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RWE AG (RWEOY)
OTHER OTC:RWEOY
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RWE AG
(OTC:RWEOY)
Rating:68Neutral
Price Target:
$43.00
▲(6.65% Upside)
RWE AG (RWEOY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$30.95B
Dividend Yield3%
Average Volume (3M)40.61K
Price to Earnings (P/E)7.1
Beta (1Y)0.10
Revenue Growth-8.04%
EPS Growth121.48%
CountryUS
Employees20,985
SectorUtilities
Sector Strength87
IndustryDiversified Utilities
Share Statistics
EPS (TTM)1.06
Shares Outstanding743,841,200
10 Day Avg. Volume3,883
30 Day Avg. Volume40,614
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)0.00
Price to Sales (P/S)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap1.33
Enterprise Value/Revenue1.67
Enterprise Value/Gross Profit4.73
Enterprise Value/Ebitda4.92
Forecast
1Y Price Target
$43.00Price Target Upside6.65% Upside
Rating ConsensusHold
Number of Analyst Covering1
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. The largest share comes from its Renewable segment, where the company invests in and operates wind and solar energy projects, benefitting from government incentives and long-term power purchase agreements (PPAs). Additionally, the Conventional Power Generation segment contributes revenue by supplying electricity from its existing power plants to the grid, often through contracts with utilities and large industrial consumers. RWE's Energy Trading division engages in the buying and selling of energy commodities, including electricity, gas, and certificates, which helps to optimize its portfolio and generate additional income. Furthermore, the Retail segment provides energy supply solutions to residential and commercial customers, contributing to its overall earnings. Strategic partnerships and joint ventures with other energy firms and investments in emerging technologies also play a significant role in RWE's revenue generation.
RWE AG Earnings Call Summary
Earnings Call Date:Aug 14, 2025
(Q1-2025)
| % Change Since: -3.01%|
Next Earnings Date:Nov 12, 2025
Earnings Call Sentiment Neutral
RWE had a solid financial performance despite challenges from weak wind conditions and a weak start in the supply and trading business. The company successfully optimized its offshore portfolio, progressed in construction projects, and confirmed its financial guidance for 2025. However, increased net debt, negative cash flow, and a weak trading performance posed significant challenges.Q1-2025 Updates
Positive Updates
Solid Start to 2025
RWE reported a solid start to 2025 with an adjusted EBITDA of €1.3 billion and adjusted net income of €500 million, despite weak wind conditions in Q1.
Successful Offshore Portfolio Optimization
RWE successfully sold a 49% equity stake in their North Sea cluster and Thor offshore projects at an attractive valuation, significantly reducing net cash investments by approximately €4 billion.
Progress in Construction Projects
Offshore wind projects Sofia in the UK and Thor in Denmark are on track, with significant milestones achieved, such as the installation of foundations and turbines.
Onshore Wind and Solar Achievements
RWE commissioned 500 megawatts of onshore wind and solar in Q1 2025, with more than 95% of offtake secured.
Battery Storage and Flexible Generation
RWE commissioned one of Germany's largest battery storage systems with a capacity of 220 megawatts, and 1.4 gigawatts of standalone batteries are under construction.
Guidance Confirmation
RWE confirmed its 2025 guidance for adjusted EBITDA between €4.55 billion and €5.15 billion and adjusted net income between €1.3 billion and €1.8 billion.
Negative Updates
Weak Wind Conditions Impact
Weak wind conditions in Europe led to a 33% decrease in offshore wind generation volumes compared to the previous year, affecting earnings.
Supply and Trading Business Weak Start
The supply and trading business had a weak start in 2025, with Q1 results at €15 million due to lower trading performance.
Increased Net Debt
Net debt increased to €15.9 billion due to investments and seasonal effects in the adjusted operating cash flow.
Negative Adjusted Operating Cash Flow
Adjusted operating cash flow was minus €1.15 billion at the end of Q1, driven by seasonal effects in operating working capital and changes in provisions.
Impact of Weak Trading Performance
Trading performance was notably low, marking one of the weakest quarters in several periods, attributed to market conditions and specific trading outcomes.
Company Guidance
In the RWE Q1 2025 Investor and Analyst Conference Call, CFO Michael Muller provided detailed guidance on the company's performance and outlook. Key metrics included an adjusted EBITDA of €1.3 billion and adjusted net income of €500 million, despite weak wind conditions affecting earnings in Europe. The company reaffirmed its full-year guidance, with expected adjusted EBITDA between €4.55 billion and €5.15 billion, and adjusted net income ranging from €1.3 billion to €1.8 billion. RWE highlighted progress in its 1.5 billion share buyback program, completion of a significant offshore equity sale, and ongoing construction of offshore wind projects such as the 1.4 gigawatt Sofia project in the UK. Additionally, RWE's flexible generation segment saw the commissioning of a 220 megawatt battery storage system in Germany. The company also noted that net debt rose to €15.9 billion, primarily due to investments and seasonal effects, but projected it to fall below the three times leverage target by year-end.RWE AG Financial Statement Overview
Summary
RWE AG's financial performance is characterized by a strong net income growth despite a decline in total revenue. The company has managed to improve profitability margins and maintain a stable balance sheet with a healthy equity ratio. However, negative free cash flow due to high capital expenditures poses 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 | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 24.73B | 24.22B | 34.52B | 38.37B | 24.53B | 13.69B |
| Gross Profit | 8.72B | 8.65B | 14.04B | 6.69B | 6.34B | 3.47B |
| EBITDA | 8.38B | 10.68B | 9.44B | 2.91B | 4.39B | 1.59B |
| Net Income | 4.01B | 5.13B | 1.45B | 2.72B | 721.00M | 1.05B |
Balance Sheet | ||||||
| Total Assets | 96.12B | 98.44B | 106.51B | 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 | 0.00 | 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 | -5.61B | -2.76B | -5.74B | -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
Positive
40.32
Price Trends
41.44
Positive
38.94
Positive
34.94
Positive
Market Momentum
<0.01
Positive
48.04
Neutral
18.37
Positive
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 40.32 is below the 20-day moving average (MA) of 42.15, below the 50-day MA of 41.44, and above the 200-day MA of 34.94, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 48.04 is Neutral, neither overbought nor oversold. The STOCH value of 18.37 is Positive, 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 (67)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $6.69B | 12.97 | 9.81% | 6.21% | -5.28% | 14.50% | |
75 Outperform | $6.51B | 4.51 | 26.38% | 4.59% | -4.14% | 13.02% | |
75 Outperform | $53.56B | 19.88 | 8.87% | 3.09% | 0.46% | -11.77% | |
68 Neutral | $30.95B | 7.12 | 12.20% | 3.00% | -8.04% | 121.48% | |
67 Neutral | $17.91B | 18.75 | 8.12% | 3.40% | 7.32% | 12.41% | |
64 Neutral | $9.19B | 9.12 | 21.17% | 5.37% | -3.19% | 30.48% | |
63 Neutral | $19.78B | 1,563.40 | 1.06% | 5.59% | 8.86% | ― |
* Utilities Sector Average
Performance Comparison
RWEOY
RWE AG
40.32
7.26
21.96%
BIP
Brookfield Infrastructure
29.86
0.43
1.46%
CIG
Companhia Energetica Minas Gerais
1.95
0.17
9.55%
ELP
Companhia Paranaense de Energia Pfd
9.00
1.86
26.05%
SRE
Sempra Energy
81.88
4.71
6.10%
AES
AES
12.94
-3.36
-20.61%
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.