| Snowflake Score | |
|---|---|
| Valuation | 2/6 |
| Future Growth | 3/6 |
| Past Performance | 0/6 |
| Financial Health | 1/6 |
| Dividends | 2/6 |
CWEN Stock Overview
Clearway Energy, Inc., through its subsidiaries, engages in the renewable energy businesses in the United States.
Clearway Energy Competitors
Price History & Performance
| Historical stock prices | |
|---|---|
| Current Share Price | US$33.60 |
| 52 Week High | US$39.75 |
| 52 Week Low | US$24.93 |
| Beta | 0.69 |
| 1 Month Change | -1.61% |
| 3 Month Change | 5.93% |
| 1 Year Change | -2.61% |
| 3 Year Change | 116.08% |
| 5 Year Change | 94.22% |
| Change since IPO | 37.14% |
Recent News & Updates
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.
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.
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.
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
| CWEN | US Renewable Energy | US Market | |
|---|---|---|---|
| 7D | 0.5% | -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
| CWEN volatility | |
|---|---|
| CWEN Average Weekly Movement | 3.8% |
| Renewable Energy Industry Average Movement | 7.4% |
| Market Average Movement | 6.6% |
| 10% most volatile stocks in US Market | 15.8% |
| 10% least volatile stocks in US Market | 2.4% |
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
| Founded | Employees | CEO | Website |
|---|---|---|---|
| 2012 | 301 | Chris Sotos | https://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
| CWEN fundamental statistics | |
|---|---|
| Market Cap | US$6.27b |
| Earnings (TTM) | US$34.00m |
| Revenue (TTM) | US$1.25b |
178.1x
P/E Ratio4.9x
P/S RatioIs CWEN overvalued?
See Fair Value and valuation analysisEarnings & Revenue
| CWEN income statement (TTM) | |
|---|---|
| Revenue | US$1.25b |
| Cost of Revenue | US$425.00m |
| Gross Profit | US$823.00m |
| Expenses | US$789.00m |
| Earnings | US$34.00m |
Last Reported Earnings
Sep 30, 2021
Next Earnings Date
n/a
| Earnings per share (EPS) | 0.17 |
| Gross Margin | 65.95% |
| Net Profit Margin | 2.72% |
| Debt/Equity Ratio | 242.0% |
How did CWEN perform over the long term?
See historical performance and comparisonDividends
4.5%
Current Dividend Yield447%
Payout RatioValuation
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
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2022/01/19 23:07 |
| End of Day Share Price | 2022/01/19 00:00 |
| Earnings | 2021/09/30 |
| Annual Earnings | 2020/12/31 |
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.