NYSE:CWEN

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.


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

CWENIndustryMarket
7 Day-7.2%-7.5%-7.6%
30 Day0.05%0.3%-4.5%
90 Day7.7%-0.2%-0.6%
1 Year47.5%42.4%15.8%12.3%12.5%10.2%
3 Year47.0%24.9%58.3%42.5%37.1%28.3%
5 Yearn/a31.2%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

NamePositionTenureCompensationOwnership
Christopher Sotos
President3.8yrsUS$2.40m0.12% $4.9m
Chad Plotkin
Senior VP & CFO3.3yrsUS$942.00k0.040% $1.7m
Mary-Lee Stillwell
VP & Chief Accounting Officer1.5yrsUS$864.88k0.0021% $88.3k
Kevin Malcarney
Senior VP1.9yrsUS$967.66k0.0052% $219.4k
Kevin Cole
Senior Vice President of Investor Relations4.1yrsno datano data
Clive Nickolay
Head of Thermal Operations4.1yrsno datano data
Lindsey Puchyr
Director of Investor Relations0yrsno datano 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

NamePositionTenureCompensationOwnership
Christopher Sotos
President3.8yrsUS$2.40m0.12% $4.9m
Ferrell McClean
Independent Director6.6yrsUS$326.42k0.028% $1.2m
Jonathan Bram
Chairman of the Board1.5yrsno datano data
Brian Ford
Lead Independent Director1.1yrsUS$304.66k0.0018% $74.7k
Scott Stanley
Director1.5yrsno datano data
Roderick MacLennan
Director1.5yrsno datano data
Daniel More
Independent Director1yrsno datano data
E. O'Neal
Independent Director1.5yrsno datano data
Nathaniel Anschuetz
Director1.5yrsno datano 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

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 Analysis2020/02/27 01:16
End of Day Share Price2020/02/26 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.