Clearway Energy (formerly NRG Yield, Inc.) acquires, owns, and operates contracted renewable and conventional generation, and thermal infrastructure assets in the United States. The company was founded in 2012 and is based in Princeton, New Jersey. NRG Yield, Inc. is a subsidiary of NRG Energy, Inc.
CWEN Price Forecast Based on DCF Valuation
DCF Fair Value Target:
Below please find a table outlining a discounted cash flow forecast for CWEN, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Clearway Energy Inc ranked in the 48th percentile in terms of potential gain offered. More precisely, our analysis suggests the stock is undervalued by approximately 17.67% on a DCF basis. As for the metrics that stood out in our discounted cash flow analysis of Clearway Energy Inc, consider:
Interest coverage, a measure of earnings relative to interest payments, is 1.12 -- which is good for besting just 14.91% of its peer stocks (US stocks in the Utilities sector with positive cash flow).
31% of the company's capital comes from equity, which is greater than only 14.21% of stocks in our cash flow based forecasting set.
Clearway Energy Inc's effective tax rate, as measured by taxes paid relative to net income, is at 0 -- greater than just 0% of US stocks with positive free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
SPH, JE, UGI, TAC, and KEN can be thought of as valuation peers to CWEN, in the sense that they are in the Utilities sector and have a similar price forecast based on DCF valuation.
Investment Thesis Clearway Energy, Inc. (CWEN, CWEN.A) is the publicly traded renewable energy YieldCo subsidiary of parent Clearway Energy Group, a utility-scale renewables developer. The YieldCo owns and operates a 7.5 GW portfolio of clean energy electricity generation assets, such as wind, solar, thermal, and natural gas facilities. It sells...
Cashflow Capitalist on Seeking Alpha | September 23, 2020
Clearway Energy, Inc. (CWEN) Q2 2020 Earnings Conference Call August 06, 2020 08:00 A.M. ET Company Participants Chad S. Plotkin - SVP and CFO Christopher S. Sotos - President and CEO Craig Cornelius - CEO and President, Clearway Energy Group Conference Call Participants Julien Dumoulin-Smith - Bank of America Merrill...
Clearway Energy (NYSE: CWEN)(NYSE: CWEN.A) has been far from a dream dividend stock in recent years. Add that factor to PG&E's recent reemergence from bankruptcy, and Clearway appears poised to become a dividend investor's dream stock in the coming years.