RWE AG (RWE.DE) Stock Fundamental Analysis
FRA:RWE - DE0007037129 - Common Stock
34.66 EUR
+0.68 (+2%)
We assign a fundamental rating of 4 out of 10 to RWE. RWE was compared to 21 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
In the past year RWE was profitable.
In the past year RWE had a positive cash flow from operations.
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 2.64%, RWE is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
The Return On Equity of RWE (7.80%) is better than 66.67% of its industry peers.
The Return On Invested Capital of RWE (2.47%) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.64% | ||
| ROE | 7.8% | ||
| ROIC | 2.47% |
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
The Profit Margin of RWE (11.18%) is better than 61.90% of its industry peers.
In the last couple of years the Profit Margin of RWE has declined.
Looking at the Operating Margin, with a value of 12.76%, RWE is in line with its industry, outperforming 42.86% of the companies in the same industry.
In the last couple of years the Operating Margin of RWE has grown nicely.
With a Gross Margin value of 32.53%, RWE perfoms like the industry average, outperforming 47.62% of the companies in the same industry.
RWE's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.76% | ||
| PM (TTM) | 11.18% | ||
| GM | 32.53% |
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.
RWE has a worse debt/assets ratio than last year.
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.
The Debt to Equity ratio of RWE (0.46) is better than 71.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.46 | ||
| Debt/FCF | N/A | ||
| Altman-Z | N/A |
ROIC/WACC0.43
WACC5.74%
2.3 Liquidity
A Current Ratio of 1.27 indicates that RWE should not have too much problems paying its short term obligations.
RWE has a Current ratio (1.27) 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.
RWE has a Quick ratio (1.21) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.27 | ||
| 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 -47.20%.
Measured over the past years, RWE shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -12.96% on average per year.
The Revenue has decreased by -7.32% in the past year.
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)-47.2%
EPS 3Y10.38%
EPS 5Y-12.96%
EPS Q2Q%-49.33%
Revenue 1Y (TTM)-7.32%
Revenue growth 3Y-0.47%
Revenue growth 5Y13.04%
Sales Q2Q%-20.07%
3.2 Future
RWE is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 3.37% yearly.
The Revenue is expected to grow by 0.79% on average over the next years.
EPS Next Y-31.8%
EPS Next 2Y-10.74%
EPS Next 3Y-1.7%
EPS Next 5Y3.37%
Revenue Next Year-7.7%
Revenue Next 2Y-2.84%
Revenue Next 3Y1.29%
Revenue Next 5Y0.79%
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 15.00, which indicates a correct valuation of RWE.
The rest of the industry has a similar Price/Earnings ratio as RWE.
When comparing the Price/Earnings ratio of RWE to the average of the S&P500 Index (26.84), we can say RWE is valued slightly cheaper.
Based on the Price/Forward Earnings ratio of 13.94, the valuation of RWE can be described as correct.
Compared to the rest of the industry, the Price/Forward Earnings ratio of RWE is on the same level as its industry peers.
When comparing the Price/Forward Earnings ratio of RWE to the average of the S&P500 Index (22.48), we can say RWE is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15 | ||
| Fwd PE | 13.94 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, RWE is valued cheaper than 80.95% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 4.93 |
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-10.74%
EPS Next 3Y-1.7%
5. Dividend
5.1 Amount
RWE has a Yearly Dividend Yield of 3.18%.
RWE's Dividend Yield is a higher than the industry average which is at 3.64.
Compared to an average S&P500 Dividend Yield of 2.32, RWE pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.18% |
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
39.78% of the earnings are spent on dividend by RWE. This is a low number and sustainable payout ratio.
The dividend of RWE is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP39.78%
EPS Next 2Y-10.74%
EPS Next 3Y-1.7%
FRA:RWE (9/4/2025, 5:36:15 PM)
34.66
+0.68 (+2%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryIndependent Power and Renewable Electricity Producers
Earnings (Last)
Earnings (Next)
Inst Owners36.62%
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap25.78B
Analysts83.7
Price Target42.89 (23.74%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.18% |
Yearly Dividend1.36
Dividend Growth(5Y)8.29%
DP39.78%
Div Incr Years2
Div Non Decr Years4
Ex-DateN/A
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
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)N/A
Avg Revenue beat(2)N/A
Min Revenue beat(2)N/A
Max Revenue beat(2)N/A
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)0.73%
PT rev (3m)1.09%
EPS NQ rev (1m)-28.85%
EPS NQ rev (3m)N/A
EPS NY rev (1m)-3.88%
EPS NY rev (3m)-3.88%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-0.86%
Revenue NY rev (3m)-1.67%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15 | ||
| Fwd PE | 13.94 | ||
| P/S | 1.12 | ||
| P/FCF | N/A | ||
| P/OCF | 5.12 | ||
| P/B | 0.78 | ||
| P/tB | 1.1 | ||
| EV/EBITDA | 4.93 |
EPS(TTM)2.31
EY6.66%
EPS(NY)2.49
Fwd EY7.17%
FCF(TTM)-7.88
FCFYN/A
OCF(TTM)6.76
OCFY19.51%
SpS31.01
BVpS44.44
TBVpS31.61
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.64% | ||
| ROE | 7.8% | ||
| ROCE | 3.96% | ||
| ROIC | 2.47% | ||
| ROICexc | 2.83% | ||
| ROICexgc | 3.31% | ||
| OM | 12.76% | ||
| PM (TTM) | 11.18% | ||
| GM | 32.53% | ||
| 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-Score4
Asset Turnover0.24
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.46 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 2.45 | ||
| Cap/Depr | 340.04% | ||
| Cap/Sales | 47.23% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 81.83% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.27 | ||
| Quick Ratio | 1.21 | ||
| Altman-Z | N/A |
F-Score4
WACC5.74%
ROIC/WACC0.43
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)-47.2%
EPS 3Y10.38%
EPS 5Y-12.96%
EPS Q2Q%-49.33%
EPS Next Y-31.8%
EPS Next 2Y-10.74%
EPS Next 3Y-1.7%
EPS Next 5Y3.37%
Revenue 1Y (TTM)-7.32%
Revenue growth 3Y-0.47%
Revenue growth 5Y13.04%
Sales Q2Q%-20.07%
Revenue Next Year-7.7%
Revenue Next 2Y-2.84%
Revenue Next 3Y1.29%
Revenue Next 5Y0.79%
EBIT growth 1Y-51.88%
EBIT growth 3Y22.56%
EBIT growth 5Y58.65%
EBIT Next Year36.83%
EBIT Next 3Y22.3%
EBIT Next 5Y16.67%
FCF growth 1Y-97.44%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y232.3%
OCF growth 3Y-3.09%
OCF growth 5YN/A