RWE AG (RWE.DE) Stock Fundamental Analysis
FRA:RWE - Deutsche Boerse Ag - DE0007037129 - Common Stock - Currency: EUR
Taking everything into account, RWE scores 4 out of 10 in our fundamental rating. RWE was compared to 22 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 has a valuation in line with the averages, but 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.
In the past 5 years RWE has always been profitable.
RWE had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
RWE has a Return On Assets of 2.85%. This is in the better half of the industry: RWE outperforms 77.27% of its industry peers.
Looking at the Return On Equity, with a value of 8.48%, RWE belongs to the top of the industry, outperforming 81.82% of the companies in the same industry.
The Return On Invested Capital of RWE (5.67%) is better than 95.45% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.85% | ||
| ROE | 8.48% | ||
| ROIC | 5.67% |
ROA(3y)1.28%
ROA(5y)3.76%
ROE(3y)6.39%
ROE(5y)15.1%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
RWE has a Profit Margin of 11.93%. This is in the better half of the industry: RWE outperforms 68.18% of its industry peers.
In the last couple of years the Profit Margin of RWE has grown nicely.
RWE's Operating Margin of 25.45% is in line compared to the rest of the industry. RWE outperforms 54.55% of its industry peers.
RWE has a Gross Margin of 39.43%. This is comparable to the rest of the industry: RWE outperforms 45.45% of its industry peers.
RWE's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 25.45% | ||
| PM (TTM) | 11.93% | ||
| GM | 39.43% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3Y-12.89%
PM growth 5Y15.23%
GM growth 3Y1.19%
GM growth 5Y3.12%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), RWE is destroying value.
RWE has more shares outstanding than it did 1 year ago.
RWE has more shares outstanding than it did 5 years ago.
The debt/assets ratio for RWE is higher compared to a year ago.
2.2 Solvency
A Debt/Equity ratio of 0.48 indicates that RWE is not too dependend on debt financing.
RWE has a better Debt to Equity ratio (0.48) than 72.73% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.48 | ||
| Debt/FCF | N/A | ||
| Altman-Z | N/A |
ROIC/WACC0.99
WACC5.71%
2.3 Liquidity
RWE has a Current Ratio of 1.55. 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 Current ratio value of 1.55, RWE is doing good in the industry, outperforming 68.18% of the companies in the same industry.
RWE has a Quick Ratio of 1.42. This is a normal value and indicates that RWE is financially healthy and should not expect problems in meeting its short term obligations.
RWE's Quick ratio of 1.42 is fine compared to the rest of the industry. RWE outperforms 68.18% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.55 | ||
| Quick Ratio | 1.42 |
3. Growth
3.1 Past
The earnings per share for RWE have decreased strongly by -38.52% in the last year.
RWE shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 47.92% yearly.
RWE shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -27.25%.
The Revenue has been growing by 16.33% on average over the past years. This is quite good.
EPS 1Y (TTM)-38.52%
EPS 3Y5.93%
EPS 5Y47.92%
EPS Q2Q%-62.38%
Revenue 1Y (TTM)-27.25%
Revenue growth 3Y27.79%
Revenue growth 5Y16.33%
Sales Q2Q%-21.9%
3.2 Future
RWE is expected to show a very negative growth in Earnings Per Share. In the coming years, the EPS will decrease by -11.33% yearly.
RWE is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -4.67% yearly.
EPS Next Y-50.73%
EPS Next 2Y-41.29%
EPS Next 3Y-26.71%
EPS Next 5Y-11.33%
Revenue Next Year-36.11%
Revenue Next 2Y-21.46%
Revenue Next 3Y-13.59%
Revenue Next 5Y-4.67%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
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 8.30, which indicates a very decent valuation of RWE.
Based on the Price/Earnings ratio, RWE is valued cheaper than 90.91% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 29.35. RWE is valued rather cheaply when compared to this.
With a Price/Forward Earnings ratio of 14.82, RWE is valued correctly.
Compared to the rest of the industry, the Price/Forward Earnings ratio of RWE indicates a somewhat cheap valuation: RWE is cheaper than 68.18% of the companies listed in the same industry.
RWE's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.10.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.3 | ||
| Fwd PE | 14.82 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, RWE is valued cheaper than 100.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 2.98 |
4.3 Compensation for Growth
RWE has a very decent profitability rating, which may justify a higher PE ratio.
RWE's earnings are expected to decrease with -26.71% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.17
EPS Next 2Y-41.29%
EPS Next 3Y-26.71%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.23%, RWE has a reasonable but not impressive dividend return.
RWE's Dividend Yield is a higher than the industry average which is at 4.02.
RWE's Dividend Yield is a higher than the S&P500 average which is at 2.33.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.23% |
5.2 History
The dividend of RWE decreases each year by -4.45%.
Dividend Growth(5Y)-4.45%
Div Incr Years1
Div Non Decr Years3
5.3 Sustainability
RWE pays out 67.85% of its income as dividend. This is not a sustainable payout ratio.
RWE's earnings and Dividend Rate are declining. This means the current dividend is most likely not sustainable.
DP67.85%
EPS Next 2Y-41.29%
EPS Next 3Y-26.71%
FRA:RWE (3/7/2025, 7:00:00 PM)
31.12
+0.12 (+0.39%)
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 Cap23.15B
Analysts84
Price Target42.41 (36.28%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.23% |
Yearly Dividend1.33
Dividend Growth(5Y)-4.45%
DP67.85%
Div Incr Years1
Div Non Decr Years3
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)22.56%
Min EPS beat(2)21.37%
Max EPS beat(2)23.76%
EPS beat(4)4
Avg EPS beat(4)25.12%
Min EPS beat(4)10.81%
Max EPS beat(4)44.53%
EPS beat(8)8
Avg EPS beat(8)41.27%
EPS beat(12)12
Avg EPS beat(12)39.87%
EPS beat(16)15
Avg EPS beat(16)69.23%
Revenue beat(2)0
Avg Revenue beat(2)-39.5%
Min Revenue beat(2)-47.36%
Max Revenue beat(2)-31.64%
Revenue beat(4)1
Avg Revenue beat(4)-27.49%
Min Revenue beat(4)-47.36%
Max Revenue beat(4)12.17%
Revenue beat(8)2
Avg Revenue beat(8)-25.53%
Revenue beat(12)5
Avg Revenue beat(12)-8.69%
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)0.13%
PT rev (3m)-1.31%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-4.11%
EPS NY rev (1m)0.32%
EPS NY rev (3m)5.92%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.46%
Revenue NY rev (1m)0.95%
Revenue NY rev (3m)-1.62%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.3 | ||
| Fwd PE | 14.82 | ||
| P/S | 0.98 | ||
| P/FCF | N/A | ||
| P/OCF | 8.13 | ||
| P/B | 0.7 | ||
| P/tB | 1.01 | ||
| EV/EBITDA | 2.98 |
EPS(TTM)3.75
EY12.05%
EPS(NY)2.1
Fwd EY6.75%
FCF(TTM)-17.96
FCFYN/A
OCF(TTM)3.83
OCFY12.3%
SpS31.68
BVpS44.56
TBVpS30.91
PEG (NY)N/A
PEG (5Y)0.17
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.85% | ||
| ROE | 8.48% | ||
| ROCE | 8.05% | ||
| ROIC | 5.67% | ||
| ROICexc | 6.64% | ||
| ROICexgc | 7.9% | ||
| OM | 25.45% | ||
| PM (TTM) | 11.93% | ||
| GM | 39.43% | ||
| FCFM | N/A |
ROA(3y)1.28%
ROA(5y)3.76%
ROE(3y)6.39%
ROE(5y)15.1%
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 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3Y-12.89%
PM growth 5Y15.23%
GM growth 3Y1.19%
GM growth 5Y3.12%
F-Score5
Asset Turnover0.24
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.48 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 1.82 | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 32.62% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.55 | ||
| Quick Ratio | 1.42 | ||
| Altman-Z | N/A |
F-Score5
WACC5.71%
ROIC/WACC0.99
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)13.88%
Cap/Sales(5y)15.93%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-38.52%
EPS 3Y5.93%
EPS 5Y47.92%
EPS Q2Q%-62.38%
EPS Next Y-50.73%
EPS Next 2Y-41.29%
EPS Next 3Y-26.71%
EPS Next 5Y-11.33%
Revenue 1Y (TTM)-27.25%
Revenue growth 3Y27.79%
Revenue growth 5Y16.33%
Sales Q2Q%-21.9%
Revenue Next Year-36.11%
Revenue Next 2Y-21.46%
Revenue Next 3Y-13.59%
Revenue Next 5Y-4.67%
EBIT growth 1Y221.5%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year-9.99%
EBIT Next 3Y-3.13%
EBIT Next 5Y2.94%
FCF growth 1Y-1098.58%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-44.25%
OCF growth 3Y0.48%
OCF growth 5Y-8.62%