Clearway Energy, Inc.

Valuation Analysis

About the Company

Clearway Energy, Inc. operates in the clean energy generation assets business in the United States. It operates through Flexible Generation and Renewables & Storage segments. The company's portfolio comprises approximately 12.9 GW of gross capacity in 27 states, including approximately 10.1 GW of wind, solar, and battery energy storage systems; and approximately 2.8 GW of dispatchable combustion-based power generation assets included in the Flexible Generation segment that provide critical grid reliability services. The company was formerly known as NRG Yield, Inc. and changed its name to Clearway Energy, Inc. in August 2018. Clearway Energy, Inc. was incorporated in 2012 and is based in Princeton, New Jersey. Clearway Energy, Inc. is a subsidiary of Clearway Energy Group LLC.

Clearway Energy, Inc. Stock at a Glance

Clearway Energy, Inc. (CWEN) is currently trading at $37.47 with a market capitalization of $9B. The trailing P/E ratio stands at 374.7x, with a forward P/E of 16.18x. The 52-week range spans from $27.67 to $41.74; the current price is 10.2% below the yearly high. Year-over-year revenue growth stands at +18.8%. The net profit margin stands at 0.61%.

💰 Dividend

Clearway Energy, Inc. pays an annual dividend of $1.83 per share, representing a yield of 4.88%. The payout ratio stands at 1797%. The elevated payout ratio reflects a mature dividend policy.

📊 Analyst Rating

11 analysts rate Clearway Energy, Inc. (CWEN) on consensus: Strong Buy. The average price target is $43.73, implying +16.7% from the current price. Analyst price targets range from $34.00 to $60.00.

Clearway Energy, Inc.: The Investment Case in Detail

Clearway Energy, Inc. (CWEN) operates in the Utilities — specifically Utilities - Renewable — and is headquartered in United States. Below is a structured read of the investment case built directly from the latest fundamentals, valuation multiples, analyst positioning and smart-money flows. Each section translates raw numbers into the investment logic they imply, so you can decide whether the risk/reward fits your portfolio.

The Bull Case

Revenue is growing at a healthy 18.8% pace year-over-year, suggesting the business model continues to find new customers and pricing power. With a gross margin near 63.5%, the company sits in the top tier of its industry — these are the kinds of structural margins that protect earnings during downturns. Wall Street consensus sits at Strong Buy with an average price target implying roughly 16.7% upside from current levels — analyst sentiment is firmly constructive.

The Bear Case

With a net margin of just 0.61%, the business has little room to absorb cost shocks or pricing pressure — a single bad quarter can swing the company to a loss. A trailing P/E above 50 combined with revenue growth below 20% is a dangerous combination — the market is paying a steep growth multiple for what is, by the data, only moderately fast expansion. Our valuation screen flags the stock as overvalued — current multiples imply the business needs to deliver well above its recent trajectory to justify the price.

Valuation in Context

At a PEG of 3.67, investors are paying more than three times the growth rate for each unit of earnings — that pricing assumes growth not only continues but accelerates from here.

What to Watch Next

• The forward P/E of 16.18x is meaningfully below the trailing 374.7x — analysts expect earnings to step up; the next earnings release is the test.

Investment Thesis: Strengths & Weaknesses

Technical Snapshot

Price shows short-term weakness (below 50d MA) but is still in a longer-term uptrend (above 200d MA).

Risk Profile

The data points to relatively defensive market behavior, elevated short interest (7.42%), higher leverage relative to equity.

Trading Data

💵 Dividend Info

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