profit Margin: CWEN.A is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: CWEN.A is unprofitable, and losses have increased over the past 5 years at a rate of -24.2% per year.

Accelerating Growth: Unable to compare CWEN.A's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: CWEN.A is unprofitable, making it difficult to compare its past year earnings growth to the Renewable Energy industry (-28.4%).


Return on Equity

High ROE: CWEN.A has a negative Return on Equity (-6.79%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Clearway Energy's financial position?


Financial Position Analysis

Short Term Liabilities: CWEN.A's short term assets ($619.0M) do not cover its short term liabilities ($2.2B).

Long Term Liabilities: CWEN.A's short term assets ($619.0M) do not cover its long term liabilities ($4.5B).


Debt to Equity History and Analysis

Debt Level: CWEN.A's debt to equity ratio (303.5%) is considered high.

Reducing Debt: CWEN.A's debt to equity ratio has increased from 255.1% to 303.5% over the past 5 years.

Debt Coverage: CWEN.A's debt is not well covered by operating cash flow (7.7%).

Interest Coverage: CWEN.A is unprofitable, therefore interest payments are not well covered by earnings.


Balance Sheet

Inventory Level: CWEN.A has a high level of physical assets or inventory.

Debt Coverage by Assets: CWEN.A's debt is not covered by short term assets (assets are 0.1x debt).


Next Steps

Dividend

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

3.86%

Current Dividend Yield


Dividend Yield vs Market

company3.9%marketbottom25%1.4%markettop25%3.7%industryaverage3.1%forecastin3Years4.5%

Current dividend yield vs market & industry

Notable Dividend: CWEN.A's dividend (4.06%) is higher than the bottom 25% of dividend payers in the US market (1.4%).

High Dividend: CWEN.A's dividend (4.06%) is in the top 25% of dividend payers in the US market (3.66%)


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 6 years.


Current Payout to Shareholders

Dividend Coverage: CWEN.A is paying a dividend but the company is unprofitable.


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

What is the CEO of Clearway Energy's salary, the management and board of directors tenure and is there insider trading?

3.4yrs

Average management tenure


CEO

Chris Sotos (48yo)

3.7yrs

Tenure

US$2,398,180

Compensation

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


CEO Compensation Analysis

Compensation vs Market: Chris's total compensation ($USD2.40M) is below average for companies of similar size in the US market ($USD4.99M).

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


Management Age and Tenure

3.4yrs

Average Tenure

46.5yo

Average Age

Experienced Management: CWEN.A's management team is considered experienced (3.4 years average tenure).


Board Age and Tenure

1.4yrs

Average Tenure

62yo

Average Age

Experienced Board: CWEN.A's board of directors are not considered experienced ( 1.4 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyUS$39,93308 Mar 19
Chad Plotkin
EntityIndividual
Role
Chief Financial Officer
Senior VP & CFO
Shares2,700
Max PriceUS$14.79
BuyUS$94,20708 Mar 19
Christopher Sotos
EntityIndividual
Role
Chief Executive Officer
President
Shares6,500
Max PriceUS$14.49

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 6.4%.


Management Team

  • Chris Sotos (48yo)

    President

    • Tenure: 3.7yrs
    • Compensation: US$2.40m
  • Chad Plotkin (44yo)

    Senior VP & CFO

    • Tenure: 3.2yrs
    • Compensation: US$942.00k
  • Kevin Cole

    Senior Vice President of Investor Relations

    • Tenure: 4yrs
  • Lindsey Puchyr

    Director of Investor Relations

    • Clive Nickolay

      Head of Thermal Operations

      • Tenure: 4yrs
    • Kevin Malcarney (52yo)

      Senior VP

      • Tenure: 1.8yrs
      • Compensation: US$967.66k
    • Mary-Lee Stillwell (45yo)

      VP & Chief Accounting Officer

      • Tenure: 1.4yrs
      • Compensation: US$864.88k

    Board Members

    • Ferrell McClean (73yo)

      Independent Director

      • Tenure: 6.5yrs
      • Compensation: US$326.42k
    • Jon Bram

      Chairman of the Board

      • Tenure: 1.4yrs
    • Chris Sotos (48yo)

      President

      • Tenure: 3.7yrs
      • Compensation: US$2.40m
    • Brian Ford (70yo)

      Lead Independent Director

      • Tenure: 1yrs
      • Compensation: US$304.66k
    • Scott Stanley (62yo)

      Director

      • Tenure: 1.4yrs
    • Roderick MacLennan (52yo)

      Director

      • Tenure: 1.4yrs
    • Daniel More (62yo)

      Independent Director

      • Tenure: 0.9yrs
    • E. O'Neal (67yo)

      Independent Director

      • Tenure: 1.4yrs
    • Nathaniel Anschuetz (31yo)

      Director

      • Tenure: 1.4yrs

    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$4.227b
    • Market Cap: US$2.418b
    • Shares outstanding: 198.82m
    • Website: https://investor.clearwayenergy.com

    Number of Employees


    Location

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

    Listings

    TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
    CWEN.ANYSE (New York Stock Exchange)YesClass A Common StockUSUSDJul 2013
    NY4BDB (Deutsche Boerse AG)YesClass A Common StockDEEURJul 2013
    CWENNYSE (New York Stock Exchange)Class C Common StockUSUSDMay 2015
    NY41DB (Deutsche Boerse AG)Class C Common StockDEEURMay 2015

    Biography

    Clearway Energy, Inc., through its subsidiaries, acquires, owns, and operates contracted renewable energy and conventional generation, and thermal infrastructure assets in the United States. As of December 31, 2018, it had contracted generation portfolio of 5,272 net megawatts (MWs) of wind, solar, and natural gas-fired power generation facilities, as well as district energy systems. The company also owns thermal infrastructure assets with an aggregate steam and chilled water capacity of 1,385 net MW thermal equivalents; and electric generation capacity of 133 net MWs. Its thermal infrastructure assets provide steam, hot water and/or chilled water, and electricity to commercial businesses, universities, hospitals, and governmental units. The company was founded in 2012 and is based in Princeton, New Jersey. Clearway Energy, Inc. operates as a subsidiary of Clearway Energy Group LLC. 


    Company Analysis and Financial Data Status

    All financial data provided by Standard & Poor's Capital IQ.
    DataLast Updated (UTC time)
    Company Analysis2020/01/18 00:23
    End of Day Share Price2020/01/17 00:00
    Earnings2019/09/30
    Annual Earnings2018/12/31


    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.