Clearway Energy
Market Cap
US$4.2b
Last Updated
2020/02/27 01:16 UTC
Data Sources
Company Financials +
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
Risk Analysis
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 has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
-7.2%
CWEN
-7.5%
US Renewable Energy
-7.6%
US Market
1 Year Return
42.4%
CWEN
12.3%
US Renewable Energy
10.2%
US Market
Return vs Industry: CWEN exceeded the US Renewable Energy industry which returned 12.3% over the past year.
Return vs Market: CWEN exceeded the US Market which returned 10.2% over the past year.
Shareholder returns
| CWEN | Industry | Market | |
|---|---|---|---|
| 7 Day | -7.2% | -7.5% | -7.6% |
| 30 Day | 0.05% | 0.3% | -4.5% |
| 90 Day | 7.7% | -0.2% | -0.6% |
| 1 Year | 47.5%42.4% | 15.8%12.3% | 12.5%10.2% |
| 3 Year | 47.0%24.9% | 58.3%42.5% | 37.1%28.3% |
| 5 Year | n/a | 31.2%1.2% | 60.8%43.2% |
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
No news available
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 ($21.35) is trading below our estimate of fair value ($62.69)
Significantly Below Fair Value: CWEN is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: CWEN is unprofitable, so we can't compare its PE Ratio to the Renewable Energy industry average.
PE vs Market: CWEN 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's PEG Ratio to determine if it is good value.
Price to Book Ratio
PB vs Industry: CWEN is good value based on its PB Ratio (1.3x) compared to the US Renewable Energy industry average (2x).
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 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 is forecast to become profitable over the next 3 years, which is considered above average market growth.
High Growth Earnings: CWEN's is expected to become profitable in the next 3 years.
Revenue vs Market: CWEN's revenue (12.1% per year) is forecast to grow faster than the US market (7.6% per year).
High Growth Revenue: CWEN's revenue (12.1% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: CWEN'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 is currently unprofitable.
Growing Profit Margin: CWEN is currently unprofitable.
Past Earnings Growth Analysis
Earnings Trend: CWEN 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's earnings growth over the past year to its 5-year average as it is currently unprofitable
Earnings vs Industry: CWEN is unprofitable, making it difficult to compare its past year earnings growth to the Renewable Energy industry (-19.2%).
Return on Equity
High ROE: CWEN has a negative Return on Equity (-6.79%), as it is currently unprofitable.
Next Steps
Financial Health
How is Clearway Energy's financial position?
Financial Position Analysis
Short Term Liabilities: CWEN's short term assets ($619.0M) do not cover its short term liabilities ($2.2B).
Long Term Liabilities: CWEN's short term assets ($619.0M) do not cover its long term liabilities ($4.5B).
Debt to Equity History and Analysis
Debt Level: CWEN's debt to equity ratio (303.5%) is considered high.
Reducing Debt: CWEN's debt to equity ratio has increased from 255.1% to 303.5% over the past 5 years.
Balance Sheet
Inventory Level: CWEN has a high level of physical assets or inventory.
Debt Coverage by Assets: CWEN's debt is not covered by short term assets (assets are 0.1x debt).
Cash Runway Analysis
For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.
Stable Cash Runway: CWEN has been profitable on average in the past, therefore cash runway is not a concern.
Forecast Cash Runway: CWEN has been profitable on average in the past, therefore cash runway is not a concern.
Next Steps
Dividend
What is Clearway Energy's current dividend yield, its reliability and sustainability?
3.84%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: CWEN's dividend (3.84%) is higher than the bottom 25% of dividend payers in the US market (1.53%).
High Dividend: CWEN's dividend (3.84%) is low compared to the top 25% of dividend payers in the US market (3.96%).
Stability and Growth of Payments
Stable Dividend: CWEN has been paying a dividend for less than 10 years and during this time payments have been volatile.
Growing Dividend: CWEN's dividend payments have increased, but the company has only paid a dividend for 6 years.
Current Payout to Shareholders
Dividend Coverage: CWEN 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
How experienced are the management team and are they aligned to shareholders interests?
3.5yrs
Average management tenure
CEO
Chris Sotos (48yo)
3.8yrs
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 ($USD4.98M).
Compensation vs Earnings: Chris's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | 3.8yrs | US$2.40m | 0.12% $4.9m | |
| Senior VP & CFO | 3.3yrs | US$942.00k | 0.040% $1.7m | |
| VP & Chief Accounting Officer | 1.5yrs | US$864.88k | 0.0021% $88.3k | |
| Senior VP | 1.9yrs | US$967.66k | 0.0052% $219.4k | |
| Senior Vice President of Investor Relations | 4.1yrs | no data | no data | |
| Head of Thermal Operations | 4.1yrs | no data | no data | |
| Director of Investor Relations | 0yrs | no data | no data |
3.5yrs
Average Tenure
46.5yo
Average Age
Experienced Management: CWEN's management team is considered experienced (3.5 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | 3.8yrs | US$2.40m | 0.12% $4.9m | |
| Independent Director | 6.6yrs | US$326.42k | 0.028% $1.2m | |
| Chairman of the Board | 1.5yrs | no data | no data | |
| Lead Independent Director | 1.1yrs | US$304.66k | 0.0018% $74.7k | |
| Director | 1.5yrs | no data | no data | |
| Director | 1.5yrs | no data | no data | |
| Independent Director | 1yrs | no data | no data | |
| Independent Director | 1.5yrs | no data | no data | |
| Director | 1.5yrs | no data | no data |
1.5yrs
Average Tenure
62yo
Average Age
Experienced Board: CWEN's board of directors are not considered experienced ( 1.5 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: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 6.4%.
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
- Exchange: NYSE
- Founded: 2012
- Industry: Independent Power Producers and Energy Traders
- Sector: Utilities
- Implied Market Cap: US$4.244b
- Market Cap: US$2.403b
- 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
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| CWEN.A | NYSE (New York Stock Exchange) | Yes | Class A Common Stock | US | USD | Jul 2013 |
| NY4B | DB (Deutsche Boerse AG) | Yes | Class A Common Stock | DE | EUR | Jul 2013 |
| CWEN | NYSE (New York Stock Exchange) | Class C Common Stock | US | USD | May 2015 | |
| NY41 | DB (Deutsche Boerse AG) | Class C Common Stock | DE | EUR | May 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
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/02/27 01:16 |
| End of Day Share Price | 2020/02/26 00:00 |
| Earnings | 2019/09/30 |
| Annual Earnings | 2018/12/31 |
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.