Clearway Energy (Clearway Energy) Financial Strength : 3 (As of Mar. 2024)

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What is Clearway Energy Financial Strength?

Clearway Energy has the Financial Strength Rank of 3. It displays poor financial strength and is likely in financial distress. Usually this is caused by too much debt for the company.

Warning Sign:

Clearway Energy Inc displays poor financial strength. Usually, this is caused by too much debt for the company.

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors:

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.

Clearway Energy did not have earnings to cover the interest expense. Clearway Energy's debt to revenue ratio for the quarter that ended in Mar. 2024 was 8.35. As of today, Clearway Energy's Altman Z-Score is 0.42.

Competitive Comparison of Clearway Energy's Financial Strength

For the Utilities - Renewable subindustry, Clearway Energy's Financial Strength, along with its competitors' market caps and Financial Strength data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Clearway Energy's Financial Strength Distribution in the Utilities - Independent Power Producers Industry

For the Utilities - Independent Power Producers industry and Utilities sector, Clearway Energy's Financial Strength distribution charts can be found below:

* The bar in red indicates where Clearway Energy's Financial Strength falls into.

Clearway Energy Financial Strength Calculation

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

Clearway Energy's Interest Expense for the months ended in Mar. 2024 was $-57 Mil. Its Operating Income for the months ended in Mar. 2024 was $-28 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2024 was $8,221 Mil.

Clearway Energy's Interest Coverage for the quarter that ended in Mar. 2024 is

Clearway Energy did not have earnings to cover the interest expense.

The higher the ratio, the stronger the company's financial strength is.

Warning Sign:

Ben Graham prefers companies' interest coverage to be at least 5. Clearway Energy Incs earnings cannot cover its interest expense. If the situation continues, the company may have to issue more debt.

2. Debt to revenue ratio. The lower, the better.

Clearway Energy's Debt to Revenue Ratio for the quarter that ended in Mar. 2024 is

Debt to Revenue Ratio	=	Total Debt (Q: Mar. 2024 )			/	Revenue
	=	(Short-Term Debt & Capital Lease Obligation	+	Long-Term Debt & Capital Lease Obligation)	/	Revenue
	=	(565	+	8221)	/	1052
	=	8.35

3. Altman Z-Score.

Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.

The zones of discrimination were as such:

When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.

Clearway Energy has a Z-score of 0.42, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.

Warning Sign:

Altman Z-score of 0.42 is in distress zone. This implies bankruptcy possibility in the next two years.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Clearway Energy (NYSE:CWEN) Financial Strength Explanation

The maximum rank is 10. Companies with rank 7 or higher will be unlikely to fall into distressed situations. Companies with rank of 3 or less are likely in financial distress.

Clearway Energy has the Financial Strength Rank of 3. It displays poor financial strength and is likely in financial distress. Usually this is caused by too much debt for the company.

Clearway Energy Financial Strength Related Terms

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Clearway Energy (Clearway Energy) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Utilities » Utilities - Independent Power Producers » Clearway Energy Inc (NYSE:CWEN) » Definitions » Financial Strength

Comparable Companies

Traded in Other Exchanges

CWEN.A:USA NY41:Germany NY4B:Germany

Address

300 Carnegie Center, Suite 300, Princeton, NJ, USA, 08540

Website

https://www.clearwayenergy.com

Clearway Energy Inc is a publicly-traded energy infrastructure investor with a focus on investments in clean energy and owner of modern, sustainable and long-term contracted assets across North America. The company segments its operations into conventional power generation, renewables and thermal divisions.

Executives

Christopher S Sotos	director	CLEARWAY ENERGY, INC., 300 CARNEGIE CENTER, SUITE 300, PRINCETON NJ 08540
Global Infrastructure Investors Iii, Llc	10 percent owner	C/O GLOBAL INFRASTRUCTURE PARTNERS, 1345 AVENUE OF THE AMERICAS, 30TH FLOOR, NEW YORK NY 10105
Se Totalenergies	director, 10 percent owner	2 PLACE JEAN MILLIER, ARCHE NORD COUPOLE/REGNAULT, PARIS LA DEFENSE CEDEX I0 92078
Emmanuel Barrois	director	300 CARNEGIE CENTER, SUITE 300, PRINCETON NJ 08540
Guillaume Hediard	director	300 CARNEGIE CENTER, SUITE 300, PRINCETON NJ 08540
Vincent Stoquart	director	C/O SUNPOWER CORPORATION, 51 RIO ROBLES, SAN JOSE CA 95134
Totalenergies Gestion Usa Sarl	10 percent owner	LA DEFENSE 6 2 PLACE JEAN MILLIER, COURBEVOIE, HAUTS-DE-SEINE I0 92400
Totalenergies Holdings Usa, Inc.	10 percent owner	1201 LOUISIANA STREET, SUITE 1800, HOUSTON TX 77002
Totalenergies Renewables Usa, Llc	10 percent owner	1201 LOUISIANA STREET, SUITE 1800, HOUSTON TX 77002
Totalenergies Delaware, Inc.	10 percent owner	1201 LOUISIANA STREET, SUITE 1800, HOUSTON TX 77002
Zephyr Holdings Gp, Llc	director, 10 percent owner	C/O GLOBAL INFRASTRUCTURE PARTNERS, 1345 AVENUE OF THE AMERICAS, 30TH FLOOR, NEW YORK NY 10105
Gip Iii Zephyr Midco Holdings, L.p.	director, 10 percent owner	C/O GLOBAL INFRASTRUCTURE PARTNERS, 1345 AVENUE OF THE AMERICAS, 30TH FLOOR, NEW YORK NY 10105
Michael Taft Murphy	officer: CHIEF INVESTMENT OFFICER	300 CARNEGIE CENTER, SUITE 300, PRINCETON NJ 08540
Jennifer Elaine Lowry	director	2 HOLLINS AVE, BALTIMORE MD 21210
E Stanley Oneal	director	MERRILL LYNCH CORPORATE SECRETARY, 222 BROADWAY, 17TH FLOOR, NEW YORK NY 10038