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RWE AG (DE:RWE)
XETRA:RWE

RWE AG (RWE) AI Stock Analysis

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DE

RWE AG

(XETRA:RWE)

Rating:73Outperform
Price Target:
€38.00
▲(6.26%Upside)
RWE AG's overall stock score is primarily driven by its strong technical analysis and attractive valuation. The stock is currently exhibiting bullish momentum and is trading at a low P/E ratio, suggesting undervaluation. Financial performance contributes positively, but challenges in revenue growth and cash flow generation present risks.
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
Soft power prices remain as headwinds, impacting the stock performance.
Financial Performance
Lower earnings from Flexible Generation and supply & trading segments led to a year-on-year decline in earnings.
Regulatory Risks
Key risks include a significant decline in commodity/power prices and potential windfall tax.

RWE AG (RWE) vs. iShares MSCI Germany ETF (EWG)

RWE AG Business Overview & Revenue Model

Company DescriptionRWE 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 MoneyRWE AG generates revenue through several key streams. A significant portion of its income comes from the generation and sale of electricity, produced using both renewable sources like wind and solar, as well as conventional sources such as natural gas and lignite. The company also engages in energy trading, which involves buying and selling electricity, gas, and other commodities in the energy markets to optimize its portfolio and manage risks. Additionally, RWE provides energy management services, offering solutions for grid stability and energy storage. The company's strategic partnerships and investments in innovative technologies further enhance its revenue potential by expanding its capabilities in emerging energy sectors.

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
63
Positive
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
70
Positive
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
58
Neutral
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.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue24.22B28.57B38.37B24.53B13.69B
Gross Profit8.65B7.92B6.69B6.34B3.47B
EBITDA10.17B8.05B3.83B4.43B4.63B
Net Income5.13B1.45B2.72B721.00M1.05B
Balance Sheet
Total Assets98.44B106.49B138.55B142.31B61.67B
Cash, Cash Equivalents and Short-Term Investments11.94B14.64B20.46B13.87B8.99B
Total Debt15.79B13.67B15.62B12.11B3.35B
Total Liabilities64.82B73.35B109.27B125.31B43.70B
Stockholders Equity31.55B31.57B27.58B15.25B17.18B
Cash Flow
Free Cash Flow-2.76B-923.00M-2.08B3.58B817.00M
Operating Cash Flow6.62B4.24B2.41B7.27B4.17B
Investing Cash Flow-9.71B-2.81B-9.89B-7.74B-4.35B
Financing Cash Flow1.12B-1.56B8.62B1.46B1.77B

RWE AG Technical Analysis

Technical Analysis Sentiment
Positive
Last Price35.76
Price Trends
50DMA
33.57
Positive
100DMA
31.85
Positive
200DMA
30.68
Positive
Market Momentum
MACD
0.75
Negative
RSI
67.06
Neutral
STOCH
65.77
Neutral
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 35.76 is above the 20-day moving average (MA) of 34.76, above the 50-day MA of 33.57, and above the 200-day MA of 30.68, indicating a bullish trend. The MACD of 0.75 indicates Negative momentum. The RSI at 67.06 is Neutral, neither overbought nor oversold. The STOCH value of 65.77 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DE:RWE.

RWE AG Peers Comparison

Overall Rating
UnderperformOutperform
Sector (68)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
DERWE
73
Outperform
€26.60B6.6312.22%2.64%-6.96%126.33%
68
Neutral
$14.83B9.706.36%5.32%4.16%-65.92%
€40.90B9.1126.61%3.05%
€18.98B18.409.65%2.02%
€1.98B12.917.20%4.15%
* Energy Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
DE:RWE
RWE AG
35.76
4.21
13.34%
GB:0MPP
E.ON SE
15.61
3.80
32.18%
GB:0IHQ
EnBW Energie Baden-Wurttemberg
67.60
-26.30
-28.01%
GB:0FCK
MVV Energie
30.20
3.18
11.77%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jun 11, 2025