RWE AG (RWE.DE) Stock Fundamental Analysis
FRA:RWE - Deutsche Boerse Ag - DE0007037129 - Common Stock - Currency: EUR
Overall RWE gets a fundamental rating of 5 out of 10. We evaluated RWE against 20 industry peers in the Independent Power and Renewable Electricity Producers industry. While RWE belongs to the best of the industry regarding profitability, there are concerns on its financial health. RWE is valued correctly, but 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.
RWE had positive earnings in each of the past 5 years.
In the past 5 years RWE always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 5.22%, RWE belongs to the top of the industry, outperforming 90.00% of the companies in the same industry.
The Return On Equity of RWE (16.28%) is better than 90.00% of its industry peers.
RWE has a Return On Invested Capital of 5.26%. This is amongst the best in the industry. RWE outperforms 90.00% 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
With a decent Profit Margin value of 21.20%, RWE is doing good in the industry, outperforming 70.00% of the companies in the same industry.
RWE's Profit Margin has declined in the last couple of years.
The Operating Margin of RWE (24.64%) is better than 65.00% of its industry peers.
RWE's Operating Margin has improved in the last couple of years.
The Gross Margin of RWE (36.39%) is comparable to the rest of the industry.
RWE's Gross Margin has improved in the last couple of years.
| 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), RWE is destroying value.
Compared to 1 year ago, RWE has less shares outstanding
The number of shares outstanding for RWE has been increased compared to 5 years ago.
The debt/assets ratio for RWE is higher compared to a year ago.
2.2 Solvency
A Debt/Equity ratio of 0.47 indicates that RWE is not too dependend on debt financing.
With a decent Debt to Equity ratio value of 0.47, RWE is doing good in the industry, outperforming 70.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.47 | ||
| Debt/FCF | N/A | ||
| Altman-Z | N/A |
ROIC/WACC0.91
WACC5.79%
2.3 Liquidity
A Current Ratio of 1.27 indicates that RWE should not have too much problems paying its short term obligations.
The Current ratio of RWE (1.27) is comparable to the rest of the industry.
RWE has a Quick Ratio of 1.18. 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 Quick ratio of 1.18 is in line compared to the rest of the industry. RWE outperforms 55.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.27 | ||
| Quick Ratio | 1.18 |
3. Growth
3.1 Past
RWE shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -48.77%.
The earnings per share for RWE have been decreasing by -12.96% on average. This is quite bad
The Revenue for RWE has decreased by -15.20% in the past year. This is quite bad
Measured over the past years, RWE 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
The Earnings Per Share is expected to grow by 3.03% on average over the next years.
The Revenue is expected to grow by 0.22% on average over the next years.
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
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.
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
The Price/Earnings ratio is 10.67, which indicates a very decent valuation of RWE.
Compared to the rest of the industry, the Price/Earnings ratio of RWE indicates a somewhat cheap valuation: RWE is cheaper than 70.00% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 28.18. RWE is valued rather cheaply when compared to this.
With a Price/Forward Earnings ratio of 15.03, RWE is valued correctly.
70.00% of the companies in the same industry are more expensive than RWE, based on the Price/Forward Earnings ratio.
RWE's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 20.81.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.67 | ||
| Fwd PE | 15.03 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of RWE indicates a rather cheap valuation: RWE is cheaper than 95.00% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 2.68 |
4.3 Compensation for Growth
RWE 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
RWE has a Yearly Dividend Yield of 3.22%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 4.08, RWE has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.45, RWE pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.22% |
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 Years1
Div Non Decr Years3
5.3 Sustainability
RWE pays out 19.59% of its income as dividend. This is a sustainable payout ratio.
The dividend of RWE 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%
FRA:RWE (5/5/2025, 12:27:00 PM)
33.28
+0.13 (+0.39%)
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 Cap24.75B
Analysts83.08
Price Target42.35 (27.25%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.22% |
Yearly Dividend1.36
Dividend Growth(5Y)8.29%
DP19.59%
Div Incr Years1
Div Non Decr Years3
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)2
Avg Revenue beat(8)-28.44%
Revenue beat(12)5
Avg Revenue beat(12)-7.67%
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)-0.15%
PT rev (3m)-0.02%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)1.6%
EPS NY rev (3m)5.42%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-1.5%
Revenue NY rev (3m)-1.42%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.67 | ||
| Fwd PE | 15.03 | ||
| P/S | 1.02 | ||
| P/FCF | N/A | ||
| P/OCF | 3.74 | ||
| P/B | 0.78 | ||
| P/tB | 1.16 | ||
| EV/EBITDA | 2.68 |
EPS(TTM)3.12
EY9.38%
EPS(NY)2.21
Fwd EY6.65%
FCF(TTM)-3.71
FCFYN/A
OCF(TTM)8.9
OCFY26.74%
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
WACC5.79%
ROIC/WACC0.91
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