RWE AG (1RWE.MI) Stock Fundamental Analysis
Europe • Euronext Milan • BIT:1RWE • DE0007037129
52.82 EUR
+1.32 (+2.56%)
Last: Jan 27, 2026, 07:00 PM
Overall 1RWE gets a fundamental rating of 4 out of 10. We evaluated 1RWE against 22 industry peers in the Independent Power and Renewable Electricity Producers industry. There are concerns on the financial health of 1RWE while its profitability can be described as average. 1RWE is valued expensive and it does not seem to be growing.
1. Profitability
1.1 Basic Checks
- In the past year 1RWE was profitable.
- 1RWE had a positive operating cash flow in the past year.
- 1RWE had positive earnings in each of the past 5 years.
- 1RWE had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- 1RWE has a better Return On Assets (2.36%) than 68.18% of its industry peers.
- 1RWE has a Return On Equity of 6.66%. This is comparable to the rest of the industry: 1RWE outperforms 59.09% of its industry peers.
- 1RWE has a Return On Invested Capital (1.85%) which is in line with its industry peers.
| 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
- 1RWE has a better Profit Margin (10.52%) than 81.82% of its industry peers.
- In the last couple of years the Profit Margin of 1RWE has declined.
- 1RWE has a Operating Margin (10.44%) which is comparable to the rest of the industry.
- In the last couple of years the Operating Margin of 1RWE has grown nicely.
- Looking at the Gross Margin, with a value of 33.00%, 1RWE is in line with its industry, outperforming 50.00% of the companies in the same industry.
- In the last couple of years the Gross Margin of 1RWE 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
- 1RWE has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
- Compared to 1 year ago, 1RWE has less shares outstanding
- 1RWE has more shares outstanding than it did 5 years ago.
- 1RWE has a worse debt/assets ratio than last year.
2.2 Solvency
- 1RWE has a Debt/Equity ratio of 0.46. This is a healthy value indicating a solid balance between debt and equity.
- With a decent Debt to Equity ratio value of 0.46, 1RWE is doing good in the industry, outperforming 72.73% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.46 | ||
| Debt/FCF | N/A | ||
| Altman-Z | N/A |
ROIC/WACC0.3
WACC6.27%
2.3 Liquidity
- 1RWE has a Current Ratio of 1.30. This is a normal value and indicates that 1RWE is financially healthy and should not expect problems in meeting its short term obligations.
- 1RWE has a Current ratio of 1.30. This is in the lower half of the industry: 1RWE underperforms 63.64% of its industry peers.
- 1RWE has a Quick Ratio of 1.21. This is a normal value and indicates that 1RWE is financially healthy and should not expect problems in meeting its short term obligations.
- With a Quick ratio value of 1.21, 1RWE is not doing good in the industry: 63.64% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.3 | ||
| Quick Ratio | 1.21 |
3. Growth
3.1 Past
- 1RWE shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -29.79%.
- The earnings per share for 1RWE have been decreasing by -12.96% on average. This is quite bad
- 1RWE shows a decrease in Revenue. In the last year, the revenue decreased by -8.61%.
- Measured over the past years, 1RWE shows a quite strong growth in Revenue. The Revenue has been growing by 13.04% on average per year.
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
- 1RWE is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 3.69% yearly.
- The Revenue is expected to grow by 1.49% on average over the next years.
EPS Next Y-28.23%
EPS Next 2Y-9.71%
EPS Next 3Y-1.07%
EPS Next 5Y3.69%
Revenue Next Year-11.71%
Revenue Next 2Y-3.22%
Revenue Next 3Y0.21%
Revenue Next 5Y1.49%
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
- The Price/Earnings ratio is 20.08, which indicates a rather expensive current valuation of 1RWE.
- Compared to the rest of the industry, the Price/Earnings ratio of 1RWE indicates a somewhat cheap valuation: 1RWE is cheaper than 72.73% of the companies listed in the same industry.
- The average S&P500 Price/Earnings ratio is at 28.30. 1RWE is valued slightly cheaper when compared to this.
- 1RWE is valuated rather expensively with a Price/Forward Earnings ratio of 20.77.
- 1RWE's Price/Forward Earnings is on the same level as the industry average.
- 1RWE is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 25.57, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.08 | ||
| Fwd PE | 20.77 |
4.2 Price Multiples
- 1RWE's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. 1RWE is cheaper than 68.18% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 8 |
4.3 Compensation for Growth
- The decent profitability rating of 1RWE may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-9.71%
EPS Next 3Y-1.07%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 2.06%, 1RWE has a reasonable but not impressive dividend return.
- 1RWE's Dividend Yield is comparable with the industry average which is at 2.26.
- Compared to an average S&P500 Dividend Yield of 1.82, 1RWE has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.06% |
5.2 History
- On average, the dividend of 1RWE grows each year by 8.29%, which is quite nice.
Dividend Growth(5Y)8.29%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
- 1RWE pays out 45.32% of its income as dividend. This is a bit on the high side, but may be sustainable.
- The dividend of 1RWE is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP45.32%
EPS Next 2Y-9.71%
EPS Next 3Y-1.07%
RWE AG / 1RWE.MI FAQ
What is the fundamental rating for 1RWE stock?
ChartMill assigns a fundamental rating of 4 / 10 to 1RWE.MI.
What is the valuation status for 1RWE stock?
ChartMill assigns a valuation rating of 3 / 10 to RWE AG (1RWE.MI). This can be considered as Overvalued.
What is the profitability of 1RWE stock?
RWE AG (1RWE.MI) has a profitability rating of 6 / 10.
How financially healthy is RWE AG?
The financial health rating of RWE AG (1RWE.MI) is 2 / 10.
What is the earnings growth outlook for RWE AG?
The Earnings per Share (EPS) of RWE AG (1RWE.MI) is expected to decline by -28.23% in the next year.