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Relative valuation derived from Utilities sector median benchmarks. Model weights: EV/EBITDA (40%), P/B (35%), P/S (25%). Multiples adjusted for extreme outliers and non-recurring volatility.
Auditing capital efficiency...
Quality Profile Audit
Score: 43.9GRADE C
Composite assessment of profitability, capital efficiency, and financial strength. Top-tier entities demonstrate sustainable cash flow generation.
Return on Equity
Profit generated per dollar of shareholder equity
-0.1%
Sector: 9.9%
Dividend Analysis audit
HIGH YIELD
6.46%
Trailing Yield
$6.46
Per $100 Invested
High yield — monitor payout sustainability closely.
Est. Payout Ratio
147%HIGH
Analyst Projections
Analyst Consensus
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Based on our 6-factor quantitative model, Clearway Energy, Inc. (CWEN) receives a "Hold" rating with a composite score of 46.8/100, ranked #552 out of 4446 stocks. Key factor scores: Quality 44/100, Value 48/100, Momentum 60/100. This is quantitative analysis only — not investment advice.
Clearway Energy, Inc. (CWEN) Stock Analysis — April 2026 Rating, Price, and Forecast
Company Overview — What Does Clearway Energy, Inc. Do?
Clearway Energy, Inc., through its subsidiaries, engages in the renewable energy businesses in the United States. It had approximately 5,000 net megawatts (MW) of installed wind and solar generation projects; and approximately 2,500 net MW of natural gas generation facilities, as well as a portfolio of district energy systems. Its thermal infrastructure assets provide steam, hot water and/or chilled water, and electricity to commercial businesses, universities, hospitals, and governmental units. As of December 31, 2021, the company had 1,370 MW thermal equivalent capacity of steam and chilled water. 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. (CWEN) is classified as a mid-cap stock in the Utilities sector. The company is led by CEO Christopher S. Sotos and employs approximately 60 people, headquartered in Princeton, New Jersey. With a market capitalization of $4.8B, CWEN is one of the notable companies in the Utilities sector.
Clearway Energy, Inc. (CWEN) Stock Rating — Hold (April 2026)
As of April 2026, Clearway Energy, Inc. receives a Hold rating with a composite score of 46.8/100 and 3 out of 5 stars from the Blank Capital Research quantitative model.CWEN ranks #552 out of 4,446 stocks in our coverage universe. Within the Utilities sector, Clearway Energy, Inc. ranks #54 of 112 stocks, placing it in the upper half of its Utilities peers. The rating is generated by a multi-factor model that weighs quality (30%), momentum (25%), value (15%), investment (10%), stability (10%), and short interest (10%).
CWEN Stock Price and 52-Week Range
Clearway Energy, Inc. (CWEN) currently trades at $41.07. The stock gained $0.30 (0.7%) in the most recent trading session. The 52-week high for CWEN is $41.51, which means the stock is currently trading -1.1% from its annual peak. The 52-week low is $25.63, putting the stock 60.2% above its annual trough. Recent trading volume was 459K shares, suggesting relatively thin trading activity.
Is CWEN Overvalued or Undervalued? — Valuation Analysis
Clearway Energy, Inc. (CWEN) carries a value factor score of 48/100 in the Blank Capital model, indicating fair valuation relative to historical norms. The trailing price-to-earnings ratio is 22.69x, compared to the Utilities sector average of 23.47x — a discount of 3%. The price-to-book ratio stands at 0.84x, versus the sector average of 1.98x. The price-to-sales ratio is 2.99x, compared to 0.82x for the average Utilities stock. On an enterprise value basis, CWEN trades at 12.79x EV/EBITDA, versus 4.75x for the sector.
Overall, CWEN's valuation appears roughly in line with sector benchmarks, suggesting the market is pricing the stock fairly given its current fundamentals and growth trajectory. Neither deep value nor significantly overpriced, the stock occupies a middle ground on valuation.
Clearway Energy, Inc. Profitability — ROE, Margins, and Quality Score
Clearway Energy, Inc. (CWEN) earns a quality factor score of 44/100, signaling below-average profitability metrics relative to the broader market. The return on equity (ROE) is -0.1%, compared to the Utilities sector average of 9.9%, which is below typical expectations for high-quality companies. Return on assets (ROA) comes in at -0.0% versus the sector average of 3.1%.
On a margin basis, Clearway Energy, Inc. reports gross margins of 67.0%, compared to 53.1% for the sector. The operating margin is 21.1% (sector: 21.5%). Net profit margin stands at -3.1%, versus 12.8% for the average Utilities stock. Revenue growth is running at 17.2% on a trailing basis, compared to 20.1% for the sector. Profitability is below benchmark levels, which may reflect industry headwinds, elevated reinvestment, or structural challenges.
CWEN Debt, Balance Sheet, and Financial Health
Clearway Energy, Inc. has a debt-to-equity ratio of 180.0%, compared to the Utilities sector average of 164.5%. This elevated leverage warrants close monitoring, as it increases the company's sensitivity to rising interest rates and economic downturns. The current ratio is 1.54x, suggesting adequate working capital coverage. Total debt on the balance sheet is $9.22B. Cash and equivalents stand at $251M.
CWEN has a beta of 0.60, meaning it is less volatile than the S&P 500, making it a relatively defensive holding. The stability factor score for Clearway Energy, Inc. is 79/100, indicating low-volatility characteristics and consistent price behavior that appeals to risk-averse investors.
Clearway Energy, Inc. Revenue and Earnings History — Quarterly Trend
In TTM 2026, Clearway Energy, Inc. reported revenue of $1.60B. Net income for the quarter was $-5M. Gross margin was 67.0%. Operating income came in at $375M.
In Q3 2025, Clearway Energy, Inc. reported revenue of $429M. Net income for the quarter was $60M. Gross margin was 70.2%. Revenue grew -11.7% year-over-year compared to Q3 2024. Operating income came in at $112M.
In Q2 2025, Clearway Energy, Inc. reported revenue of $392M. Net income for the quarter was $12M. Gross margin was 66.6%. Revenue grew 7.1% year-over-year compared to Q2 2024. Operating income came in at $85M.
In Q1 2025, Clearway Energy, Inc. reported revenue of $298M. Net income for the quarter was $-104M. Gross margin was 59.1%. Revenue grew 13.3% year-over-year compared to Q1 2024. Operating income came in at $0.
Over the past 8 quarters, Clearway Energy, Inc. has demonstrated a growth trajectory, with revenue expanding from $263M to $1.60B. Investors analyzing CWEN stock should weigh these quarterly trends alongside the valuation and quality metrics discussed above.
CWEN Dividend Yield and Income Analysis
Clearway Energy, Inc. (CWEN) currently pays a dividend yield of 6.5%. At this yield, a $10,000 investment in CWEN stock would generate approximately $$646.00 in annual dividend income. This compares to the Utilities sector average dividend yield of 2.8%, meaning CWEN offers above-average income for its sector.
CWEN Momentum and Technical Analysis Profile
Clearway Energy, Inc. (CWEN) has a momentum factor score of 60/100, reflecting neutral trend characteristics. The stock is neither significantly outperforming nor underperforming the broader market on a momentum basis. The investment factor score is 27/100, which measures capital allocation efficiency and asset growth patterns. The short interest score of 8/100 signals elevated short interest, which can indicate bearish sentiment among institutional investors.
CWEN vs Competitors — Utilities Sector Ranking and Peer Comparison
Comparing CWEN against the S&P 500 benchmark is also instructive for understanding relative performance. Investors can view the full CWEN vs S&P 500 (SPY) comparison to assess how Clearway Energy, Inc. stacks up against the broader market across all factor dimensions.
CWEN Next Earnings Date
No upcoming earnings date has been announced for Clearway Energy, Inc. (CWEN) at this time. Check the earnings calendar for the latest scheduling updates across all stocks in our coverage universe.
Should You Buy CWEN? — Investment Thesis Summary
Clearway Energy, Inc. presents a balanced picture with arguments on both sides. Price momentum is positive at 60/100, suggesting the trend favors buyers. Low volatility (stability score 79/100) reduces downside risk.
In summary, Clearway Energy, Inc. (CWEN) earns a Hold rating with a composite score of 46.8/100 as of April 2026. The rating is derived from the Blank Capital Research methodology, which combines six factor dimensions into a single quantitative ranking. Investors should consider these quantitative signals alongside their own fundamental research, risk tolerance, and investment time horizon before making buy or sell decisions on CWEN stock.
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Institutional Research Dossier
Clearway Energy, Inc. (CWEN) Deep Dive Analysis
Published on March 24, 2026
Action RatingHold
Sections
Executive Summary
Clearway Energy, Inc. (CWEN) receives a Hold rating, reflecting a balanced view of its potential and challenges. While the company benefits from a relatively stable revenue stream derived from contracted renewable energy assets and thermal infrastructure, concerns arise from its high debt load and negative free cash flow. The current valuation appears fair relative to its sector, but the company's financial health and capital allocation strategies warrant close monitoring, justifying a neutral stance.
CWEN operates in a sector with favorable long-term tailwinds, driven by the increasing demand for renewable energy. However, its high leverage and reliance on its parent company, Clearway Energy Group LLC, for growth opportunities present significant risks. The company's ability to manage its debt, improve free cash flow, and successfully execute its growth strategy will be crucial in determining its future performance, making a Hold rating the most appropriate at this time.
Business Strategy & Overview
Clearway Energy operates primarily in the renewable energy sector, owning and operating a diverse portfolio of wind, solar, and natural gas generation facilities, as well as district energy systems. The company's revenue is largely derived from long-term contracts with utilities and other customers, providing a degree of stability and predictability. These contracts, often structured as power purchase agreements (PPAs), ensure a steady stream of income over extended periods, mitigating some of the volatility associated with energy markets.
The company's strategic focus is on expanding its renewable energy portfolio through acquisitions and development projects. Clearway Energy relies heavily on its parent company, Clearway Energy Group LLC, for sourcing these growth opportunities. This relationship is both a strength and a weakness. It provides access to a pipeline of projects but also creates a dependency on the parent company's ability to develop and finance new assets. The company also operates thermal infrastructure assets, providing steam, hot water, and chilled water to commercial and governmental entities. These assets contribute to revenue diversification but are generally less attractive than renewable energy assets due to environmental concerns and limited growth potential.
Clearway Energy's business model involves acquiring and operating energy assets, optimizing their performance, and distributing a significant portion of its cash flow to shareholders in the form of dividends. This distribution-focused strategy is appealing to income-seeking investors but also limits the company's ability to reinvest in growth projects and reduce debt. The company's success depends on its ability to maintain high asset availability, manage operating costs effectively, and secure favorable financing terms for its projects.
The industry context for Clearway Energy is characterized by increasing demand for renewable energy, driven by government policies, technological advancements, and growing environmental awareness. This trend creates significant opportunities for the company to expand its renewable energy portfolio. However, the industry is also becoming increasingly competitive, with new players entering the market and existing players expanding their operations. Clearway Energy must differentiate itself through superior operational performance, strategic acquisitions, and effective capital allocation to maintain its competitive position.
Execution Benchmarks audit
Revenue Growth
YOY expansion rate
17.2%
Sector: 20.1%
-14% VS SCTR
Economic Moat Analysis
Clearway Energy's economic moat is best characterized as Narrow. While the company benefits from certain advantages, they are not substantial enough to create a wide and sustainable competitive edge. The primary source of its narrow moat stems from contracted revenue streams and, to a lesser extent, efficient scale in specific regional markets.
The long-term contracts, particularly power purchase agreements (PPAs), provide a degree of revenue visibility and stability. These contracts lock in prices for extended periods, reducing exposure to short-term fluctuations in energy prices. However, these contracts are not exclusive and can be renegotiated or terminated under certain circumstances, limiting their moat-like characteristics. Furthermore, the value of these contracts is dependent on the creditworthiness of the counterparties, introducing counterparty risk.
Efficient scale may provide a localized advantage in certain markets where Clearway Energy operates its thermal infrastructure assets. These assets, which provide steam, hot water, and chilled water, often benefit from high barriers to entry due to the capital-intensive nature of the infrastructure and the difficulty in obtaining permits. However, these assets are generally less attractive than renewable energy assets due to environmental concerns and limited growth potential, and they do not contribute significantly to the overall moat.
The renewable energy sector is becoming increasingly competitive, with new players entering the market and existing players expanding their operations. This increased competition is eroding the potential for any single company to establish a dominant market position. Clearway Energy's reliance on its parent company for growth opportunities also limits its ability to develop a truly independent and sustainable competitive advantage. While the company's contracted revenue streams provide a degree of stability, they are not sufficient to create a wide moat. The company's competitive advantage is therefore limited, justifying a narrow moat rating.
Financial Health & Profitability
Clearway Energy's financial health presents a mixed picture. While the company exhibits strong gross margins, its high debt load and negative free cash flow raise concerns. The company's revenue has shown growth, with a 17.2% increase compared to the sector's 20.1%, indicating a reasonable ability to expand its operations. However, the net income has been volatile, with a TTM value of $60.00M, but fluctuating significantly in previous quarters and years, including negative values in FY2024 and FY2023. This volatility is concerning and suggests potential instability in the company's earnings.
The company's gross margin of 67.0% is significantly higher than the sector average of 53.3%, indicating a strong ability to control its cost of goods sold. However, its operating margin of 21.1% is slightly below the sector average of 21.7%, suggesting that the company's operating expenses are relatively high. The net margin is -3.1% compared to the sector's 12.8%, which is a significant cause for concern. This indicates that the company is struggling to convert its revenue into profit, potentially due to high interest expenses or other factors.
Clearway Energy's balance sheet is heavily leveraged, with a total debt of $9.22B and a total cash of $251.00M. The debt-to-equity ratio is 180.00, which is higher than the sector average of 165.00, indicating a higher level of financial risk. The current ratio of 1.54 suggests that the company has sufficient liquid assets to cover its short-term liabilities. However, the high debt load remains a significant concern, as it increases the company's vulnerability to interest rate fluctuations and economic downturns.
The company's free cash flow is negative, at $-1.48B, which is a major red flag. This indicates that the company is not generating enough cash from its operations to cover its capital expenditures and other cash outflows. This negative free cash flow may force the company to rely on debt or equity financing to fund its operations and growth, which could further increase its leverage and dilute its shareholders' equity. The historical quarterly data shows fluctuations in revenue and net income, but the absence of free cash flow data makes it difficult to assess the company's cash flow generation capabilities over time. Overall, Clearway Energy's financial health is concerning due to its high debt load and negative free cash flow, despite its strong gross margins and revenue growth.
Valuation Assessment
Clearway Energy's valuation presents a mixed picture, with some metrics suggesting a fair valuation while others raise concerns. The company's P/E ratio of 22.7x is equal to the sector average, indicating that the stock is neither significantly overvalued nor undervalued relative to its earnings. However, the EV/EBITDA ratio of 10.1x is significantly higher than the sector average of 4.8x, suggesting that the company may be overvalued relative to its enterprise value and earnings before interest, taxes, depreciation, and amortization.
The company's negative return on equity (ROE) of -0.1% is significantly lower than the sector average of 10.0%, indicating that the company is not generating sufficient returns on its shareholders' equity. This is a cause for concern, as it suggests that the company is not efficiently utilizing its capital. The company's free cash flow is negative, making it impossible to calculate a meaningful free cash flow yield. This is a significant drawback, as free cash flow yield is a key metric for assessing the value of a company.
Given the company's high debt load and negative free cash flow, a discounted cash flow (DCF) analysis would be challenging and potentially unreliable. The company's reliance on its parent company for growth opportunities also makes it difficult to project its future cash flows with certainty. The company's valuation is further complicated by the volatility of its earnings and the uncertainty surrounding its future growth prospects.
Overall, Clearway Energy's valuation appears fair to slightly overvalued based on the available metrics. The company's P/E ratio is in line with the sector average, but its EV/EBITDA ratio is significantly higher. The company's negative ROE and free cash flow are causes for concern, and its high debt load adds to the risk. While the company operates in a sector with favorable long-term tailwinds, its valuation does not appear to offer a significant margin of safety, justifying a Hold rating.
Risk & Uncertainty
Clearway Energy faces several specific risks that could negatively impact its business and financial performance. One of the most significant risks is its high level of debt. The company's debt-to-equity ratio is significantly higher than the sector average, making it vulnerable to interest rate fluctuations and economic downturns. A rise in interest rates could increase the company's borrowing costs and reduce its profitability. An economic downturn could reduce demand for energy and negatively impact the company's revenue.
Another significant risk is the company's reliance on its parent company, Clearway Energy Group LLC, for growth opportunities. If the parent company is unable to develop and finance new projects, Clearway Energy's growth prospects could be limited. Furthermore, the company's relationship with its parent company could create conflicts of interest, as the parent company may prioritize its own interests over those of Clearway Energy's shareholders.
Regulatory and environmental risks also pose a threat to Clearway Energy's business. Changes in government policies related to renewable energy could impact the company's revenue and profitability. Environmental regulations could increase the company's operating costs and limit its ability to develop new projects. The company's thermal infrastructure assets are particularly vulnerable to environmental regulations, as they are subject to stricter emission standards.
Counterparty risk is another concern for Clearway Energy. The company's revenue is largely derived from long-term contracts with utilities and other customers. If these customers are unable to fulfill their contractual obligations, the company's revenue could be negatively impacted. The creditworthiness of the company's counterparties is therefore a key factor in assessing its financial risk.
Bulls Say / Bears Say
The Bull Case
BULL VIEWClearway Energy's contracted revenue streams provide stability and predictability, ensuring a steady flow of cash to support its dividend payments.
BULL VIEWThe increasing demand for renewable energy, driven by government policies and environmental concerns, creates significant growth opportunities for Clearway Energy's renewable energy portfolio.
BULL VIEWClearway Energy's high gross margins demonstrate its ability to efficiently manage its cost of goods sold, contributing to its overall profitability.
The Bear Case
BEAR VIEWClearway Energy's high debt load and negative free cash flow raise concerns about its financial sustainability and ability to fund future growth.
BEAR VIEWThe company's reliance on its parent company for growth opportunities creates a dependency that limits its ability to develop an independent and sustainable competitive advantage.
BEAR VIEWClearway Energy's negative return on equity indicates that it is not efficiently utilizing its capital, raising questions about its long-term profitability.
About the Author
Marques Blank
Founder & Chief Investment Officer, Blank Capital
Marques brings 15 years of institutional finance and investing experience, having overseen financial planning for a $1.6B defense business unit. He developed the proprietary 6-factor quantitative model used to score CWEN and 4,400+ other equities.
Clearway Energy, Inc. exhibits a 93% valuation premium relative to institutional benchmarks. This represents a potential valuation overextension based on current multiples.
Return on Assets
Efficiency of asset utilization
-0.0%
Sector: 3.1%
Gross Margin
Pricing power and cost efficiency
67.0%
Sector: 53.1%
Operating Margin
Core business profitability
21.1%
Sector: 21.5%
Net Margin
Bottom-line profitability
-3.1%
Sector: 12.8%
Factor Methodology
The Quality factor evaluates the persistence and magnitude of cash flows. Companies with scores >70 exhibit superior competitive moats and financial resilience through economic cycles.
Sector Avg Yield2.83%
Yield Delta+128%
Income Projection audit
A $10,000 investment would generate approximately $646 annually in dividends at the current trailing rate.
