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RWE AG (RWEOY)
OTHER OTC:RWEOY
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RWE AG
(OTC:RWEOY)
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Rating:71Outperform
Price Target:
$45.00
▲(3.40% Upside)
RWE AG's overall stock score is driven by strong financial performance and a positive earnings call outlook, despite technical indicators suggesting short-term weakness. The attractive valuation further supports the score, while challenges in revenue and free cash flow management pose risks.
RWE AG (RWEOY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$32.21B
Dividend Yield2.87%
Average Volume (3M)1.67K
Price to Earnings (P/E)11.4
Beta (1Y)0.09
Revenue Growth-7.47%
EPS Growth-24.61%
CountryUS
Employees20,985
SectorUtilities
Sector Strength65
IndustryDiversified Utilities
Share Statistics
EPS (TTM)1.06
Shares Outstanding743,841,200
10 Day Avg. Volume0
30 Day Avg. Volume1,665
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap1.47
Enterprise Value/Revenue2.05
Enterprise Value/Gross Profit6.43
Enterprise Value/Ebitda5.67
Forecast
1Y Price Target
$49.01Price Target Upside12.61% Upside
Rating ConsensusModerate Buy
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
(Q2-2025)
| % Change Since: |
Next Earnings Date:Nov 12, 2025
Earnings Call Sentiment Positive
The earnings call reflects a generally positive outlook with strong financial performance, progress in construction projects, and favorable developments in core markets offset by challenges related to weak wind conditions, low trading results, and uncertainties in the US market.Q2-2025 Updates
Positive Updates
Strong Financial Performance Despite Challenges
RWE delivered a good financial performance in the first half of 2025 with adjusted EBITDA at EUR 2.1 billion and adjusted net income at EUR 0.8 billion, reaching 50% of the full year guidance midpoint.
Construction Program Progress and Milestones
Around 11 gigawatts of capacity are under construction with more than 3 gigawatts expected to become operational in the second half of 2025. Key projects like the Sofia project in the UK and Thor in Denmark are progressing as planned.
Attractive Shareholder Returns
RWE is on track to deliver an 18% EPS CAGR to 2027, with a 13% target to 2030. The company also plans an annual dividend increase of 5% to 10% and is executing a EUR 1.5 billion share buyback program.
Positive Developments in Core Markets
RWE sees improved investment frameworks in the UK, with the AR7 auction rules favoring renewable energy strategies, and in Germany, with policies focused on cost efficiency and security of supply.
Strong US Market Potential
The passage of The Big Beautiful Bill in the US provides continued tax support for build-out, with RWE maintaining strict investment criteria to leverage opportunities.
Negative Updates
Weak Wind Conditions and Low Trading Results
The first half of 2025 was marked by weak wind conditions in Europe and low trading results, affecting the financial performance of the Offshore Wind and Supply & Trading segments.
Challenges in Achieving Guidance
RWE's net income was only 50% of the full-year guidance in the first half, compared to 75%-80% in previous years, raising concerns about meeting the guidance for the full year.
Uncertainty in US Investments
RWE awaits clarity on tax credit eligibility and tariff risks in the US, which could delay investments despite the positive market environment.
Company Guidance
In the RWE conference call discussing the first half of fiscal year 2025, key financial metrics were highlighted. RWE's adjusted EBITDA for H1 2025 was reported at EUR 2.1 billion, with adjusted net income at EUR 0.8 billion, and adjusted earnings per share at EUR 1.1. The company confirmed its full-year guidance, expecting adjusted EBITDA between EUR 4.55 billion and EUR 5.15 billion, adjusted net income from EUR 1.3 billion to EUR 1.8 billion, and adjusted EPS between EUR 1.8 and EUR 2.5. RWE's share buyback program is progressing, with EUR 500 million completed and a total of EUR 1.5 billion planned by Q2 2026. The company is also advancing its construction program, with 11 gigawatts under construction and over 3 gigawatts expected to begin commercial operation in H2 2025. The guidance reflects confidence in delivering robust earnings despite challenges such as weak wind conditions and low trading results in Europe during the first half of the year.RWE AG Financial Statement Overview
Summary
RWE AG shows strong net income growth and improved profit margins despite revenue challenges. The balance sheet is stable with a slight increase in leverage, and cash flow from operations is strong, though high capital expenditures result in negative free cash flow.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 | 23.07B | 24.22B | 34.52B | 38.37B | 24.53B | 13.69B |
| Gross Profit | 7.34B | 8.65B | 14.04B | 6.69B | 6.34B | 3.47B |
| EBITDA | 8.32B | 10.68B | 9.44B | 2.91B | 4.39B | 1.59B |
| Net Income | 2.58B | 5.13B | 1.45B | 2.72B | 721.00M | 1.05B |
Balance Sheet | ||||||
| Total Assets | 97.81B | 98.44B | 106.51B | 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 | 0.00 | 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 | -5.74B | -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
Positive
43.52
Price Trends
41.73
Positive
40.49
Positive
36.30
Positive
Market Momentum
0.45
Negative
65.62
Neutral
99.91
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 43.52 is above the 20-day moving average (MA) of 41.57, above the 50-day MA of 41.73, and above the 200-day MA of 36.30, indicating a bullish trend. The MACD of 0.45 indicates Negative momentum. The RSI at 65.62 is Neutral, neither overbought nor oversold. The STOCH value of 99.91 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 (66)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | 6.72B | 5.30 | 26.00% | 15.50% | -3.27% | -3.44% | |
72 Outperform | 6.97B | 13.58 | 11.89% | 5.88% | -5.28% | 14.50% | |
71 Outperform | $32.21B | 11.39 | 7.69% | 2.87% | -7.47% | -24.61% | |
71 Outperform | 56.95B | 21.13 | 8.56% | 2.93% | 0.46% | -11.77% | |
64 Neutral | 20.35B | 1,607.73 | 4.04% | 5.38% | 8.86% | ― | |
58 Neutral | 9.51B | 9.43 | 46.27% | 5.37% | -3.19% | 30.48% | |
66 Neutral | $17.65B | 18.10 | 5.60% | 3.62% | 6.62% | 11.55% |
* Utilities Sector Average
Performance Comparison
RWEOY
RWE AG
44.32
8.67
24.32%
BIP
Brookfield Infrastructure
31.53
-1.74
-5.23%
CIG
Companhia Energetica Minas Gerais
2.04
0.18
9.68%
ELP
Companhia Paranaense de Energia Pfd
9.50
2.47
35.14%
SRE
Sempra Energy
88.59
6.99
8.57%
AES
AES
13.24
-5.70
-30.10%
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.