Clearway Energy
Market Cap
US$5.8b
Last Updated
2021/02/26 23:29 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. More Details
Rewards
Risk Analysis
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
| CWEN | Industry | Market | |
|---|---|---|---|
| 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 Year | 36.4%30.5% | 40.4%36.1% | 41.5%38.5% |
| 3 Year | 95.3%67.4% | 74.4%60.3% | 56.7%46.7% |
| 5 Year | 168.0%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
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
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | 4.75yrs | US$3.05m | 0.16% $ 9.1m | |
| Senior VP & CFO | 4.25yrs | US$1.21m | 0.039% $ 2.3m | |
| Senior VP | 2.92yrs | US$781.66k | 0.022% $ 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
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | 4.75yrs | US$3.05m | 0.16% $ 9.1m | |
| Independent Director | 7.58yrs | US$251.17k | 0.027% $ 1.6m | |
| Chairman of the Board | 2.5yrs | no data | no data | |
| Lead Independent Director | 2.08yrs | US$250.68k | 0.0017% $ 99.5k | |
| Director | 2.5yrs | no data | no data | |
| Director | 2.5yrs | no data | no data | |
| Independent Director | 2yrs | US$231.45k | 0% $ 0 | |
| Independent Director | 2.5yrs | US$242.97k | no data | |
| Director | 2.5yrs | no data | no 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
| 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 | |
| A14S3N | 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 October ...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/02/26 23:29 |
| End of Day Share Price | 2021/02/26 00:00 |
| Earnings | 2020/09/30 |
| Annual Earnings | 2019/12/31 |
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.