CLEARWAY ENERGY INC-C (CWEN) Stock Fundamental Analysis
NYSE:CWEN - New York Stock Exchange, Inc. - US18539C2044 - Common Stock - Currency: USD
CWEN gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 19 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 decent growth rate and is not valued too expensively. Finally CWEN also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year CWEN was profitable.
In the past year CWEN had a positive cash flow from operations.
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 (0.64%) which is in line with its industry peers.
The Return On Equity of CWEN (4.84%) is better than 68.42% of its industry peers.
Looking at the Return On Invested Capital, with a value of 1.33%, CWEN is in line with its industry, outperforming 52.63% of the companies in the same industry.
CWEN had an Average Return On Invested Capital over the past 3 years of 1.38%. This is below the industry average of 3.81%.
| 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
With a decent Profit Margin value of 6.69%, CWEN is doing good in the industry, outperforming 63.16% of the companies in the same industry.
CWEN's Profit Margin has improved in the last couple of years.
CWEN has a better Operating Margin (16.71%) than 63.16% of its industry peers.
In the last couple of years the Operating Margin of CWEN has declined.
CWEN's Gross Margin of 64.65% is amongst the best of the industry. CWEN outperforms 84.21% 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so CWEN is destroying value.
CWEN has about the same amout of shares outstanding than it did 1 year ago.
CWEN has more shares outstanding than it did 5 years ago.
CWEN has a better debt/assets ratio than last year.
2.2 Solvency
CWEN has an Altman-Z score of 0.51. 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 (0.51) which is in line with its industry peers.
The Debt to FCF ratio of CWEN is 14.14, which is on the high side as it means it would take CWEN, 14.14 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of CWEN (14.14) is better than 89.47% of its industry peers.
CWEN has a Debt/Equity ratio of 3.72. This is a high value indicating a heavy dependency on external 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 | 0.51 |
ROIC/WACC0.22
WACC6.09%
2.3 Liquidity
A Current Ratio of 1.52 indicates that CWEN should not have too much problems paying its short term obligations.
The Current ratio of CWEN (1.52) is better than 68.42% of its industry peers.
CWEN has a Quick 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.
Looking at the Quick ratio, with a value of 1.42, CWEN is in the better half of the industry, outperforming 73.68% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.52 | ||
| Quick Ratio | 1.42 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 23.08% over the past year.
The Earnings Per Share has been growing by 19.45% on average over the past years. This is quite good.
The Revenue has grown by 9.08% in the past year. This is quite good.
CWEN shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.85% yearly.
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.
The Revenue is expected to grow by 5.72% on average over the next years.
EPS Next Y50.29%
EPS Next 2Y34.08%
EPS Next 3Y31.41%
EPS Next 5YN/A
Revenue Next Year3.27%
Revenue Next 2Y6.99%
Revenue Next 3Y5.72%
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.
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
A Price/Earnings ratio of 40.80 indicates a quite expensive valuation of CWEN.
63.16% of the companies in the same industry are more expensive than CWEN, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of CWEN to the average of the S&P500 Index (27.45), we can say CWEN is valued slightly more expensively.
With a Price/Forward Earnings ratio of 24.21, CWEN is valued on the expensive side.
Based on the Price/Forward Earnings ratio, CWEN is valued a bit cheaper than 73.68% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.90. CWEN is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 40.8 | ||
| Fwd PE | 24.21 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CWEN is valued a bit cheaper than 63.16% of the companies in the same industry.
CWEN's Price/Free Cash Flow ratio is rather cheap when compared to the industry. CWEN is cheaper than 94.74% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.24 | ||
| EV/EBITDA | 13.26 |
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.
The decent profitability rating of CWEN 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)0.81
PEG (5Y)N/A
EPS Next 2Y34.08%
EPS Next 3Y31.41%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.64%, CWEN is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 7.17, CWEN pays a bit more dividend than its industry peers.
CWEN's Dividend Yield is rather good when compared to the S&P500 average which is at 2.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.64% |
5.2 History
On average, the dividend of CWEN grows each year by 15.88%, which is quite nice.
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
CWEN pays out 361.70% 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.
DP361.7%
EPS Next 2Y34.08%
EPS Next 3Y31.41%
32.64
+0.67 (+2.1%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryIndependent Power and Renewable Electricity Producers
Earnings (Last)
Earnings (Next)
Inst Owners75.91%
Inst Owner Change2.95%
Ins Owners0.03%
Ins Owner Change6.17%
Market Cap6.60B
Analysts84.71
Price Target38.77 (18.78%)
Short Float %8.55%
Short Ratio3.36
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.64% |
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)0.05%
PT rev (3m)2.3%
EPS NQ rev (1m)0%
EPS NQ rev (3m)23.61%
EPS NY rev (1m)0%
EPS NY rev (3m)73.92%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.73%
Revenue NY rev (1m)0.41%
Revenue NY rev (3m)-0.93%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 40.8 | ||
| Fwd PE | 24.21 | ||
| P/S | 4.69 | ||
| P/FCF | 12.24 | ||
| P/OCF | 8.42 | ||
| P/B | 3.4 | ||
| P/tB | N/A | ||
| EV/EBITDA | 13.26 |
EPS(TTM)0.8
EY2.45%
EPS(NY)1.35
Fwd EY4.13%
FCF(TTM)2.67
FCFY8.17%
OCF(TTM)3.88
OCFY11.88%
SpS6.95
BVpS9.61
TBVpS-1.02
PEG (NY)0.81
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 | 0.51 |
F-Score7
WACC6.09%
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 Year3.27%
Revenue Next 2Y6.99%
Revenue Next 3Y5.72%
Revenue Next 5YN/A
EBIT growth 1Y12.44%
EBIT growth 3Y-10.02%
EBIT growth 5Y-4.74%
EBIT Next Year323.21%
EBIT Next 3Y68.88%
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%