RWE AG (RWE.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:RWE - DE0007037129 - Common Stock
47.24 EUR
+0.33 (+0.7%)
Overall RWE gets a fundamental rating of 4 out of 10. We evaluated RWE against 21 industry peers in the Independent Power and Renewable Electricity Producers industry. There are concerns on the financial health of RWE while its profitability can be described as average. RWE does not seem to be growing, but still is valued expensively.
1. Profitability
1.1 Basic Checks
RWE had positive earnings in the past year.
In the past year RWE had a positive cash flow from operations.
In the past 5 years RWE has always been profitable.
RWE had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
RWE has a better Return On Assets (2.36%) than 66.67% of its industry peers.
Looking at the Return On Equity, with a value of 6.66%, RWE is in line with its industry, outperforming 57.14% of the companies in the same industry.
The Return On Invested Capital of RWE (1.85%) is comparable to the rest of the industry.
| 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
RWE has a better Profit Margin (10.52%) than 76.19% of its industry peers.
In the last couple of years the Profit Margin of RWE has declined.
RWE has a Operating Margin of 10.44%. This is comparable to the rest of the industry: RWE outperforms 57.14% of its industry peers.
RWE's Operating Margin has improved in the last couple of years.
RWE has a Gross Margin (33.00%) which is comparable to the rest of the industry.
In the last couple of years the Gross Margin of RWE 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
RWE has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for RWE has been reduced compared to 1 year ago.
RWE has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, RWE has a worse debt to assets ratio.
2.2 Solvency
A Debt/Equity ratio of 0.46 indicates that RWE is not too dependend on debt financing.
With a decent Debt to Equity ratio value of 0.46, RWE is doing good in the industry, outperforming 71.43% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.46 | ||
| Debt/FCF | N/A | ||
| Altman-Z | N/A |
ROIC/WACC0.31
WACC6.06%
2.3 Liquidity
RWE has a Current Ratio of 1.30. This is a normal value and indicates that RWE is financially healthy and should not expect problems in meeting its short term obligations.
RWE has a Current ratio (1.30) which is comparable to the rest of the industry.
A Quick Ratio of 1.21 indicates that RWE should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.21, RWE is in line with its industry, outperforming 42.86% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.3 | ||
| Quick Ratio | 1.21 |
3. Growth
3.1 Past
The earnings per share for RWE have decreased strongly by -29.79% in the last year.
RWE shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -12.96% yearly.
RWE shows a decrease in Revenue. In the last year, the revenue decreased by -8.61%.
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)-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
The Earnings Per Share is expected to grow by 3.07% on average over the next years.
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 5Y3.07%
Revenue Next Year-11.71%
Revenue Next 2Y-3.22%
Revenue Next 3Y0.21%
Revenue Next 5Y1.49%
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.
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
RWE is valuated rather expensively with a Price/Earnings ratio of 17.96.
Compared to the rest of the industry, the Price/Earnings ratio of RWE indicates a somewhat cheap valuation: RWE is cheaper than 71.43% of the companies listed in the same industry.
RWE's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.60.
The Price/Forward Earnings ratio is 18.57, which indicates a rather expensive current valuation of RWE.
Compared to the rest of the industry, the Price/Forward Earnings ratio of RWE is on the same level as its industry peers.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.23, RWE is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.96 | ||
| Fwd PE | 18.57 |
4.2 Price Multiples
71.43% 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 | 7.21 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-9.71%
EPS Next 3Y-1.07%
5. Dividend
5.1 Amount
RWE has a Yearly Dividend Yield of 2.43%.
RWE's Dividend Yield is comparable with the industry average which is at 2.10.
Compared to an average S&P500 Dividend Yield of 1.94, RWE pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.43% |
5.2 History
The dividend of RWE is nicely growing with an annual growth rate of 8.29%!
Dividend Growth(5Y)8.29%
Div Incr Years2
Div Non Decr Years4
5.3 Sustainability
45.32% of the earnings are spent on dividend by RWE. This is a bit on the high side, but may be sustainable.
RWE's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP45.32%
EPS Next 2Y-9.71%
EPS Next 3Y-1.07%
FRA:RWE (1/5/2026, 5:36:15 PM)
47.24
+0.33 (+0.7%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryIndependent Power and Renewable Electricity Producers
Earnings (Last)
Earnings (Next)
Inst Owners41.28%
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap35.14B
Revenue(TTM)21.54B
Net Income(TTM)2.27B
Analysts80
Price Target49.11 (3.96%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.43% |
Yearly Dividend1.36
Dividend Growth(5Y)8.29%
DP45.32%
Div Incr Years2
Div Non Decr Years4
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)77.81%
Min EPS beat(2)-21.62%
Max EPS beat(2)177.23%
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)0
Avg Revenue beat(2)-14.97%
Min Revenue beat(2)-22.16%
Max Revenue beat(2)-7.79%
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)2.51%
PT rev (3m)13.51%
EPS NQ rev (1m)-34.46%
EPS NQ rev (3m)-39.37%
EPS NY rev (1m)0.66%
EPS NY rev (3m)6.1%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)-0.65%
Revenue NY rev (3m)-1.81%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.96 | ||
| Fwd PE | 18.57 | ||
| P/S | 1.63 | ||
| P/FCF | N/A | ||
| P/OCF | 5.97 | ||
| P/B | 1.03 | ||
| P/tB | 1.43 | ||
| EV/EBITDA | 7.21 |
EPS(TTM)2.63
EY5.57%
EPS(NY)2.54
Fwd EY5.38%
FCF(TTM)-6.54
FCFYN/A
OCF(TTM)7.91
OCFY16.74%
SpS28.95
BVpS45.72
TBVpS33.09
PEG (NY)N/A
PEG (5Y)N/A
Graham Number52.01
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.36% | ||
| ROE | 6.66% | ||
| ROCE | 2.96% | ||
| ROIC | 1.85% | ||
| ROICexc | 2.1% | ||
| ROICexgc | 2.44% | ||
| OM | 10.44% | ||
| PM (TTM) | 10.52% | ||
| GM | 33% | ||
| 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
ROICexgc growth 3Y2.24%
ROICexgc 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-Score3
Asset Turnover0.22
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.46 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 2.81 | ||
| Cap/Depr | 324.95% | ||
| Cap/Sales | 49.9% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 105.9% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.3 | ||
| Quick Ratio | 1.21 | ||
| Altman-Z | N/A |
F-Score3
WACC6.06%
ROIC/WACC0.31
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)-29.79%
EPS 3Y10.38%
EPS 5Y-12.96%
EPS Q2Q%84.21%
EPS Next Y-28.23%
EPS Next 2Y-9.71%
EPS Next 3Y-1.07%
EPS Next 5Y3.07%
Revenue 1Y (TTM)-8.61%
Revenue growth 3Y-0.47%
Revenue growth 5Y13.04%
Sales Q2Q%-32.37%
Revenue Next Year-11.71%
Revenue Next 2Y-3.22%
Revenue Next 3Y0.21%
Revenue Next 5Y1.49%
EBIT growth 1Y-62.49%
EBIT growth 3Y22.56%
EBIT growth 5Y58.65%
EBIT Next Year35.41%
EBIT Next 3Y22.49%
EBIT Next 5Y16.85%
FCF growth 1Y-2080.27%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y38.09%
OCF growth 3Y-3.09%
OCF growth 5YN/A
RWE AG / RWE.DE FAQ
What is the fundamental rating for RWE stock?
ChartMill assigns a fundamental rating of 3 / 10 to RWE.DE.
What is the valuation status for RWE stock?
ChartMill assigns a valuation rating of 2 / 10 to RWE AG (RWE.DE). This can be considered as Overvalued.
How profitable is RWE AG (RWE.DE) stock?
RWE AG (RWE.DE) has a profitability rating of 5 / 10.
Can you provide the PE and PB ratios for RWE stock?
The Price/Earnings (PE) ratio for RWE AG (RWE.DE) is 17.96 and the Price/Book (PB) ratio is 1.03.
Can you provide the expected EPS growth for RWE stock?
The Earnings per Share (EPS) of RWE AG (RWE.DE) is expected to decline by -28.23% in the next year.