Clearway Energy, Inc. (NYSE: CWEN)

Sector: Utilities Industry: Utilities - Renewable CIK: 0001567683
Market Cap 4.62 Bn
P/B 2.53
P/E 184.82
P/S 3.85
ROIC (Qtr) 1.64
Div Yield % 3.97
Rev 1y % (Qtr) -11.73
Total Debt (Qtr) 9.22 Bn
Debt/Equity (Qtr) 4.50
Add ratio to table...

About

Clearway Energy, Inc. (CWEN) is a company that operates in the energy infrastructure industry, with a focus on investments in clean energy. The company was established in 2012 and is sponsored by Global Infrastructure Partners (GIP) and TotalEnergies through the portfolio company, Clearway Energy Group LLC (CEG). Clearway Energy's primary business strategy is to invest in assets with predictable, long-term cash flows to increase dividends for its shareholders while maintaining the stability of its business. Clearway Energy's main business activities...

Read more

Investment thesis

Bull case

  • Robust free cash flow of 440M exceeds capital expenditure of 263M by 1.67x, indicating strong organic growth funding capability.
  • Strong operating cash flow of 703M provides 17.15x coverage of SG&A expenses 41M, showing efficient operational cost management.
  • Robust tangible asset base of 13.66B provides 36.72x coverage of working capital 372M, indicating strong operational backing.
  • Tangible assets of 13.66B provide robust 83.79x coverage of other current liabilities 163M, indicating strong asset backing.
  • Operating cash flow of 703M provides solid 1.02x coverage of current liabilities 687M, showing strong operational health.

Bear case

  • Operating cash flow of 703M barely covers its investment activities of (790M), with a coverage ratio of -0.89, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Operating cash flow of 703M provides thin coverage of dividend payments of (351M) with a -2 ratio, suggesting potential dividend sustainability issues if operational performance deteriorates.
  • Cash reserves of 641M provide limited coverage of acquisition spending of (533M), which is -1.20x, suggesting aggressive expansion might strain liquidity if market conditions deteriorate.
  • High receivables of 238M relative to inventory of 71M (3.35 ratio) suggests aggressive credit terms or collection difficulties, potentially masking revenue quality issues.
  • Operating cash flow of 703M provides minimal -27.04x coverage of tax expenses of (26M), suggesting potential tax planning inefficiencies or unsustainable tax positions.

Segments Breakdown of Revenue (2024)

Segments Breakdown of Revenue (2024)

Peer comparison

Companies in the Utilities - Renewable
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 CEG Constellation Energy Corp 98.92 Bn 153.61 4.71 9.04 Bn
2 ENLT Enlight Renewable Energy Ltd. 9.32 Bn 66.03 14.79 5.54 Bn
3 BEP Brookfield Renewable Partners L.P. 9.20 Bn -37.24 1.46 39.66 Bn
4 ORA Ormat Technologies, Inc. 5.64 Bn 146.14 14.39 2.75 Bn
5 CWEN Clearway Energy, Inc. 4.62 Bn 184.82 3.85 9.22 Bn
6 FLNC Fluence Energy, Inc. 2.37 Bn -45.59 0.93 0.39 Bn
7 RNW ReNew Energy Global plc 1.93 Bn 14.53 1.21 9.22 Bn
8 XIFR XPLR Infrastructure, LP 1.00 Bn -35.67 0.84 6.20 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 0.69 0.82
EV to Cash from Ops. EV/CFO 20.30 3.77
EV to Debt EV to Debt 1.20 -7.57
EV to EBIT EV/EBIT 24.69 18.11
EV to EBITDA EV/EBITDA 12.94 5.59
EV to Free Cash Flow [EV/FCF] EV/FCF 21.65 -9.43
EV to Market Cap EV to Market Cap 2.39 -1.15
EV to Revenue EV/Rev 9.23 -22.88
Price to Book Value [P/B] P/B 2.53 2.64
Price to Earnings [P/E] P/E 184.82 1.37
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 0.79 -4.71
Dividend Payout Ratio % Div Payout % (Qtr) 74.30 -0.74
Dividend per Basic Share Div per Share (Qtr) 1.74 0.32
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 46.61 12.62
Interest Coverage Int. cover (Qtr) 1.78 -4.73
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 32.22 -691.81
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -4.90 37.74
Dividend Growth (1y) % Div 1y % (Qtr) 6.82 0.15
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -14.72 -300.29
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -0.10 -47.88
EBIT Growth (1y) % EBIT 1y % (Qtr) 13.55 -76.46
EBT Growth (1y) % EBT 1y % (Qtr) 201.20 -85.90
EPS Growth (1y) % EPS 1y % (Qtr) 127.18 398.06
FCF Growth (1y) % FCF 1y % (Qtr) 11.11 1,637.76
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) -0.23 93.44
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.09 0.35
Cash Payout Ratio Cash Payout (Qtr) 0.36 0.02
Cash Ratio Cash Ratio (Qtr) 0.93 1.83
Current Ratio Curr Ratio (Qtr) 1.54 2.29
Debt to Equity Ratio Debt/Equity (Qtr) 4.50 0.89
Interest Cover Ratio Int Coverage (Qtr) 1.78 -4.73
Times Interest Earned Times Interest Earned (Qtr) 1.78 -4.73
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 103.70 -241.05
EBIT Margin % EBIT Margin % (Qtr) 41.45 -107.41
EBT Margin % EBT Margin % (Qtr) 18.18 -407.45
Gross Margin % Gross Margin % (Qtr) 63.30 9.67
Net Profit Margin % Net Margin % (Qtr) 20.10 -408.25