📊 CWEN-A Key Takeaways
Is Clearway Energy, Inc. (CWEN-A) a Good Investment?
Clearway Energy demonstrates solid operational performance with strong revenue growth (4.2% YoY) and exceptional net income expansion (173.2% YoY), supported by healthy free cash flow generation of $369M. However, the company faces significant leverage concerns with a 1.49x debt-to-equity ratio and critically weak interest coverage of 0.4x, indicating potential debt servicing stress that warrants caution despite operational strengths.
Clearway Energy shows improving earnings and strong cash generation, with free cash flow of $369.0M and a healthy 25.8% FCF margin supporting the quality of reported profits. However, the balance sheet remains highly leveraged, interest coverage is very weak at 0.4x, and returns on capital are modest, which limits the strength of the overall fundamental profile. The business appears fundamentally stable but not strong enough to offset its financing risk.
Why Buy Clearway Energy, Inc. Stock? CWEN-A Key Strengths
- Strong net income growth of 173.2% YoY indicating operational leverage and improved profitability
- Robust free cash flow of $369M (25.8% margin) providing cash generation for debt reduction and distributions
- Solid revenue growth of 4.2% YoY in stable utility sector with predictable cash flows
- Adequate liquidity position with $231M cash and 1.13x current ratio
- Net income rose 173.2% year over year while revenue still grew 4.2%, indicating improving earnings efficiency
- Operating cash flow of $688.0M and free cash flow of $369.0M suggest solid cash conversion and funding capacity
- Liquidity is adequate with a 1.13x current ratio and 1.06x quick ratio, reducing near-term balance sheet pressure
CWEN-A Stock Risks: Clearway Energy, Inc. Investment Risks
- Critically low interest coverage ratio of 0.4x suggests difficulty servicing $8.7B long-term debt from operating income
- High leverage with debt-to-equity of 1.49x and liabilities representing 64% of total assets limits financial flexibility
- Weak return metrics (ROE 2.9%, ROA 1.0%) indicate inefficient capital deployment relative to asset and equity base
- Substantial capital expenditure requirements ($319M) may constrain free cash flow available for debt reduction
- Long-term debt of $8.67B and debt-to-equity of 1.49x create meaningful leverage risk
- Interest coverage of 0.4x indicates earnings provide limited cushion for interest obligations
- ROE of 2.9% and ROA of 1.0% point to weak underlying capital efficiency despite earnings growth
Key Metrics to Watch
- Interest coverage ratio trend and debt refinancing requirements
- Free cash flow sustainability and allocation to debt reduction vs distributions
- Debt-to-EBITDA ratio and path to deleveraging
- Operating margin expansion potential given asset base
- Interest coverage and total debt reduction
- Operating cash flow and free cash flow sustainability
Clearway Energy, Inc. (CWEN-A) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The 25.8% free cash flow margin provides substantial flexibility for dividends, buybacks, and strategic investments.
CWEN-A Profit Margin, ROE & Profitability Analysis
CWEN-A vs Utilities Sector: How Clearway Energy, Inc. Compares
How Clearway Energy, Inc. compares to Utilities sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Clearway Energy, Inc. Stock Overvalued? CWEN-A Valuation Analysis 2026
Based on fundamental analysis, Clearway Energy, Inc. has mixed fundamental signals relative to the Utilities sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Clearway Energy, Inc. Balance Sheet: CWEN-A Debt, Cash & Liquidity
CWEN-A Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Clearway Energy, Inc.'s revenue has grown significantly by 11% over the 5-year period, indicating strong business expansion. The most recent EPS of $4.99 reflects profitable operations.
CWEN-A Revenue Growth, EPS Growth & YoY Performance
CWEN-A Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $429.0M | $36.0M | N/A |
| Q2 2025 | $366.0M | $33.0M | N/A |
| Q1 2025 | $263.0M | -$2.0M | N/A |
| Q3 2024 | $371.0M | $4.0M | N/A |
| Q2 2024 | $366.0M | $38.0M | N/A |
| Q1 2024 | $263.0M | N/A | N/A |
| Q3 2023 | $340.0M | $4.0M | N/A |
| Q2 2023 | $368.0M | $38.0M | N/A |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Clearway Energy, Inc. Dividends, Buybacks & Capital Allocation
CWEN-A SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Clearway Energy, Inc. (CIK: 0001567683)
📋 Recent SEC Filings
❓ Frequently Asked Questions about CWEN-A
What is the AI rating for CWEN-A?
Clearway Energy, Inc. (CWEN-A) has a Combined AI Rating of HOLD from Claude (HOLD) and ChatGPT (HOLD) with 70% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are CWEN-A's key strengths?
Claude: Strong net income growth of 173.2% YoY indicating operational leverage and improved profitability. Robust free cash flow of $369M (25.8% margin) providing cash generation for debt reduction and distributions. ChatGPT: Net income rose 173.2% year over year while revenue still grew 4.2%, indicating improving earnings efficiency. Operating cash flow of $688.0M and free cash flow of $369.0M suggest solid cash conversion and funding capacity.
What are the risks of investing in CWEN-A?
Claude: Critically low interest coverage ratio of 0.4x suggests difficulty servicing $8.7B long-term debt from operating income. High leverage with debt-to-equity of 1.49x and liabilities representing 64% of total assets limits financial flexibility. ChatGPT: Long-term debt of $8.67B and debt-to-equity of 1.49x create meaningful leverage risk. Interest coverage of 0.4x indicates earnings provide limited cushion for interest obligations.
What is CWEN-A's revenue and growth?
Clearway Energy, Inc. reported revenue of $1.4B.
Does CWEN-A pay dividends?
Clearway Energy, Inc. pays dividends, with $116.0M distributed to shareholders in the trailing twelve months.
Where can I find CWEN-A SEC filings?
Official SEC filings for Clearway Energy, Inc. (CIK: 0001567683) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is CWEN-A's EPS?
Clearway Energy, Inc. has a diluted EPS of $0.75.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is CWEN-A a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Clearway Energy, Inc. has a HOLD rating with 70% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is CWEN-A stock overvalued or undervalued?
Valuation metrics for CWEN-A: ROE of 2.9% (sector avg: 10%), net margin of 11.8% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.
Should I buy CWEN-A stock in 2026?
Our dual AI analysis gives Clearway Energy, Inc. a combined HOLD rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is CWEN-A's free cash flow?
Clearway Energy, Inc.'s operating cash flow is $688.0M, with capital expenditures of $319.0M. FCF margin is 25.8%.
How does CWEN-A compare to other Utilities stocks?
Vs Utilities sector averages: Net margin 11.8% (avg: 12%), ROE 2.9% (avg: 10%), current ratio 1.13 (avg: 0.8).