CLEARWAY ENERGY INC-C (CWEN) Stock Fundamental Analysis
NYSE:CWEN - New York Stock Exchange, Inc. - US18539C2044 - Common Stock
Overall CWEN gets a fundamental rating of 5 out of 10. We evaluated CWEN 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. Finally CWEN also has an excellent dividend rating.
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.
Of the past 5 years CWEN 4 years were profitable.
In the past 5 years CWEN always reported a positive cash flow from operatings.
1.2 Ratios
CWEN has a Return On Assets of 0.86%. This is comparable to the rest of the industry: CWEN outperforms 50.00% of its industry peers.
CWEN has a Return On Equity (5.72%) which is in line with its industry peers.
CWEN's Return On Invested Capital of 1.39% is in line compared to the rest of the industry. CWEN outperforms 45.00% of its industry peers.
The Average Return On Invested Capital over the past 3 years for CWEN is below the industry average of 4.30%.
| 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
CWEN has a Profit Margin (8.94%) which is comparable to the rest of the industry.
In the last couple of years the Profit Margin of CWEN has grown nicely.
CWEN has a Operating Margin of 16.72%. This is comparable to the rest of the industry: CWEN outperforms 55.00% of its industry peers.
CWEN's Operating Margin has declined in the last couple of years.
CWEN's Gross Margin of 64.00% is fine compared to the rest of the industry. CWEN outperforms 70.00% of its industry peers.
CWEN's Gross Margin has been stable in the last couple of years.
| 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
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.
Compared to 5 years ago, CWEN has more shares outstanding
Compared to 1 year ago, CWEN has an improved debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 0.47, we must say that CWEN is in the distress zone and has some risk of bankruptcy.
With a decent Altman-Z score value of 0.47, CWEN is doing good in the industry, outperforming 65.00% of the companies in the same industry.
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's Debt to FCF ratio of 15.84 is amongst the best of the industry. CWEN outperforms 90.00% 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 of 3.15. This is comparable to the rest of the industry: CWEN outperforms 45.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.15 | ||
| Debt/FCF | 15.84 | ||
| Altman-Z | 0.47 |
ROIC/WACC0.24
WACC5.8%
2.3 Liquidity
A Current Ratio of 1.59 indicates that CWEN should not have too much problems paying its short term obligations.
With a decent Current ratio value of 1.59, CWEN is doing good in the industry, outperforming 65.00% of the companies in the same industry.
CWEN has a Quick 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.
CWEN has a better Quick ratio (1.49) than 65.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.59 | ||
| Quick Ratio | 1.49 |
3. Growth
3.1 Past
CWEN shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 123.91%, which is quite impressive.
Measured over the past years, CWEN shows a quite strong growth in Earnings Per Share. The EPS has been growing by 14.53% on average per year.
The Revenue has been growing slightly by 2.33% in the past year.
Measured over the past years, CWEN shows a small growth in Revenue. The Revenue has been growing by 4.53% on average per year.
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 18.79% 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 6.41% yearly.
EPS Next Y36.96%
EPS Next 2Y13.1%
EPS Next 3Y18.79%
EPS Next 5YN/A
Revenue Next Year6.78%
Revenue Next 2Y7.08%
Revenue Next 3Y6.41%
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 accelerating.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 24.99 indicates a rather expensive valuation of CWEN.
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.
CWEN is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 28.29, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 30.03, which means the current valuation is very expensive for CWEN.
CWEN's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. CWEN is cheaper than 75.00% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of CWEN to the average of the S&P500 Index (24.44), we can say CWEN is valued slightly more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.99 | ||
| Fwd PE | 30.03 |
4.2 Price Multiples
75.00% 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 90.00% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.54 | ||
| EV/EBITDA | 11.83 |
4.3 Compensation for Growth
CWEN's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as CWEN's earnings are expected to grow with 18.79% in the coming years.
PEG (NY)0.68
PEG (5Y)1.72
EPS Next 2Y13.1%
EPS Next 3Y18.79%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 6.63%, CWEN is a good candidate for dividend investing.
CWEN's Dividend Yield is rather good when compared to the industry average which is at 6.37. CWEN pays more dividend than 90.00% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.28, CWEN pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.63% |
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
CWEN pays out 269.67% 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.
DP269.67%
EPS Next 2Y13.1%
EPS Next 3Y18.79%
CLEARWAY ENERGY INC-C
NYSE:CWEN (1/21/2025, 8:04:00 PM)
After market: 25.74 0 (0%)25.74
-0.61 (-2.31%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryIndependent Power and Renewable Electricity Producers
Earnings (Last)
Earnings (Next)
Inst Owners75.99%
Inst Owner Change-0.15%
Ins Owners0.03%
Ins Owner Change-3.62%
Market Cap5.20B
Analysts83.75
Price Target37.21 (44.56%)
Short Float %5.67%
Short Ratio2.29
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.63% |
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)1.18%
PT rev (3m)1.77%
EPS NQ rev (1m)0%
EPS NQ rev (3m)119.47%
EPS NY rev (1m)0%
EPS NY rev (3m)11.48%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-5.77%
Revenue NY rev (1m)0%
Revenue NY rev (3m)2.8%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.99 | ||
| Fwd PE | 30.03 | ||
| P/S | 3.81 | ||
| P/FCF | 11.54 | ||
| P/OCF | 6.64 | ||
| P/B | 2.44 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.83 |
EPS(TTM)1.03
EY4%
EPS(NY)0.86
Fwd EY3.33%
FCF(TTM)2.23
FCFY8.67%
OCF(TTM)3.88
OCFY15.07%
SpS6.75
BVpS10.56
TBVpS-0.52
PEG (NY)0.68
PEG (5Y)1.72
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 | 0.47 |
F-Score5
WACC5.8%
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 Y36.96%
EPS Next 2Y13.1%
EPS Next 3Y18.79%
EPS Next 5YN/A
Revenue 1Y (TTM)2.33%
Revenue growth 3Y3.1%
Revenue growth 5Y4.53%
Sales Q2Q%31%
Revenue Next Year6.78%
Revenue Next 2Y7.08%
Revenue Next 3Y6.41%
Revenue Next 5YN/A
EBIT growth 1Y-28.08%
EBIT growth 3Y-8.65%
EBIT growth 5Y-5.34%
EBIT Next Year183.42%
EBIT Next 3Y46.93%
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%