RWE AG (RWE) AI Stock Analysis

• Market Cap: €31.58B
• Dividend Yield: 2.58%
• Average Volume (3M): 1.81M
• Price to Earnings (P/E): 12.1
• Beta (1Y): 0.32
• Revenue Growth: -7.36%
• EPS Growth: -25.03%
• Country: DE
• Employees: 20,985
• Sector: Utilities
• Sector Strength: 65
• Industry: Diversified Utilities
• EPS (TTM): 0.91
• 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: €43.70
• Price Target Upside: 0.53% 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: €44.00 ▲(1.22% Upside)

RWE AG's overall stock score reflects a balance of mixed financial performance and positive technical indicators. The company's stable financial position and reasonable valuation are offset by challenges in revenue growth and cash flow generation. The bullish technical trend and attractive dividend yield enhance the stock's appeal, resulting in a moderately positive overall score.

Positive Factors

Renewable Energy Investment

RWE's focus on renewable energy positions it well for long-term growth as global demand for clean energy increases, supported by government incentives.

Stable Financial Position

A stable financial position with moderate leverage provides RWE with the flexibility to invest in growth opportunities and manage economic fluctuations.

Profitability and Cash Generation

Strong EBITDA margins indicate RWE's ability to generate cash, supporting ongoing operations and investments in renewable energy projects.

Negative Factors

Declining Revenue Growth

Declining revenue growth reflects challenges in maintaining top-line expansion, which can impact long-term profitability and market competitiveness.

Negative Free Cash Flow

Negative free cash flow suggests RWE may face liquidity issues, limiting its ability to fund new projects or respond to market changes without external financing.

Declining Return on Equity

A declining ROE indicates reduced efficiency in generating profits from shareholders' equity, potentially impacting investor confidence and future capital raising.

RWE AG Business Overview & Revenue Model

Company Description

RWE AG is a leading German energy company focused on the generation and distribution of electricity and gas. The company operates across various sectors, including renewable energy, conventional power generation, and energy trading. RWE is significantly invested in wind and solar power, aiming to transition towards a sustainable energy future, while also maintaining operations in nuclear and fossil fuels. Its core products and services encompass electricity generation, energy supply, and energy infrastructure development.

How the Company Makes Money

RWE generates revenue primarily through the production and sale of electricity and gas. Key revenue streams include the sale of generated electricity from its diverse portfolio of power plants, including renewable energy sources such as wind and solar, as well as traditional sources like coal and natural gas. The company also earns income through energy trading activities, leveraging market fluctuations to optimize profits. Additionally, RWE benefits from long-term power purchase agreements (PPAs) and partnerships with various stakeholders, including governments and private enterprises, which provide stability and predictability in revenue. The ongoing transition to renewable energy further enhances RWE's earning potential by tapping into government incentives and subsidies for clean energy projects.

RWE AG Financial Statement Overview

Summary

RWE AG exhibits a mixed financial performance. The income statement highlights profitability but with declining revenue and net profit margins. The balance sheet shows a stable financial position with moderate leverage, but declining ROE is a concern. The cash flow statement indicates potential liquidity challenges due to negative free cash flow. Overall, while the company maintains profitability, it faces challenges in revenue growth and cash flow generation.

Income Statement

RWE AG's income statement shows mixed performance. The TTM (Trailing-Twelve-Months) data indicates a decline in revenue growth rate of -3.84%, reflecting challenges in maintaining top-line growth. The gross profit margin is relatively healthy at 31.81%, but the net profit margin has decreased to 11.18% from 21.20% in the previous annual report. The EBIT margin is negative, indicating operational challenges, while the EBITDA margin remains strong at 36.07%, suggesting good cash generation capability. Overall, the company shows profitability but faces revenue growth challenges.

Balance Sheet

RWE AG's balance sheet reflects a stable financial position with a debt-to-equity ratio of 0.61, indicating moderate leverage. The return on equity (ROE) has decreased to 7.86% in the TTM period, down from 16.28% in the previous year, suggesting a decline in profitability relative to equity. The equity ratio stands at 33.78%, showing a solid equity base relative to total assets. The company maintains a balanced approach to financing, but the declining ROE is a concern.

Cash Flow

The cash flow statement reveals some concerns for RWE AG. The free cash flow is negative, and the free cash flow to net income ratio is -1.17, indicating that the company is not generating sufficient free cash flow relative to its net income. The operating cash flow to net income ratio is 0.21, showing limited cash flow generation from operations. Although there is a positive free cash flow growth rate of 10.33% in the TTM period, the overall cash flow position suggests potential liquidity challenges.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	23.07B	24.22B	28.57B	38.37B	24.53B	13.69B
Gross Profit	7.34B	8.65B	7.92B	6.69B	6.34B	3.47B
EBITDA	8.32B	10.68B	8.05B	3.83B	4.43B	4.63B
Net Income	2.58B	5.13B	1.45B	2.72B	721.00M	1.05B
Balance Sheet
Total Assets	97.81B	98.44B	106.49B	138.55B	142.31B	61.67B
Cash, Cash Equivalents and Short-Term Investments	9.27B	11.94B	14.64B	20.46B	13.87B	8.99B
Total Debt	20.26B	15.79B	13.67B	15.62B	12.11B	3.35B
Total Liabilities	61.25B	64.82B	73.35B	109.27B	125.31B	43.70B
Stockholders Equity	33.05B	31.55B	31.57B	27.58B	15.25B	17.18B
Cash Flow
Free Cash Flow	-5.86B	-2.76B	-923.00M	-2.08B	3.58B	817.00M
Operating Cash Flow	5.03B	6.62B	4.24B	2.41B	7.27B	4.17B
Investing Cash Flow	-11.26B	-9.71B	-2.81B	-9.89B	-7.74B	-4.35B
Financing Cash Flow	4.13B	1.12B	-1.56B	8.62B	1.46B	1.77B

RWE AG Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 43.47
• 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 43.47 is above the 20-day moving average (MA) of 41.72, above the 50-day MA of 38.99, and above the 200-day MA of 34.49, indicating a bullish trend. The MACD of 1.12 indicates Negative momentum. The RSI at 71.05 is Negative, neither overbought nor oversold. The STOCH value of 80.02 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
MVV1	70 Outperform	€2.06B	13.47	7.01%	3.99%	-11.39%	-4.89%
RWE	69 Neutral	€31.58B	12.14	7.90%	2.58%	-7.36%	-25.03%
Sector *	66 Neutral	$17.65B	18.10	5.60%	3.62%	6.62%	11.55%
EOAN	60 Neutral	€41.44B	13.16	18.90%	3.40%	1.60%	76.73%
EBK	58 Neutral	€21.59B	51.61	3.57%	2.27%	-10.30%	0.96%