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RWE AG (RWEOY)
:RWEOY
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RWE AG
(OTC:RWEOY)
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Rating:77Outperform
Price Target:
$57.00
▲(11.68% Upside)
RWE AG's overall stock score is driven by strong technical indicators and a solid earnings call performance, reflecting robust financial health and strategic progress. Despite challenges in revenue and free cash flow, the company's valuation remains attractive, supported by a reasonable P/E ratio and a good dividend yield. The stock's bullish momentum is a significant positive factor, although caution is advised due to potential overbought conditions.
Positive Factors
Renewable Energy Expansion
RWE's significant investment in renewable energy projects positions it well for long-term growth, aligning with global trends towards sustainable energy.
Strong Cash Generation
Improved cash generation enhances RWE's ability to fund strategic investments and manage debt, supporting long-term financial stability.
Strategic Equity Investment
The strategic investment strengthens RWE's balance sheet, providing capital for expansion and reducing financial leverage.
Negative Factors
Revenue Decline
A significant revenue decline poses challenges to sustaining growth and profitability, impacting long-term financial performance.
Negative Free Cash Flow
High capital expenditures leading to negative free cash flow could pressure liquidity, limiting RWE's financial flexibility.
Challenges in Renewable Sector
Adverse weather conditions impacting renewable energy output could hinder RWE's growth in the green energy sector.
RWE AG (RWEOY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$37.58B
Dividend Yield2.45%
Average Volume (3M)1.45K
Price to Earnings (P/E)14.5
Beta (1Y)0.04
Revenue Growth-8.14%
EPS Growth-15.92%
CountryUS
Employees20,985
SectorUtilities
Sector Strength65
IndustryDiversified Utilities
Share Statistics
EPS (TTM)1.36
Shares Outstanding743,841,200
10 Day Avg. Volume4,344
30 Day Avg. Volume1,448
Financial Highlights & Ratios
PEG Ratio0.02
Price to Book (P/B)0.67
Price to Sales (P/S)0.87
P/FCF Ratio-7.67
Enterprise Value/Market Cap1.32
Enterprise Value/Revenue2.15
Enterprise Value/Gross Profit6.75
Enterprise Value/Ebitda5.95
Forecast
1Y Price Target
$51.09Price Target Upside0.10% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
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:Nov 12, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Mar 12, 2026
Earnings Call Sentiment Neutral
The earnings call reflects a strong financial performance with significant progress in construction projects and successful strategic transactions. However, there are challenges in the renewable energy sector due to weaker wind conditions and potential issues with future project bids in the U.K.Q3-2025 Updates
Positive Updates
Strong Financial Performance
RWE achieved more than 80% of its full-year 2025 adjusted EPS target in the first 9 months.
Successful Sale of Data Center Development Project
Concluded the sale of a data center development project in the U.K. with a book gain of EUR 225 million.
Progress in Construction Projects
11.4 gigawatts under construction with more than 2 gigawatts scheduled to start operation by end of the year.
EUR 3.2 billion Investment from Apollo Global Management
Secured funding for a 25.1% stake in Amprion, contributing to strengthening the balance sheet.
Share Buyback Program Progress
EUR 1.5 billion share buyback program proceeding well, with 26.5 million shares bought back.
Improved Trading Performance
Supply & Trading business showed a good performance with a 9 months result of EUR 150 million.
Negative Updates
Lower Adjusted EBITDA
Adjusted EBITDA lower due to normalized prices, weak wind conditions in Europe, and low trading result in the first half of 2025.
Weak Wind Conditions Affect Offshore Wind Earnings
Offshore Wind adjusted EBITDA was EUR 915 million, below last year due to weak wind conditions in H1 and lower hedge prices.
Challenges in U.K. Offshore Wind Auction
Disappointment with low budget for UK AR7 auction, potentially affecting future project bids.
Increased Net Debt
Net debt stood at EUR 15.7 billion with expectations of EUR 12.5 billion by year-end.
Company Guidance
In the recent RWE conference call, CFO Michael Müller provided detailed guidance and an overview of the company's financial performance for the first nine months of fiscal 2025. RWE achieved over 80% of its full-year adjusted EPS target, with a notable non-recurring book gain of EUR 225 million from a data center sale in the UK. The company reported an adjusted EBITDA of EUR 3.5 billion, with EUR 915 million from offshore wind, EUR 1.2 billion from onshore wind and solar, and EUR 1.1 billion from flexible generation. A strong trading performance in the third quarter led to a Supply & Trading result of EUR 150 million. RWE confirmed its dividend target of EUR 1.2 per share and maintained its adjusted EBITDA guidance between EUR 4.55 billion and EUR 5.15 billion. Net debt stood at EUR 15.7 billion, with expectations to reduce it to around EUR 12.5 billion by year-end, facilitated by a EUR 3.2 billion equity contribution from Apollo Global Management. The company is progressing well with 11.4 gigawatts under construction, intending to start operations of over 2 gigawatts by the end of the year.RWE AG Financial Statement Overview
Summary
RWE AG's financial performance is marked by strong net income growth and improved profit margins despite a decline in revenue. The balance sheet remains stable with a slight increase in leverage, and cash flow from operations is strong, although high capital expenditures have led to 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 | 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 | 3.57B | 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
51.04
Price Trends
48.60
Positive
45.15
Positive
40.96
Positive
Market Momentum
0.62
Positive
54.99
Neutral
22.74
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 51.04 is below the 20-day moving average (MA) of 51.08, above the 50-day MA of 48.60, and above the 200-day MA of 40.96, indicating a neutral trend. The MACD of 0.62 indicates Positive momentum. The RSI at 54.99 is Neutral, neither overbought nor oversold. The STOCH value of 22.74 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
UnderperformOutperform
Sector (66)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $37.58B | 14.49 | 6.59% | 2.45% | -8.14% | -15.92% | |
75 Outperform | $7.64B | 14.57 | 8.00% | 5.18% | 1.96% | -35.00% | |
74 Outperform | $59.36B | 28.00 | 7.10% | 2.73% | 9.07% | -28.58% | |
70 Outperform | $6.63B | 8.49 | 13.35% | 12.18% | -0.38% | -53.94% | |
69 Neutral | $16.64B | 56.53 | 6.28% | 4.72% | 8.14% | ― | |
66 Neutral | $17.65B | 18.10 | 5.60% | 3.62% | 6.62% | 11.55% | |
59 Neutral | $9.96B | 8.52 | 23.02% | 5.13% | -1.55% | 12.83% |
* Utilities Sector Average
RWEOY
RWE AG
51.04
19.17
60.15%
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CIG
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10.94
4.80
78.18%
SRE
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AES
AES
13.71
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8.38%
RWE AG Corporate Events
RWE AG Earnings Call: Strong Performance Amid Challenges
Sep 1, 2025
RWE AG’s latest earnings call paints a generally positive picture, underscored by strong financial performance, significant progress in construction projects, and favorable market developments. However, these positives are tempered by challenges such as weak wind conditions, low trading results, and uncertainties in the US market.
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.