RWE AG (RWEOY) AI Stock Analysis

• Market Cap: $31.52B
• Dividend Yield: 2.93%
• Average Volume (3M): 875.00
• Price to Earnings (P/E): 7.3
• Beta (1Y): 0.10
• Revenue Growth: -8.04%
• EPS Growth: 121.48%
• Country: US
• Employees: 20,985
• Sector: Utilities
• Sector Strength: 72
• Industry: Diversified Utilities
• EPS (TTM): 0.76
• Shares Outstanding: 743,841,200
• 10 Day Avg. Volume: 592
• 30 Day Avg. Volume: 875
• PEG Ratio: -0.30
• Price to Book (P/B): 0.78
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -4.95
• 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: $43.00
• Price Target Upside: 1.75% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 68 Neutral
• Price Target: $43.00 ▲(1.75%Upside)

RWE demonstrates strong profitability and strategic project advancements, enhancing its growth prospects. Despite this, challenges such as high leverage, negative cash flow, and overbought technical indicators could impact short-term performance. The company's reaffirmed guidance and solid dividend yield provide support for the stock's valuation.

RWE AG Business Overview & Revenue Model

Company Description

RWE AG is a leading European energy company based in Essen, Germany. It operates across the entire energy value chain, from generation to trading to distribution. RWE focuses on the development and management of renewable energies such as wind and solar, while also maintaining traditional energy generation assets including lignite, nuclear, and natural gas. The company is committed to driving the energy transition by increasing its renewable energy portfolio and reducing its carbon footprint.

How the Company Makes Money

RWE AG generates revenue through a diverse range of activities within the energy sector. The company's primary revenue streams include the sale of electricity and gas, energy trading, and the operation of renewable energy assets. RWE sells electricity generated from its power plants to wholesale and retail customers, including industrial, commercial, and residential sectors. It also engages in energy trading, leveraging its expertise to buy and sell energy commodities in global markets. Additionally, RWE earns income from its growing portfolio of renewable energy projects, including wind farms and solar parks, which are crucial for its strategic shift towards sustainable energy sources. Significant partnerships with other energy companies, government incentives for renewable energy development, and long-term power purchase agreements (PPAs) are key factors contributing to RWE's earnings.

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.

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.

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.

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

• Technical Analysis Sentiment: Positive
• Last Price: 42.26
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 42.26 is above the 20-day moving average (MA) of 41.73, above the 50-day MA of 39.15, and above the 200-day MA of 34.06, indicating a bullish trend. The MACD of 0.91 indicates Positive momentum. The RSI at 60.59 is Neutral, neither overbought nor oversold. The STOCH value of 60.73 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for RWEOY.

RWE AG Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CIG	80 Outperform	$6.36B	4.35	26.38%	17.22%	-4.14%	13.02%
ELP	78 Outperform	$6.18B	12.06	9.22%	3.66%	-7.02%	17.33%
SRE	70 Neutral	$48.63B	16.41	9.76%	3.46%	-0.39%	0.75%
RWEOY	68 Neutral	$31.52B	7.30	12.20%	2.93%	-8.04%	121.48%
BIP	64 Neutral	$21.14B	2,867.59	0.47%	5.31%	12.40%	-108.27%
AES	60 Neutral	$8.96B	6.87	29.79%	5.59%	-3.22%	141.11%
Sector *	57 Neutral	AU$878.87M	4.35	-2.37%	5.48%	21.41%	-109.15%