RWE AG (RWE.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:RWE - DE0007037129 - Common Stock
43.32 EUR
+0.23 (+0.53%)
Taking everything into account, RWE scores 3 out of 10 in our fundamental rating. RWE was compared to 20 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
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.
Each year in the past 5 years RWE had a positive operating cash flow.
1.2 Ratios
RWE has a Return On Assets of 2.36%. This is in the better half of the industry: RWE outperforms 65.00% of its industry peers.
RWE has a Return On Equity (6.66%) which is in line with its industry peers.
Looking at the Return On Invested Capital, with a value of 1.85%, RWE is doing worse than 60.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.36% | ||
| ROE | 6.66% | ||
| ROIC | 1.85% |
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 better Profit Margin (10.52%) than 75.00% of its industry peers.
In the last couple of years the Profit Margin of RWE has declined.
Looking at the Operating Margin, with a value of 10.44%, RWE is in line with its industry, outperforming 50.00% of the companies in the same industry.
RWE's Operating Margin has improved in the last couple of years.
RWE has a Gross Margin (33.00%) which is comparable to the rest of the industry.
In the last couple of years the Gross Margin of RWE has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.44% | ||
| PM (TTM) | 10.52% | ||
| GM | 33% |
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
RWE has a worse debt/assets ratio than last year.
2.2 Solvency
A Debt/Equity ratio of 0.46 indicates that RWE is not too dependend on debt financing.
The Debt to Equity ratio of RWE (0.46) is better than 65.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.46 | ||
| Debt/FCF | N/A | ||
| Altman-Z | N/A |
ROIC/WACC0.31
WACC5.96%
2.3 Liquidity
RWE has a Current Ratio of 1.30. 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 Current ratio of 1.30 is on the low side compared to the rest of the industry. RWE is outperformed by 65.00% of its industry peers.
RWE has a Quick Ratio of 1.21. 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 worse Quick ratio (1.21) than 65.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.3 | ||
| Quick Ratio | 1.21 |
3. Growth
3.1 Past
The earnings per share for RWE have decreased strongly by -29.79% in the last year.
The earnings per share for RWE have been decreasing by -12.96% on average. This is quite bad
The Revenue has decreased by -8.61% 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)-29.79%
EPS 3Y10.38%
EPS 5Y-12.96%
EPS Q2Q%84.21%
Revenue 1Y (TTM)-8.61%
Revenue growth 3Y-0.47%
Revenue growth 5Y13.04%
Sales Q2Q%-32.37%
3.2 Future
The Earnings Per Share is expected to grow by 3.07% 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 1.49% on average per year.
EPS Next Y-28.7%
EPS Next 2Y-9.48%
EPS Next 3Y-0.84%
EPS Next 5Y3.07%
Revenue Next Year-11.14%
Revenue Next 2Y-2.76%
Revenue Next 3Y0.24%
Revenue Next 5Y1.49%
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.
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
RWE is valuated correctly with a Price/Earnings ratio of 16.47.
Based on the Price/Earnings ratio, RWE is valued a bit cheaper than the industry average as 70.00% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of RWE to the average of the S&P500 Index (26.34), we can say RWE is valued slightly cheaper.
A Price/Forward Earnings ratio of 16.94 indicates a correct valuation of RWE.
Compared to the rest of the industry, the Price/Forward Earnings ratio of RWE is on the same level as its industry peers.
RWE is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 23.56, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.47 | ||
| Fwd PE | 16.94 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, RWE is valued a bit cheaper than 70.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 6.7 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-9.48%
EPS Next 3Y-0.84%
5. Dividend
5.1 Amount
RWE has a Yearly Dividend Yield of 2.52%. Purely for dividend investing, there may be better candidates out there.
RWE's Dividend Yield is comparable with the industry average which is at 3.76.
RWE's Dividend Yield is comparable with the S&P500 average which is at 2.31.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.52% |
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
45.32% of the earnings are spent on dividend by RWE. This is a bit on the high side, but may be sustainable.
The dividend of RWE is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP45.32%
EPS Next 2Y-9.48%
EPS Next 3Y-0.84%
FRA:RWE (12/8/2025, 7:00:00 PM)
43.32
+0.23 (+0.53%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryIndependent Power and Renewable Electricity Producers
Earnings (Last)
Earnings (Next)
Inst Owners40.56%
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap32.22B
Revenue(TTM)21.54B
Net Income(TTM)2.27B
Analysts80
Price Target48.42 (11.77%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.52% |
Yearly Dividend1.36
Dividend Growth(5Y)8.29%
DP45.32%
Div Incr Years2
Div Non Decr Years4
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)77.81%
Min EPS beat(2)-21.62%
Max EPS beat(2)177.23%
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)0
Avg Revenue beat(2)-14.97%
Min Revenue beat(2)-22.16%
Max Revenue beat(2)-7.79%
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)9.87%
PT rev (3m)12.9%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-7.5%
EPS NY rev (1m)4.51%
EPS NY rev (3m)4.54%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0.63%
Revenue NY rev (3m)-3.73%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.47 | ||
| Fwd PE | 16.94 | ||
| P/S | 1.5 | ||
| P/FCF | N/A | ||
| P/OCF | 5.48 | ||
| P/B | 0.95 | ||
| P/tB | 1.31 | ||
| EV/EBITDA | 6.7 |
EPS(TTM)2.63
EY6.07%
EPS(NY)2.56
Fwd EY5.9%
FCF(TTM)-6.54
FCFYN/A
OCF(TTM)7.91
OCFY18.26%
SpS28.95
BVpS45.72
TBVpS33.09
PEG (NY)N/A
PEG (5Y)N/A
Graham Number52.01
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.36% | ||
| ROE | 6.66% | ||
| ROCE | 2.96% | ||
| ROIC | 1.85% | ||
| ROICexc | 2.1% | ||
| ROICexgc | 2.44% | ||
| OM | 10.44% | ||
| PM (TTM) | 10.52% | ||
| GM | 33% | ||
| 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-Score3
Asset Turnover0.22
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.46 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 2.81 | ||
| Cap/Depr | 324.95% | ||
| Cap/Sales | 49.9% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 105.9% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.3 | ||
| Quick Ratio | 1.21 | ||
| Altman-Z | N/A |
F-Score3
WACC5.96%
ROIC/WACC0.31
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)-29.79%
EPS 3Y10.38%
EPS 5Y-12.96%
EPS Q2Q%84.21%
EPS Next Y-28.7%
EPS Next 2Y-9.48%
EPS Next 3Y-0.84%
EPS Next 5Y3.07%
Revenue 1Y (TTM)-8.61%
Revenue growth 3Y-0.47%
Revenue growth 5Y13.04%
Sales Q2Q%-32.37%
Revenue Next Year-11.14%
Revenue Next 2Y-2.76%
Revenue Next 3Y0.24%
Revenue Next 5Y1.49%
EBIT growth 1Y-62.49%
EBIT growth 3Y22.56%
EBIT growth 5Y58.65%
EBIT Next Year34.38%
EBIT Next 3Y22.32%
EBIT Next 5Y16.85%
FCF growth 1Y-2080.27%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y38.09%
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 3 / 10 to RWE.DE.
Can you provide the valuation status for RWE AG?
ChartMill assigns a valuation rating of 3 / 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 16.47 and the Price/Book (PB) ratio is 0.95.
What is the earnings growth outlook for RWE AG?
The Earnings per Share (EPS) of RWE AG (RWE.DE) is expected to decline by -28.7% in the next year.