CLEARWAY ENERGY INC-C (CWEN) Stock Fundamental Analysis
USA - NYSE:CWEN - US18539C2044 - Common Stock
28.72 USD
+0.1 (+0.35%)
28.72 USD
0 (0%)
CWEN gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 20 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 is valied quite expensively at the moment, while it does show a decent growth rate. CWEN also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year CWEN was profitable.
CWEN had a positive operating cash flow in the past year.
In the past 5 years CWEN has always 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 0.47%. This is comparable to the rest of the industry: CWEN outperforms 50.00% of its industry peers.
CWEN has a Return On Equity (4.11%) which is comparable to the rest of the industry.
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.
The Average Return On Invested Capital over the past 3 years for CWEN 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 has a Profit Margin (5.31%) which is comparable to the rest of the industry.
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.
CWEN's Operating Margin has declined in the last couple of years.
CWEN has a better Gross Margin (64.32%) 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
CWEN has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, CWEN has about the same amount of shares outstanding.
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 0.43. This is a bad value and indicates that CWEN is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.43, CWEN is in line with its industry, outperforming 55.00% of the companies in the same industry.
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 has a better Debt to FCF ratio (15.50) than 80.00% of its industry peers.
A Debt/Equity ratio of 4.46 is on the high side and indicates that CWEN has dependencies on debt financing.
CWEN has a worse Debt to Equity ratio (4.46) than 70.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.46 | ||
| Debt/FCF | 15.5 | ||
| Altman-Z | 0.43 |
ROIC/WACC0.21
WACC5.93%
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.
With a decent Current ratio value of 1.42, CWEN is doing good in the industry, outperforming 80.00% of the companies in the same industry.
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 has a better Quick ratio (1.34) than 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.
Looking at the last year, CWEN shows a quite strong growth in Revenue. The Revenue has grown by 14.65% in the last year.
The Revenue has been growing slightly by 5.85% on average over the past years.
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
CWEN is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 18.08% yearly.
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
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
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
CWEN is valuated quite expensively with a Price/Earnings ratio of 44.18.
Based on the Price/Earnings ratio, CWEN is valued a bit cheaper than the industry average as 70.00% of the companies are valued more expensively.
CWEN's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 27.30.
The Price/Forward Earnings ratio is 29.08, which means the current valuation is very expensive for CWEN.
Based on the Price/Forward Earnings ratio, CWEN is valued a bit cheaper than the industry average as 70.00% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of CWEN to the average of the S&P500 Index (22.73), we can say CWEN is valued slightly more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 44.18 | ||
| Fwd PE | 29.08 |
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 cheaper than 95.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.33 | ||
| EV/EBITDA | 13.45 |
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
On average, the dividend of CWEN grows each year by 15.88%, which is quite nice.
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.
CWEN's earnings are growing around the same pace than its dividend. As long as the earnings growth is kept the dividend growth is sustainable.
DP455.26%
EPS Next 2Y14.76%
EPS Next 3Y18.08%
28.72
+0.1 (+0.35%)
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 Cap5.81B
Analysts83.53
Price Target39.56 (37.74%)
Short Float %10.58%
Short Ratio3.95
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 | 44.18 | ||
| Fwd PE | 29.08 | ||
| P/S | 4.06 | ||
| P/FCF | 10.33 | ||
| P/OCF | 7.45 | ||
| P/B | 3.14 | ||
| P/tB | N/A | ||
| EV/EBITDA | 13.45 |
EPS(TTM)0.65
EY2.26%
EPS(NY)0.99
Fwd EY3.44%
FCF(TTM)2.78
FCFY9.68%
OCF(TTM)3.85
OCFY13.42%
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 | 0.43 |
F-Score5
WACC5.93%
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%