CLEARWAY ENERGY INC-C (CWEN)
US18539C2044 - Common Stock
We assign a fundamental rating of 5 out of 10 to CWEN. CWEN was compared to 21 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 not valued too expensively and it also shows 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.
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 0.54%. This is in the better half of the industry: CWEN outperforms 61.90% of its industry peers.
Looking at the Return On Equity, with a value of 3.76%, CWEN is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
CWEN's Return On Invested Capital of 1.67% is in line compared to the rest of the industry. CWEN outperforms 52.38% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for CWEN is in line with the industry average of 3.61%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.54% | ||
| ROE | 3.76% | ||
| ROIC | 1.67% |
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
With a decent Profit Margin value of 6.01%, CWEN is doing good in the industry, outperforming 71.43% of the companies in the same industry.
In the last couple of years the Profit Margin of CWEN has grown nicely.
With a decent Operating Margin value of 21.23%, CWEN is doing good in the industry, outperforming 71.43% of the companies in the same industry.
In the last couple of years the Operating Margin of CWEN has declined.
With a decent Gross Margin value of 64.00%, CWEN is doing good in the industry, outperforming 71.43% of the companies in the same industry.
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 | 21.23% | ||
| PM (TTM) | 6.01% | ||
| 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
CWEN has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
CWEN has about the same amout of shares outstanding than it did 1 year ago.
The number of shares outstanding for CWEN has been increased compared to 5 years ago.
CWEN has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 0.28, we must say that CWEN is in the distress zone and has some risk of bankruptcy.
CWEN's Altman-Z score of 0.28 is in line compared to the rest of the industry. CWEN outperforms 42.86% of its industry peers.
The Debt to FCF ratio of CWEN is 17.36, which is on the high side as it means it would take CWEN, 17.36 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of CWEN (17.36) is better than 80.95% of its industry peers.
CWEN has a Debt/Equity ratio of 3.56. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 3.56, CWEN is not doing good in the industry: 66.67% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.56 | ||
| Debt/FCF | 17.36 | ||
| Altman-Z | 0.28 |
ROIC/WACC0.36
WACC4.69%
2.3 Liquidity
A Current Ratio of 1.72 indicates that CWEN should not have too much problems paying its short term obligations.
CWEN's Current ratio of 1.72 is fine compared to the rest of the industry. CWEN outperforms 66.67% of its industry peers.
A Quick Ratio of 1.66 indicates that CWEN should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.66, CWEN is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.72 | ||
| Quick Ratio | 1.66 |
3. Growth
3.1 Past
CWEN shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -86.57%.
CWEN shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 14.53% yearly.
The Revenue has grown by 10.42% in the past year. This is quite good.
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)-86.57%
EPS 3Y47.21%
EPS 5Y14.53%
EPS growth Q2Q210%
Revenue 1Y (TTM)10.42%
Revenue growth 3Y3.1%
Revenue growth 5Y4.53%
Revenue growth Q2Q-7.09%
3.2 Future
CWEN is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 38.70% yearly.
The Revenue is expected to grow by 3.75% on average over the next years.
EPS Next Y53.76%
EPS Next 2Y36.83%
EPS Next 3Y38.7%
EPS Next 5YN/A
Revenue Next Year5.06%
Revenue Next 2Y4.59%
Revenue Next 3Y3.75%
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 stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 36.46 indicates a quite expensive valuation of CWEN.
Based on the Price/Earnings ratio, CWEN is valued a bit cheaper than 66.67% of the companies in the same industry.
CWEN's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 28.28.
With a Price/Forward Earnings ratio of 23.71, CWEN is valued on the expensive side.
CWEN's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. CWEN is cheaper than 76.19% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 20.88. CWEN is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.46 | ||
| Fwd PE | 23.71 |
4.2 Price Multiples
CWEN's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. CWEN is cheaper than 90.48% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of CWEN indicates a rather cheap valuation: CWEN is cheaper than 100.00% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 1.83 | ||
| EV/EBITDA | 8.43 |
4.3 Compensation for Growth
The 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 38.70% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.68
PEG (5Y)2.51
EPS Next 2Y36.83%
EPS Next 3Y38.7%
5. Dividend
5.1 Amount
CWEN has a Yearly Dividend Yield of 5.84%, which is a nice return.
CWEN's Dividend Yield is rather good when compared to the industry average which is at 5.56. CWEN pays more dividend than 85.71% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.41, CWEN pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.84% |
5.2 History
The dividend of CWEN has a limited annual growth rate of 4.10%.
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 last 3 years.
Dividend Growth(5Y)4.1%
Div Incr Years4
Div Non Decr Years4
5.3 Sustainability
393.67% of the earnings are spent on dividend by CWEN. This is not a sustainable payout ratio.
CWEN's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP393.67%
EPS Next 2Y36.83%
EPS Next 3Y38.7%
CLEARWAY ENERGY INC-C
NYSE:CWEN (5/3/2024, 7:04:00 PM)
After market: 24.5 +0.07 (+0.29%)24.43
+0.73 (+3.08%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryIndependent Power and Renewable Electricity Producers
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap845.62M
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.84% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(4)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
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Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.46 | ||
| Fwd PE | 23.71 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.68
PEG (5Y)2.51
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.54% | ||
| ROE | 3.76% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 21.23% | ||
| PM (TTM) | 6.01% | ||
| GM | 64% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.09
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.56 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.72 | ||
| Quick Ratio | 1.66 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-86.57%
EPS 3Y47.21%
EPS 5Y
EPS growth Q2Q
EPS Next Y53.76%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)10.42%
Revenue growth 3Y3.1%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y