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Clearway Energy
(NYSE:CWEN)
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Rating:53Neutral
Price Target:
$30.00
▼(-7.66% Downside)
Action:Reiterated
Date:09/29/26
The score is anchored by solid cash-flow strength but materially constrained by high leverage and volatile profitability. Technicals are notably weak with the stock trading below major moving averages and bearish momentum signals. Valuation is mixed—an attractive dividend yield is offset by a high P/E—while the earnings call balances a near-term CAFD guidance cut against credible longer-term growth targets and a visible, increasingly commercialized pipeline that still requires external capital.
Positive Factors
Strong cash generation
Clearway’s substantial operating and free cash flow supports its capital-intensive renewable utility model and provides internally generated funding for investment and distributions. Improved coverage versus prior periods strengthens financial flexibility, although historical variability remains relevant.
Negative Factors
High leverage
Heavy debt leaves Clearway more exposed to financing costs, refinancing requirements, and weaker asset performance than a less levered utility. Although equity improved, low TTM return on equity indicates that the large capital base is not yet generating commensurately strong profitability.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong cash generation
Clearway’s substantial operating and free cash flow supports its capital-intensive renewable utility model and provides internally generated funding for investment and distributions. Improved coverage versus prior periods strengthens financial flexibility, although historical variability remains relevant.
Read all positive factors
Clearway Energy Key Performance Indicators (KPIs)
Any
Net Income Breakdown
Analyzes the components contributing to net income, providing insight into profitability and how different factors like costs, taxes, and interest impact the bottom line.
Analyzes the components contributing to net income, providing insight into profitability and how different factors like costs, taxes, and interest impact the bottom line.
Data provided by:
The Fly
The FlyClearway Energy (CWEN) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$5.98B
Dividend Yield6.32%
Average Volume (3M)1.17M
Price to Earnings (P/E)38.6
Beta (1Y)0.10
Revenue Growth7.99%
EPS Growth22.73%
CountryUS
Employees60
SectorUtilities
Sector Strength65
IndustryRenewable Utilities
Share Statistics
EPS (TTM)0.76
Shares Outstanding121,174,960
10 Day Avg. Volume1,305,342
30 Day Avg. Volume1,166,748
Financial Highlights & Ratios
PEG Ratio0.26
Price to Book (P/B)2.06
Price to Sales (P/S)2.77
P/FCF Ratio10.73
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$44.50Price Target Upside36.97% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering6
EPS Forecast (FY)-0.21
Revenue Forecast (FY)$1.65B
Clearway Energy Business Overview & Revenue Model
Company Description
Clearway Energy, Inc. (CWEN) operates as an energy company primarily focused on renewable power generation across the United States. Its diverse portfolio includes approximately 5,000 net megawatts (MW) of installed wind and solar projects, alongs...
How the Company Makes Money
Clearway Energy makes money primarily by generating electricity at its owned power plants and selling that electricity (and, where applicable, associated environmental attributes) under long-term contracted arrangements that are designed to produc...
Clearway Energy Earnings Call Summary
Earnings Call Date:Aug 05, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 29, 2026
Earnings Call Sentiment Positive
The call presents strong long-term conviction driven by a sizable and increasingly commercialized development pipeline, clear multi-year capital plans, accretive contracting actions, and a path to deliver top-end 2030 targets. Near-term results were impacted by weather-driven resource shortfalls that prompted a downward revision to 2026 CAFD guidance and introduced near-term sensitivity. Management emphasizes that the underlying fleet earnings power remains intact and that most growth investments are derisked and ready to be funded from a mix of retained cash flow, debt and modest equity issuance. Overall, the positive long-term visibility and multiple accretive actions outweigh the transitory operational headwinds.Positive Updates
Q2 Financial Results
Adjusted EBITDA of $409 million and CAFD of $167 million for Q2 2026; year-to-date adjusted EBITDA $666 million and YTD CAFD $237 million.
Negative Updates
2026 CAFD Guidance Revision
2026 full-year CAFD guidance revised down to $430 million–$470 million from prior $470 million–$510 million. The midpoint fell from $490 million to $450 million (a $40 million reduction, ~8.2% decline at the midpoint). Management cites resource-driven impacts as the cause.
Read all updates
Q2-2026 Updates
Positive
Negative
Q2 Financial Results
Adjusted EBITDA of $409 million and CAFD of $167 million for Q2 2026; year-to-date adjusted EBITDA $666 million and YTD CAFD $237 million.
Read all positive updates
Company Guidance
Clearway revised its 2026 CAFD guidance down to $430M–$470M (from $470M–$510M) due to lower H1 renewable resource tied to ENSO; Q2 reported adjusted EBITDA $409M and CAFD $167M (YTD adjusted EBITDA $666M, YTD CAFD $237M). Management reaffirmed a 2027 CAFD/share target of $2.70+ and is targeting the top end or better of a 2030 CAFD/share goal (cited as ~$3.10), with conviction in delivering 7%–8%+ CAGR in CAFD/share from 2025–2030 and a long-term objective of 5%–8%+. To fund growth, Clearway expects to deploy ~$3.0B of corporate capital from 2026–2029 (with >$2.0B already identified for 2027–2029 and ~70% of needed investment commercialized), including a ~2 GW 2029 solar+storage cohort representing ~$650M of potential corporate capital, plus a ~$600M “powering” program targeted at 11%–12% CAFD yields. Funding assumptions include >$500M of retained cash flow over 2026–2029, >$1.5B of corporate debt expected in that period ($600M already raised), $0.5B–$1.0B of external equity expected ($50M raised), a target corporate leverage of 4.0–4.5x (BB rating) and a long‑term payout ratio goal of <70%; Clearway also highlights additional upside from Clearway Group’s digital infrastructure pipeline (17 GW total, >6 GW in MISO South/Wyoming) with initial generating capacity expected to begin in 2029.Clearway Energy Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
38
Negative
Cash Flow
74
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.57B | 1.43B | 1.37B | 1.31B | 1.19B | 1.29B |
| Gross Profit | 834.00M | 217.00M | 870.00M | 841.00M | 755.00M | 835.00M |
| EBITDA | 1.12B | 1.10B | 1.08B | 1.03B | 2.20B | 904.00M |
| Net Income | 91.00M | 169.00M | 88.00M | 79.00M | 582.00M | 51.00M |
Balance Sheet | ||||||
| Total Assets | 16.77B | 16.66B | 14.33B | 14.70B | 12.31B | 12.81B |
| Cash, Cash Equivalents and Short-Term Investments | 251.00M | 818.00M | 332.00M | 535.00M | 657.00M | 179.00M |
| Total Debt | 9.89B | 10.20B | 7.75B | 8.66B | 7.36B | 8.27B |
| Total Liabilities | 11.18B | 10.74B | 8.77B | 9.71B | 8.28B | 9.51B |
| Stockholders Equity | 5.47B | 1.92B | 2.06B | 2.10B | 2.23B | 1.83B |
Cash Flow | ||||||
| Free Cash Flow | 671.00M | 369.00M | 483.00M | 408.00M | 675.00M | 550.00M |
| Operating Cash Flow | 1.02B | 688.00M | 770.00M | 702.00M | 787.00M | 701.00M |
| Investing Cash Flow | -669.00M | 321.00M | -725.00M | -523.00M | 1.13B | 88.00M |
| Financing Cash Flow | -591.00M | -924.00M | -363.00M | -124.00M | -1.57B | -600.00M |
Clearway Energy Technical Analysis
Negative
32.49
Price Trends
31.47
Negative
33.77
Negative
35.00
Negative
Market Momentum
-0.74
Positive
35.42
Neutral
19.64
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CWEN, the sentiment is Negative. The current price of 32.49 is above the 20-day moving average (MA) of 30.54, above the 50-day MA of 31.47, and below the 200-day MA of 35.00, indicating a bearish trend. The MACD of -0.74 indicates Positive momentum. The RSI at 35.42 is Neutral, neither overbought nor oversold. The STOCH value of 19.64 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CWEN.
Clearway Energy Risk Analysis
Clearway Energy disclosed 50 risk factors in its most recent earnings report. Clearway Energy reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Clearway Energy Peers Comparison
UnderperformOutperform
Sector (66)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
66 Neutral | $17.65B | 18.10 | 5.60% | 3.62% | 6.62% | 11.55% | |
62 Neutral | $5.29B | -1.10 | 243.54% | 5.43% | -2.38% | -301.98% | |
61 Neutral | $2.49B | 21.17 | 9.00% | ― | 14.06% | 11.99% | |
55 Neutral | $5.51B | 44.64 | 4.96% | 0.52% | 31.13% | -4.27% | |
53 Neutral | $5.98B | 38.61 | 1.96% | 6.32% | 7.99% | 22.73% | |
48 Neutral | $2.01B | 15.51 | 1.97% | 19.20% | -2.84% | ― |
* Utilities Sector Average
CWEN
Clearway Energy
29.34
0.51
1.77%
ORA
Ormat Techno
92.86
-8.01
-7.94%
XIFR
XPLR Infrastructure
10.39
-0.55
-5.03%
BEPC
Brookfield Renewable
28.52
-5.91
-17.16%
RNW
ReNew Energy Global
6.84
-1.17
-14.61%
MWH
Solv Energy
25.25
-5.42
-17.67%
Clearway Energy Corporate Events
Business Operations and StrategyM&A Transactions
Clearway Energy Expands Portfolio With Major Swan Solar Deal
Positive
Sep 28, 2026
On September 23, 2026, Clearway Energy subsidiary Swan Purchaser LLC agreed to acquire membership interests in Swan TargetCo LLC from Swan CE Seller LLC, an affiliate of Clearway Energy Group, for a base price of about $230 million in cash, subjec...
Business Operations and StrategyExecutive/Board Changes
Clearway Energy Announces New Finance Leadership Team
Positive
Sep 8, 2026
On September 8, 2026, Clearway Energy, Inc. announced a set of senior finance and accounting leadership changes effective October 1, 2026 and immediately, signaling a deeper integration with its controlling investor Clearway Energy Group LLC. Chie...
Business Operations and StrategyPrivate Placements and FinancingRegulatory Filings and Compliance
Clearway Energy Launches $100 Million At-The-Market Program
Positive
Aug 6, 2026
On August 6, 2026, Clearway Energy, Inc. entered into an equity distribution agreement with several major banks, allowing it to sell up to $100 million of Class C common stock through an at-the-market offering program on the New York Stock Exchang...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.