RWE AG (RWE.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:RWE - DE0007037129 - Common Stock
48.38 EUR
+0.42 (+0.88%)
We assign a fundamental rating of 3 out of 10 to RWE. RWE was compared to 20 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 is valued expensive and 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.
Each year in the past 5 years RWE has been profitable.
RWE had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a decent Return On Assets value of 2.36%, RWE is doing good in the industry, outperforming 65.00% of the companies in the same industry.
With a Return On Equity value of 6.66%, RWE perfoms like the industry average, outperforming 60.00% of the companies in the same industry.
RWE's Return On Invested Capital of 1.85% is in line compared to the rest of the industry. RWE outperforms 50.00% of its industry peers.
| 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 80.00% of its industry peers.
RWE's Profit Margin has declined in the last couple of years.
The Operating Margin of RWE (10.44%) is comparable to the rest of the industry.
In the last couple of years the Operating Margin of RWE has grown nicely.
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), RWE is destroying value.
RWE has less shares outstanding than it did 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
RWE has a Debt/Equity ratio of 0.46. This is a healthy value indicating a solid balance between debt and equity.
With a decent Debt to Equity ratio value of 0.46, RWE is doing good in the industry, outperforming 75.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.46 | ||
| Debt/FCF | N/A | ||
| Altman-Z | N/A |
ROIC/WACC0.3
WACC6.08%
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 worse Current ratio (1.30) than 60.00% of its industry peers.
RWE has a Quick Ratio of 1.21. This is a normal value and indicates that RWE is financially healthy and should not expect problems in meeting its short term obligations.
With a Quick ratio value of 1.21, RWE is not doing good in the industry: 60.00% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.3 | ||
| Quick Ratio | 1.21 |
3. Growth
3.1 Past
RWE shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -29.79%.
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%.
The Revenue has been growing by 13.04% on average over the past years. This is quite good.
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
RWE is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 3.69% yearly.
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 5Y3.69%
Revenue Next Year-11.71%
Revenue Next 2Y-3.22%
Revenue Next 3Y0.21%
Revenue Next 5Y1.49%
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
A Price/Earnings ratio of 18.40 indicates a rather expensive 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 75.00% of the companies listed in the same industry.
RWE is valuated rather cheaply when we compare the Price/Earnings ratio to 27.19, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 19.02, which indicates a rather expensive current valuation of RWE.
The rest of the industry has a similar Price/Forward Earnings ratio as RWE.
When comparing the Price/Forward Earnings ratio of RWE to the average of the S&P500 Index (23.92), we can say RWE is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.4 | ||
| Fwd PE | 19.02 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, RWE is valued a bit cheaper than 75.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 7.35 |
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
With a Yearly Dividend Yield of 2.29%, RWE has a reasonable but not impressive dividend return.
RWE's Dividend Yield is comparable with the industry average which is at 2.25.
RWE's Dividend Yield is comparable with the S&P500 average which is at 1.92.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.29% |
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 (1/12/2026, 5:36:15 PM)
48.38
+0.42 (+0.88%)
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 Cap35.99B
Revenue(TTM)21.54B
Net Income(TTM)2.27B
Analysts80
Price Target49.11 (1.51%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.29% |
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)1.43%
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 | 18.4 | ||
| Fwd PE | 19.02 | ||
| P/S | 1.67 | ||
| P/FCF | N/A | ||
| P/OCF | 6.12 | ||
| P/B | 1.06 | ||
| P/tB | 1.46 | ||
| EV/EBITDA | 7.35 |
EPS(TTM)2.63
EY5.44%
EPS(NY)2.54
Fwd EY5.26%
FCF(TTM)-6.54
FCFYN/A
OCF(TTM)7.91
OCFY16.35%
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
WACC6.08%
ROIC/WACC0.3
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 5Y3.69%
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 5Y17.19%
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 4 / 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 18.4 and the Price/Book (PB) ratio is 1.06.
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.