RWE AG (1RWE.MI) Stock Fundamental Analysis
BIT:1RWE - Euronext Milan - DE0007037129 - Common Stock - Currency: EUR
We assign a fundamental rating of 5 out of 10 to 1RWE. 1RWE was compared to 21 industry peers in the Independent Power and Renewable Electricity Producers industry. 1RWE has an excellent profitability rating, but there are concerns on its financial health. 1RWE is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year 1RWE was profitable.
In the past year 1RWE had a positive cash flow from operations.
Each year in the past 5 years 1RWE has been profitable.
1RWE had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
1RWE's Return On Assets of 5.22% is amongst the best of the industry. 1RWE outperforms 85.71% of its industry peers.
1RWE's Return On Equity of 16.28% is amongst the best of the industry. 1RWE outperforms 85.71% of its industry peers.
The Return On Invested Capital of 1RWE (5.26%) is better than 80.95% 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
Looking at the Profit Margin, with a value of 21.20%, 1RWE is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
1RWE's Profit Margin has declined in the last couple of years.
1RWE has a Operating Margin (24.64%) which is comparable to the rest of the industry.
1RWE's Operating Margin has improved in the last couple of years.
1RWE has a Gross Margin of 36.39%. This is comparable to the rest of the industry: 1RWE outperforms 47.62% of its industry peers.
In the last couple of years the Gross Margin of 1RWE 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), 1RWE is destroying value.
1RWE has less shares outstanding than it did 1 year ago.
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 0.47. This is a healthy value indicating a solid balance between debt and equity.
1RWE has a better Debt to Equity ratio (0.47) than 71.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.47 | ||
| Debt/FCF | N/A | ||
| Altman-Z | N/A |
ROIC/WACC0.9
WACC5.82%
2.3 Liquidity
1RWE has a Current Ratio of 1.27. 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 (1.27) which is in line with its industry peers.
1RWE has a Quick Ratio of 1.18. 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 Quick ratio of 1.18. This is comparable to the rest of the industry: 1RWE outperforms 57.14% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.27 | ||
| Quick Ratio | 1.18 |
3. Growth
3.1 Past
The earnings per share for 1RWE have decreased strongly by -48.77% in the last year.
1RWE 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, 1RWE shows a very negative growth in Revenue. The Revenue has decreased by -15.20% in the last year.
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)-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
1RWE is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 3.03% yearly.
1RWE 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-4.93%
Revenue Next 2Y-0.5%
Revenue Next 3Y2.53%
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.
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
A Price/Earnings ratio of 10.94 indicates a reasonable valuation of 1RWE.
Based on the Price/Earnings ratio, 1RWE is valued a bit cheaper than the industry average as 66.67% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 28.22. 1RWE is valued rather cheaply when compared to this.
The Price/Forward Earnings ratio is 15.41, which indicates a correct valuation of 1RWE.
66.67% of the companies in the same industry are more expensive than 1RWE, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of 1RWE to the average of the S&P500 Index (20.86), we can say 1RWE is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.94 | ||
| Fwd PE | 15.41 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, 1RWE is valued cheaply inside the industry as 95.24% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 2.76 |
4.3 Compensation for Growth
1RWE 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
1RWE has a Yearly Dividend Yield of 3.23%.
Compared to an average industry Dividend Yield of 4.07, 1RWE pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.44, 1RWE pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.23% |
5.2 History
The dividend of 1RWE is nicely growing with an annual growth rate of 8.29%!
Dividend Growth(5Y)8.29%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
19.59% of the earnings are spent on dividend by 1RWE. This is a low number and sustainable payout ratio.
The dividend of 1RWE 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%
BIT:1RWE (4/22/2025, 7:00:00 PM)
34.12
-0.07 (-0.2%)
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 Cap25.38B
Analysts84
Price Target42.09 (23.36%)
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 Years0
Div Non Decr Years0
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)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)-0.7%
PT rev (3m)-2.03%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)5.42%
EPS NY rev (3m)7.12%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-1.42%
Revenue NY rev (3m)-1.42%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.94 | ||
| Fwd PE | 15.41 | ||
| P/S | 1.05 | ||
| P/FCF | N/A | ||
| P/OCF | 3.83 | ||
| P/B | 0.8 | ||
| P/tB | 1.19 | ||
| EV/EBITDA | 2.76 |
EPS(TTM)3.12
EY9.14%
EPS(NY)2.21
Fwd EY6.49%
FCF(TTM)-3.71
FCFYN/A
OCF(TTM)8.9
OCFY26.08%
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
WACC5.82%
ROIC/WACC0.9
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-4.93%
Revenue Next 2Y-0.5%
Revenue Next 3Y2.53%
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