RWE AG (RWE.DE) Stock Fundamental Analysis
FRA:RWE - Deutsche Boerse Ag - DE0007037129 - Common Stock - Currency: EUR
We assign a fundamental rating of 4 out of 10 to RWE. 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 has a valuation in line with the averages, 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.
In the past 5 years RWE has always been profitable.
Of the past 5 years RWE 4 years had a positive operating cash flow.
1.2 Ratios
RWE has a Return On Assets of 2.85%. This is in the better half of the industry: RWE outperforms 77.27% of its industry peers.
RWE has a Return On Equity of 8.48%. This is amongst the best in the industry. RWE outperforms 81.82% of its industry peers.
The Return On Invested Capital of RWE (5.67%) is better than 95.45% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.85% | ||
| ROE | 8.48% | ||
| ROIC | 5.67% |
ROA(3y)1.28%
ROA(5y)3.76%
ROE(3y)6.39%
ROE(5y)15.1%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
With a decent Profit Margin value of 11.93%, RWE is doing good in the industry, outperforming 68.18% of the companies in the same industry.
In the last couple of years the Profit Margin of RWE has grown nicely.
Looking at the Operating Margin, with a value of 25.45%, RWE is in line with its industry, outperforming 59.09% of the companies in the same industry.
With a Gross Margin value of 39.43%, RWE perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
RWE's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 25.45% | ||
| PM (TTM) | 11.93% | ||
| GM | 39.43% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3Y-12.89%
PM growth 5Y15.23%
GM growth 3Y1.19%
GM growth 5Y3.12%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), RWE is destroying value.
The number of shares outstanding for RWE has been increased compared to 1 year ago.
Compared to 5 years ago, RWE has more shares outstanding
Compared to 1 year ago, RWE has a worse debt to assets ratio.
2.2 Solvency
RWE has a Debt/Equity ratio of 0.48. This is a healthy value indicating a solid balance between debt and equity.
With a decent Debt to Equity ratio value of 0.48, RWE is doing good in the industry, outperforming 72.73% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.48 | ||
| Debt/FCF | N/A | ||
| Altman-Z | N/A |
ROIC/WACC0.99
WACC5.71%
2.3 Liquidity
RWE has a Current Ratio of 1.55. This is a normal value and indicates that RWE is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of RWE (1.55) is better than 68.18% of its industry peers.
A Quick Ratio of 1.42 indicates that RWE should not have too much problems paying its short term obligations.
The Quick ratio of RWE (1.42) is better than 68.18% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.55 | ||
| Quick Ratio | 1.42 |
3. Growth
3.1 Past
The earnings per share for RWE have decreased strongly by -49.03% in the last year.
Measured over the past years, RWE shows a very strong growth in Earnings Per Share. The EPS has been growing by 47.92% on average per year.
Looking at the last year, RWE shows a very negative growth in Revenue. The Revenue has decreased by -25.54% in the last year.
RWE shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 16.33% yearly.
EPS 1Y (TTM)-49.03%
EPS 3Y5.93%
EPS 5Y47.92%
EPS Q2Q%-41.95%
Revenue 1Y (TTM)-25.54%
Revenue growth 3Y27.79%
Revenue growth 5Y16.33%
Sales Q2Q%6.86%
3.2 Future
Based on estimates for the next years, RWE will show a very negative growth in Earnings Per Share. The EPS will decrease by -11.25% on average per year.
The Revenue is expected to decrease by -4.71% on average over the next years.
EPS Next Y-50.73%
EPS Next 2Y-41.29%
EPS Next 3Y-26.71%
EPS Next 5Y-11.25%
Revenue Next Year-36.11%
Revenue Next 2Y-21.46%
Revenue Next 3Y-13.59%
Revenue Next 5Y-4.71%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less 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
Based on the Price/Earnings ratio of 10.64, the valuation of RWE can be described as reasonable.
Based on the Price/Earnings ratio, RWE is valued a bit cheaper than 77.27% of the companies in the same industry.
When comparing the Price/Earnings ratio of RWE to the average of the S&P500 Index (28.81), we can say RWE is valued rather cheaply.
A Price/Forward Earnings ratio of 15.71 indicates a correct valuation of RWE.
77.27% of the companies in the same industry are more expensive than RWE, based on the Price/Forward Earnings ratio.
RWE is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 21.91, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.64 | ||
| Fwd PE | 15.71 |
4.2 Price Multiples
95.45% 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 | 3.13 |
4.3 Compensation for Growth
RWE has a very decent profitability rating, which may justify a higher PE ratio.
RWE's earnings are expected to decrease with -26.71% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.22
EPS Next 2Y-41.29%
EPS Next 3Y-26.71%
5. Dividend
5.1 Amount
RWE has a Yearly Dividend Yield of 3.13%.
Compared to an average industry Dividend Yield of 3.93, RWE pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.39, RWE pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.13% |
5.2 History
The dividend of RWE decreases each year by -4.45%.
Dividend Growth(5Y)-4.45%
Div Incr Years1
Div Non Decr Years3
5.3 Sustainability
67.85% of the earnings are spent on dividend by RWE. This is not a sustainable payout ratio.
RWE's earnings and Dividend Rate are declining. This means the current dividend is most likely not sustainable.
DP67.85%
EPS Next 2Y-41.29%
EPS Next 3Y-26.71%
FRA:RWE (3/27/2025, 7:00:00 PM)
32.98
+0.12 (+0.37%)
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 Cap24.53B
Analysts84
Price Target42.41 (28.59%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.13% |
Yearly Dividend1.33
Dividend Growth(5Y)-4.45%
DP67.85%
Div Incr Years1
Div Non Decr Years3
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)22.56%
Min EPS beat(2)21.37%
Max EPS beat(2)23.76%
EPS beat(4)4
Avg EPS beat(4)25.12%
Min EPS beat(4)10.81%
Max EPS beat(4)44.53%
EPS beat(8)8
Avg EPS beat(8)41.27%
EPS beat(12)12
Avg EPS beat(12)39.87%
EPS beat(16)15
Avg EPS beat(16)69.23%
Revenue beat(2)0
Avg Revenue beat(2)-39.5%
Min Revenue beat(2)-47.36%
Max Revenue beat(2)-31.64%
Revenue beat(4)1
Avg Revenue beat(4)-27.49%
Min Revenue beat(4)-47.36%
Max Revenue beat(4)12.17%
Revenue beat(8)2
Avg Revenue beat(8)-25.53%
Revenue beat(12)5
Avg Revenue beat(12)-8.69%
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)0%
PT rev (3m)-1.31%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-4.11%
EPS NY rev (1m)0%
EPS NY rev (3m)5.92%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.46%
Revenue NY rev (1m)0.96%
Revenue NY rev (3m)-1.62%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.64 | ||
| Fwd PE | 15.71 | ||
| P/S | 1.04 | ||
| P/FCF | N/A | ||
| P/OCF | 8.62 | ||
| P/B | 0.74 | ||
| P/tB | 1.07 | ||
| EV/EBITDA | 3.13 |
EPS(TTM)3.1
EY9.4%
EPS(NY)2.1
Fwd EY6.37%
FCF(TTM)-17.96
FCFYN/A
OCF(TTM)3.83
OCFY11.61%
SpS31.68
BVpS44.56
TBVpS30.91
PEG (NY)N/A
PEG (5Y)0.22
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.85% | ||
| ROE | 8.48% | ||
| ROCE | 8.05% | ||
| ROIC | 5.67% | ||
| ROICexc | 6.64% | ||
| ROICexgc | 7.9% | ||
| OM | 25.45% | ||
| PM (TTM) | 11.93% | ||
| GM | 39.43% | ||
| FCFM | N/A |
ROA(3y)1.28%
ROA(5y)3.76%
ROE(3y)6.39%
ROE(5y)15.1%
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 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3Y-12.89%
PM growth 5Y15.23%
GM growth 3Y1.19%
GM growth 5Y3.12%
F-Score5
Asset Turnover0.24
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.48 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 1.82 | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 32.62% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.55 | ||
| Quick Ratio | 1.42 | ||
| Altman-Z | N/A |
F-Score5
WACC5.71%
ROIC/WACC0.99
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)13.88%
Cap/Sales(5y)15.93%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-49.03%
EPS 3Y5.93%
EPS 5Y47.92%
EPS Q2Q%-41.95%
EPS Next Y-50.73%
EPS Next 2Y-41.29%
EPS Next 3Y-26.71%
EPS Next 5Y-11.25%
Revenue 1Y (TTM)-25.54%
Revenue growth 3Y27.79%
Revenue growth 5Y16.33%
Sales Q2Q%6.86%
Revenue Next Year-36.11%
Revenue Next 2Y-21.46%
Revenue Next 3Y-13.59%
Revenue Next 5Y-4.71%
EBIT growth 1Y221.5%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year-9.99%
EBIT Next 3Y-3.13%
EBIT Next 5Y3.08%
FCF growth 1Y-1098.58%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-44.25%
OCF growth 3Y0.48%
OCF growth 5Y-8.62%