RWE AG (RWE.DE) Stock Fundamental Analysis
Europe - FRA:RWE - DE0007037129 - Common Stock
42.71 EUR
-0.41 (-0.95%)
Taking everything into account, RWE scores 4 out of 10 in our fundamental rating. RWE was compared to 19 industry peers in the Independent Power and Renewable Electricity Producers industry. There are concerns on the financial health of RWE while its profitability can be described as average. RWE is valued expensive and it does not seem to be growing.
1. Profitability
1.1 Basic Checks
RWE had positive earnings in the past year.
In the past year RWE had a positive cash flow from operations.
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 has a better Return On Assets (2.64%) than 63.64% of its industry peers.
Looking at the Return On Equity, with a value of 7.80%, RWE is in line with its industry, outperforming 54.55% of the companies in the same industry.
The Return On Invested Capital of RWE (2.47%) 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
Looking at the Profit Margin, with a value of 11.18%, RWE is in the better half of the industry, outperforming 72.73% of the companies in the same industry.
RWE's Profit Margin has declined in the last couple of years.
The Operating Margin of RWE (12.76%) is comparable to the rest of the industry.
In the last couple of years the Operating Margin of RWE has grown nicely.
Looking at the Gross Margin, with a value of 32.53%, RWE is in line with its industry, outperforming 45.45% of the companies in the same industry.
In the last couple of years the Gross Margin of RWE has grown nicely.
| 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
RWE has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
RWE has less shares outstanding than it did 1 year ago.
RWE has more shares outstanding than it did 5 years ago.
RWE has a worse debt/assets ratio than last year.
2.2 Solvency
RWE has a Debt/Equity ratio of 0.46. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.46, RWE is in the better half of the industry, outperforming 68.18% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.46 | ||
| Debt/FCF | N/A | ||
| Altman-Z | N/A |
ROIC/WACC0.41
WACC6%
2.3 Liquidity
A Current Ratio of 1.27 indicates that RWE should not have too much problems paying 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.
The Quick ratio of RWE (1.21) is comparable to the rest of the 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%.
Measured over the past years, RWE shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -12.96% on average per year.
Looking at the last year, RWE shows a decrease in Revenue. The Revenue has decreased by -7.32% in the last year.
The Revenue has been growing by 13.04% on average over the past years. This is quite good.
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 3.04% on average over the next years.
Based on estimates for the next years, RWE will show a small growth in Revenue. The Revenue will grow by 1.50% on average per year.
EPS Next Y-31.78%
EPS Next 2Y-9.95%
EPS Next 3Y-1.31%
EPS Next 5Y3.04%
Revenue Next Year-11.69%
Revenue Next 2Y-3.12%
Revenue Next 3Y0.52%
Revenue Next 5Y1.5%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 18.49, RWE is valued on the expensive side.
Compared to the rest of the industry, the Price/Earnings ratio of RWE indicates a somewhat cheap valuation: RWE is cheaper than 68.18% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 26.06. RWE is valued slightly cheaper when compared to this.
A Price/Forward Earnings ratio of 16.88 indicates a correct valuation of RWE.
The rest of the industry has a similar Price/Forward Earnings ratio as RWE.
RWE is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 32.73, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.49 | ||
| Fwd PE | 16.88 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, RWE is valued a bit cheaper than the industry average as 72.73% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 5.99 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-9.95%
EPS Next 3Y-1.31%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.55%, RWE has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.45, RWE has a dividend in line with its industry peers.
RWE's Dividend Yield is comparable with the S&P500 average which is at 2.37.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.55% |
5.2 History
The dividend of RWE is nicely growing with an annual growth rate of 8.29%!
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.
The dividend of RWE is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP39.78%
EPS Next 2Y-9.95%
EPS Next 3Y-1.31%
FRA:RWE (11/7/2025, 7:00:00 PM)
42.71
-0.41 (-0.95%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryIndependent Power and Renewable Electricity Producers
Earnings (Last)
Earnings (Next)
Inst Owners41.9%
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap31.77B
Revenue(TTM)23.07B
Net Income(TTM)2.58B
Analysts82.22
Price Target44.07 (3.18%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.55% |
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)1.86%
PT rev (3m)3.13%
EPS NQ rev (1m)31.58%
EPS NQ rev (3m)-3.85%
EPS NY rev (1m)0.86%
EPS NY rev (3m)-3.85%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)-1.79%
Revenue NY rev (3m)-5.15%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.49 | ||
| Fwd PE | 16.88 | ||
| P/S | 1.38 | ||
| P/FCF | N/A | ||
| P/OCF | 6.31 | ||
| P/B | 0.96 | ||
| P/tB | 1.35 | ||
| EV/EBITDA | 5.99 |
EPS(TTM)2.31
EY5.41%
EPS(NY)2.53
Fwd EY5.92%
FCF(TTM)-7.88
FCFYN/A
OCF(TTM)6.76
OCFY15.84%
SpS31.01
BVpS44.44
TBVpS31.61
PEG (NY)N/A
PEG (5Y)N/A
Graham Number48.06
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
ROICexgc growth 3Y2.24%
ROICexgc 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
WACC6%
ROIC/WACC0.41
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-31.78%
EPS Next 2Y-9.95%
EPS Next 3Y-1.31%
EPS Next 5Y3.04%
Revenue 1Y (TTM)-7.32%
Revenue growth 3Y-0.47%
Revenue growth 5Y13.04%
Sales Q2Q%-20.07%
Revenue Next Year-11.69%
Revenue Next 2Y-3.12%
Revenue Next 3Y0.52%
Revenue Next 5Y1.5%
EBIT growth 1Y-51.88%
EBIT growth 3Y22.56%
EBIT growth 5Y58.65%
EBIT Next Year32.46%
EBIT Next 3Y21.8%
EBIT Next 5Y16.59%
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
RWE AG / RWE.DE FAQ
What is the fundamental rating for RWE stock?
ChartMill assigns a fundamental rating of 4 / 10 to RWE.DE.
Can you provide the valuation status for RWE AG?
ChartMill assigns a valuation rating of 2 / 10 to RWE AG (RWE.DE). This can be considered as Overvalued.
How profitable is RWE AG (RWE.DE) stock?
RWE AG (RWE.DE) has a profitability rating of 5 / 10.
What are the PE and PB ratios of RWE AG (RWE.DE) stock?
The Price/Earnings (PE) ratio for RWE AG (RWE.DE) is 18.49 and the Price/Book (PB) ratio is 0.96.
What is the earnings growth outlook for RWE AG?
The Earnings per Share (EPS) of RWE AG (RWE.DE) is expected to decline by -31.78% in the next year.