RWE AG (RWE.DE) Stock Fundamental Analysis
FRA:RWE - Deutsche Boerse Ag - DE0007037129 - Common Stock - Currency: EUR
We assign a fundamental rating of 5 out of 10 to RWE. RWE was compared to 21 industry peers in the Independent Power and Renewable Electricity Producers industry. While RWE belongs to the best of the industry regarding profitability, there are concerns on its financial health. RWE is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year RWE was profitable.
RWE had a positive operating cash flow in the past year.
Each year in the past 5 years RWE has been profitable.
RWE had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
RWE has a better Return On Assets (5.22%) than 95.24% of its industry peers.
The Return On Equity of RWE (16.28%) is better than 95.24% of its industry peers.
RWE has a better Return On Invested Capital (5.26%) than 90.48% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.22% | ||
| ROE | 16.28% | ||
| ROIC | 5.26% |
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
With a decent Profit Margin value of 21.20%, RWE is doing good in the industry, outperforming 71.43% of the companies in the same industry.
RWE's Profit Margin has declined in the last couple of years.
RWE has a Operating Margin of 24.64%. This is in the better half of the industry: RWE outperforms 61.90% of its industry peers.
RWE's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 36.39%, RWE is in line with its industry, outperforming 52.38% 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 | 24.64% | ||
| PM (TTM) | 21.2% | ||
| GM | 36.39% |
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.
The number of shares outstanding for RWE has been reduced compared to 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
A Debt/Equity ratio of 0.47 indicates that RWE is not too dependend on debt financing.
RWE has a Debt to Equity ratio of 0.47. This is in the better half of the industry: RWE outperforms 76.19% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.47 | ||
| Debt/FCF | N/A | ||
| Altman-Z | N/A |
ROIC/WACC0.91
WACC5.81%
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.
Looking at the Current ratio, with a value of 1.27, RWE is in line with its industry, outperforming 57.14% of the companies in the same industry.
RWE has a Quick Ratio of 1.18. This is a normal value and indicates that RWE is financially healthy and should not expect problems in meeting its short term obligations.
With a decent Quick ratio value of 1.18, RWE is doing good in the industry, outperforming 61.90% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.27 | ||
| Quick Ratio | 1.18 |
3. Growth
3.1 Past
RWE shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -48.77%.
RWE shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -12.96% yearly.
Looking at the last year, RWE shows a very negative growth in Revenue. The Revenue has decreased by -15.20% 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)-48.77%
EPS 3Y10.38%
EPS 5Y-12.96%
EPS Q2Q%-40.91%
Revenue 1Y (TTM)-15.2%
Revenue growth 3Y-0.47%
Revenue growth 5Y13.04%
Sales Q2Q%9.48%
3.2 Future
RWE is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 3.03% yearly.
RWE is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 0.22% yearly.
EPS Next Y-29.04%
EPS Next 2Y-11.73%
EPS Next 3Y-1.1%
EPS Next 5Y3.03%
Revenue Next Year-3.45%
Revenue Next 2Y0.5%
Revenue Next 3Y6.28%
Revenue Next 5Y0.22%
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
Based on the Price/Earnings ratio of 10.85, the valuation of RWE can be described as reasonable.
71.43% of the companies in the same industry are more expensive than RWE, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of RWE to the average of the S&P500 Index (28.92), we can say RWE is valued rather cheaply.
RWE is valuated correctly with a Price/Forward Earnings ratio of 15.29.
Based on the Price/Forward Earnings ratio, RWE is valued a bit cheaper than the industry average as 66.67% of the companies are valued more expensively.
RWE's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 21.65.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.85 | ||
| Fwd PE | 15.29 |
4.2 Price Multiples
RWE's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. RWE is cheaper than 95.24% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 2.75 |
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-11.73%
EPS Next 3Y-1.1%
5. Dividend
5.1 Amount
RWE has a Yearly Dividend Yield of 3.23%.
RWE's Dividend Yield is a higher than the industry average which is at 4.10.
Compared to an average S&P500 Dividend Yield of 2.51, RWE pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.23% |
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 Years1
Div Non Decr Years3
5.3 Sustainability
19.59% of the earnings are spent on dividend by RWE. This is a low number and sustainable payout ratio.
The dividend of RWE is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP19.59%
EPS Next 2Y-11.73%
EPS Next 3Y-1.1%
FRA:RWE (4/25/2025, 5:36:15 PM)
33.84
-0.18 (-0.53%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryIndependent Power and Renewable Electricity Producers
Earnings (Last)
Earnings (Next)
Inst Owners41.89%
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap25.17B
Analysts84
Price Target42.14 (24.53%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.23% |
Yearly Dividend1.36
Dividend Growth(5Y)8.29%
DP19.59%
Div Incr Years1
Div Non Decr Years3
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)25.04%
Min EPS beat(2)21.37%
Max EPS beat(2)28.71%
EPS beat(4)4
Avg EPS beat(4)21.16%
Min EPS beat(4)10.81%
Max EPS beat(4)28.71%
EPS beat(8)8
Avg EPS beat(8)42.07%
EPS beat(12)12
Avg EPS beat(12)38.03%
EPS beat(16)15
Avg EPS beat(16)67.85%
Revenue beat(2)0
Avg Revenue beat(2)-49.71%
Min Revenue beat(2)-52.05%
Max Revenue beat(2)-47.36%
Revenue beat(4)1
Avg Revenue beat(4)-29.72%
Min Revenue beat(4)-52.05%
Max Revenue beat(4)12.17%
Revenue beat(8)2
Avg Revenue beat(8)-28.44%
Revenue beat(12)5
Avg Revenue beat(12)-7.67%
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)-0.65%
PT rev (3m)-1.89%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)5.45%
EPS NY rev (3m)7.12%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.03%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.85 | ||
| Fwd PE | 15.29 | ||
| P/S | 1.04 | ||
| P/FCF | N/A | ||
| P/OCF | 3.8 | ||
| P/B | 0.8 | ||
| P/tB | 1.18 | ||
| EV/EBITDA | 2.75 |
EPS(TTM)3.12
EY9.22%
EPS(NY)2.21
Fwd EY6.54%
FCF(TTM)-3.71
FCFYN/A
OCF(TTM)8.9
OCFY26.3%
SpS32.57
BVpS42.41
TBVpS28.63
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.22% | ||
| ROE | 16.28% | ||
| ROCE | 8.42% | ||
| ROIC | 5.26% | ||
| ROICexc | 6.33% | ||
| ROICexgc | 7.66% | ||
| OM | 24.64% | ||
| PM (TTM) | 21.2% | ||
| GM | 36.39% | ||
| 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-Score6
Asset Turnover0.25
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.47 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 1.61 | ||
| Cap/Depr | 293.49% | ||
| Cap/Sales | 38.71% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 72.25% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.27 | ||
| Quick Ratio | 1.18 | ||
| Altman-Z | N/A |
F-Score6
WACC5.81%
ROIC/WACC0.91
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)-48.77%
EPS 3Y10.38%
EPS 5Y-12.96%
EPS Q2Q%-40.91%
EPS Next Y-29.04%
EPS Next 2Y-11.73%
EPS Next 3Y-1.1%
EPS Next 5Y3.03%
Revenue 1Y (TTM)-15.2%
Revenue growth 3Y-0.47%
Revenue growth 5Y13.04%
Sales Q2Q%9.48%
Revenue Next Year-3.45%
Revenue Next 2Y0.5%
Revenue Next 3Y6.28%
Revenue Next 5Y0.22%
EBIT growth 1Y52.36%
EBIT growth 3Y22.56%
EBIT growth 5Y58.65%
EBIT Next Year38.31%
EBIT Next 3Y21.96%
EBIT Next 5Y16.3%
FCF growth 1Y-198.7%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y56.76%
OCF growth 3Y-3.09%
OCF growth 5YN/A