NYSE:CWEN

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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. More Details


Snowflake Analysis

Fair value unattractive dividend payer.


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 is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: CWEN's weekly volatility (5%) has been stable over the past year.


Market Performance


7 Day Return

-13.3%

CWEN

-12.1%

US Renewable Energy

-4.6%

US Market


1 Year Return

30.5%

CWEN

36.1%

US Renewable Energy

38.5%

US Market

Return vs Industry: CWEN underperformed the US Renewable Energy industry which returned 36.3% over the past year.

Return vs Market: CWEN underperformed the US Market which returned 38.9% over the past year.


Shareholder returns

CWENIndustryMarket
7 Day-13.3%-12.1%-4.6%
30 Day-11.1%-3.1%0.6%
90 Day-6.9%7.2%1.9%
1 Year36.4%30.5%40.4%36.1%41.5%38.5%
3 Year95.3%67.4%74.4%60.3%56.7%46.7%
5 Year168.0%103.4%184.6%136.2%123.5%98.6%

Long-Term 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 ($27.46) is trading below our estimate of fair value ($58.77)

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 (70x) compared to the US Renewable Energy industry average (56.5x).

PE vs Market: CWEN is poor value based on its PE Ratio (70x) compared to the US market (21.2x).


Price to Earnings Growth Ratio

PEG Ratio: CWEN is poor value based on its PEG Ratio (12.9x)


Price to Book Ratio

PB vs Industry: CWEN is good value based on its PB Ratio (1.7x) compared to the US Renewable Energy industry average (2.7x).


Next Steps

Future Growth

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

5.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CWEN's forecast earnings growth (5.4% per year) is above the savings rate (2%).

Earnings vs Market: CWEN's earnings (5.4% per year) are forecast to grow slower than the US market (20.2% per year).

High Growth Earnings: CWEN's earnings are forecast to grow, but not significantly.

Revenue vs Market: CWEN's revenue (5.8% per year) is forecast to grow slower than the US market (10.4% per year).

High Growth Revenue: CWEN's revenue (5.8% 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 (13.8%).


Next Steps

Past Performance

How has Clearway Energy performed over the past 5 years?

-28.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CWEN has a large one-off loss of $34.0M impacting its September 30 2020 financial results.

Growing Profit Margin: CWEN became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: CWEN's earnings have declined by 28.5% per year over the past 5 years.

Accelerating Growth: CWEN has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: CWEN has become profitable in the last year, making it difficult to compare its past year earnings growth to the Renewable Energy industry (-3%).


Return on Equity

High ROE: CWEN's Return on Equity (-1.7%) is considered low.


Next Steps

  • Explore strong past performing companies in the Utilities industry.

Financial Health

How is Clearway Energy's financial position?


Financial Position Analysis

Short Term Liabilities: CWEN's short term assets ($773.0M) exceed its short term liabilities ($602.0M).

Long Term Liabilities: CWEN's short term assets ($773.0M) do not cover its long term liabilities ($6.9B).


Debt to Equity History and Analysis

Debt Level: CWEN's debt to equity ratio (271.4%) is considered high.

Reducing Debt: CWEN's debt to equity ratio has increased from 214.6% to 271.4% over the past 5 years.

Debt Coverage: CWEN's debt is not well covered by operating cash flow (9%).

Interest Coverage: CWEN's interest payments on its debt are not well covered by EBIT (0.9x coverage).


Balance Sheet


Next Steps

Dividend

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

4.72%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: CWEN's dividend (4.72%) is higher than the bottom 25% of dividend payers in the US market (1.35%).

High Dividend: CWEN's dividend (4.72%) is in the top 25% of dividend payers in the US market (3.72%)


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 7 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (242.1%), 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?

4.3yrs

Average management tenure


CEO

Chris Sotos (49 yo)

4.75yrs

Tenure

US$3,054,943

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 ($USD3.05M) is below average for companies of similar size in the US market ($USD6.26M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Christopher Sotos
President4.75yrsUS$3.05m0.16%
$ 9.1m
Chad Plotkin
Senior VP & CFO4.25yrsUS$1.21m0.039%
$ 2.3m
Kevin Malcarney
Senior VP2.92yrsUS$781.66k0.022%
$ 1.3m

4.3yrs

Average Tenure

49yo

Average Age

Experienced Management: CWEN's management team is considered experienced (4.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Christopher Sotos
President4.75yrsUS$3.05m0.16%
$ 9.1m
Ferrell McClean
Independent Director7.58yrsUS$251.17k0.027%
$ 1.6m
Jonathan Bram
Chairman of the Board2.5yrsno datano data
Brian Ford
Lead Independent Director2.08yrsUS$250.68k0.0017%
$ 99.5k
Scott Stanley
Director2.5yrsno datano data
Roderick MacLennan
Director2.5yrsno datano data
Daniel More
Independent Director2yrsUS$231.45k0%
$ 0
E. O'Neal
Independent Director2.5yrsUS$242.97kno data
Nathaniel Anschuetz
Director2.5yrsno datano data

2.5yrs

Average Tenure

63yo

Average Age

Experienced Board: CWEN's board of directors are not considered experienced ( 2.5 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.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


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$5.784b
  • Market Cap: US$3.144b
  • Shares outstanding: 201.64m
  • Website: https://www.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
A14S3NDB (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 October ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/02/26 23:29
End of Day Share Price2021/02/26 00:00
Earnings2020/09/30
Annual Earnings2019/12/31


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.