CLEARWAY ENERGY INC-C (CWEN) Stock Fundamental Analysis
NYSE:CWEN - New York Stock Exchange, Inc. - US18539C2044 - Common Stock - Currency: USD
Taking everything into account, CWEN scores 5 out of 10 in our fundamental rating. CWEN was compared to 20 industry peers in the Independent Power and Renewable Electricity Producers industry. CWEN has an average financial health and profitability rating. CWEN is not valued too expensively and it also shows a decent growth rate. CWEN also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year CWEN was profitable.
In the past year CWEN had a positive cash flow from operations.
CWEN had positive earnings in 4 of the past 5 years.
In the past 5 years CWEN always reported a positive cash flow from operatings.
1.2 Ratios
CWEN has a Return On Assets (0.86%) which is in line with its industry peers.
CWEN has a Return On Equity of 5.72%. This is comparable to the rest of the industry: CWEN outperforms 57.89% of its industry peers.
CWEN has a Return On Invested Capital (1.39%) which is comparable to the rest of the industry.
CWEN had an Average Return On Invested Capital over the past 3 years of 1.72%. This is below the industry average of 4.21%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.86% | ||
| ROE | 5.72% | ||
| ROIC | 1.39% |
ROA(3y)1.89%
ROA(5y)1.16%
ROE(3y)10.86%
ROE(5y)6.67%
ROIC(3y)1.72%
ROIC(5y)2.2%
1.3 Margins
The Profit Margin of CWEN (8.94%) is comparable to the rest of the industry.
CWEN's Profit Margin has improved in the last couple of years.
With a Operating Margin value of 16.72%, CWEN perfoms like the industry average, outperforming 52.63% of the companies in the same industry.
CWEN's Operating Margin has declined in the last couple of years.
The Gross Margin of CWEN (64.00%) is better than 68.42% of its industry peers.
In the last couple of years the Gross Margin of CWEN has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 16.72% | ||
| PM (TTM) | 8.94% | ||
| GM | 64% |
OM growth 3Y-11.4%
OM growth 5Y-9.44%
PM growth 3Y42.33%
PM growth 5Y5.69%
GM growth 3Y-2.7%
GM growth 5Y-1.34%
2. Health
2.1 Basic Checks
CWEN has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
CWEN has about the same amout of shares outstanding than it did 1 year ago.
Compared to 5 years ago, CWEN has more shares outstanding
The debt/assets ratio for CWEN has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 0.48, we must say that CWEN is in the distress zone and has some risk of bankruptcy.
CWEN's Altman-Z score of 0.48 is fine compared to the rest of the industry. CWEN outperforms 63.16% of its industry peers.
The Debt to FCF ratio of CWEN is 15.84, which is on the high side as it means it would take CWEN, 15.84 years of fcf income to pay off all of its debts.
CWEN has a Debt to FCF ratio of 15.84. This is amongst the best in the industry. CWEN outperforms 89.47% of its industry peers.
A Debt/Equity ratio of 3.15 is on the high side and indicates that CWEN has dependencies on debt financing.
CWEN has a Debt to Equity ratio (3.15) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.15 | ||
| Debt/FCF | 15.84 | ||
| Altman-Z | 0.48 |
ROIC/WACC0.24
WACC5.81%
2.3 Liquidity
A Current Ratio of 1.59 indicates that CWEN should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.59, CWEN is in the better half of the industry, outperforming 68.42% of the companies in the same industry.
A Quick Ratio of 1.49 indicates that CWEN should not have too much problems paying its short term obligations.
CWEN has a Quick ratio of 1.49. This is in the better half of the industry: CWEN outperforms 68.42% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.59 | ||
| Quick Ratio | 1.49 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 123.91% over the past year.
CWEN shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 14.53% yearly.
The Revenue has been growing slightly by 2.33% in the past year.
CWEN shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.53% yearly.
EPS 1Y (TTM)123.91%
EPS 3Y47.21%
EPS 5Y14.53%
EPS Q2Q%933.33%
Revenue 1Y (TTM)2.33%
Revenue growth 3Y3.1%
Revenue growth 5Y4.53%
Sales Q2Q%31%
3.2 Future
The Earnings Per Share is expected to grow by 5.91% on average over the next years.
CWEN is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.47% yearly.
EPS Next Y17.58%
EPS Next 2Y-1.65%
EPS Next 3Y5.91%
EPS Next 5YN/A
Revenue Next Year7.07%
Revenue Next 2Y7.15%
Revenue Next 3Y6.47%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 26.63, which means the current valuation is very expensive for CWEN.
78.95% of the companies in the same industry are more expensive than CWEN, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 29.63, CWEN is valued at the same level.
A Price/Forward Earnings ratio of 42.32 indicates a quite expensive valuation of CWEN.
Based on the Price/Forward Earnings ratio, CWEN is valued a bit cheaper than 63.16% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.68. CWEN is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.63 | ||
| Fwd PE | 42.32 |
4.2 Price Multiples
68.42% of the companies in the same industry are more expensive than CWEN, based on the Enterprise Value to EBITDA ratio.
CWEN's Price/Free Cash Flow ratio is rather cheap when compared to the industry. CWEN is cheaper than 94.74% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.29 | ||
| EV/EBITDA | 12.09 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
PEG (NY)1.51
PEG (5Y)1.83
EPS Next 2Y-1.65%
EPS Next 3Y5.91%
5. Dividend
5.1 Amount
CWEN has a Yearly Dividend Yield of 6.68%, which is a nice return.
Compared to an average industry Dividend Yield of 4.61, CWEN pays a better dividend. On top of this CWEN pays more dividend than 89.47% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.27, CWEN pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.68% |
5.2 History
The dividend of CWEN has a limited annual growth rate of 4.10%.
CWEN has paid a dividend for at least 10 years, which is a reliable track record.
As CWEN did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
Dividend Growth(5Y)4.1%
Div Incr Years5
Div Non Decr Years5
5.3 Sustainability
269.67% of the earnings are spent on dividend by CWEN. This is not a sustainable payout ratio.
The dividend of CWEN is growing, but earnings are growing more, so the dividend growth is sustainable.
DP269.67%
EPS Next 2Y-1.65%
EPS Next 3Y5.91%
27.43
+0.38 (+1.4%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryIndependent Power and Renewable Electricity Producers
Earnings (Last)
Earnings (Next)
Inst Owners75.99%
Inst Owner Change0.21%
Ins Owners0.03%
Ins Owner Change-3.83%
Market Cap5.54B
Analysts85.33
Price Target37.61 (37.11%)
Short Float %6.67%
Short Ratio3.13
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.68% |
Yearly Dividend1.54
Dividend Growth(5Y)4.1%
DP269.67%
Div Incr Years5
Div Non Decr Years5
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-43.37%
Min EPS beat(2)-44.23%
Max EPS beat(2)-42.52%
EPS beat(4)2
Avg EPS beat(4)180.93%
Min EPS beat(4)-44.23%
Max EPS beat(4)718.48%
EPS beat(8)4
Avg EPS beat(8)99.23%
EPS beat(12)5
Avg EPS beat(12)106.2%
EPS beat(16)6
Avg EPS beat(16)73.19%
Revenue beat(2)1
Avg Revenue beat(2)-0.02%
Min Revenue beat(2)-16.02%
Max Revenue beat(2)15.99%
Revenue beat(4)1
Avg Revenue beat(4)-6.45%
Min Revenue beat(4)-16.35%
Max Revenue beat(4)15.99%
Revenue beat(8)3
Avg Revenue beat(8)-3.22%
Revenue beat(12)3
Avg Revenue beat(12)-7.28%
Revenue beat(16)4
Avg Revenue beat(16)-7.72%
PT rev (1m)1.09%
PT rev (3m)3.23%
EPS NQ rev (1m)12.13%
EPS NQ rev (3m)-24.79%
EPS NY rev (1m)-14.15%
EPS NY rev (3m)3.72%
Revenue NQ rev (1m)0.51%
Revenue NQ rev (3m)1.32%
Revenue NY rev (1m)0.28%
Revenue NY rev (3m)-0.07%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.63 | ||
| Fwd PE | 42.32 | ||
| P/S | 4.07 | ||
| P/FCF | 12.29 | ||
| P/OCF | 7.07 | ||
| P/B | 2.6 | ||
| P/tB | N/A | ||
| EV/EBITDA | 12.09 |
EPS(TTM)1.03
EY3.76%
EPS(NY)0.65
Fwd EY2.36%
FCF(TTM)2.23
FCFY8.13%
OCF(TTM)3.88
OCFY14.14%
SpS6.75
BVpS10.56
TBVpS-0.52
PEG (NY)1.51
PEG (5Y)1.83
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.86% | ||
| ROE | 5.72% | ||
| ROCE | 1.68% | ||
| ROIC | 1.39% | ||
| ROICexc | 1.42% | ||
| ROICexgc | 1.71% | ||
| OM | 16.72% | ||
| PM (TTM) | 8.94% | ||
| GM | 64% | ||
| FCFM | 33.06% |
ROA(3y)1.89%
ROA(5y)1.16%
ROE(3y)10.86%
ROE(5y)6.67%
ROIC(3y)1.72%
ROIC(5y)2.2%
ROICexc(3y)1.78%
ROICexc(5y)2.27%
ROICexgc(3y)2.27%
ROICexgc(5y)2.8%
ROCE(3y)2.08%
ROCE(5y)2.66%
ROICexcg growth 3Y-16.48%
ROICexcg growth 5Y-15.33%
ROICexc growth 3Y-17.72%
ROICexc growth 5Y-15.78%
OM growth 3Y-11.4%
OM growth 5Y-9.44%
PM growth 3Y42.33%
PM growth 5Y5.69%
GM growth 3Y-2.7%
GM growth 5Y-1.34%
F-Score5
Asset Turnover0.1
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.15 | ||
| Debt/FCF | 15.84 | ||
| Debt/EBITDA | 6.61 | ||
| Cap/Depr | 42.1% | ||
| Cap/Sales | 24.41% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 76.94% | ||
| Profit Quality | 369.67% | ||
| Current Ratio | 1.59 | ||
| Quick Ratio | 1.49 | ||
| Altman-Z | 0.48 |
F-Score5
WACC5.81%
ROIC/WACC0.24
Cap/Depr(3y)24.35%
Cap/Depr(5y)29.16%
Cap/Sales(3y)13.11%
Cap/Sales(5y)14.36%
Profit Quality(3y)584.35%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)123.91%
EPS 3Y47.21%
EPS 5Y14.53%
EPS Q2Q%933.33%
EPS Next Y17.58%
EPS Next 2Y-1.65%
EPS Next 3Y5.91%
EPS Next 5YN/A
Revenue 1Y (TTM)2.33%
Revenue growth 3Y3.1%
Revenue growth 5Y4.53%
Sales Q2Q%31%
Revenue Next Year7.07%
Revenue Next 2Y7.15%
Revenue Next 3Y6.47%
Revenue Next 5YN/A
EBIT growth 1Y-28.08%
EBIT growth 3Y-8.65%
EBIT growth 5Y-5.34%
EBIT Next Year182.7%
EBIT Next 3Y46.37%
EBIT Next 5YN/A
FCF growth 1Y-29.86%
FCF growth 3Y3.22%
FCF growth 5Y2.21%
OCF growth 1Y2.48%
OCF growth 3Y8.8%
OCF growth 5Y7.11%