CluenexClearway Energy (Class C) CWEN
Clearway Energy (Class C) scores weak on business quality (3.4 of 10). Here is why, in plain words, and what our sealed record shows.
Why it matters
- What Clearway Energy (Class C) does
Clearway Energy owns and operates renewable and conventional power generation assets, selling electricity primarily under long-term power purchase agreements to utilities and large commercial off-takers. The business generates $1.4B in revenue by monetizing clean energy capacity across North America.
- What it does best
Clearway secures exceptionally high cash conversion, delivering a free cash flow margin in the top decile of its sector at 99%. This efficiency stems from long-term contracted offtake agreements that insulate operating cash flows from volatile wholesale power pricing.
- The main risk
Heavy debt reliance threatens the capital structure, with interest coverage sitting at an alarming 0.5x. With total debt of $8.6B weighing against $169M in net income, rising borrowing costs directly squeeze equity value and limit financial flexibility.
Quality, check by check
Scored against its own industry, from company filings.
Operating margins sit at 12.3% alongside an 8.7% ROE, reflecting compressed bottom-line returns despite a strong 62.9% gross margin. High interest obligations and depreciation drag down profitability as the business scales.
Long-term power purchase agreements lock in institutional and utility offtakers for decades, yielding a gross margin of 62.9%. This asset-backed moat sits well above peers like ORA at 28%, protecting cash flows from spot price drops.
Revenue grew 4.2% to $1.4B, marking a modest recovery compared to prior historical swings. The top-line expansion sits in the bottom quartile of its sector at the 28th percentile, showing slow overall progress.
Total debt sits at $8.6B with interest coverage at 0.5x, meaning earnings fail to cover interest expenses. Free cash flow dropped to $369M from $483M previously. The balance sheet is softening under heavy leverage.
Insiders
Executives and directors, from SEC Form 4 filings we read ourselves. Open market trades only; grants, option exercises and pre-planned sales left out.
No open market buys or unplanned sales by executives or directors.
Our sealed record on CWEN
Verdicts appear here 30 days after we publish them; members see today's. Each one is in the nightly ledger, fingerprinted the night it was made.
The first sealed verdicts appear here on Oct 11, 2026.
Questions
Clearway Energy (Class C) scores weak on the Cluenex quality check (3.4 of 10), measured against its own industry. Profitability is weak, moat fair, growth slow and financial health weak.
In the last 90 days of SEC Form 4 filings: No open market buys or unplanned sales by executives or directors.
Oct 29, 2026, before the open.
See CWEN today
- Today's verdict on CWEN, and why
- Fair value with cautious, base and optimistic cases
- The exact price that would change the verdict
- Which stocks each signal names, the night it fires
Cite this page: Cluenex, “Clearway Energy (Class C) (CWEN)”, https://cluenex.com/stocks/cwen/, data as of Oct 10, 2026.