Clearway Energy, Inc. Fundamental Analysis (NYSE: CWEN)
Clearway Energy, Inc. (NYSE: CWEN) shows moderate financial fundamentals with a PE ratio of -41.84, profit margin of -5.64%, and ROE of -2.54%. The company generates $2.8B in annual revenue with moderate year-over-year growth of 4.23%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 12.3/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze CWEN's fundamental strength across five key dimensions:
Efficiency Score
WeakCWEN struggles to generate sufficient returns from assets.
Valuation Score
ExcellentCWEN trades at attractive valuation levels.
Growth Score
ModerateCWEN shows steady but slowing expansion.
Financial Health Score
ModerateCWEN shows balanced financial health with some risks.
Profitability Score
WeakCWEN struggles to sustain strong margins.
Key Financial Metrics
Is CWEN Expensive or Cheap?
P/E Ratio
CWEN trades at -41.84 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, CWEN's PEG of 0.31 indicates potential undervaluation.
Price to Book
The market values Clearway Energy, Inc. at 2.17 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at -2.42 times EBITDA. This is generally considered low.
How Well Does CWEN Make Money?
Net Profit Margin
For every $100 in sales, Clearway Energy, Inc. keeps $-5.64 as profit after all expenses.
Operating Margin
Core operations generate 14.94 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $-2.54 in profit for every $100 of shareholder equity.
ROA
Clearway Energy, Inc. generates $-0.54 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Clearway Energy, Inc. generates strong operating cash flow of $1.89B, reflecting robust business health.
Free Cash Flow
Clearway Energy, Inc. generates strong free cash flow of $1.02B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $4.98 in free cash annually.
FCF Yield
CWEN converts 8.58% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
-41.84
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.31
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.17
vs 25 benchmark
P/S Ratio
Price to sales ratio
4.22
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
5.36
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.47
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
-0.03
vs 25 benchmark
ROA
Return on assets percentage
-0.01
vs 25 benchmark
ROCE
Return on capital employed
0.02
vs 25 benchmark
How CWEN Stacks Against Its Sector Peers
| Metric | CWEN Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | -41.84 | 19.23 | Better (Cheaper) |
| ROE | -2.54% | 1035.00% | Weak |
| Net Margin | -5.64% | -2197.00% (disorted) | Weak |
| Debt/Equity | 5.36 | 1.79 | Weak (High Leverage) |
| Current Ratio | 1.47 | 1.75 | Neutral |
| ROA | -0.54% | 506.00% | Weak |
CWEN outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Clearway Energy, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
15.18%
Industry Style: Defensive, Dividend, Income
High GrowthEPS CAGR
553.28%
Industry Style: Defensive, Dividend, Income
High GrowthFCF CAGR
22.00%
Industry Style: Defensive, Dividend, Income
High Growth