CLEARWAY ENERGY INC-C (CWEN) Stock Fundamental Analysis
NYSE:CWEN - New York Stock Exchange, Inc. - US18539C2044 - Common Stock - Currency: USD
CWEN gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 21 industry peers in the Independent Power and Renewable Electricity Producers industry. Both the profitability and the financial health of CWEN get a neutral evaluation. Nothing too spectacular is happening here. CWEN has a correct valuation and a medium growth rate. CWEN also has an excellent dividend rating. With these ratings, CWEN could be worth investigating further for dividend investing!.
1. Profitability
1.1 Basic Checks
CWEN had positive earnings in the past year.
In the past year CWEN had a positive cash flow from operations.
In the past 5 years CWEN has always been profitable.
In the past 5 years CWEN always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 0.61%, CWEN is in the better half of the industry, outperforming 61.90% of the companies in the same industry.
CWEN has a Return On Equity of 4.27%. This is in the better half of the industry: CWEN outperforms 61.90% of its industry peers.
CWEN has a Return On Invested Capital (1.18%) which is comparable to the rest of the industry.
The Average Return On Invested Capital over the past 3 years for CWEN is below the industry average of 3.64%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.61% | ||
| ROE | 4.27% | ||
| ROIC | 1.18% |
ROA(3y)1.96%
ROA(5y)1.3%
ROE(3y)11.36%
ROE(5y)7.65%
ROIC(3y)1.38%
ROIC(5y)1.8%
1.3 Margins
With a decent Profit Margin value of 6.42%, CWEN is doing good in the industry, outperforming 66.67% of the companies in the same industry.
CWEN's Profit Margin has improved in the last couple of years.
CWEN's Operating Margin of 14.88% is in line compared to the rest of the industry. CWEN outperforms 57.14% of its industry peers.
In the last couple of years the Operating Margin of CWEN has declined.
CWEN's Gross Margin of 63.46% is fine compared to the rest of the industry. CWEN outperforms 76.19% of its industry peers.
CWEN's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.88% | ||
| PM (TTM) | 6.42% | ||
| GM | 63.46% |
OM growth 3Y-11.92%
OM growth 5Y-10%
PM growth 3Y17.41%
PM growth 5YN/A
GM growth 3Y-0.76%
GM growth 5Y-1.04%
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.
Compared to 1 year ago, CWEN has about the same amount of shares outstanding.
Compared to 5 years ago, CWEN has more shares outstanding
CWEN has a better debt/assets ratio than last year.
2.2 Solvency
CWEN has an Altman-Z score of 0.49. This is a bad value and indicates that CWEN is not financially healthy and even has some risk of bankruptcy.
CWEN's Altman-Z score of 0.49 is fine compared to the rest of the industry. CWEN outperforms 66.67% of its industry peers.
The Debt to FCF ratio of CWEN is 14.87, which is on the high side as it means it would take CWEN, 14.87 years of fcf income to pay off all of its debts.
CWEN has a better Debt to FCF ratio (14.87) than 85.71% of its industry peers.
A Debt/Equity ratio of 3.27 is on the high side and indicates that CWEN has dependencies on debt financing.
The Debt to Equity ratio of CWEN (3.27) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.27 | ||
| Debt/FCF | 14.87 | ||
| Altman-Z | 0.49 |
ROIC/WACC0.2
WACC5.82%
2.3 Liquidity
CWEN has a Current Ratio of 1.49. This is a normal value and indicates that CWEN is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of CWEN (1.49) is better than 76.19% of its industry peers.
A Quick Ratio of 1.40 indicates that CWEN should not have too much problems paying its short term obligations.
CWEN's Quick ratio of 1.40 is fine compared to the rest of the industry. CWEN outperforms 71.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.49 | ||
| Quick Ratio | 1.4 |
3. Growth
3.1 Past
CWEN shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 11.94%, which is quite good.
CWEN shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 19.45% yearly.
The Revenue has been growing slightly by 4.34% in the past year.
Measured over the past years, CWEN shows a small growth in Revenue. The Revenue has been growing by 5.85% on average per year.
EPS 1Y (TTM)11.94%
EPS 3Y19.45%
EPS 5YN/A
EPS Q2Q%-90.32%
Revenue 1Y (TTM)4.34%
Revenue growth 3Y2.16%
Revenue growth 5Y5.85%
Sales Q2Q%2.81%
3.2 Future
CWEN is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 21.29% yearly.
CWEN is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.13% yearly.
EPS Next Y-27.62%
EPS Next 2Y11.91%
EPS Next 3Y21.29%
EPS Next 5YN/A
Revenue Next Year5.42%
Revenue Next 2Y6.89%
Revenue Next 3Y6.13%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 38.97, CWEN can be considered very expensive at the moment.
61.90% of the companies in the same industry are more expensive than CWEN, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of CWEN to the average of the S&P500 Index (28.29), we can say CWEN is valued slightly more expensively.
With a Price/Forward Earnings ratio of 53.84, CWEN can be considered very expensive at the moment.
Based on the Price/Forward Earnings ratio, CWEN is valued a bit cheaper than the industry average as 66.67% of the companies are valued more expensively.
CWEN's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 21.08.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 38.97 | ||
| Fwd PE | 53.84 |
4.2 Price Multiples
61.90% of the companies in the same industry are more expensive than CWEN, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of CWEN indicates a rather cheap valuation: CWEN is cheaper than 95.24% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.23 | ||
| EV/EBITDA | 12.59 |
4.3 Compensation for Growth
The decent profitability rating of CWEN may justify a higher PE ratio.
A more expensive valuation may be justified as CWEN's earnings are expected to grow with 21.29% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y11.91%
EPS Next 3Y21.29%
5. Dividend
5.1 Amount
CWEN has a Yearly Dividend Yield of 6.52%, which is a nice return.
CWEN's Dividend Yield is rather good when compared to the industry average which is at 8.05. CWEN pays more dividend than 85.71% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.57, CWEN pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.52% |
5.2 History
The dividend of CWEN is nicely growing with an annual growth rate of 15.88%!
CWEN has paid a dividend for at least 10 years, which is a reliable track record.
CWEN has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.
Dividend Growth(5Y)15.88%
Div Incr Years5
Div Non Decr Years5
5.3 Sustainability
CWEN pays out 379.55% of its income as dividend. This is not a sustainable payout ratio.
The dividend of CWEN is growing, but earnings are growing more, so the dividend growth is sustainable.
DP379.55%
EPS Next 2Y11.91%
EPS Next 3Y21.29%
29.23
+0.32 (+1.11%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryIndependent Power and Renewable Electricity Producers
Earnings (Last)
Earnings (Next)
Inst Owners76.13%
Inst Owner Change0%
Ins Owners0.03%
Ins Owner Change0.81%
Market Cap5.91B
Analysts85
Price Target38.51 (31.75%)
Short Float %7.18%
Short Ratio2.65
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.52% |
Yearly Dividend1.65
Dividend Growth(5Y)15.88%
DP379.55%
Div Incr Years5
Div Non Decr Years5
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-47.18%
Min EPS beat(2)-51.84%
Max EPS beat(2)-42.52%
EPS beat(4)1
Avg EPS beat(4)-11.65%
Min EPS beat(4)-51.84%
Max EPS beat(4)92%
EPS beat(8)3
Avg EPS beat(8)78.84%
EPS beat(12)5
Avg EPS beat(12)114.58%
EPS beat(16)6
Avg EPS beat(16)78.19%
Revenue beat(2)1
Avg Revenue beat(2)1.09%
Min Revenue beat(2)-13.81%
Max Revenue beat(2)15.99%
Revenue beat(4)1
Avg Revenue beat(4)-5.82%
Min Revenue beat(4)-16.02%
Max Revenue beat(4)15.99%
Revenue beat(8)3
Avg Revenue beat(8)-2.93%
Revenue beat(12)3
Avg Revenue beat(12)-8.18%
Revenue beat(16)4
Avg Revenue beat(16)-8.39%
PT rev (1m)1.61%
PT rev (3m)3.51%
EPS NQ rev (1m)18.16%
EPS NQ rev (3m)7.66%
EPS NY rev (1m)-16.23%
EPS NY rev (3m)-36.66%
Revenue NQ rev (1m)-1.01%
Revenue NQ rev (3m)2.02%
Revenue NY rev (1m)1.13%
Revenue NY rev (3m)-1.56%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 38.97 | ||
| Fwd PE | 53.84 | ||
| P/S | 4.31 | ||
| P/FCF | 12.23 | ||
| P/OCF | 7.67 | ||
| P/B | 2.86 | ||
| P/tB | N/A | ||
| EV/EBITDA | 12.59 |
EPS(TTM)0.75
EY2.57%
EPS(NY)0.54
Fwd EY1.86%
FCF(TTM)2.39
FCFY8.17%
OCF(TTM)3.81
OCFY13.03%
SpS6.78
BVpS10.21
TBVpS-0.64
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.61% | ||
| ROE | 4.27% | ||
| ROCE | 1.5% | ||
| ROIC | 1.18% | ||
| ROICexc | 1.21% | ||
| ROICexgc | 1.45% | ||
| OM | 14.88% | ||
| PM (TTM) | 6.42% | ||
| GM | 63.46% | ||
| FCFM | 35.23% |
ROA(3y)1.96%
ROA(5y)1.3%
ROE(3y)11.36%
ROE(5y)7.65%
ROIC(3y)1.38%
ROIC(5y)1.8%
ROICexc(3y)1.44%
ROICexc(5y)1.86%
ROICexgc(3y)1.78%
ROICexgc(5y)2.29%
ROCE(3y)1.75%
ROCE(5y)2.28%
ROICexcg growth 3Y-17.63%
ROICexcg growth 5Y-15.57%
ROICexc growth 3Y-15.48%
ROICexc growth 5Y-15.05%
OM growth 3Y-11.92%
OM growth 5Y-10%
PM growth 3Y17.41%
PM growth 5YN/A
GM growth 3Y-0.76%
GM growth 5Y-1.04%
F-Score6
Asset Turnover0.1
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.27 | ||
| Debt/FCF | 14.87 | ||
| Debt/EBITDA | 6.66 | ||
| Cap/Depr | 35.48% | ||
| Cap/Sales | 20.93% | ||
| Interest Coverage | 0.63 | ||
| Cash Conversion | 76.01% | ||
| Profit Quality | 548.86% | ||
| Current Ratio | 1.49 | ||
| Quick Ratio | 1.4 | ||
| Altman-Z | 0.49 |
F-Score6
WACC5.82%
ROIC/WACC0.2
Cap/Depr(3y)28.49%
Cap/Depr(5y)26.49%
Cap/Sales(3y)16.18%
Cap/Sales(5y)14.12%
Profit Quality(3y)416.97%
Profit Quality(5y)797.18%
High Growth Momentum
Growth
EPS 1Y (TTM)11.94%
EPS 3Y19.45%
EPS 5YN/A
EPS Q2Q%-90.32%
EPS Next Y-27.62%
EPS Next 2Y11.91%
EPS Next 3Y21.29%
EPS Next 5YN/A
Revenue 1Y (TTM)4.34%
Revenue growth 3Y2.16%
Revenue growth 5Y5.85%
Sales Q2Q%2.81%
Revenue Next Year5.42%
Revenue Next 2Y6.89%
Revenue Next 3Y6.13%
Revenue Next 5YN/A
EBIT growth 1Y-26.88%
EBIT growth 3Y-10.02%
EBIT growth 5Y-4.74%
EBIT Next Year321.49%
EBIT Next 3Y68.68%
EBIT Next 5YN/A
FCF growth 1Y4.32%
FCF growth 3Y-3.41%
FCF growth 5Y14.17%
OCF growth 1Y9.69%
OCF growth 3Y3.88%
OCF growth 5Y10.05%