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RWE AG
(OTC:RWEOY)
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Rating:63Neutral
Price Target:
$73.00
â–²(7.59% Upside)
Action:Reiterated
Date:08/17/26
The score is held back primarily by persistent deeply negative free cash flow and uneven top-line/margin trends despite solid reported profitability. Offsetting this, the latest earnings call was notably constructive with guidance upgrades and a clearer, more visible growth plan, while technicals are supportive (price above key moving averages, positive MACD) and valuation appears reasonable (P/E ~13.7, ~2.1% yield).
Positive Factors
Expansion into regulated grid infrastructure
The majority stake in Amprion adds regulated grid infrastructure alongside generation and trading. This broadens RWE’s earnings mix, improves visibility through regulated returns, and creates a durable platform for benefiting from long-term European grid investment.
Negative Factors
Persistent negative free cash flow
Sustained negative free cash flow shows that operating inflows have not covered investment and other cash demands. This can increase reliance on financing, limit flexibility during weaker markets and make the growth program more dependent on disciplined capital execution.
Read all positive and negative factors
Positive Factors
Negative Factors
Expansion into regulated grid infrastructure
The majority stake in Amprion adds regulated grid infrastructure alongside generation and trading. This broadens RWE’s earnings mix, improves visibility through regulated returns, and creates a durable platform for benefiting from long-term European grid investment.
Read all positive factors
RWE AG (RWEOY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$54.04B
Dividend Yield2.04%
Average Volume (3M)13.24K
Price to Earnings (P/E)13.8
Beta (1Y)0.03
Revenue Growth-28.85%
EPS Growth31.50%
CountryUS
Employees20,120
SectorUtilities
Sector Strength65
IndustryDiversified Utilities
Share Statistics
EPS (TTM)4.31
Shares Outstanding779,985,170
10 Day Avg. Volume16,638
30 Day Avg. Volume13,241
Financial Highlights & Ratios
PEG Ratio-0.27
Price to Book (P/B)0.96
Price to Sales (P/S)1.95
P/FCF Ratio-6.79
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$83.80Price Target Upside23.51% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)3.44
Revenue Forecast (FY)$21.08B
RWE AG Business Overview & Revenue Model
Company Description
Headquartered in Essen, Germany, and established in 1898, RWE Aktiengesellschaft is a prominent energy provider primarily operating across Europe and the United States. This firm is engaged in both the generation and supply of electrical power, le...
How the Company Makes Money
RWE makes money primarily by selling electricity generated from its power plants and by monetizing capabilities in energy trading, optimization, and related services.
1) Sale of electricity from generation assets
- Renewables: RWE earns revenue b...
RWE AG Earnings Call Summary
Earnings Call Date:Aug 13, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 11, 2026
Earnings Call Sentiment Positive
The call was broadly positive: RWE delivered markedly stronger H1 financials, upgraded FY26/FY27 guidance, strengthened its strategic position by increasing the Amprion stake and announced a large, disciplined EUR 42 billion investment program with explicit return targets. Operational execution (EBITDA growth, secured capacity awards, PPAs, and construction progress) supports visible earnings growth. Notable cautions include negative H1 operating cash flow driven by seasonal working capital, heavy near‑term cash investments (including Amprion funding), some earnings uplift from one‑offs (EUR 332m compensation), and regulatory/market uncertainties (TSO regulation, German offshore/renewables design) that could affect returns beyond the planning horizon. On balance, the positives—guidance upgrades, portfolio diversification into regulated grid, secured secured earnings, and clear capital allocation discipline—outweigh the near‑term cash and one‑off related drawbacks.Positive Updates
Strong EPS Growth and Upgraded Guidance
Adjusted EPS for H1 2026 was reported at ~EUR 1.8 (management also cited EUR 1.77), up more than 60% year‑over‑year. Management raised FY26 EPS guidance from EUR 2.55 to EUR 2.95 and set FY27 guidance at EUR 3.15 (reflecting the 55% Amprion stake). Adjusted net income guidance for 2026 is EUR 1.95–2.45 billion and the dividend target is EUR 1.32 per share (in line with a 10% annual dividend growth objective).
Negative Updates
Negative Operating Cash Flow and Working Capital Pressure
Adjusted operating cash flow for H1 2026 was negative at EUR -759 million. Changes in operating working capital amounted to -EUR 2.7 billion, driven by seasonal CO2 certificate purchases, higher accounts receivable and lower accounts payable. Changes in provisions/noncash items were -EUR 1.1 billion.
Read all updates
Q2-2026 Updates
Positive
Negative
Strong EPS Growth and Upgraded Guidance
Adjusted EPS for H1 2026 was reported at ~EUR 1.8 (management also cited EUR 1.77), up more than 60% year‑over‑year. Management raised FY26 EPS guidance from EUR 2.55 to EUR 2.95 and set FY27 guidance at EUR 3.15 (reflecting the 55% Amprion stake). Adjusted net income guidance for 2026 is EUR 1.95–2.45 billion and the dividend target is EUR 1.32 per share (in line with a 10% annual dividend growth objective).
Read all positive updates
Company Guidance
RWE upgraded its near‑ and mid‑term guidance and set a clear multi‑year plan: 2026 adjusted EPS was raised from €2.55 to €2.95 (midpoint €2.95) with 2027 EPS guided at €3.15 (reflecting the 55% Amprion stake), 2026 adjusted EBITDA now €5.75–€6.35bn and adjusted net income €1.95–€2.45bn, dividend target €1.32 for FY‑26 (and dividends to grow +10% p.a.), and management targets adjusted EPS to grow at a 10% CAGR from 2025–2031 with 75% of 2031 adjusted EPS secured; the group plans €42bn net investment from 2026–2031 (IRR >8.5% on new generation/storage, target ROE >8% on grid), will keep leverage at the lower end of a 3.0–3.5x range, and reiterated operational baselines from H1: adjusted EBITDA €3.0bn, adjusted income €1.3bn, adjusted EPS €1.77, H1 cash investments €6.3bn (incl. €1.7bn for Amprion with a further €1.9bn to post in Q3), net debt €15bn (end‑June and expected year‑end), trading midpoint already reached within a €100–€500m range, Amprion closed at EV/RAB 1.07x (55% stake), FID IRR since 2025 averaged 9.9%, >750MW commissioned in H1, 10.3GW under construction, >15GW capacity awards secured, ~1.1GW new PPAs (incl. a 500MW recontracting), USD900m LNG investment to contribute earnings from 2031, a USD300m turbine reservation, target >3GW gas new build by 2035 and grid connections secured for up to 10GW.RWE AG Financial Statement Overview
Summary
Income Statement
63
Positive
Balance Sheet
72
Positive
Cash Flow
38
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 15.21B | 16.93B | 24.22B | 34.52B | 38.37B | 24.53B |
| Gross Profit | 2.61B | 1.34B | 8.65B | 14.04B | 6.69B | 6.34B |
| EBITDA | 5.83B | 2.81B | 10.68B | 9.44B | 2.91B | 3.57B |
| Net Income | 3.25B | 3.01B | 5.13B | 1.45B | 2.72B | 721.00M |
Balance Sheet | ||||||
| Total Assets | 115.68B | 107.43B | 98.44B | 106.51B | 138.55B | 142.31B |
| Cash, Cash Equivalents and Short-Term Investments | 12.82B | 13.34B | 11.94B | 14.64B | 20.46B | 13.87B |
| Total Debt | 23.97B | 17.00B | 15.79B | 13.67B | 15.62B | 12.11B |
| Total Liabilities | 68.09B | 65.89B | 64.82B | 73.35B | 109.27B | 125.31B |
| Stockholders Equity | 39.60B | 34.37B | 31.55B | 31.57B | 27.58B | 15.25B |
Cash Flow | ||||||
| Free Cash Flow | -4.16B | -4.86B | -2.76B | -5.74B | -2.08B | 3.58B |
| Operating Cash Flow | 6.02B | 4.76B | 6.62B | 4.24B | 2.41B | 7.27B |
| Investing Cash Flow | -12.88B | -8.73B | -9.71B | -2.81B | -9.89B | -7.74B |
| Financing Cash Flow | 9.61B | 6.83B | 1.12B | -1.56B | 8.62B | 1.46B |
RWE AG Technical Analysis
Positive
67.85
Price Trends
65.85
Positive
66.18
Positive
62.36
Positive
Market Momentum
0.55
Positive
55.77
Neutral
38.21
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 67.85 is above the 20-day moving average (MA) of 67.35, above the 50-day MA of 65.85, and above the 200-day MA of 62.36, indicating a bullish trend. The MACD of 0.55 indicates Positive momentum. The RSI at 55.77 is Neutral, neither overbought nor oversold. The STOCH value of 38.21 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 |
|---|---|---|---|---|---|---|---|
76 Outperform | $174.03B | 18.75 | 16.82% | 2.91% | 11.83% | 55.48% | |
68 Neutral | $93.74B | 18.20 | 9.88% | 3.53% | 6.33% | 8.98% | |
66 Neutral | $17.65B | 18.10 | 5.60% | 3.62% | 6.62% | 11.55% | |
64 Neutral | $45.05B | 16.04 | 9.61% | 3.78% | 6.56% | 3.72% | |
63 Neutral | $54.04B | 13.82 | 9.03% | 2.04% | -28.85% | 31.50% | |
59 Neutral | $54.95B | 24.64 | 7.14% | 3.06% | 0.88% | -16.61% | |
54 Neutral | $57.91B | 22.91 | 8.89% | 4.03% | 21.98% | -0.39% |
* Utilities Sector Average
RWEOY
RWE AG
68.92
27.62
66.86%
D
Dominion Energy
66.22
9.78
17.33%
DUK
Duke Energy
121.24
4.94
4.25%
EXC
Exelon
43.95
2.39
5.74%
NEE
NextEra Energy
83.83
15.72
23.08%
SRE
Sempra Energy
85.47
7.41
9.49%
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.