CLEARWAY ENERGY INC-C (CWEN) Stock Fundamental Analysis
USA - NYSE:CWEN - US18539C2044 - Common Stock
28.11 USD
+0.22 (+0.79%)
28.26 USD
+0.15 (+0.53%)
We assign a fundamental rating of 4 out of 10 to CWEN. CWEN was compared to 20 industry peers in the Independent Power and Renewable Electricity Producers industry. CWEN has only an average score on both its financial health and profitability. CWEN is quite expensive at the moment. It does show a decent growth rate. Finally 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 each of the past 5 years.
Each year in the past 5 years CWEN had a positive operating cash flow.
1.2 Ratios
CWEN's Return On Assets of 0.47% is in line compared to the rest of the industry. CWEN outperforms 50.00% of its industry peers.
CWEN's Return On Equity of 4.11% is in line compared to the rest of the industry. CWEN outperforms 55.00% of its industry peers.
CWEN's Return On Invested Capital of 1.22% is on the low side compared to the rest of the industry. CWEN is outperformed by 60.00% of its industry peers.
CWEN had an Average Return On Invested Capital over the past 3 years of 1.38%. This is below the industry average of 4.21%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.47% | ||
| ROE | 4.11% | ||
| ROIC | 1.22% |
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's Profit Margin of 5.31% is in line compared to the rest of the industry. CWEN outperforms 55.00% of its industry peers.
CWEN's Profit Margin has improved in the last couple of years.
The Operating Margin of CWEN (16.41%) is better than 65.00% of its industry peers.
In the last couple of years the Operating Margin of CWEN has declined.
The Gross Margin of CWEN (64.32%) is better than 75.00% 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 | 16.41% | ||
| PM (TTM) | 5.31% | ||
| GM | 64.32% |
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.
The number of shares outstanding for CWEN remains at a similar level compared to 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
CWEN has an Altman-Z score of 0.42. 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 0.42 is in line compared to the rest of the industry. CWEN outperforms 55.00% of its industry peers.
The Debt to FCF ratio of CWEN is 15.50, which is on the high side as it means it would take CWEN, 15.50 years of fcf income to pay off all of its debts.
CWEN's Debt to FCF ratio of 15.50 is fine compared to the rest of the industry. CWEN outperforms 80.00% of its industry peers.
CWEN has a Debt/Equity ratio of 4.46. This is a high value indicating a heavy dependency on external financing.
CWEN has a Debt to Equity ratio of 4.46. This is in the lower half of the industry: CWEN underperforms 70.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.46 | ||
| Debt/FCF | 15.5 | ||
| Altman-Z | 0.42 |
ROIC/WACC0.21
WACC5.92%
2.3 Liquidity
CWEN has a Current Ratio of 1.42. 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 (1.42) is better than 80.00% of its industry peers.
CWEN has a Quick Ratio of 1.34. This is a normal value and indicates that CWEN is financially healthy and should not expect problems in meeting its short term obligations.
CWEN's Quick ratio of 1.34 is fine compared to the rest of the industry. CWEN outperforms 80.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.42 | ||
| Quick Ratio | 1.34 |
3. Growth
3.1 Past
CWEN shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -13.33%.
Measured over the past years, CWEN shows a quite strong growth in Earnings Per Share. The EPS has been growing by 19.45% on average per year.
The Revenue has grown by 14.65% in the past year. This is quite good.
CWEN shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.85% yearly.
EPS 1Y (TTM)-13.33%
EPS 3Y19.45%
EPS 5YN/A
EPS Q2Q%-34.88%
Revenue 1Y (TTM)14.65%
Revenue growth 3Y2.16%
Revenue growth 5Y5.85%
Sales Q2Q%7.1%
3.2 Future
The Earnings Per Share is expected to grow by 18.08% on average over the next years. This is quite good.
CWEN is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.27% yearly.
EPS Next Y-24.25%
EPS Next 2Y14.76%
EPS Next 3Y18.08%
EPS Next 5YN/A
Revenue Next Year1.6%
Revenue Next 2Y6.92%
Revenue Next 3Y6.27%
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 stable.
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
Based on the Price/Earnings ratio of 43.25, the valuation of CWEN can be described as expensive.
CWEN's Price/Earnings ratio is a bit cheaper when compared to the industry. CWEN is cheaper than 70.00% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.41. CWEN is valued rather expensively when compared to this.
A Price/Forward Earnings ratio of 28.46 indicates a quite expensive valuation of CWEN.
75.00% of the companies in the same industry are more expensive than CWEN, based on the Price/Forward Earnings ratio.
CWEN's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 22.88.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 43.25 | ||
| Fwd PE | 28.46 |
4.2 Price Multiples
CWEN's Enterprise Value to EBITDA ratio is in line with the industry average.
Based on the Price/Free Cash Flow ratio, CWEN is valued cheaply inside the industry as 95.00% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.11 | ||
| EV/EBITDA | 13.33 |
4.3 Compensation for Growth
A more expensive valuation may be justified as CWEN's earnings are expected to grow with 18.08% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y14.76%
EPS Next 3Y18.08%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 6.39%, CWEN is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 4.70, CWEN pays a better dividend. On top of this CWEN pays more dividend than 90.00% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.38, CWEN pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.39% |
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.
As CWEN did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
Dividend Growth(5Y)15.88%
Div Incr Years5
Div Non Decr Years5
5.3 Sustainability
455.26% of the earnings are spent on dividend by CWEN. This is not a sustainable payout ratio.
The dividend of CWEN is growing around the same rate as the earnings are growing. If this keeps up the dividend growth is sustainable.
DP455.26%
EPS Next 2Y14.76%
EPS Next 3Y18.08%
28.11
+0.22 (+0.79%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryIndependent Power and Renewable Electricity Producers
Earnings (Last)
Earnings (Next)
Inst Owners75.92%
Inst Owner Change0.17%
Ins Owners0.03%
Ins Owner Change5.83%
Market Cap5.68B
Analysts83.53
Price Target39.56 (40.73%)
Short Float %10.63%
Short Ratio4.14
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.39% |
Yearly Dividend1.65
Dividend Growth(5Y)15.88%
DP455.26%
Div Incr Years5
Div Non Decr Years5
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)24.85%
Min EPS beat(2)-62.82%
Max EPS beat(2)112.53%
EPS beat(4)1
Avg EPS beat(4)-11.16%
Min EPS beat(4)-62.82%
Max EPS beat(4)112.53%
EPS beat(8)3
Avg EPS beat(8)78.82%
EPS beat(12)5
Avg EPS beat(12)64.77%
EPS beat(16)6
Avg EPS beat(16)75.05%
Revenue beat(2)0
Avg Revenue beat(2)-6.27%
Min Revenue beat(2)-9.94%
Max Revenue beat(2)-2.6%
Revenue beat(4)1
Avg Revenue beat(4)-2.59%
Min Revenue beat(4)-13.81%
Max Revenue beat(4)15.99%
Revenue beat(8)1
Avg Revenue beat(8)-6.57%
Revenue beat(12)3
Avg Revenue beat(12)-5.74%
Revenue beat(16)3
Avg Revenue beat(16)-8.41%
PT rev (1m)0.72%
PT rev (3m)1.71%
EPS NQ rev (1m)-5.58%
EPS NQ rev (3m)-6.27%
EPS NY rev (1m)-47.35%
EPS NY rev (3m)-49.6%
Revenue NQ rev (1m)0.34%
Revenue NQ rev (3m)1.1%
Revenue NY rev (1m)-1.81%
Revenue NY rev (3m)-1.62%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 43.25 | ||
| Fwd PE | 28.46 | ||
| P/S | 3.97 | ||
| P/FCF | 10.11 | ||
| P/OCF | 7.3 | ||
| P/B | 3.07 | ||
| P/tB | N/A | ||
| EV/EBITDA | 13.33 |
EPS(TTM)0.65
EY2.31%
EPS(NY)0.99
Fwd EY3.51%
FCF(TTM)2.78
FCFY9.89%
OCF(TTM)3.85
OCFY13.71%
SpS7.08
BVpS9.14
TBVpS-2.13
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.47% | ||
| ROE | 4.11% | ||
| ROCE | 1.55% | ||
| ROIC | 1.22% | ||
| ROICexc | 1.24% | ||
| ROICexgc | 1.47% | ||
| OM | 16.41% | ||
| PM (TTM) | 5.31% | ||
| GM | 64.32% | ||
| FCFM | 39.25% |
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-Score5
Asset Turnover0.09
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.46 | ||
| Debt/FCF | 15.5 | ||
| Debt/EBITDA | 7.78 | ||
| Cap/Depr | 26.3% | ||
| Cap/Sales | 15.15% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 73.49% | ||
| Profit Quality | 739.47% | ||
| Current Ratio | 1.42 | ||
| Quick Ratio | 1.34 | ||
| Altman-Z | 0.42 |
F-Score5
WACC5.92%
ROIC/WACC0.21
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)-13.33%
EPS 3Y19.45%
EPS 5YN/A
EPS Q2Q%-34.88%
EPS Next Y-24.25%
EPS Next 2Y14.76%
EPS Next 3Y18.08%
EPS Next 5YN/A
Revenue 1Y (TTM)14.65%
Revenue growth 3Y2.16%
Revenue growth 5Y5.85%
Sales Q2Q%7.1%
Revenue Next Year1.6%
Revenue Next 2Y6.92%
Revenue Next 3Y6.27%
Revenue Next 5YN/A
EBIT growth 1Y62.07%
EBIT growth 3Y-10.02%
EBIT growth 5Y-4.74%
EBIT Next Year316.68%
EBIT Next 3Y67.87%
EBIT Next 5YN/A
FCF growth 1Y-2.6%
FCF growth 3Y-3.41%
FCF growth 5Y14.17%
OCF growth 1Y8.65%
OCF growth 3Y3.88%
OCF growth 5Y10.05%