XTRA:RWE

Stock Analysis Report

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Executive Summary

RWE Aktiengesellschaft produces and supplies power through renewable and conventional sources primarily in Europe and the United States. More Details


Snowflake Analysis

Adequate balance sheet with questionable track record.


Similar Companies

Share Price & News

How has RWE's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: RWE has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

1.2%

RWE

0.3%

DE Integrated Utilities

-0.7%

DE Market


1 Year Return

24.4%

RWE

20.9%

DE Integrated Utilities

3.9%

DE Market

Return vs Industry: RWE exceeded the German Integrated Utilities industry which returned 20.9% over the past year.

Return vs Market: RWE exceeded the German Market which returned 3.9% over the past year.


Shareholder returns

RWEIndustryMarket
7 Day1.2%0.3%-0.7%
30 Day10.6%4.1%-0.5%
90 Day2.0%-1.9%-0.04%
1 Year27.6%24.4%25.2%20.9%7.1%3.9%
3 Year80.6%58.6%39.7%24.0%3.2%-5.8%
5 Year199.7%163.1%76.6%47.3%24.2%6.4%

Price Volatility Vs. Market

How volatile is RWE's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is RWE undervalued compared to its fair value and its price relative to the market?

169.98x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: RWE (€34.01) is trading above our estimate of fair value (€16.75)

Significantly Below Fair Value: RWE is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: RWE is poor value based on its PE Ratio (170x) compared to the DE Integrated Utilities industry average (51x).

PE vs Market: RWE is poor value based on its PE Ratio (170x) compared to the German market (22.7x).


Price to Earnings Growth Ratio

PEG Ratio: RWE is poor value based on its PEG Ratio (47.1x)


Price to Book Ratio

PB vs Industry: RWE is good value based on its PB Ratio (1.3x) compared to the DE Integrated Utilities industry average (2.2x).


Next Steps

Future Growth

How is RWE forecast to perform in the next 1 to 3 years based on estimates from 16 analysts?

3.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: RWE's forecast earnings growth (3.6% per year) is above the savings rate (0.2%).

Earnings vs Market: RWE's earnings (3.6% per year) are forecast to grow slower than the German market (26.9% per year).

High Growth Earnings: RWE's earnings are forecast to grow, but not significantly.

Revenue vs Market: RWE's revenue (1.6% per year) is forecast to grow slower than the German market (6.1% per year).

High Growth Revenue: RWE's revenue (1.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: RWE's Return on Equity is forecast to be low in 3 years time (5.8%).


Next Steps

Past Performance

How has RWE performed over the past 5 years?

12.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: RWE has a large one-off gain of €1.2B impacting its June 30 2020 financial results.

Growing Profit Margin: RWE became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: RWE has become profitable over the past 5 years, growing earnings by 12.7% per year.

Accelerating Growth: RWE has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: RWE has become profitable in the last year, making it difficult to compare its past year earnings growth to the Integrated Utilities industry (4.8%).


Return on Equity

High ROE: RWE's Return on Equity (1.5%) is considered low.


Next Steps

Financial Health

How is RWE's financial position?


Financial Position Analysis

Short Term Liabilities: RWE's short term assets (€26.5B) exceed its short term liabilities (€18.5B).

Long Term Liabilities: RWE's short term assets (€26.5B) do not cover its long term liabilities (€27.2B).


Debt to Equity History and Analysis

Debt Level: RWE's debt to equity ratio (31.8%) is considered satisfactory.

Reducing Debt: RWE's debt to equity ratio has reduced from 134.2% to 31.8% over the past 5 years.

Debt Coverage: RWE's debt is well covered by operating cash flow (26%).

Interest Coverage: Insufficient data to determine if RWE's interest payments on its debt are well covered by EBIT.


Balance Sheet


Next Steps

Dividend

What is RWE current dividend yield, its reliability and sustainability?

2.35%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: RWE's dividend (2.35%) is higher than the bottom 25% of dividend payers in the German market (1.18%).

High Dividend: RWE's dividend (2.35%) is low compared to the top 25% of dividend payers in the German market (3.71%).


Stability and Growth of Payments

Stable Dividend: RWE's dividend payments have been volatile in the past 10 years.

Growing Dividend: RWE's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (399.8%), RWE's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: RWE's dividends in 3 years are forecast to be covered by earnings (56.1% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

4.3yrs

Average management tenure


CEO

Rolf Schmitz (63 yo)

4yrs

Tenure

€4,769,000

Compensation

Dr. Rolf Martin Schmitz, Ph.D, has been Supervisory Board Member at E.ON SE since October 1, 2019. Dr. Schmitz has been Chairman of the Executive Board and Chief Executive Officer of RWE AG since October 1 ...


CEO Compensation Analysis

Compensation vs Market: Rolf's total compensation ($USD5.59M) is about average for companies of similar size in the German market ($USD5.21M).

Compensation vs Earnings: Rolf's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Rolf Schmitz
Chairman of Executive Board4yrs€4.77mno data
Markus Krebber
CFO & Member of the Executive Board4yrs€3.36mno data
Martin Bröker
Employee Representative of the Supervisory Board and Head of HR & Business Functions IT2.08yrs€100.00kno data
Joachim Haaf
Head of Group Insuranceno datano datano data
Thomas Denny
Head of Investor Relationsno datano datano data
Claudia Mayfeld
Head of Group Legal & Compliance4.5yrsno datano data
Stephanie Schunck
Head of Group Communication and Public Affairsno datano datano data
Stephan Muschick
Head of Corporate Citizenshipno datano datano data
Jens Hüffer
Head of Internal Audit4.5yrsno datano data
Peter Heinacher
Head of Corporate Affairs12.67yrsno datano data
Joachim Lochte
Head of Corporate Responsibility & Environmental Protectionno datano datano data
Berend Holst
Head of Group Taxno datano datano data

4.3yrs

Average Tenure

54yo

Average Age

Experienced Management: RWE's management team is considered experienced (4.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Martin Bröker
Employee Representative of the Supervisory Board and Head of HR & Business Functions IT2.08yrs€100.00kno data
Jürgen Strube
Member of Economic Advisory Boardno datano datano data
Dietmar Kühn
Member of the Economic Advisory Board14.5yrs€49.00kno data
H.C. Middelhoff
Member of Economic Advisory Boardno datano datano data
Michael Frenzel
Member of Economic Advisory Boardno datano datano data
Erhard Schipporeit
Member of Supervisory Board4.5yrs€395.00kno data
Klaus-Peter Müller
Member of Economic Advisory Board16yrsno datano data
Werner Brandt
Chairman of Supervisory Board4.5yrs€300.00kno data
Heinrich Karl Pierer Esch
Member of Economic Advisory Boardno datano datano data
Frank Bsirske
Deputy Chairman of Supervisory Boardno data€343.00kno data
Klaus Schneider
Member of Economic Advisory Boardno datano datano data
Dagmar Mühlenfeld
Member of Supervisory Board15.75yrs€120.00kno data

9.5yrs

Average Tenure

71yo

Average Age

Experienced Board: RWE's board of directors are considered experienced (9.5 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 17.5%.


Top Shareholders

Company Information

RWE Aktiengesellschaft's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: RWE Aktiengesellschaft
  • Ticker: RWE
  • Exchange: XTRA
  • Founded: 1898
  • Industry: Multi-Utilities
  • Sector: Utilities
  • Market Cap: €22.998b
  • Shares outstanding: 676.22m
  • Website: https://www.group.rwe/en

Number of Employees


Location

  • RWE Aktiengesellschaft
  • Altenessener Strasse 35
  • Essen
  • North Rhine-Westphalia
  • 45141
  • Germany

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
RWEO.YOTCPK (Pink Sheets LLC)SPONSORED ADRUSUSDJan 1975
RWEADB (Deutsche Boerse AG)SPONSORED ADRDEEURJan 1975
RWEAXTRA (XETRA Trading Platform)SPONSORED ADRDEEURJan 1975
RWNF.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDJan 1992
RWEDB (Deutsche Boerse AG)YesCommon SharesDEEURJan 1992
0HA0LSE (London Stock Exchange)YesCommon SharesGBEURJan 1992
RWEXTRA (XETRA Trading Platform)YesCommon SharesDEEURJan 1992
RWEBIT (Borsa Italiana)YesCommon SharesITEURJan 1992
RWEDBATS-CHIXE (BATS 'Chi-X Europe')YesCommon SharesGBEURJan 1992
RWEWBAG (Wiener Boerse AG)YesCommon SharesATEURJan 1992
RWESWX (SIX Swiss Exchange)YesCommon SharesCHCHFJan 1992
RWESEP (The Stock Exchange Prague Co. Ltd.)YesCommon SharesCZCZKJan 1992

Biography

RWE Aktiengesellschaft produces and supplies power through renewable and conventional sources primarily in Europe and the United States. It operates through five segments: Lignite & Nuclear; European Power ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/18 21:25
End of Day Share Price2020/10/16 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.