RWE AG (1RWE.MI) Stock Fundamental Analysis
BIT:1RWE - Euronext Milan - DE0007037129 - Common Stock - Currency: EUR
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. While 1RWE is still in line with the averages on profitability rating, 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.
1RWE had a positive operating cash flow in the past year.
In the past 5 years 1RWE has always been profitable.
In the past 5 years 1RWE always reported a positive cash flow from operatings.
1.2 Ratios
With a decent Return On Assets value of 4.17%, 1RWE is doing good in the industry, outperforming 72.73% of the companies in the same industry.
1RWE has a better Return On Equity (11.98%) than 68.18% of its industry peers.
The Return On Invested Capital of 1RWE (3.81%) is better than 68.18% 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
Looking at the Profit Margin, with a value of 16.71%, 1RWE is in the better half of the industry, outperforming 68.18% of the companies in the same industry.
In the last couple of years the Profit Margin of 1RWE has declined.
With a decent Operating Margin value of 18.17%, 1RWE is doing good in the industry, outperforming 63.64% of the companies in the same industry.
In the last couple of years the Operating Margin of 1RWE has grown nicely.
The Gross Margin of 1RWE (39.36%) is comparable to the rest of the industry.
1RWE'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
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.
The number of shares outstanding for 1RWE has been increased compared to 5 years ago.
The debt/assets ratio for 1RWE is higher compared to a year ago.
2.2 Solvency
1RWE has a Debt/Equity ratio of 0.43. This is a healthy value indicating a solid balance between debt and equity.
1RWE's Debt to Equity ratio of 0.43 is fine compared to the rest of the industry. 1RWE outperforms 77.27% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.43 | ||
| Debt/FCF | N/A | ||
| Altman-Z | N/A |
ROIC/WACC0.66
WACC5.75%
2.3 Liquidity
1RWE has a Current 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.
Looking at the Current ratio, with a value of 1.21, 1RWE is doing worse than 63.64% of the companies in the same industry.
1RWE has a Quick Ratio of 1.16. This is a normal value and indicates that 1RWE is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of 1RWE (1.16) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.21 | ||
| Quick Ratio | 1.16 |
3. Growth
3.1 Past
1RWE shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -45.47%.
The earnings per share for 1RWE have been decreasing by -12.96% on average. This is quite bad
Looking at the last year, 1RWE shows a decrease in Revenue. The Revenue has decreased by -6.92% in the last year.
1RWE 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
The Earnings Per Share is expected to grow by 3.41% on average over the next years.
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
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
1RWE is valuated correctly with a Price/Earnings ratio of 13.42.
Based on the Price/Earnings ratio, 1RWE is valued a bit cheaper than the industry average as 63.64% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of 1RWE to the average of the S&P500 Index (27.50), we can say 1RWE is valued rather cheaply.
With a Price/Forward Earnings ratio of 14.80, 1RWE is valued correctly.
Based on the Price/Forward Earnings ratio, 1RWE is valued a bit cheaper than the industry average as 63.64% of the companies are valued more expensively.
1RWE is valuated cheaply when we compare the Price/Forward Earnings ratio to 36.44, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.42 | ||
| Fwd PE | 14.8 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, 1RWE is valued cheaper than 86.36% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 4.32 |
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
With a Yearly Dividend Yield of 3.06%, 1RWE has a reasonable but not impressive dividend return.
1RWE's Dividend Yield is a higher than the industry average which is at 3.51.
1RWE's Dividend Yield is a higher than the S&P500 average which is at 2.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.06% |
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
26.95% of the earnings are spent on dividend by 1RWE. This is a low number and sustainable payout ratio.
1RWE'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%
BIT:1RWE (7/10/2025, 7:00:00 PM)
35.97
+0.49 (+1.38%)
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 Cap26.76B
Analysts83.7
Price Target42.55 (18.29%)
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 Years0
Div Non Decr Years0
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)0.29%
PT rev (3m)2.15%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)1.6%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)-2.75%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.42 | ||
| Fwd PE | 14.8 | ||
| P/S | 1.12 | ||
| P/FCF | N/A | ||
| P/OCF | 3.99 | ||
| P/B | 0.8 | ||
| P/tB | 1.14 | ||
| EV/EBITDA | 4.32 |
EPS(TTM)2.68
EY7.45%
EPS(NY)2.43
Fwd EY6.76%
FCF(TTM)-7.45
FCFYN/A
OCF(TTM)9
OCFY25.03%
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
WACC5.75%
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