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. RWE has a medium profitability rating, but doesn't score so well on its financial health evaluation. RWE is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
RWE had positive earnings in the past year.
RWE had a positive operating cash flow in the past year.
Each year in the past 5 years RWE has been profitable.
In the past 5 years RWE always reported a positive cash flow from operatings.
1.2 Ratios
RWE has a better Return On Assets (4.17%) than 68.18% of its industry peers.
Looking at the Return On Equity, with a value of 11.98%, RWE is in the better half of the industry, outperforming 63.64% of the companies in the same industry.
RWE has a better Return On Invested Capital (3.81%) than 63.64% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.17% | ||
| ROE | 11.98% | ||
| ROIC | 3.81% |
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 16.71%, RWE is doing good in the industry, outperforming 63.64% of the companies in the same industry.
RWE's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 18.17%, RWE is in line with its industry, outperforming 59.09% of the companies in the same industry.
In the last couple of years the Operating Margin of RWE has grown nicely.
RWE's Gross Margin of 39.36% is in line compared to the rest of the industry. RWE outperforms 50.00% of its industry peers.
RWE's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 18.17% | ||
| PM (TTM) | 16.71% | ||
| GM | 39.36% |
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so RWE is destroying value.
RWE has less shares outstanding than it did 1 year ago.
The number of shares outstanding for RWE has been increased compared to 5 years ago.
The debt/assets ratio for RWE is higher compared to a year ago.
2.2 Solvency
RWE has a Debt/Equity ratio of 0.43. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of RWE (0.43) is better than 72.73% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.43 | ||
| Debt/FCF | N/A | ||
| Altman-Z | N/A |
ROIC/WACC0.66
WACC5.76%
2.3 Liquidity
A Current Ratio of 1.21 indicates that RWE should not have too much problems paying its short term obligations.
RWE has a Current ratio of 1.21. This is in the lower half of the industry: RWE underperforms 68.18% of its industry peers.
RWE has a Quick Ratio of 1.16. 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 Quick ratio, with a value of 1.16, RWE is doing worse than 63.64% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.21 | ||
| Quick Ratio | 1.16 |
3. Growth
3.1 Past
RWE shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -45.47%.
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.
RWE shows a decrease in Revenue. In the last year, the revenue decreased by -6.92%.
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)-45.47%
EPS 3Y10.38%
EPS 5Y-12.96%
EPS Q2Q%-40.48%
Revenue 1Y (TTM)-6.92%
Revenue growth 3Y-0.47%
Revenue growth 5Y13.04%
Sales Q2Q%-9.52%
3.2 Future
RWE is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 3.41% yearly.
The Revenue is expected to grow by 0.77% on average over the next years.
EPS Next Y-29.04%
EPS Next 2Y-11.73%
EPS Next 3Y-1.1%
EPS Next 5Y3.41%
Revenue Next Year-6.13%
Revenue Next 2Y-1.31%
Revenue Next 3Y1.57%
Revenue Next 5Y0.77%
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 accelerating.
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
RWE is valuated correctly with a Price/Earnings ratio of 13.50.
RWE's Price/Earnings ratio is in line with the industry average.
RWE's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.52.
Based on the Price/Forward Earnings ratio of 14.88, the valuation of RWE can be described as correct.
RWE's Price/Forward Earnings is on the same level as the industry average.
RWE's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 35.58.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.5 | ||
| Fwd PE | 14.88 |
4.2 Price Multiples
81.82% of the companies in the same industry are more expensive than RWE, based on the Enterprise Value to EBITDA ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 4.35 |
4.3 Compensation for Growth
RWE has a very decent profitability rating, which 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 3.06%. Purely for dividend investing, there may be better candidates out there.
RWE's Dividend Yield is a higher than the industry average which is at 3.51.
Compared to an average S&P500 Dividend Yield of 2.35, RWE pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.06% |
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 26.95% 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.
DP26.95%
EPS Next 2Y-11.73%
EPS Next 3Y-1.1%
FRA:RWE (7/14/2025, 5:35:30 PM)
36.17
-0.14 (-0.39%)
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 Cap26.90B
Analysts83.7
Price Target42.43 (17.31%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.06% |
Yearly Dividend1.36
Dividend Growth(5Y)8.29%
DP26.95%
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%
PT rev (3m)0.69%
EPS NQ rev (1m)1.92%
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)1.6%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)-2.75%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.5 | ||
| Fwd PE | 14.88 | ||
| P/S | 1.12 | ||
| P/FCF | N/A | ||
| P/OCF | 4.02 | ||
| P/B | 0.8 | ||
| P/tB | 1.15 | ||
| EV/EBITDA | 4.35 |
EPS(TTM)2.68
EY7.41%
EPS(NY)2.43
Fwd EY6.72%
FCF(TTM)-7.45
FCFYN/A
OCF(TTM)9
OCFY24.9%
SpS32.25
BVpS44.98
TBVpS31.54
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.17% | ||
| ROE | 11.98% | ||
| ROCE | 6.11% | ||
| ROIC | 3.81% | ||
| ROICexc | 4.33% | ||
| ROICexgc | 5.15% | ||
| OM | 18.17% | ||
| PM (TTM) | 16.71% | ||
| GM | 39.36% | ||
| 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 | 0.43 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 1.9 | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 88.99% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.21 | ||
| Quick Ratio | 1.16 | ||
| Altman-Z | N/A |
F-Score6
WACC5.76%
ROIC/WACC0.66
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)-45.47%
EPS 3Y10.38%
EPS 5Y-12.96%
EPS Q2Q%-40.48%
EPS Next Y-29.04%
EPS Next 2Y-11.73%
EPS Next 3Y-1.1%
EPS Next 5Y3.41%
Revenue 1Y (TTM)-6.92%
Revenue growth 3Y-0.47%
Revenue growth 5Y13.04%
Sales Q2Q%-9.52%
Revenue Next Year-6.13%
Revenue Next 2Y-1.31%
Revenue Next 3Y1.57%
Revenue Next 5Y0.77%
EBIT growth 1Y3.39%
EBIT growth 3Y22.56%
EBIT growth 5Y58.65%
EBIT Next Year36.83%
EBIT Next 3Y22.3%
EBIT Next 5Y16.65%
FCF growth 1Y-42.84%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y1008.94%
OCF growth 3Y-3.09%
OCF growth 5YN/A