RWE AG (RWE.DE)

DE0007037129 - Common Stock

31.41  -0.08 (-0.25%)

Fundamental Rating

4

RWE gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 23 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 has a decent growth rate and is not valued too expensively.



4

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.
Of the past 5 years RWE 4 years had a positive operating cash flow.

1.2 Ratios

RWE's Return On Assets of 1.36% is on the low side compared to the rest of the industry. RWE is outperformed by 68.18% of its industry peers.
RWE has a Return On Equity (4.59%) which is comparable to the rest of the industry.
RWE's Return On Invested Capital of 3.82% is fine compared to the rest of the industry. RWE outperforms 68.18% of its industry peers.
Industry RankSector Rank
ROA 1.36%
ROE 4.59%
ROIC 3.82%
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

RWE has a worse Profit Margin (5.08%) than 68.18% of its industry peers.
RWE's Profit Margin has improved in the last couple of years.
RWE has a Operating Margin (13.71%) which is comparable to the rest of the industry.
RWE has a Gross Margin of 29.45%. This is in the lower half of the industry: RWE underperforms 77.27% of its industry peers.
RWE's Gross Margin has improved in the last couple of years.
Industry RankSector Rank
OM 13.71%
PM (TTM) 5.08%
GM 29.45%
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

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.
RWE has more 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

A Debt/Equity ratio of 0.45 indicates that RWE is not too dependend on debt financing.
RWE has a Debt to Equity ratio of 0.45. This is in the better half of the industry: RWE outperforms 68.18% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.45
Debt/FCF N/A
Altman-Z N/A
ROIC/WACC0.67
WACC5.74%

2.3 Liquidity

RWE has a Current Ratio of 1.58. 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 (1.58) which is comparable to the rest of the industry.
RWE has a Quick Ratio of 1.51. 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 Quick ratio (1.51) which is in line with its industry peers.
Industry RankSector Rank
Current Ratio 1.58
Quick Ratio 1.51

4

3. Growth

3.1 Past

RWE shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 30.13%, which is quite impressive.
RWE shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 47.92% yearly.
The Revenue for RWE has decreased by -25.54% in the past year. This is quite bad
The Revenue has been growing by 16.33% on average over the past years. This is quite good.
EPS 1Y (TTM)30.13%
EPS 3Y5.93%
EPS 5Y47.92%
EPS growth Q2Q-0.65%
Revenue 1Y (TTM)-25.54%
Revenue growth 3Y27.79%
Revenue growth 5Y16.33%
Revenue growth Q2Q-33.45%

3.2 Future

The Earnings Per Share is expected to decrease by -14.86% on average over the next years. This is quite bad
RWE is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.54% yearly.
EPS Next Y-52.63%
EPS Next 2Y-37.78%
EPS Next 3Y-25.86%
EPS Next 5Y-14.86%
Revenue Next Year-17.62%
Revenue Next 2Y-10.37%
Revenue Next 3Y2.01%
Revenue Next 5Y3.54%

3.3 Evolution

The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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.

5

4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 5.16 indicates a rather cheap valuation of RWE.
Based on the Price/Earnings ratio, RWE is valued cheaper than 95.45% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.42, RWE is valued rather cheaply.
With a Price/Forward Earnings ratio of 10.89, the valuation of RWE can be described as very reasonable.
90.91% of the companies in the same industry are more expensive than RWE, based on the Price/Forward Earnings ratio.
RWE is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.74, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 5.16
Fwd PE 10.89

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, RWE is valued cheaper than 95.45% of the companies in the same industry.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 2.34

4.3 Compensation for Growth

A cheap valuation may be justified as RWE's earnings are expected to decrease with -25.86% in the coming years.
PEG (NY)N/A
PEG (5Y)0.11
EPS Next 2Y-37.78%
EPS Next 3Y-25.86%

3

5. Dividend

5.1 Amount

RWE has a Yearly Dividend Yield of 3.23%.
In the last 3 months the price of RWE has falen by -23.53%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
Compared to an average industry Dividend Yield of 3.14, RWE pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.34, RWE pays a bit more dividend than the S&P500 average.
Industry RankSector Rank
Dividend Yield 3.23%

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

65.03% 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.
DP65.03%
EPS Next 2Y-37.78%
EPS Next 3Y-25.86%

RWE AG

FRA:RWE (3/28/2024, 12:16:54 PM)

31.41

-0.08 (-0.25%)

Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryIndependent Power and Renewable Electricity Producers
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap23.36B
Analysts
Price Target
Dividend
Industry RankSector Rank
Dividend Yield 3.23%
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
Industry RankSector Rank
PE 5.16
Fwd PE 10.89
P/S
P/FCF
P/OCF
P/B
P/tB
EV/EBITDA
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)0.11
Profitability
Industry RankSector Rank
ROA 1.36%
ROE 4.59%
ROCE
ROIC
ROICexc
ROICexgc
OM 13.71%
PM (TTM) 5.08%
GM 29.45%
FCFM
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.27
Health
Industry RankSector Rank
Debt/Equity 0.45
Debt/FCF
Debt/EBITDA
Cap/Depr
Cap/Sales
Interest Coverage
Cash Conversion
Profit Quality
Current Ratio 1.58
Quick Ratio 1.51
Altman-Z
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)30.13%
EPS 3Y5.93%
EPS 5Y
EPS growth Q2Q
EPS Next Y-52.63%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-25.54%
Revenue growth 3Y27.79%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y