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 6 out of 10 in our fundamental rating. CWEN was compared to 19 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. Finally CWEN also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
CWEN had positive earnings in the past year.
CWEN had a positive operating cash flow in the past year.
CWEN had positive earnings in each of the past 5 years.
Each year in the past 5 years CWEN had a positive operating cash flow.
1.2 Ratios
CWEN has a Return On Assets (0.64%) which is in line with its industry peers.
Looking at the Return On Equity, with a value of 4.84%, CWEN is in the better half of the industry, outperforming 68.42% of the companies in the same industry.
With a Return On Invested Capital value of 1.33%, CWEN perfoms like the industry average, outperforming 52.63% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for CWEN is below the industry average of 3.81%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.64% | ||
| ROE | 4.84% | ||
| ROIC | 1.33% |
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
CWEN has a Profit Margin of 6.69%. This is in the better half of the industry: CWEN outperforms 63.16% of its industry peers.
In the last couple of years the Profit Margin of CWEN has grown nicely.
CWEN's Operating Margin of 16.71% is fine compared to the rest of the industry. CWEN outperforms 63.16% of its industry peers.
In the last couple of years the Operating Margin of CWEN has declined.
CWEN's Gross Margin of 64.65% is amongst the best of the industry. CWEN outperforms 84.21% of its industry peers.
CWEN's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 16.71% | ||
| PM (TTM) | 6.69% | ||
| GM | 64.65% |
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), CWEN is destroying value.
CWEN has about the same amout of shares outstanding than it did 1 year ago.
CWEN has more shares outstanding than it did 5 years ago.
CWEN has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 0.50, we must say that CWEN is in the distress zone and has some risk of bankruptcy.
CWEN has a Altman-Z score (0.50) which is in line with its industry peers.
CWEN has a debt to FCF ratio of 14.14. This is a negative value and a sign of low solvency as CWEN would need 14.14 years to pay back of all of its debts.
CWEN's Debt to FCF ratio of 14.14 is amongst the best of the industry. CWEN outperforms 89.47% of its industry peers.
CWEN has a Debt/Equity ratio of 3.72. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of CWEN (3.72) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.72 | ||
| Debt/FCF | 14.14 | ||
| Altman-Z | 0.5 |
ROIC/WACC0.22
WACC6.03%
2.3 Liquidity
A Current Ratio of 1.52 indicates that CWEN should not have too much problems paying its short term obligations.
CWEN has a better Current ratio (1.52) than 68.42% of its industry peers.
A Quick Ratio of 1.42 indicates that CWEN should not have too much problems paying its short term obligations.
With a decent Quick ratio value of 1.42, CWEN is doing good in the industry, outperforming 73.68% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.52 | ||
| Quick Ratio | 1.42 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 23.08% 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 19.45% yearly.
CWEN shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 9.08%.
The Revenue has been growing slightly by 5.85% on average over the past years.
EPS 1Y (TTM)23.08%
EPS 3Y19.45%
EPS 5YN/A
EPS Q2Q%250%
Revenue 1Y (TTM)9.08%
Revenue growth 3Y2.16%
Revenue growth 5Y5.85%
Sales Q2Q%13.31%
3.2 Future
CWEN is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 31.41% yearly.
CWEN is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.72% yearly.
EPS Next Y50.29%
EPS Next 2Y34.08%
EPS Next 3Y31.41%
EPS Next 5YN/A
Revenue Next Year3.27%
Revenue Next 2Y6.99%
Revenue Next 3Y5.72%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
CWEN is valuated quite expensively with a Price/Earnings ratio of 39.45.
Compared to the rest of the industry, the Price/Earnings ratio of CWEN indicates a somewhat cheap valuation: CWEN is cheaper than 63.16% of the companies listed in the same industry.
CWEN is valuated rather expensively when we compare the Price/Earnings ratio to 27.15, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 23.41, CWEN is valued on the expensive side.
73.68% of the companies in the same industry are more expensive than CWEN, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 21.60. CWEN is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 39.45 | ||
| Fwd PE | 23.41 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of CWEN indicates a somewhat cheap valuation: CWEN is cheaper than 63.16% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, CWEN is valued cheaply inside the industry as 94.74% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.84 | ||
| EV/EBITDA | 13.14 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
CWEN has a very decent profitability rating, which may justify a higher PE ratio.
CWEN's earnings are expected to grow with 31.41% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.78
PEG (5Y)N/A
EPS Next 2Y34.08%
EPS Next 3Y31.41%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.64%, CWEN is a good candidate for dividend investing.
CWEN's Dividend Yield is a higher than the industry average which is at 7.17.
Compared to an average S&P500 Dividend Yield of 2.42, CWEN pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.64% |
5.2 History
The dividend of CWEN is nicely growing with an annual growth rate of 15.88%!
CWEN has been paying a dividend for at least 10 years, so it has 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 361.70% of its income as dividend. This is not a sustainable payout ratio.
CWEN's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP361.7%
EPS Next 2Y34.08%
EPS Next 3Y31.41%
31.56
-0.44 (-1.38%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryIndependent Power and Renewable Electricity Producers
Earnings (Last)
Earnings (Next)
Inst Owners75.91%
Inst Owner Change2.95%
Ins Owners0.03%
Ins Owner Change6.17%
Market Cap6.38B
Analysts84.71
Price Target38.77 (22.85%)
Short Float %8.55%
Short Ratio3.36
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.64% |
Yearly Dividend1.65
Dividend Growth(5Y)15.88%
DP361.7%
Div Incr Years5
Div Non Decr Years5
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)30.34%
Min EPS beat(2)-51.84%
Max EPS beat(2)112.53%
EPS beat(4)1
Avg EPS beat(4)-6.51%
Min EPS beat(4)-51.84%
Max EPS beat(4)112.53%
EPS beat(8)3
Avg EPS beat(8)80.41%
EPS beat(12)6
Avg EPS beat(12)148.63%
EPS beat(16)6
Avg EPS beat(16)77.76%
Revenue beat(2)0
Avg Revenue beat(2)-8.2%
Min Revenue beat(2)-13.81%
Max Revenue beat(2)-2.6%
Revenue beat(4)1
Avg Revenue beat(4)-4.11%
Min Revenue beat(4)-16.02%
Max Revenue beat(4)15.99%
Revenue beat(8)2
Avg Revenue beat(8)-4.96%
Revenue beat(12)3
Avg Revenue beat(12)-5.96%
Revenue beat(16)4
Avg Revenue beat(16)-7.74%
PT rev (1m)0.05%
PT rev (3m)2.3%
EPS NQ rev (1m)0%
EPS NQ rev (3m)23.61%
EPS NY rev (1m)0%
EPS NY rev (3m)73.92%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.73%
Revenue NY rev (1m)0.41%
Revenue NY rev (3m)-0.93%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 39.45 | ||
| Fwd PE | 23.41 | ||
| P/S | 4.54 | ||
| P/FCF | 11.84 | ||
| P/OCF | 8.14 | ||
| P/B | 3.28 | ||
| P/tB | N/A | ||
| EV/EBITDA | 13.14 |
EPS(TTM)0.8
EY2.53%
EPS(NY)1.35
Fwd EY4.27%
FCF(TTM)2.67
FCFY8.45%
OCF(TTM)3.88
OCFY12.29%
SpS6.95
BVpS9.61
TBVpS-1.02
PEG (NY)0.78
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.64% | ||
| ROE | 4.84% | ||
| ROCE | 1.68% | ||
| ROIC | 1.33% | ||
| ROICexc | 1.36% | ||
| ROICexgc | 1.61% | ||
| OM | 16.71% | ||
| PM (TTM) | 6.69% | ||
| GM | 64.65% | ||
| FCFM | 38.34% |
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-Score7
Asset Turnover0.1
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.72 | ||
| Debt/FCF | 14.14 | ||
| Debt/EBITDA | 6.89 | ||
| Cap/Depr | 30.06% | ||
| Cap/Sales | 17.43% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 74.67% | ||
| Profit Quality | 573.4% | ||
| Current Ratio | 1.52 | ||
| Quick Ratio | 1.42 | ||
| Altman-Z | 0.5 |
F-Score7
WACC6.03%
ROIC/WACC0.22
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)23.08%
EPS 3Y19.45%
EPS 5YN/A
EPS Q2Q%250%
EPS Next Y50.29%
EPS Next 2Y34.08%
EPS Next 3Y31.41%
EPS Next 5YN/A
Revenue 1Y (TTM)9.08%
Revenue growth 3Y2.16%
Revenue growth 5Y5.85%
Sales Q2Q%13.31%
Revenue Next Year3.27%
Revenue Next 2Y6.99%
Revenue Next 3Y5.72%
Revenue Next 5YN/A
EBIT growth 1Y12.44%
EBIT growth 3Y-10.02%
EBIT growth 5Y-4.74%
EBIT Next Year323.21%
EBIT Next 3Y68.88%
EBIT Next 5YN/A
FCF growth 1Y-13.2%
FCF growth 3Y-3.41%
FCF growth 5Y14.17%
OCF growth 1Y1.29%
OCF growth 3Y3.88%
OCF growth 5Y10.05%