RWE AG (RWE.DE) Stock Fundamental Analysis
Europe - FRA:RWE - DE0007037129 - Common Stock
35.93 EUR
+0.18 (+0.5%)
We assign a fundamental rating of 4 out of 10 to RWE. RWE was compared to 20 industry peers in the Independent Power and Renewable Electricity Producers industry. RWE has a medium profitability rating, but doesn't score so well on its financial health evaluation. RWE has a valuation in line with the averages, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
In the past year RWE was profitable.
RWE had a positive operating cash flow in the past year.
RWE had positive earnings in each of the past 5 years.
Each year in the past 5 years RWE had a positive operating cash flow.
1.2 Ratios
RWE's Return On Assets of 2.64% is fine compared to the rest of the industry. RWE outperforms 70.00% of its industry peers.
With a decent Return On Equity value of 7.80%, RWE is doing good in the industry, outperforming 65.00% of the companies in the same industry.
RWE has a Return On Invested Capital (2.47%) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.64% | ||
| ROE | 7.8% | ||
| ROIC | 2.47% |
ROA(3y)2.87%
ROA(5y)2.16%
ROE(3y)10.29%
ROE(5y)8.36%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
RWE has a Profit Margin of 11.18%. This is in the better half of the industry: RWE outperforms 70.00% of its industry peers.
RWE's Profit Margin has declined in the last couple of years.
RWE's Operating Margin of 12.76% is in line compared to the rest of the industry. RWE outperforms 45.00% of its industry peers.
RWE's Operating Margin has improved in the last couple of years.
RWE has a Gross Margin of 32.53%. This is comparable to the rest of the industry: RWE outperforms 55.00% of its industry peers.
RWE's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.76% | ||
| PM (TTM) | 11.18% | ||
| GM | 32.53% |
OM growth 3Y23.15%
OM growth 5Y40.35%
PM growth 3Y93.31%
PM growth 5Y-20.01%
GM growth 3Y10.69%
GM growth 5Y3.76%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), RWE is destroying value.
Compared to 1 year ago, RWE has less shares outstanding
Compared to 5 years ago, RWE has more shares outstanding
The debt/assets ratio for RWE is higher compared to a year ago.
2.2 Solvency
A Debt/Equity ratio of 0.46 indicates that RWE is not too dependend on debt financing.
RWE's Debt to Equity ratio of 0.46 is fine compared to the rest of the industry. RWE outperforms 75.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.46 | ||
| Debt/FCF | N/A | ||
| Altman-Z | N/A |
ROIC/WACC0.43
WACC5.8%
2.3 Liquidity
RWE has a Current Ratio of 1.27. This is a normal value and indicates that RWE is financially healthy and should not expect problems in meeting its short term obligations.
RWE has a Current ratio (1.27) which is comparable to the rest of the industry.
A Quick Ratio of 1.21 indicates that RWE should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.21, RWE is in line with its industry, outperforming 50.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.27 | ||
| Quick Ratio | 1.21 |
3. Growth
3.1 Past
RWE shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -47.20%.
RWE shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -12.96% yearly.
The Revenue has decreased by -7.32% in the past year.
RWE shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 13.04% yearly.
EPS 1Y (TTM)-47.2%
EPS 3Y10.38%
EPS 5Y-12.96%
EPS Q2Q%-49.33%
Revenue 1Y (TTM)-7.32%
Revenue growth 3Y-0.47%
Revenue growth 5Y13.04%
Sales Q2Q%-20.07%
3.2 Future
The Earnings Per Share is expected to grow by 3.45% on average over the next years.
The Revenue is expected to grow by 0.90% on average over the next years.
EPS Next Y-31.8%
EPS Next 2Y-10.74%
EPS Next 3Y-1.7%
EPS Next 5Y3.45%
Revenue Next Year-7.7%
Revenue Next 2Y-2.84%
Revenue Next 3Y1.29%
Revenue Next 5Y0.9%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 15.55, which indicates a correct valuation of RWE.
RWE's Price/Earnings is on the same level as the industry average.
The average S&P500 Price/Earnings ratio is at 27.30. RWE is valued slightly cheaper when compared to this.
Based on the Price/Forward Earnings ratio of 14.45, the valuation of RWE can be described as correct.
RWE's Price/Forward Earnings ratio is in line with the industry average.
RWE's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.73.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.55 | ||
| Fwd PE | 14.45 |
4.2 Price Multiples
RWE's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. RWE is cheaper than 85.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 5.15 |
4.3 Compensation for Growth
The decent profitability rating of RWE may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-10.74%
EPS Next 3Y-1.7%
5. Dividend
5.1 Amount
RWE has a Yearly Dividend Yield of 3.08%.
Compared to an average industry Dividend Yield of 3.53, RWE pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.41, RWE pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.08% |
5.2 History
On average, the dividend of RWE grows each year by 8.29%, which is quite nice.
Dividend Growth(5Y)8.29%
Div Incr Years2
Div Non Decr Years4
5.3 Sustainability
RWE pays out 39.78% of its income as dividend. This is a sustainable payout ratio.
RWE's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP39.78%
EPS Next 2Y-10.74%
EPS Next 3Y-1.7%
FRA:RWE (9/12/2025, 7:00:00 PM)
35.93
+0.18 (+0.5%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryIndependent Power and Renewable Electricity Producers
Earnings (Last)
Earnings (Next)
Inst Owners36.62%
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap26.73B
Analysts82.22
Price Target43.32 (20.57%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.08% |
Yearly Dividend1.36
Dividend Growth(5Y)8.29%
DP39.78%
Div Incr Years2
Div Non Decr Years4
Ex-DateN/A
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)N/A
Avg Revenue beat(2)N/A
Min Revenue beat(2)N/A
Max Revenue beat(2)N/A
Revenue beat(4)N/A
Avg Revenue beat(4)N/A
Min Revenue beat(4)N/A
Max Revenue beat(4)N/A
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)0.72%
PT rev (3m)1.08%
EPS NQ rev (1m)-28.85%
EPS NQ rev (3m)N/A
EPS NY rev (1m)-3.88%
EPS NY rev (3m)-3.88%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-0.86%
Revenue NY rev (3m)-1.67%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.55 | ||
| Fwd PE | 14.45 | ||
| P/S | 1.16 | ||
| P/FCF | N/A | ||
| P/OCF | 5.31 | ||
| P/B | 0.81 | ||
| P/tB | 1.14 | ||
| EV/EBITDA | 5.15 |
EPS(TTM)2.31
EY6.43%
EPS(NY)2.49
Fwd EY6.92%
FCF(TTM)-7.88
FCFYN/A
OCF(TTM)6.76
OCFY18.82%
SpS31.01
BVpS44.44
TBVpS31.61
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.64% | ||
| ROE | 7.8% | ||
| ROCE | 3.96% | ||
| ROIC | 2.47% | ||
| ROICexc | 2.83% | ||
| ROICexgc | 3.31% | ||
| OM | 12.76% | ||
| PM (TTM) | 11.18% | ||
| GM | 32.53% | ||
| FCFM | N/A |
ROA(3y)2.87%
ROA(5y)2.16%
ROE(3y)10.29%
ROE(5y)8.36%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3Y2.24%
ROICexcg growth 5Y46.91%
ROICexc growth 3Y2.15%
ROICexc growth 5Y45.27%
OM growth 3Y23.15%
OM growth 5Y40.35%
PM growth 3Y93.31%
PM growth 5Y-20.01%
GM growth 3Y10.69%
GM growth 5Y3.76%
F-Score4
Asset Turnover0.24
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.46 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 2.45 | ||
| Cap/Depr | 340.04% | ||
| Cap/Sales | 47.23% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 81.83% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.27 | ||
| Quick Ratio | 1.21 | ||
| Altman-Z | N/A |
F-Score4
WACC5.8%
ROIC/WACC0.43
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)21.79%
Cap/Sales(5y)20.98%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-47.2%
EPS 3Y10.38%
EPS 5Y-12.96%
EPS Q2Q%-49.33%
EPS Next Y-31.8%
EPS Next 2Y-10.74%
EPS Next 3Y-1.7%
EPS Next 5Y3.45%
Revenue 1Y (TTM)-7.32%
Revenue growth 3Y-0.47%
Revenue growth 5Y13.04%
Sales Q2Q%-20.07%
Revenue Next Year-7.7%
Revenue Next 2Y-2.84%
Revenue Next 3Y1.29%
Revenue Next 5Y0.9%
EBIT growth 1Y-51.88%
EBIT growth 3Y22.56%
EBIT growth 5Y58.65%
EBIT Next Year36.83%
EBIT Next 3Y22.3%
EBIT Next 5Y17.01%
FCF growth 1Y-97.44%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y232.3%
OCF growth 3Y-3.09%
OCF growth 5YN/A