Clearway EnergyCWEN +0.60%76 Operating Margin % is 7.63% as of Mar. 2026, which is 68% below its 10-year median of 23.48. GuruFocus rates CWEN with a GF Score™ of 76/100 and a GF Value™ of $32.28 (Modestly Overvalued). The stock has 8 warning signs investors should review. Among 417 Utilities - Independent Power Producers companies, Clearway Energy ranks better than 50.36% on this metric.
Clearway Energy (NYSE:CWEN) Operating Margin % Explanation
Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.
Be Aware
Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).
If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.
For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokias Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).
Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.
Clearway Energy Operating Margin % Related Terms
Clearway Energy Operating Margin % Historical Data
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The historical data trend for Clearway Energy's Operating Margin % can be seen below:
* 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.
CWEN vs MWH, ORA, FLNC: Operating Margin % Comparison
For the Utilities - Renewable subindustry, Clearway Energy's Operating Margin %, along with its competitors' market caps and Operating Margin % 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 Operating Margin % vs Utilities - Independent Power Producers Industry
For the Utilities - Independent Power Producers industry and Utilities sector, Clearway Energy's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Clearway Energy's Operating Margin % falls into.
Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.
Clearway Energy's Operating Margin % for the fiscal year that ended in Dec. 2025 is calculated as
* 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 (CWEN) has a Operating Margin % of 7.63% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Clearway Energy and its competitors. This is 68% below median its historical median of 23.48. Over the past decade, Clearway Energy's Operating Margin % has ranged from 12.32 to 39.42. According to the industry distribution chart, Clearway Energy ranks #207 out of 417 companies in the Utilities - Independent Power Producers industry, placing it in the top 49.6%.
Is Clearway Energy's Operating Margin % too high?
Clearway Energy's current Operating Margin % of 7.63% is 68% below median its 10-year median of 23.48. Over the past 10 years, this metric has ranged from a low of 12.32 to a high of 39.42. The Utilities - Independent Power Producers industry median Operating Margin % is 13.27. Clearway Energy's value of 7.63% is 42.5% below this industry median. Based on the distribution chart, Clearway Energy ranks #207 out of 417 companies in the Utilities - Independent Power Producers industry, which is above the industry midpoint. Overall, Clearway Energy has a GF Score™ of 76/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Clearway Energy's Operating Margin % compare to MWH and ORA?
According to the Utilities - Independent Power Producers industry distribution chart, Clearway Energy ranks #207 out of 417 companies for Operating Margin %. This puts Clearway Energy in the upper half of its industry. The industry median Operating Margin % is 13.27. Clearway Energy's value of 7.63% is 42.5% below this benchmark. Historically, Clearway Energy's own Operating Margin % has ranged from 12.32 to 39.42 over the past decade. While the company's 10-year median is 23.48 vs. the industry median of 13.27, Clearway Energy has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Operating Margin % for an Utilities - Independent Power Producers company?
The median Operating Margin % among Utilities - Independent Power Producers companies is 13.27, based on 417 companies in the industry. Companies in the top quartile (top 25%) have a Operating Margin % significantly above this median, while those in the bottom quartile fall well below. However, Operating Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Clearway Energy's current Operating Margin % of 7.63% is 42.5% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Operating Margin % mean?
A high Operating Margin % can signal that a stock is expensive relative to its fundamentals. Operating margin is the ratio of total operating income to net sales. View historical data on Clearway Energy and its competitors. For the Utilities - Independent Power Producers industry, the median Operating Margin % is 13.27 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Clearway Energy's current Operating Margin % is 7.63%, which is 68% below median its own 10-year median of 23.48. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Clearway Energy stock overvalued right now?
Based on GuruFocus' analysis, Clearway Energy (CWEN) is currently considered Modestly Overvalued. The stock's GF Value™ is $32.28, compared to a current price of $36.78 — trading 13.9% above its estimated fair value. The current Operating Margin % is 7.63%, which is 68% below median its 10-year median of 23.48 and 42.5% below the Utilities - Independent Power Producers industry median of 13.27. Clearway Energy's overall GF Score™ is 76/100 with 8 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Operating Margin % calculated?
Operating Margin % is calculated from a company's financial statements. For Clearway Energy (CWEN), the current Operating Margin % is 7.63% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Clearway Energy (CWEN) Overvalued in 2026?
Based on GuruFocus' analysis, Clearway Energy stock appears to be overvalued.
The current stock price of $36.78 is trading 13.9% above its estimated GF Value™ of $32.28.
GuruFocus considers Clearway Energy to be Modestly Overvalued.
Key valuation signals for CWEN:
Operating Margin %: 7.63% (68% below median its 10-year median of 23.48)
GF Value™: $32.28 vs. price of $36.78 (13.9% above fair value)
Industry Position: 42.5% below the Utilities - Independent Power Producers median (#207 of 417)
No single metric tells the full story. See the CWEN stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Clearway Energy Inc is a publicly-traded energy infrastructure investor with a focus on investments in clean energy and the owner of modern, sustainable, and long-term contracted assets across North America. The company segments its operations into Flexible Generation, Renewables & Storage, and Corporate divisions. The majority of its revenue is generated from the Renewables & Storage segment.
76GF Score
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