Clearway Energy Inc. Class C Common Stock (CWEN)

FairStock Score: 34/100 — RISKY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look first for a business I can understand and a price that leaves room for error. Clearway owns 12.9 GW of generation across 27 states, including 10.1 GW of wind, solar, and storage and 2.8 GW of dispatchable assets. That is a real, capital-intensive utility-like business. In fiscal Q2 2026, the quarter ended 2026-06-30, it reported revenue of $481.0M and net income of $122.0M, up from $392.0M and $30.0M in fiscal Q2 2025, the quarter ended 2025-06-30. Full-year fiscal 2025 revenue was $1.4B with net income of $169.0M, and fiscal 2024 revenue was $1.4B with net income of $88.0M. FairStock’s Lynch category calls it a Stalwart, citing 46.6% annual profit growth over five years against 3.6% revenue growth—impressive but volatile. The balance sheet gives me pause. FairStock’s debt-to-equity is 1.77, Altman Z-Score is 0.41, ROE is -3.17%, and ROCE is 0.97%. Those are not the marks of a wide-moat compounder. Yet FairStock’s Piotroski F-Score is 7/9, and trailing free cash flow is $532.0M, an 8.5% FCF yield on the $6.2B market cap. The 6.02% dividend yield is attractive if cash flow holds. Valuation is the rub. At the 2026-10-13 close of $30.43, FairStock calculates a P/E of 35.38 and P/B of 1.99. Its Graham Number is $13.21, leaving a -130.36% margin of safety. PEG of 0.12 looks cheap only because profit growth is erratic. I see a fair business, not a bargain; I would want a lower price or clearer durable returns on capital.

In plain English: Clearway Energy owns and runs power plants, mostly wind, solar, and batteries, plus some gas-fired generation. The business has grown revenue and profits lately, but it carries a lot of debt, earns weak returns on its assets, and the stock price is high compared with its earnings and net assets. At $30.43, the shares look expensive, though the dividend payment and cash flow are meaningful.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer