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.


Snowflake Analysis

Excellent balance sheet with moderate growth potential.


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

3.8%

RWE

2.0%

DE Integrated Utilities

3.1%

DE Market


1 Year Return

35.1%

RWE

20.4%

DE Integrated Utilities

14.0%

DE Market

Return vs Industry: RWE exceeded the German Integrated Utilities industry which returned 20.4% over the past year.

Return vs Market: RWE exceeded the German Market which returned 14% over the past year.


Shareholder returns

RWEIndustryMarket
7 Day3.8%2.0%3.1%
30 Day6.9%2.9%2.3%
90 Day25.8%12.0%18.4%
1 Year38.6%35.1%23.1%20.4%16.5%14.0%
3 Year90.9%67.6%39.0%25.1%7.4%-1.2%
5 Year170.5%137.5%60.2%33.4%23.8%7.2%

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?

1.27x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: RWE (€34.54) is trading above our estimate of fair value (€13.26)

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


Price To Earnings Ratio

PE vs Industry: RWE is unprofitable, so we can't compare its PE Ratio to the XE Integrated Utilities industry average.

PE vs Market: RWE is unprofitable, so we can't compare its PE Ratio to the German market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate RWE's PEG Ratio to determine if it is good value.


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 (2.9x).


Next Steps

Future Growth

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

4.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: RWE is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (0.2%).

Earnings vs Market: RWE is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: RWE's is expected to become profitable in the next 3 years.

Revenue vs Market: RWE's revenue (3.3% per year) is forecast to grow slower than the German market (5.8% per year).

High Growth Revenue: RWE's revenue (3.3% 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 (7.5%).


Next Steps

Past Performance

How has RWE performed over the past 5 years?

0.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: RWE is currently unprofitable.

Growing Profit Margin: RWE is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: RWE is unprofitable, but has reduced losses over the past 5 years at a rate of 0.8% per year.

Accelerating Growth: Unable to compare RWE's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: RWE is unprofitable, making it difficult to compare its past year earnings growth to the Integrated Utilities industry (5.1%).


Return on Equity

High ROE: RWE has a negative Return on Equity (-1.81%), as it is currently unprofitable.


Next Steps

Financial Health

How is RWE's financial position?


Financial Position Analysis

Short Term Liabilities: RWE's short term assets (€31.9B) exceed its short term liabilities (€24.0B).

Long Term Liabilities: RWE's short term assets (€31.9B) exceed its long term liabilities (€27.3B).


Debt to Equity History and Analysis

Debt Level: RWE's debt to equity ratio (32.6%) is considered satisfactory.

Reducing Debt: RWE's debt to equity ratio has reduced from 130.9% to 32.6% over the past 5 years.


Balance Sheet


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: RWE has sufficient cash runway for more than a year based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if RWE has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


Next Steps

Dividend

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

2.32%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: RWE's dividend (2.32%) is higher than the bottom 25% of dividend payers in the German market (1.23%).

High Dividend: RWE's dividend (2.32%) is low compared to the top 25% of dividend payers in the German market (3.78%).


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: RWE is paying a dividend but the company is unprofitable.


Future Payout to Shareholders

Future Dividend Coverage: RWE's dividends in 3 years are forecast to be covered by earnings (51% payout ratio).


Next Steps

Management

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

4.1yrs

Average management tenure


CEO

Rolf Schmitz (63 yo)

3.83yrs

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 ($USD5.64M) is about average for companies of similar size in the German market ($USD5.08M).

Compensation vs Earnings: Rolf's compensation has increased whilst the company is unprofitable.


Leadership Team

NamePositionTenureCompensationOwnership
Rolf Schmitz
Chairman of Executive Board3.83yrs€4.77mno data
Markus Krebber
CFO & Member of the Executive Board3.83yrs€3.36mno data
Martin Bröker
Employee Representative of the Supervisory Board and Head of HR & Business Functions IT1.92yrs€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 & Compliance4.33yrsno 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 Audit4.33yrsno datano data
Peter Heinacher
Head of Corporate Affairs12.5yrsno datano data
Joachim Lochte
Head of Corporate Responsibility & Environmental Protectionno datano datano data
Berend Holst
Head of Group Taxno datano datano data

4.1yrs

Average Tenure

54yo

Average Age

Experienced Management: RWE's management team is considered experienced (4.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Martin Bröker
Employee Representative of the Supervisory Board and Head of HR & Business Functions IT1.92yrs€100.00kno data
Jürgen Strube
Member of Economic Advisory Boardno datano datano data
Dietmar Kühn
Member of the Economic Advisory Board14.33yrs€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 Board4.33yrs€395.00kno data
Klaus-Peter Müller
Member of Economic Advisory Board15.83yrsno datano data
Werner Brandt
Chairman of Supervisory Board4.33yrs€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 Board15.58yrs€120.00kno data

9.3yrs

Average Tenure

71yo

Average Age

Experienced Board: RWE's board of directors are considered experienced (9.3 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 6.8%.


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: €21.233b
  • Shares outstanding: 614.74m
  • 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
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 Analysis2020/08/14 10:20
End of Day Share Price2020/08/13 00:00
Earnings2020/03/31
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.