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 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 has a correct valuation and a medium growth rate. 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.
Each year in the past 5 years CWEN has been profitable.
CWEN had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
CWEN has a Return On Assets of 0.64%. This is comparable to the rest of the industry: CWEN outperforms 60.00% of its industry peers.
CWEN has a Return On Equity of 4.84%. This is in the better half of the industry: CWEN outperforms 70.00% of its industry peers.
The Return On Invested Capital of CWEN (1.33%) is comparable to the rest of the industry.
Measured over the past 3 years, the Average Return On Invested Capital for CWEN is below the industry average of 3.71%.
| 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's Profit Margin of 6.69% is fine compared to the rest of the industry. CWEN outperforms 65.00% of its industry peers.
CWEN's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 16.71%, CWEN is in the better half of the industry, outperforming 65.00% of the companies in the same industry.
CWEN's Operating Margin has declined in the last couple of years.
CWEN has a better Gross Margin (64.65%) than 80.00% 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.
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
The debt/assets ratio for CWEN has been reduced compared to a year ago.
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 has a Altman-Z score (0.49) which is comparable to the rest of the industry.
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.
With an excellent Debt to FCF ratio value of 14.14, CWEN belongs to the best of the industry, outperforming 90.00% of the companies in the same industry.
A Debt/Equity ratio of 3.72 is on the high side and indicates that CWEN has dependencies on debt financing.
CWEN has a Debt to Equity ratio (3.72) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.72 | ||
| Debt/FCF | 14.14 | ||
| Altman-Z | 0.49 |
ROIC/WACC0.22
WACC5.92%
2.3 Liquidity
CWEN has a Current Ratio of 1.52. 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 Current ratio of 1.52. This is in the better half of the industry: CWEN outperforms 80.00% of its industry peers.
A Quick Ratio of 1.42 indicates that CWEN should not have too much problems paying its short term obligations.
CWEN has a Quick ratio of 1.42. This is in the better half of the industry: CWEN outperforms 80.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.52 | ||
| Quick Ratio | 1.42 |
3. Growth
3.1 Past
CWEN shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 23.08%, 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 19.45% on average per year.
The Revenue has grown by 9.08% in the past year. This is quite good.
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
Based on estimates for the next years, CWEN will show a very strong growth in Earnings Per Share. The EPS will grow by 31.41% on average per year.
Based on estimates for the next years, CWEN will show a small growth in Revenue. The Revenue will grow by 4.75% on average per year.
EPS Next Y50.29%
EPS Next 2Y34.08%
EPS Next 3Y31.41%
EPS Next 5YN/A
Revenue Next Year2.85%
Revenue Next 2Y6.76%
Revenue Next 3Y4.75%
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
The Price/Earnings ratio is 37.50, which means the current valuation is very expensive for CWEN.
Based on the Price/Earnings ratio, CWEN is valued a bit cheaper than the industry average as 65.00% of the companies are valued more expensively.
CWEN is valuated rather expensively when we compare the Price/Earnings ratio to 26.03, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 22.25, the valuation of CWEN can be described as rather expensive.
Based on the Price/Forward Earnings ratio, CWEN is valued a bit 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 (21.94), we can say CWEN is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.5 | ||
| Fwd PE | 22.25 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of CWEN is on the same level as its industry peers.
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 | 11.25 | ||
| EV/EBITDA | 12.87 |
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.
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)0.75
PEG (5Y)N/A
EPS Next 2Y34.08%
EPS Next 3Y31.41%
5. Dividend
5.1 Amount
CWEN has a Yearly Dividend Yield of 6.05%, which is a nice return.
Compared to an average industry Dividend Yield of 6.37, CWEN pays a better dividend. On top of this CWEN pays more dividend than 90.00% of the companies listed in the same industry.
CWEN's Dividend Yield is rather good when compared to the S&P500 average which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.05% |
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
361.70% of the earnings are spent on dividend by CWEN. This is not a sustainable payout ratio.
The dividend of CWEN is growing, but earnings are growing more, so the dividend growth is sustainable.
DP361.7%
EPS Next 2Y34.08%
EPS Next 3Y31.41%
30
-0.61 (-1.99%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryIndependent Power and Renewable Electricity Producers
Earnings (Last)
Earnings (Next)
Inst Owners76.13%
Inst Owner Change2.75%
Ins Owners0.03%
Ins Owner Change4.43%
Market Cap6.06B
Analysts84.71
Price Target38.76 (29.2%)
Short Float %8.31%
Short Ratio2.73
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.05% |
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)0.63%
PT rev (3m)3.04%
EPS NQ rev (1m)19.02%
EPS NQ rev (3m)67.35%
EPS NY rev (1m)72.76%
EPS NY rev (3m)73.92%
Revenue NQ rev (1m)-0.2%
Revenue NQ rev (3m)3.65%
Revenue NY rev (1m)-2.44%
Revenue NY rev (3m)-4.09%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.5 | ||
| Fwd PE | 22.25 | ||
| P/S | 4.31 | ||
| P/FCF | 11.25 | ||
| P/OCF | 7.74 | ||
| P/B | 3.12 | ||
| P/tB | N/A | ||
| EV/EBITDA | 12.87 |
EPS(TTM)0.8
EY2.67%
EPS(NY)1.35
Fwd EY4.49%
FCF(TTM)2.67
FCFY8.89%
OCF(TTM)3.88
OCFY12.93%
SpS6.96
BVpS9.61
TBVpS-1.02
PEG (NY)0.75
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 | 0.49 |
F-Score7
WACC5.92%
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 Year2.85%
Revenue Next 2Y6.76%
Revenue Next 3Y4.75%
Revenue Next 5YN/A
EBIT growth 1Y12.44%
EBIT growth 3Y-10.02%
EBIT growth 5Y-4.74%
EBIT Next Year321.49%
EBIT Next 3Y68.68%
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%