* Note: Prices are in Million (M) USD.
Description:
Clearway Energy, Inc., participates in the renewable energy businesses in the United States.
These criteria used Company's Cash, EBITDA and Debt balance to determines its fair value:
Cash : $332 M
Debt : $7,749 M
EBITDA : $1,060 M
Net Debt (Debt - Cash): $7,417 M
Since EBITDA cannot cover net debt within 3 years, Avoid This Stock.
This criteria used industry in which company operates:
Sector: Utilities
Industry: Utilities - Regulated Electric
Based on industry, 3 points assigned.
This criteria used Company's Price To Earning (P/E) Ratio to determines its fair value:
Forward PE Ratio: 17.51
Since Forward PE Ratio is between 15 - 20, 3 points assigned.
This criteria used Company's ability to convert Sales into free cash flow to determine fair value:
Average Free Cash Flow: $290 M
Average Revenue: $861 M
Revenue Converted To Free Cash Flow (%): 34%
Avg Free Cash Flow Growth Per Year (Last 5 Years): 20.25%
Since Free Cash Flow (FCF) to Revenue percentage is greater than 25, 5 points assigned.
This criteria used company's growth potential to calculate its fair value:
Latest Revenue (2024-12-31): $1,371 M
Revenue 4 Years Ago (2020-12-31): $1,199 M
Last 5 Years Average Revenue Growth: 3%
Since Revenue Growth is between 0 - 5, 1 point assigned.
This criteria used Company's ability to buy back its own share:
Latest Share Count (2024-12-31): $118 M
Share Count 5 Years Ago (2020-12-31): $116 M
Company is not buying back its own shares, 0 points assigned.
This criteria used Company's dividend payout ratio to determine its fair value:
Next Year Earnings Per Share (EPS): $1.90
Trailing 12-Month Earnings Per Share (EPS): $1.50
Average Earnings Per Share (EPS): $1.70
Dividend Per Share (DPS): $2
Payout Ratio: 101%
Dividend Yield: 6%
Since company Payout Ratio is greater than 50, 1 point assigned.
Since Dividend Yield is greater than 5, 5 points assigned.
This criteria used Company's Return On Equity (ROE%) to determine its fair value:
Average ROE: 4%
Since Average ROE is less than 10, 1 point assigned.
This criteria used Company's current price to its 52 week low price to determines its fair value:
Current Price: $30
52-Week Low: $24
Threshold Price (15% Above 52-Week Low): $27
Since Current price is not within 15% threshold, 0 point assigned.
This criteria used Company's Market Cap to determines its fair value:
Market Capitalization: $5,764 M
Since Market Cap is less than 10B, 1 point assigned.
% Exposure to Total Portfolio
Based on the market cap, we recommend do not exceed 2% exposure of Total Portfolio.
Value-Trade has assigned 20 points to above Clearway Energy Inc Class C (CWEN) stock.
Last 7 Years Avg PE (Limited to last 7 years of EPS data) 24.43, Fair Value PE 15, Industry Based PE is 15 and Growth based PE is 10. Based on these all values average assigned is 16.11.
Value-Trades has assined P/E value 16.11. Since an average (Current Year EPS + Next Year EPS) earning per share is $1.7.
The fair value of Clearway Energy Inc Class C (CWEN) stock should be (16.11 x $1.7) = $27.39
