Clearway Energy, Inc. (CWEN)
NEUTRALFundamental
61
Price
$32.26
Market Cap
$7.87B
Part 1 · What the company is worth
Overview
Clearway Energy owns and operates power plants across the United States — about 12.9 gigawatts of capacity in 27 states, mostly wind, solar and battery storage, plus gas-fired plants that provide grid reliability. It does not develop these projects itself: it buys or is sponsored into operating assets by Clearway Energy Group, its controlling shareholder, and then collects the electricity revenue. In 2025, 98% of the electricity it generated came from renewable and storage assets.
How it makes money
Most revenue comes from long-term power sale agreements under which utilities and large corporate buyers commit to purchase a plant's output at a set price; the weighted average remaining contract length across the Renewables & Storage segment was about 12 years at the end of 2025. This locks in predictable cash flows rather than exposing the company to swings in wholesale electricity prices. Clearway distributes the bulk of this cash flow to shareholders as dividends instead of reinvesting all of it.
Revenue by segment
Wind, solar and battery storage plants selling electricity under long-term contracts to utilities and corporations, plus a smaller pool of grid-reliability services.
Natural-gas-fired power plants dispatched to provide grid reliability and capacity when wind and solar output falls short, rather than to sell continuous energy.
What drives demand
DefensiveClearway's revenue is largely locked in through multi-year offtake contracts with utilities and corporate buyers, so it is far less sensitive to the economic cycle than a merchant power generator would be. The main swing factor is weather: wind, sun and water availability vary year to year and directly affect how much electricity each plant produces and sells.
Key risks
- Offtake counterparties may not renew on similar terms — The company states that counterparties to its power sale agreements may not fulfill their obligations, and that as contracts expire it may not be able to replace them on similar terms, or at all.
- Generation output depends on the weather — Clearway warns that operating its wind, solar and gas plants involves risks tied to suitable meteorological conditions, and that some facilities may operate without long-term power sales agreements, exposing them to market prices.
- Controlled by its sponsor, Clearway Energy Group — CEG controls the company and can designate a majority of the board. The company states it is highly dependent on CEG and cannot easily terminate the master services agreement that governs their relationship.
- Leverage limits financial flexibility — The company states that its indebtedness could adversely affect its ability to raise additional capital to fund operations or pay dividends, a particular concern for a business built around distributing cash to shareholders.
- Material weakness in internal controls — Clearway disclosed a material weakness in its internal control over financial reporting related to HLBV accounting, which it states could adversely affect its business and results of operations if not properly remediated.
Customer concentration
The company discloses that Southern California Edison and PG&E each exceeded 10% of revenue in both operating segments for 2025, 2024 and 2023, but it does not publish a single combined percentage of total company revenue.
The case for
Buyers argue that Clearway's roughly 12-year average contract life gives unusual visibility into future cash flows for a power generator, that renewable and storage assets now make up 98% of generation with structurally growing electricity demand behind them, and that the dividend-focused structure rewards shareholders directly as the portfolio grows.
The case against
Sellers fear that Clearway depends heavily on CEG for growth and governance, that offtake contracts eventually expire and may not be replaced on equally favorable terms, and that its leverage and controlled-company structure — plus a disclosed material weakness in internal controls — add risks that a fully independent generator would not carry.
Written by the editors, published on August 18, 2026
Direct competitors
Who this company fights with for the same customers
No editorial profile for this company yet
No competitor list for this company yet.
Balance Sheet & Liquidity
Revenue
$1.57B
Trailing 12 months (through 6/30/2026)
Net Income
$101M
Trailing 12 months (through 6/30/2026)
Free Cash Flow
$369M
Total Equity
$5.81B
Total Liabilities
$10.74B
Current Ratio
1.21
Interest Coverage
0.54
Debt/EBITDA
11.75
Earnings Per Share
Revenue & Net Income
Free Cash Flow
Income Breakdown
Historical statement
Margins over time
Debt over time
How heavy the debt is
Growth grid
Growth — Revenue
Fair Value Estimation
Fair Value
$144.61
Current Price
$32.26
Margin of Safety
+77.7%
Fair Value Range
$93.99 - $195.22
Estimation Methods
Valuation Metrics
P/E Ratio
38.54
ROE
2.9%
P/B Ratio
1.21
P/FCF
9.87
Gross Margin
64.4%
ROIC
1.1%
Profitability Radar
Value Creation (Economic Moat)
ROIC
1.1%
WACC
5.0%
ROIC − WACC
-4.0 pp
ROIC is below the cost of capital — the company is destroying value for every dollar invested.
Fundamental Analysis Criteria
Passed (15)
- EPS shows upward trend
- Price CAGR 7.50%
- Gross Margin 64.4%
- P/FCF 9.87
- P/B Ratio 1.21
- Debt/Equity ratio
- Operating Margin 13.4%
- Positive Free Cash Flow
- Current Ratio
- Low reliance on intangibles
- ROE 8.7%
- Analyst Consensus 88% Buy
- PEG Ratio 0.84
- Earnings Quality (OCF/NI) 10.07
- Net Margin Trend 6.4% vs 4.6%
Failed (10)
- EPS CAGR 3.49%
- ROIC 1.0%
- CapEx intensity
- Interest Coverage
- Debt/EBITDA
- Return on Tangible Assets
- DCF valuation (Fairly valued)
- Revenue Growth 5Y 3.6%
- Earnings Surprise avg -69.6%
- Piotroski F-Score 4/9
Unavailable (3)
- Dividend Payout NaN%
- Price below Graham Number
- Share Dilution (missing shares data)
Piotroski F-Score
Mixed signals: some areas need attention
Earnings Quality
High quality: earnings backed by cash
Share Dilution
Buying back shares. Shareholder friendly
Governance
Executive Team
| Name | Title | Age |
|---|---|---|
| Mr. Craig Cornelius | CEO, President & Director | 45 |
| Ms. Sarah Rubenstein | Executive VP & CFO | 47 |
| Mr. Michael Jay Stanford | Vice President of Accounting | 61 |
| Mr. Michael A. Brown | Senior VP, General Counsel & Corporate Secretary | - |
| Julie Babcock | Senior Environmental Manager | - |
| Ms. Aarty Joshi | Director of Environmental Permitting | - |
Audit Risk
9
Board Risk
10
Compensation Risk
1
Shareholder Rights Risk
10
Part 2 · The price and when to enter
This part won't tell you whether the company is worth owning: it helps you choose when to buy it, once the fundamentals have convinced you. Inside: technical analysis, potential, historical drawdowns, gamma exposure.
Latest News
Recent headlines for CWEN, sourced from Markets Gazette.
- 2/23/2026NEUTRALClearway Energy (CWEN) Q4 2025 Earnings Transcript
Clearway Energy has released the transcript of its fourth-quarter 2025 earnings conference call. While this news indicates the availability of crucial information for the market, the actual content of the document has not been disclosed. Investors and analysts are waiting to examine key metrics such as revenue, earnings per share (EPS), and future guidance to assess the energy company's health and prospects. The mere publication of a transcript is a standard informational event and does not imply a specific direction for the stock. The market's reaction will depend entirely on the financial details and management statements within the document, which are not currently available for in-depth analysis.
via Markets Gazette