RWE AG (RWE) AI Stock Analysis

• Market Cap: €40.00B
• Dividend Yield: 2.46%
• Average Volume (3M): 1.81M
• Price to Earnings (P/E): 17.5
• Beta (1Y): 0.28
• Revenue Growth: -8.65%
• EPS Growth: -17.97%
• Country: DE
• Employees: 20,985
• Sector: Utilities
• Sector Strength: 65
• Industry: Diversified Utilities
• EPS (TTM): 1.17
• Shares Outstanding: 743,841,200
• 10 Day Avg. Volume: 1,744,315
• 30 Day Avg. Volume: 1,808,967
• PEG Ratio: 0.02
• Price to Book (P/B): 0.68
• Price to Sales (P/S): 0.88
• P/FCF Ratio: -7.78
• 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: €56.14
• Price Target Upside: 4.39% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 12
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 69 Neutral
• Price Target: €59.00 ▲(9.71% Upside)

RWE AG's overall stock score reflects a balance of moderate financial performance and positive technical indicators. The company's stable balance sheet and reasonable valuation contribute positively, while cash flow concerns and operational challenges weigh on the score. The absence of earnings call and corporate events data limits additional insights.

Positive Factors

Renewable transition and diversified generation

RWE’s strategic shift into wind, solar and renewables represents a durable structural advantage as Europe decarbonizes. Diversified generation (renewables, conventional, trading) reduces single-market exposure, supports long‑term demand alignment, and positions RWE to capture subsidy and clean‑energy investment flows.

Manageable leverage and balanced capital structure

A debt-to-equity around 0.59 indicates moderate leverage, giving RWE capacity to finance capital-intensive renewables while retaining balance sheet flexibility. This level supports continued project financing without extreme refinancing pressure, aiding multi-year investment plans and credit stability.

Sustained net profitability

Despite operational headwinds, a positive net profit margin above 10% demonstrates core profitability and ability to generate earnings from operations. Persistent net profits support reinvestment, dividend capacity and resilience during commodity or market cycles over a multi‑quarter horizon.

Negative Factors

Declining revenue growth

Material negative revenue growth signals structural pressure on top‑line momentum. Sustained declines constrain scale economies, reduce incremental cash generation and can limit funds available for capital deployment into renewables, making long‑term growth financing more reliant on external capital.

Weak cash generation and negative free cash flow

Negative free cash flow with a low operating cash flow to net income ratio (0.29) indicates the company struggles to convert profits into usable cash. Over months, that undermines capacity to self‑fund large renewables projects, maintain dividends, or reduce leverage without external financing.

Falling return on equity

A sharp ROE decline suggests diminishing efficiency in generating returns from shareholders’ capital. Persistently lower ROE can reflect margin pressure, asset write‑downs or heavy capex with delayed returns, weakening long‑term shareholder returns and increasing scrutiny on capital allocation decisions.

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 multiple streams, primarily from electricity generation and sales. The company earns significant income from its renewable energy segment, which includes wind and solar power generation, benefitting from government subsidies and feed-in tariffs that support renewable energy production. Additionally, RWE operates conventional power plants that produce electricity from fossil fuels, contributing to its revenue. The company's energy trading operations also play a crucial role, allowing it to buy and sell electricity in various markets, capitalize on price volatility, and optimize its generation portfolio. Strategic partnerships with other energy companies and investments in innovative technologies further enhance RWE's revenue potential, enabling it to adapt to market changes and regulatory requirements.

RWE AG Financial Statement Overview

Summary

RWE AG's financial performance is mixed. The income statement shows a decline in revenue growth and negative EBIT margin, though profitability is maintained with a positive net profit margin. The balance sheet is stable but shows increased debt and reduced return on equity. Cash flow is a concern with negative free cash flow and low operating cash flow to net income ratio.

Income Statement

RWE AG's income statement shows mixed performance. The TTM data indicates a decline in revenue growth rate by 6.65%, and a negative EBIT margin, suggesting operational challenges. However, the company maintains a positive net profit margin of 10.52%, indicating some profitability. Historical data shows fluctuating revenue growth and margins, with a notable decline in gross profit margin from 35.71% in 2024 to 26.56% in TTM.

Balance Sheet

The balance sheet reflects moderate financial stability. The debt-to-equity ratio stands at 0.59 in TTM, which is manageable but has increased from previous years. Return on equity has decreased to 7.86% in TTM from 16.28% in 2024, indicating reduced efficiency in generating profits from equity. The equity ratio remains stable, suggesting a balanced capital structure.

Cash Flow

Cash flow analysis reveals some concerns. The TTM data shows a negative free cash flow and a decline in free cash flow growth by 17.09%. The operating cash flow to net income ratio is low at 0.29, indicating potential cash flow management issues. Historical data shows fluctuating free cash flow, with recent years showing negative figures, impacting overall cash flow health.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	21.54B	24.22B	28.57B	38.37B	24.53B	13.69B
Gross Profit	5.72B	8.65B	7.92B	6.69B	6.34B	3.47B
EBITDA	7.51B	10.68B	8.05B	3.83B	4.43B	4.63B
Net Income	2.27B	5.13B	1.45B	2.72B	721.00M	1.05B
Balance Sheet
Total Assets	96.20B	98.44B	106.49B	138.55B	142.31B	61.67B
Cash, Cash Equivalents and Short-Term Investments	8.90B	11.94B	14.64B	20.46B	13.87B	8.99B
Total Debt	19.93B	15.79B	13.67B	15.62B	12.11B	3.35B
Total Liabilities	58.53B	64.82B	73.35B	109.27B	125.31B	43.70B
Stockholders Equity	34.01B	31.55B	31.57B	27.58B	15.25B	17.18B
Cash Flow
Free Cash Flow	-4.86B	-2.76B	-923.00M	-2.08B	3.58B	817.00M
Operating Cash Flow	5.88B	6.62B	4.24B	2.41B	7.27B	4.17B
Investing Cash Flow	-10.46B	-9.71B	-2.81B	-9.89B	-7.74B	-4.35B
Financing Cash Flow	3.38B	1.12B	-1.56B	8.62B	1.46B	1.77B

RWE AG Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 53.78
• 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 53.78 is above the 20-day moving average (MA) of 51.39, above the 50-day MA of 47.20, and above the 200-day MA of 39.39, indicating a bullish trend. The MACD of 1.99 indicates Negative momentum. The RSI at 76.18 is Negative, neither overbought nor oversold. The STOCH value of 83.00 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	69 Neutral	€40.00B	17.54	6.75%	2.46%	-8.65%	-17.97%
Sector *	66 Neutral	$17.65B	18.10	5.60%	3.62%	6.62%	11.55%
EOAN	61 Neutral	€46.89B	15.63	17.74%	3.44%	0.77%	67.07%
EBK	53 Neutral	€22.82B	83.66	2.13%	2.23%	-8.11%	-60.54%
MVV1	51 Neutral	€2.06B	16.56	5.62%	4.07%	-8.49%	-31.95%