RWE AG (RWEOY) AI Stock Analysis

• Market Cap: $34.97B
• Dividend Yield: 2.66%
• Average Volume (3M): 3.11K
• Price to Earnings (P/E): 12.3
• Beta (1Y): 0.08
• Revenue Growth: -7.47%
• EPS Growth: -24.61%
• Country: US
• Employees: 20,985
• Sector: Utilities
• Sector Strength: 65
• Industry: Diversified Utilities
• EPS (TTM): 1.06
• Shares Outstanding: 743,841,200
• 10 Day Avg. Volume: 3,473
• 30 Day Avg. Volume: 3,106
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.35
• Enterprise Value/Revenue: 2.05
• Enterprise Value/Gross Profit: 6.43
• Enterprise Value/Ebitda: 5.67
• 1Y Price Target: $51.03
• Price Target Upside: 8.64% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 75 Outperform
• Price Target: $53.00 ▲(12.84% Upside)

RWE AG's strong technical momentum and positive earnings call outlook are the most significant factors driving the score. The company shows robust financial performance with strong net income growth, though revenue challenges and high capital expenditures pose risks. Valuation metrics are favorable, supporting the overall positive assessment.

RWE AG Business Overview & Revenue Model

Company Description

RWE 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 Money

RWE 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 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.

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	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

• Technical Analysis Sentiment: Positive
• Last Price: 46.97
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: 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 46.97 is above the 20-day moving average (MA) of 46.62, above the 50-day MA of 43.54, and above the 200-day MA of 38.03, indicating a bullish trend. The MACD of 1.13 indicates Positive momentum. The RSI at 60.96 is Neutral, neither overbought nor oversold. The STOCH value of 12.93 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RWEOY	75 Outperform	$34.97B	12.27	7.69%	2.66%	-7.47%	-24.61%
CIG	75 Outperform	$6.24B	4.98	22.94%	13.15%	-3.27%	-3.44%
SRE	75 Outperform	$60.07B	22.23	8.87%	2.78%	0.46%	-11.77%
ELP	74 Outperform	$7.28B	13.98	9.81%	5.56%	-5.28%	14.50%
BIP	69 Neutral	$22.35B	1,770.62	1.06%	4.93%	8.86%	―
Sector *	66 Neutral	$17.65B	18.10	5.60%	3.62%	6.62%	11.55%
AES	65 Neutral	$10.20B	10.11	21.17%	4.93%	-3.19%	30.48%

RWE AG Corporate Events

RWE AG Earnings Call: Strong Performance Amid Challenges

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.