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CWEN

Clearway EnergyNYSE:CWEN Stock Report

Last Price

US$33.60

Market Cap

US$6.3b

7D

0.5%

1Y

-2.6%

Updated

19 Jan, 2022

Data

Company Financials +
CWEN fundamental analysis
Snowflake Score
Valuation2/6
Future Growth3/6
Past Performance0/6
Financial Health1/6
Dividends2/6

CWEN Stock Overview

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

Clearway Energy Competitors

Brookfield Renewable Partners

TSX:BEP.UN

CA$19.4b

NextEra Energy Partners

NYSE:NEP

US$6.1b

Renewables Infrastructure Group

LSE:TRIG

UK£3.0b

Atlantica Sustainable Infrastructure

NasdaqGS:AY

US$3.6b

Price History & Performance

Summary of all time highs, changes and price drops for Clearway Energy
Historical stock prices
Current Share PriceUS$33.60
52 Week HighUS$39.75
52 Week LowUS$24.93
Beta0.69
1 Month Change-1.61%
3 Month Change5.93%
1 Year Change-2.61%
3 Year Change116.08%
5 Year Change94.22%
Change since IPO37.14%

Recent News & Updates

Jan 17

Clearway Energy Inc. Offers A High Yield And Rapid Growth From Renewable Energy

Clearway Energy recently announced the $1.9 billion sale of its thermal energy generation business to a private equity firm. With the proceeds of this disposition, CWEN expects to greatly expand its renewable energy portfolio in the coming years. Importantly, CWEN now has the ability to finance years' worth of investments without the need to issue equity. Clearway Energy's Class A shares currently yield 4.5% while offering the same 7-8% annual dividend growth as the common shares.

Nov 02

Clearway: The Fiscally Responsible Green Energy Play

Wind and solar are exciting fields with great demand drivers. Companies are willing to pay more for green energy which benefits CWEN's bottom line. CWEN develops the power infrastructure at high rates of return making it high cash flow.

Oct 13

Clearway Energy: Owns The Infrastructure For The New Low-Carbon World

Clearway Energy is a renewable energy YieldCo operating in the United States. The company stands to ride the transition to the low-carbon economy. With the Texas winter storm behind it, Clearway is on track to achieve the upper end of its 5% to 8% dividend growth target for fiscal 2021.

Aug 09

Clearway Energy Is Immune To Almost Everything

Clearway Energy, Inc. has a stable cash-generating business model. Customer defaults and weather can affect dividend distribution. Clearway's high debt and low cash position are not risky.

Shareholder Returns

CWENUS Renewable EnergyUS Market
7D0.5%-3.7%-3.5%
1Y-2.6%-19.9%10.2%

Return vs Industry: CWEN exceeded the US Renewable Energy industry which returned -19.9% over the past year.

Return vs Market: CWEN underperformed the US Market which returned 10.2% over the past year.

Price Volatility

Is CWEN's price volatile compared to industry and market?
CWEN volatility
CWEN Average Weekly Movement3.8%
Renewable Energy Industry Average Movement7.4%
Market Average Movement6.6%
10% most volatile stocks in US Market15.8%
10% least volatile stocks in US Market2.4%

Stable Share Price: CWEN is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: CWEN's weekly volatility (4%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
2012301Chris Sotoshttps://www.clearwayenergy.com

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 solar generation projects; and 2,500 net MW of natural gas generation facilities, as well as a portfolio of district energy systems. Its thermal infrastructure assets provide steam, hot water and/or chilled water, and electricity to commercial businesses, universities, hospitals, and governmental units.

Clearway Energy Fundamentals Summary

How do Clearway Energy's earnings and revenue compare to its market cap?
CWEN fundamental statistics
Market CapUS$6.27b
Earnings (TTM)US$34.00m
Revenue (TTM)US$1.25b

178.1x

P/E Ratio

4.9x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
CWEN income statement (TTM)
RevenueUS$1.25b
Cost of RevenueUS$425.00m
Gross ProfitUS$823.00m
ExpensesUS$789.00m
EarningsUS$34.00m

Last Reported Earnings

Sep 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.17
Gross Margin65.95%
Net Profit Margin2.72%
Debt/Equity Ratio242.0%

How did CWEN perform over the long term?

See historical performance and comparison

Dividends

4.5%

Current Dividend Yield

447%

Payout Ratio

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 ($32.67) is trading below our estimate of fair value ($156.99)

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


Price To Earnings Ratio

PE vs Industry: CWEN is poor value based on its PE Ratio (178.1x) compared to the US Renewable Energy industry average (66.4x).

PE vs Market: CWEN is poor value based on its PE Ratio (178.1x) compared to the US market (17x).


Price to Earnings Growth Ratio

PEG Ratio: CWEN is poor value based on its PEG Ratio (4.1x)


Price to Book Ratio

PB vs Industry: CWEN is overvalued based on its PB Ratio (3.4x) compared to the US Renewable Energy industry average (2.3x).


Future Growth

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

47.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CWEN's forecast earnings growth (43.3% per year) is above the savings rate (2%).

Earnings vs Market: CWEN's earnings (43.3% per year) are forecast to grow faster than the US market (13% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: CWEN's revenue (4.3% per year) is forecast to grow slower than the US market (9.2% per year).

High Growth Revenue: CWEN's revenue (4.3% 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 (12.3%).


Past Performance

How has Clearway Energy performed over the past 5 years?

-11.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CWEN has a large one-off loss of $130.0M impacting its September 30 2021 financial results.

Growing Profit Margin: CWEN's current net profit margins (2.7%) are lower than last year (3.8%).


Past Earnings Growth Analysis

Earnings Trend: CWEN's earnings have declined by 11.7% per year over the past 5 years.

Accelerating Growth: CWEN's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: CWEN had negative earnings growth (-22.7%) over the past year, making it difficult to compare to the Renewable Energy industry average (-10.5%).


Return on Equity

High ROE: CWEN's Return on Equity (-3.1%) is considered low.


Financial Health

How is Clearway Energy's financial position?


Financial Position Analysis

Short Term Liabilities: CWEN's short term assets ($853.0M) exceed its short term liabilities ($816.0M).

Long Term Liabilities: CWEN's short term assets ($853.0M) do not cover its long term liabilities ($8.0B).


Debt to Equity History and Analysis

Debt Level: CWEN's net debt to equity ratio (235.6%) is considered high.

Reducing Debt: CWEN's debt to equity ratio has increased from 233.9% to 242% over the past 5 years.

Debt Coverage: CWEN's debt is not well covered by operating cash flow (8.9%).

Interest Coverage: CWEN's interest payments on its debt are not well covered by EBIT (1x coverage).


Balance Sheet


Dividend

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

4.53%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: CWEN's dividend (4.53%) is higher than the bottom 25% of dividend payers in the US market (1.35%).

High Dividend: CWEN's dividend (4.53%) is in the top 25% of dividend payers in the US market (3.48%)


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 8 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (447.3%), CWEN'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?

5.2yrs

Average management tenure


CEO

Chris Sotos (50 yo)

5.67yrs

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 ($USD3.25M) is below average for companies of similar size in the US market ($USD6.41M).

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


Leadership Team

Experienced Management: CWEN's management team is seasoned and experienced (5.2 years average tenure).


Board Members

Experienced Board: CWEN's board of directors are considered experienced (3.4 years average tenure).


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 not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Clearway Energy, Inc.'s 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$6.273b
  • Market Cap: US$3.709b
  • Shares outstanding: 201.85m
  • Website: https://www.clearwayenergy.com

Number of Employees


Location

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

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/01/19 23:07
End of Day Share Price2022/01/19 00:00
Earnings2021/09/30
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.