RWE AG (RWE) AI Stock Analysis

• Market Cap: €28.04B
• Dividend Yield: 2.92%
• Average Volume (3M): 1.98M
• Price to Earnings (P/E): 7.0
• Beta (1Y): 0.33
• Revenue Growth: -6.96%
• EPS Growth: 126.33%
• Country: DE
• Employees: 20,985
• Sector: Energy
• Sector Strength: 45
• Industry: Diversified Utilities
• EPS (TTM): 0.68
• Shares Outstanding: 743,841,200
• 10 Day Avg. Volume: 1,384,788
• 30 Day Avg. Volume: 1,978,178
• PEG Ratio: -0.30
• Price to Book (P/B): 0.78
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -4.95
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: €41.70
• Price Target Upside: 10.64% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 11

• Rating: 75 Outperform
• Price Target: €40.00 ▲(6.13%Upside)

RWE AG's strong valuation and positive technical indicators drive a favorable overall score. While financial performance is solid, challenges with revenue stability and free cash flow slightly impact the score. The absence of notable earnings call data or corporate events means these do not influence the overall assessment.

Positive Factors

Green Transition

RWE is a beneficiary of the green transition movement in Europe and the US.

Renewable Assets Expansion

RWE successfully doubled its US renewable assets to more than 7GW, overtaking European peers in terms of renewable exposure in the US.

Share Buyback Program

A new share buyback program can help support the share price.

Negative Factors

Commodity and Power Prices

Key risks include a significant decline in commodity/power prices and potential windfall tax.

Earnings Decline

Lower earnings from Flexible Generation and supply & trading segments led to a year-on-year decline in earnings.

Market Headwinds

Soft power prices remain as headwinds, impacting the stock performance.

RWE AG Business Overview & Revenue Model

Company Description

RWE Aktiengesellschaft generates and supplies electricity from renewable and conventional sources primarily in Europe and the United States. It operates through five segments: Offshore Wind; Onshore Wind/Solar; Hydro/Biomass/Gas; Supply & Trading; and Coal/Nuclear. The company generates wind, solar, hydro, nuclear, gas, and biomass electricity. It also trades in energy commodities; and operates gas storage facilities, as well as battery storage activities. The company serves commercial, industrial, and corporate customers. RWE Aktiengesellschaft was founded in 1898 and is headquartered in Essen, Germany.

How the Company Makes Money

RWE AG generates revenue through various streams, primarily from the production and sale of electricity and gas. The company operates numerous power plants, including wind farms, solar parks, and conventional energy facilities, which contribute to its energy generation capabilities. RWE sells the generated electricity to wholesale markets and directly to industrial and residential customers. Additionally, RWE engages in energy trading activities, leveraging market fluctuations to optimize its profits. The company also benefits from governmental subsidies and incentives for renewable energy projects, which enhance its financial performance. Strategic partnerships and joint ventures in renewable projects further bolster RWE's revenue by expanding its market reach and technological capabilities.

RWE AG Financial Statement Overview

Summary

RWE AG's financial performance shows a mix of strengths and weaknesses. The balance sheet is strong with a consistent equity base and moderate debt levels, but income statement challenges include fluctuating net profit margins and inconsistent revenue growth. Cash flow is a concern with negative free cash flow in recent years.

Income Statement

RWE AG has shown a mixed performance in its income statement. The gross profit margin has been relatively stable, with a recent improvement, indicating good cost control. However, the net profit margin fluctuated due to varying net income results, with a notable recovery in the latest year. Revenue growth has been inconsistent, with a decline in the most recent period. The EBIT margin has faced challenges, notably with a zero EBIT in the latest year, but EBITDA margin has remained strong due to significant depreciation and amortization, highlighting underlying operational efficiency.

Balance Sheet

The balance sheet of RWE AG demonstrates a strong equity base with a consistent increase in stockholders' equity, providing a solid foundation. The debt-to-equity ratio is moderate, indicating a balanced use of debt and equity financing. The equity ratio suggests a healthy proportion of equity in total assets, enhancing financial stability. Return on equity has been variable but improved recently, reflecting better utilization of equity to generate profits.

Cash Flow

RWE AG's cash flow statement reveals challenges in generating free cash flow, with negative figures in recent years, indicating capital expenditure outpacing operating cash flow. Operating cash flow has been positive, supporting net income, but the free cash flow to net income ratio shows room for improvement. The free cash flow growth rate has been negative, signaling potential pressures on liquidity and investment capacity.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	23.99B	24.22B	28.57B	38.37B	24.53B	13.69B
Gross Profit	9.28B	8.65B	7.92B	6.69B	6.34B	3.47B
EBITDA	8.38B	10.68B	8.05B	3.83B	4.43B	4.63B
Net Income	4.01B	5.13B	1.45B	2.72B	721.00M	1.05B
Balance Sheet
Total Assets	96.12B	98.44B	106.49B	138.55B	142.31B	61.67B
Cash, Cash Equivalents and Short-Term Investments	8.54B	11.94B	14.64B	20.46B	13.87B	8.99B
Total Debt	20.08B	15.79B	13.67B	15.62B	12.11B	3.35B
Total Liabilities	60.37B	64.82B	73.35B	109.27B	125.31B	43.70B
Stockholders Equity	33.46B	31.55B	31.57B	27.58B	15.25B	17.18B
Cash Flow
Free Cash Flow	-5.32B	-2.76B	-923.00M	-2.08B	3.58B	817.00M
Operating Cash Flow	6.70B	6.62B	4.24B	2.41B	7.27B	4.17B
Investing Cash Flow	-10.00B	-9.71B	-2.81B	-9.89B	-7.74B	-4.35B
Financing Cash Flow	2.09B	1.12B	-1.56B	8.62B	1.46B	1.77B

RWE AG Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 37.69
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DE:RWE, the sentiment is Positive. The current price of 37.69 is above the 20-day moving average (MA) of 36.17, above the 50-day MA of 34.72, and above the 200-day MA of 31.11, indicating a bullish trend. The MACD of 0.60 indicates Negative momentum. The RSI at 71.26 is Negative, neither overbought nor oversold. The STOCH value of 93.02 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DE:RWE.

RWE AG Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RWE	75 Outperform	€28.04B	6.98	12.22%	2.92%	-6.96%	126.33%
Sector *	67 Neutral	$15.18B	9.41	6.29%	5.47%	4.23%	-67.01%
0MPP	―	€42.66B	9.49	26.61%	3.36%	―	―
0IHQ	―	€22.89B	19.11	9.65%	2.28%	―	―
0FCK	―	€1.99B	12.82	7.20%	4.27%	―	―