Clearway Energy Inc. Class C Common Stock (CWEN)

FairStock Score: 34/100 — RISKY

Key Financials

Strengths

• Generates $208 million in annual free cash flow (4.3% yield on market cap)
• Revenue growth of 21.1% demonstrates strong top-line momentum
• Attractive 4.7% dividend yield providing steady income returns

Concerns

• Trades significantly above Graham Number ($23) with negative 75% margin of safety—limited downside protection
• Currently unprofitable—sustained losses could lead to dilutive capital raises or balance sheet deterioration
• Weak Piotroski F-Score of 3/9 suggests deteriorating financial quality across multiple dimensions
• Altman Z-Score of 0.3 places it in the financial distress zone—elevated bankruptcy risk

AI Analysis

Clearway Energy Inc. Class C Common Stock is a small-cap utilities company valued at $4.8 billion. Revenue stands at $1.4 billion, though the company is currently unprofitable. From a quality standpoint, Clearway shows weak Piotroski F-Score of 3/9 signaling deteriorating fundamentals and distressed Altman Z-Score of 0.3 warrants caution. On valuation, the stock is trading at a premium 27.8x earnings, with trades above its Graham Number with a negative 75% margin. Growth dynamics show revenue growing at 21.1% and profit growth of -3566.7%. The 4.7% dividend yield adds an income component for patient holders. Our composite FairStock Score of 34/100 reflects below-average fundamentals overall. Without profitability, this remains speculative—suitable only for those with high risk tolerance and a long time horizon.

Bull Case

Clearway's 21% revenue growth trajectory could accelerate as it captures additional market share in the utilities sector. With $208 million in annual free cash flow (4.3% yield), management has ample capital for buybacks, dividends, or accretive acquisitions.

Bear Case

Without a clear path to profitability, continued cash burn forces either dilutive equity raises or debt accumulation that destroys shareholder value. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.

Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer