Company Overview
Clearway Energy, Inc. operates within the United States clean energy generation assets sector, specifically focusing on renewable resources through its Flexible Generation and Renewables & Storage segments. The company manages a substantial portfolio comprising approximately 12.9 GW of gross capacity distributed across 27 states, with a specific concentration of approximately 10.1 GW in wind energy assets. This utility enterprise holds a market capitalization of $8.03B and generated annual revenue of $1.43B over the trailing twelve-month period. While specific employee headcount data is not publicly disclosed, the scale of operations and the valuation suggest a significant presence in the utilities - renewable industry, positioning the firm as a major player in the transition toward clean power generation. The substantial market cap relative to its revenue indicates that the market values the company's future cash flow potential from its extensive asset base higher than its current book value or immediate earnings, reflecting the long-term nature of utility investments.
Financial Health
Clearway Energy reported a trailing twelve-month revenue of $1.43B, with a corresponding net income of $169.00M and an EBITDA of $1.04B. The gap between the $1.43B in revenue and the $169.00M in net income reveals a significant cost structure where operating expenses, interest costs, and taxes consume a substantial portion of gross earnings before reaching the bottom line. The company generated free cash flow of $207.88M, which provides the financial flexibility required to service its obligations, fund maintenance, or pursue strategic capital projects without relying solely on external financing. Profitability analysis shows a gross margin of 62.9%, indicating high efficiency in converting revenue to gross profit, contrasted by an operating margin of -2.3% and a profit margin of 11.8%, which suggests that while gross operations are efficient, other operating costs or financing charges impact the final operating profit before the net profit margin recovers. The balance sheet shows a total cash position of $250.00M against total debt of $9.44B, resulting in a debt-to-equity ratio of 159.67%, which characterizes the entity as highly leveraged rather than conservative. Despite the high leverage, the current ratio stands at 1.13, indicating that the company holds slightly more current assets than current liabilities, suggesting a baseline level of short-term liquidity, though the margin is tight given the debt load. Return on Equity is reported at -4.0% and Return on Assets at 0.8%, metrics that reveal that management is currently generating minimal returns on the capital deployed, with the negative ROE specifically highlighting the impact of the interest expenses on shareholder equity in the current period.
Valuation Assessment
Valuation metrics indicate a trailing P/E ratio of 27.35 and a forward P/E of 23.70, where the difference between these figures implies that the market expects earnings to grow in the future to justify the lower forward multiple compared to the historical trailing average. The price-to-book ratio is 2.43, indicating that the market is pricing the company at a significant premium of roughly 143% over its net asset book value, likely due to the quality of its renewable assets and cash flow stability. Alternative valuation metrics such as the price-to-sales ratio of 5.62 and the EV/EBITDA of 17.14 suggest that the stock is trading at a premium relative to its sales and earnings power, which is common for utility stocks with regulated or contracted revenue streams. Price action analysis shows a 52-week high of $41.51 and a 52-week low of $25.63; without the specific current share price provided in the facts, the range establishes the volatility band within which the stock has traded over the last year. The beta value of 0.99 indicates that the stock's price volatility moves in tandem with the broader market, suggesting it behaves similarly to the overall market index rather than acting as a significant hedge or amplifier of market movements.
Growth & Income
Revenue growth over the last year stands at 21.1%, while earnings growth is listed as N/A, meaning there is no available data to determine if earnings are growing faster or slower than revenue at this specific point in time. For dividend payers, the company offers a dividend yield of 4.6% with a payout ratio of 123.6%, which indicates that the dividend paid exceeds the reported net income, a situation that relies on cash flow rather than earnings for sustainability. Given the payout ratio exceeds 100%, the company is distributing more cash to shareholders than its reported net income suggests it earned, which necessitates a reliance on free cash flow or prior cash reserves to maintain the payout. The overall growth and income profile presents a high-yield income story supported by significant revenue expansion, though the lack of reported earnings growth and the high payout ratio introduce complexity regarding the durability of the dividend relative to traditional earnings-based metrics.