NOT FOR DISTRIBUTION
Header cover image

Market Cap

€21.2b

Last Updated

2021/05/13 19:23 UTC

Data Sources

Company Financials +

Executive Summary

RWE Aktiengesellschaft generates and supplies electricity from renewable and conventional sources primarily in Europe and the United States. More Details


Snowflake Analysis

Flawless balance sheet and fair value.


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 is not significantly more volatile than the rest of German stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: RWE's weekly volatility (4%) has been stable over the past year.


Market Performance


7 Day Return

0.4%

RWE

0.7%

DE Integrated Utilities

-1.2%

DE Market


1 Year Return

17.2%

RWE

17.1%

DE Integrated Utilities

38.9%

DE Market

Return vs Industry: RWE exceeded the German Integrated Utilities industry which returned 13.8% over the past year.

Return vs Market: RWE underperformed the German Market which returned 36.5% over the past year.


Shareholder returns

RWEIndustryMarket
7 Day0.4%0.7%-1.2%
30 Day-8.2%-0.6%-2.5%
90 Day-7.5%4.8%3.9%
1 Year23.4%17.2%22.3%17.1%44.1%38.9%
3 Year69.4%55.8%42.4%30.5%18.2%7.9%
5 Year222.8%176.1%105.0%70.3%54.5%33.0%

Long-Term 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?

20.88x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: RWE (€31.41) is trading above our estimate of fair value (€25.49)

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


Price To Earnings Ratio

PE vs Industry: RWE is good value based on its PE Ratio (20.9x) compared to the German Integrated Utilities industry average (25.3x).

PE vs Market: RWE is good value based on its PE Ratio (20.9x) compared to the German market (26.4x).


Price to Earnings Growth Ratio

PEG Ratio: RWE's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: RWE is good value based on its PB Ratio (1.1x) compared to the DE Integrated Utilities industry average (2.5x).


Future Growth

How is RWE forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?

-1.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: RWE's earnings are forecast to decline over the next 3 years (-1.8% per year).

Earnings vs Market: RWE's earnings are forecast to decline over the next 3 years (-1.8% per year).

High Growth Earnings: RWE's earnings are forecast to decline over the next 3 years.

Revenue vs Market: RWE's revenue is expected to decline over the next 3 years (-0.2% per year).

High Growth Revenue: RWE's revenue is forecast to decline over the next 3 years (-0.2% 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 (5.3%).


Past Performance

How has RWE performed over the past 5 years?

46.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: RWE has a large one-off loss of €1.6B impacting its March 31 2021 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 46.2% 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 (-3%).


Return on Equity

High ROE: RWE's Return on Equity (5.1%) is considered low.


Financial Health

How is RWE's financial position?


Financial Position Analysis

Short Term Liabilities: RWE's short term assets (€28.6B) exceed its short term liabilities (€18.5B).

Long Term Liabilities: RWE's short term assets (€28.6B) exceed its long term liabilities (€26.2B).


Debt to Equity History and Analysis

Debt Level: RWE's debt to equity ratio (21.4%) is considered satisfactory.

Reducing Debt: RWE's debt to equity ratio has reduced from 248.4% to 21.4% over the past 5 years.

Debt Coverage: RWE's debt is well covered by operating cash flow (161.4%).

Interest Coverage: RWE's interest payments on its debt are well covered by EBIT (9.9x coverage).


Balance Sheet


Dividend

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

2.71%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: RWE's dividend (2.71%) is higher than the bottom 25% of dividend payers in the German market (1.08%).

High Dividend: RWE's dividend (2.71%) is low compared to the top 25% of dividend payers in the German market (3.23%).


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 reasonable payout ratio (56.5%), RWE's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: RWE's dividends in 3 years are forecast to be covered by earnings (67.1% payout ratio).


Next Steps

Management

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

5.1yrs

Average management tenure


CEO

Markus Krebber (47 yo)

no data

Tenure

€3,000,000

Compensation

Dr. Markus Krebber serves as Chief Executive Officer at RWE Aktiengesellschaft since May 1, 2021 and served as its Chief Financial Officer since October 15, 2016 until May 1, 2021. Dr. Krebber has been a M...


CEO Compensation Analysis

Compensation vs Market: Markus's total compensation ($USD3.62M) is below average for companies of similar size in the German market ($USD5.39M).

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


Leadership Team

Experienced Management: RWE's management team is seasoned and experienced (5.1 years average tenure).


Board Members

Experienced Board: RWE's board of directors are considered experienced (5.1 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 10%.


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: €21.240b
  • Shares outstanding: 676.22m
  • Website: https://www.group.rwe/en

Number of Employees


Location

  • RWE Aktiengesellschaft
  • RWE Platz 1
  • Essen
  • North Rhine-Westphalia
  • 45141
  • Germany

Listings


Biography

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/S...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/05/13 19:23
End of Day Share Price2021/05/13 00:00
Earnings2021/03/31
Annual Earnings2020/12/31


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.