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RWE AG (RWEOY)
OTHER OTC:RWEOY
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RWE AG
(OTC:RWEOY)
75Outperform
RWE AG (RWEOY) vs. S&P 500 (SPY)
Market Cap
$27.49B
Dividend Yield1.97%
Average Volume (3M)2.95K
Price to Earnings (P/E)4.9
Beta (1Y)0.19
Revenue GrowthN/A
EPS GrowthN/A
CountryUS
Employees20,985
SectorUtilities
Sector Strength90
IndustryDiversified Utilities
Share Statistics
EPS (TTM)0.81
Shares Outstanding743,841,200
10 Day Avg. Volume8,864
30 Day Avg. Volume2,954
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.72
Price to Cash Flow (P/CF)N/A
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
RWE AG Business Overview & Revenue Model
Company DescriptionRWE AG is a leading European energy company headquartered in Essen, Germany. The company operates across multiple sectors, including electricity generation, energy trading, and renewable energy. RWE is renowned for its extensive portfolio of power plants, encompassing conventional energy sources such as lignite, coal, and natural gas, as well as a growing emphasis on renewable energy sources like wind and solar. The company's strategic focus is on transitioning to a sustainable energy future by investing heavily in clean energy technologies and expanding its renewable energy capacity.
How the Company Makes MoneyRWE AG generates revenue primarily through the production and sale of electricity. The company operates a diverse array of power plants that contribute to its electricity generation capacity. Revenue streams include the sale of electricity generated from both conventional and renewable energy sources. RWE also engages in energy trading, allowing it to capitalize on market fluctuations and optimize its energy portfolio. Additionally, the company earns income through its growing investments in renewable energy projects, which are supported by governmental incentives and long-term power purchase agreements. Significant partnerships with other energy companies and investments in infrastructure further bolster RWE's revenue generation, positioning it as a key player in the European energy market.
RWE AG Financial Statement Overview
Summary
RWE AG's financial statements reflect a company navigating through revenue challenges while achieving profitability growth. The income statement shows improved profit margins and net income, indicating effective cost management amidst revenue declines. The balance sheet remains robust with stable equity levels despite slightly increased leverage. Cash flow analysis reveals strong operational cash generation, though high capital expenditures resulted in negative free cash flow, posing a potential liquidity risk.Income Statement
RWE AG has demonstrated strong net income growth, with a substantial improvement from €1.45 billion in 2023 to €5.135 billion in 2024. However, the company faced a decline in total revenue, which decreased from €34.516 billion in 2023 to €24.224 billion in 2024, indicating a challenging revenue environment. The gross profit margin in 2024 was approximately 35.7%, a steady figure for the industry. Despite the revenue decline, the EBITDA margin improved significantly, reflecting efficient cost management.75
Positive
Balance Sheet
The company's balance sheet shows a relatively stable structure with total assets decreasing slightly from €106.512 billion in 2023 to €98.44 billion in 2024. The debt-to-equity ratio increased slightly, indicating a moderate leveraging of equity. Stockholders' equity remained stable, ensuring a solid equity base. The equity ratio was approximately 32% in 2024, demonstrating a healthy level of equity financing for the industry.70
Positive
Cash Flow
RWE AG's cash flow from operations increased, indicating improved cash generation capabilities. However, the company reported negative free cash flow due to significant capital expenditures, which could pressure cash liquidity if this trend continues. The operating cash flow to net income ratio was strong, suggesting good cash conversion from earnings. Nevertheless, the free cash flow to net income ratio was negative, highlighting the impact of high capital investments.65
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 24.22B | 34.52B | 38.37B | 24.53B | 13.69B | Gross Profit |
| 8.65B | 14.04B | 6.69B | 6.34B | 3.47B | EBIT |
| 0.00 | 10.93B | 3.02B | 2.87B | -1.58B | EBITDA |
| 10.68B | 9.44B | 2.91B | 4.39B | 1.59B | Net Income Common Stockholders |
| 5.13B | 1.45B | 2.72B | 721.00M | 1.05B |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 11.94B | 14.64B | 20.46B | 13.87B | 8.99B | Total Assets |
| 98.44B | 106.51B | 138.55B | 142.31B | 61.67B | Total Debt |
| 15.79B | 13.67B | 15.62B | 12.11B | 3.35B | Net Debt |
| 10.70B | 6.75B | 8.63B | 6.29B | -1.43B | Total Liabilities |
| 64.82B | 73.35B | 109.27B | 125.31B | 43.70B | Stockholders Equity |
| 31.55B | 31.57B | 27.58B | 15.25B | 17.18B |
| Cash Flow | Free Cash Flow | |||
| -2.76B | -5.74B | -2.08B | 3.58B | 817.00M | Operating Cash Flow |
| 6.62B | 4.24B | 2.41B | 7.27B | 4.17B | Investing Cash Flow |
| -9.71B | -2.81B | -9.89B | -7.74B | -4.35B | Financing Cash Flow |
| 1.12B | -1.56B | 8.62B | 1.46B | 1.77B |
RWE AG Technical Analysis
Positive
38.69
Price Trends
34.48
Positive
32.58
Positive
33.70
Positive
Market Momentum
1.21
Negative
63.58
Neutral
81.93
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RWEOY, the sentiment is Positive. The current price of 38.69 is above the 20-day moving average (MA) of 36.89, above the 50-day MA of 34.48, and above the 200-day MA of 33.70, indicating a bullish trend. The MACD of 1.21 indicates Negative momentum. The RSI at 63.58 is Neutral, neither overbought nor oversold. The STOCH value of 81.93 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for RWEOY.
RWE AG Peers Comparison
Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | $6.07B | 3.94 | 28.91% | 10.70% | 3.39% | 46.79% | |
77 Outperform | $5.86B | 11.75 | 9.47% | 2.78% | -4.45% | 8.24% | |
75 Outperform | $27.49B | 4.94 | 16.51% | 1.97% | ― | ― | |
68 Neutral | $47.14B | 16.38 | 9.55% | 3.42% | -18.00% | -7.54% | |
63 Neutral | $8.54B | 12.48 | 6.34% | 4.37% | 3.06% | -9.41% | |
54 Neutral | $18.86B | 2,678.70 | 0.96% | 5.69% | 17.33% | -92.62% | |
52 Neutral | $7.20B | 4.28 | 39.65% | 6.85% | -3.14% | 563.59% |
* Utilities Sector Average
Performance Comparison
RWEOY
RWE AG
38.47
4.82
14.32%
BIP
Brookfield Infrastructure
28.90
3.13
12.15%
CIG
Companhia Energetica Minas Gerais
1.88
0.22
13.25%
ELP
Companhia Paranaense de Energia Pfd
8.29
1.39
20.14%
SRE
Sempra Energy
74.68
5.58
8.08%
AES
AES
10.05
-6.39
-38.87%
RWE AG Earnings Call Summary
Earnings Call Date: Mar 20, 2025 | % Change Since: 7.62% | Next Earnings Date: May 15, 2025
Earnings Call Sentiment Neutral
RWE demonstrated strong financial and operational performance in 2024, with significant achievements in decarbonization and shareholder returns. However, the company faces challenges due to market uncertainties, leading to a reduction in planned investments. The overall sentiment is a mix of optimism from strong current performance and caution due to future investment challenges.Highlights
Strong Financial Performance in 2024
Adjusted EBITDA stood at €5.7 billion, exceeding the midpoint of the guidance range, and adjusted earnings per share was €3.1, also above the guidance midpoint.
Significant Decarbonization Progress
In 2024, RWE's CO2 emissions dropped by 13% compared to the prior year, with the closure of six lignite power plants totaling 2.4 gigawatts.
Introduction of Share Buyback Program
A €1.5 billion share buyback program was introduced, running until Q2 2026.
Strong EPS Growth Outlook
RWE expects EPS to grow at a CAGR of 18% from 2025 to 2027, reaching €3 per share, with a long-term target of €4 adjusted EPS by 2030.
Successful Offshore Wind Partnerships
RWE has partnered with TotalEnergies for the 800-megawatt OranjeWind project in the Netherlands and the 4-gigawatt Windbostel development off the German coast.
Lowlights
Reduction in Planned Investments
RWE has significantly reduced its 2030 investment program by 25%, or €10 billion, due to higher uncertainty in the investment environment.
Challenges with Investment Environment
Market uncertainties in the US and geopolitical tensions are affecting international trade and decision-making for future investments.
Decline in Flexible Generation Earnings
2025 will be the earnings trough as earnings in flexible generation and trading normalize, with a reduction in expected EBITDA for 2027 due to lower margins and investments.
Company Guidance
During the RWE conference call, CEO Markus Krebber and CFO Michael Muller outlined the company's performance and strategy for the fiscal year 2024. Despite challenges from a decline in European commodity prices, RWE reported a robust financial performance with an adjusted EBITDA of €5.7 billion, exceeding the midpoint of their guidance range, and an adjusted EPS of €3.1 per share. The company initiated a €1.5 billion share buyback program and confirmed plans to increase dividends by €0.10 to €1.2 per share in 2025. RWE plans to reduce its 2030 investment program by 25%, or €10 billion, and focus on maintaining a strong balance sheet. The company has 12.5 gigawatts of projects under construction and targets a CAGR of 18% in EPS from 2025 to 2027. RWE also announced flexible capital allocation tactics, including farm downs in its offshore wind projects, to manage its investment risks and opportunities amidst a volatile market environment.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.