| Valuation method | Value, $ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 59.16 | 106 |
| Intrinsic value (DCF) | 0.00 | -100 |
| Graham-Dodd Method | n/a | |
| Graham Formula | 9.20 | -68 |
Clearway Energy, Inc. (NYSE: CWEN) is a leading renewable energy utility company operating in the United States, with a diversified portfolio of wind, solar, and natural gas generation assets. The company owns approximately 5,000 net megawatts (MW) of installed renewable capacity and 2,500 net MW of natural gas facilities, positioning it as a key player in the transition to sustainable energy. Headquartered in Princeton, New Jersey, Clearway Energy is a subsidiary of Clearway Energy Group LLC and focuses on long-term contracted cash flows, providing stability in the volatile energy market. The company’s business model emphasizes renewable energy growth while maintaining a balanced mix of conventional generation to ensure grid reliability. With a strong emphasis on ESG (Environmental, Social, and Governance) principles, Clearway Energy is well-positioned to capitalize on increasing demand for clean energy solutions. Its strategic investments in wind and solar projects align with federal and state renewable energy mandates, making it a critical player in the U.S. renewable utilities sector.
Clearway Energy presents an attractive investment opportunity for income-focused investors, offering a stable dividend yield (currently $1.6825 per share) backed by long-term power purchase agreements (PPAs). The company benefits from predictable cash flows, with renewable assets contributing to ~67% of its generation capacity. However, risks include high leverage (total debt of $7.75B) and exposure to regulatory changes in renewable energy incentives. The company’s beta of 0.926 suggests lower volatility compared to the broader market, making it a relatively defensive utility play. While its net income ($88M) and diluted EPS ($0.75) reflect modest profitability, strong operating cash flow ($770M) supports reinvestment and dividend sustainability. Investors should monitor capital expenditures (-$287M) and debt refinancing risks, but Clearway’s growth in renewables provides long-term upside as the U.S. accelerates its clean energy transition.
Clearway Energy’s competitive advantage lies in its diversified renewable and conventional energy portfolio, which provides stable cash flows through long-term PPAs. Unlike pure-play renewable firms, Clearway’s natural gas assets offer grid reliability, reducing intermittency risks associated with wind and solar. The company benefits from its affiliation with Clearway Energy Group, which provides access to development pipelines and operational expertise. However, Clearway faces stiff competition from larger utilities with deeper balance sheets and vertically integrated renewable operations. Its relatively high debt load could constrain growth compared to peers with stronger liquidity positions. The company’s focus on contracted revenues insulates it from merchant power price volatility but limits upside during energy price spikes. Clearway’s scale (5,000 MW renewables) is smaller than industry leaders, but its strategic partnerships and focus on operational efficiency help maintain competitiveness. Regulatory support for renewables enhances its growth prospects, though permitting delays and interconnection challenges pose risks. Overall, Clearway’s hybrid model (renewables + gas) provides resilience, but execution on debt management and project development will be critical to maintaining its market position.