DB:RWE

Stock Analysis Report

Executive Summary

RWE Aktiengesellschaft supplies electricity and gas.

Snowflake

Fundamentals

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


Market Performance


7 Day Return

1.4%

RWE

-0.03%

DE Integrated Utilities

1.4%

DE Market


1 Year Return

51.1%

RWE

15.6%

DE Integrated Utilities

3.8%

DE Market

Return vs Industry: RWE exceeded the German Integrated Utilities industry which returned 15.6% over the past year.

Return vs Market: RWE exceeded the German Market which returned 3.8% over the past year.


Shareholder returns

RWEIndustryMarket
7 Day1.4%-0.03%1.4%
30 Day-2.8%-1.1%1.3%
90 Day12.7%1.4%3.1%
1 Year55.9%51.1%20.0%15.6%7.0%3.8%
3 Year117.4%95.9%49.3%33.7%18.5%8.3%
5 Year17.0%1.0%-1.2%-17.4%42.2%22.9%

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?

45.2%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: RWE (€27.36) is trading below our estimate of fair value (€49.92)

Significantly Below Fair Value: RWE is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: RWE is unprofitable, so we can't compare its PE Ratio to the 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 (2.2x) compared to the DE Integrated Utilities industry average (2.5x).


Next Steps

Future Growth

How is RWE forecast to perform in the next 1 to 3 years based on estimates from 17 analysts?

20.5%

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 year, which is considered above average market growth.

High Growth Earnings: RWE's loss is forecast to worsen by 0% next year.

Revenue vs Market: RWE's revenue (4.8% per year) is forecast to grow slower than the German market (5% per year).

High Growth Revenue: RWE's revenue (4.8% 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 (13.1%).


Next Steps

Past Performance

How has RWE performed over the past 5 years?

-1.7%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: RWE is unprofitable, and losses have increased over the past 5 years at a rate of -1.7% 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 (-2.8%).


Return on Equity

High ROE: RWE has a negative Return on Equity (0.4%), as it is currently unprofitable.


Return on Assets

ROA vs Industry: RWE is currently unprofitable, so its Return on Assets is negative.


Return on Capital Employed

ROCE Improving: RWE is currently unprofitable, so its Return on Capital Employed is negative.


Next Steps

Financial Health

How is RWE's financial position?


Financial Position Analysis

Short Term Liabilities: RWE's short term assets (€63.2B) exceeds its short term liabilities (€50.4B)

Long Term Liabilities: RWE's short term assets (63.2B) exceeds its long term liabilities (19.9B)


Debt to Equity History and Analysis

Debt Level: RWE's debt to equity ratio (36.9%) is considered satisfactory

Reducing Debt: RWE's debt to equity ratio has reduced from 161.2% to 36.9% over the past 5 years.


Balance Sheet

Inventory Level: RWE has a low level of unsold assets or inventory.

Debt Coverage by Assets: RWE's debt is covered by short term assets (assets are 14.113610x debt).


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: Whilst unprofitable RWE has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: RWE is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 53.6% per year.


Next Steps

Dividend

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

2.56%

Current Dividend Yield


Dividend Yield vs Market

company2.6%marketbottom25%1.5%markettop25%3.8%industryaverage3.6%forecastin3Years3.8%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: RWE's dividend (2.56%) is higher than the bottom 25% of dividend payers in the German market (1.47%).

High Dividend: RWE's dividend (2.56%) is low compared to the top 25% of dividend payers in the German market (3.83%).

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 (50.9% payout ratio).


Next Steps

Management

What is the CEO of RWE's salary, the management and board of directors tenure and is there insider trading?

3.3yrs

Average management tenure


CEO

Rolf Schmitz (62yo)

3yrs

Tenure

€4,066,000

Compensation

Dr. Rolf Martin Schmitz has been Supervisory Board Member at E.ON SE since 2019. Dr. Schmitz has been Chairman of the Executive Board and Chief Executive Officer of RWE AG since October 15, 2016 and its La ...


CEO Compensation Analysis

Compensation vs. Market: Rolf's total compensation ($USD4.53M) is about average for companies of similar size in the German market ($USD4.64M).

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


Management Age and Tenure

3.3yrs

Average Tenure

53yo

Average Age

Experienced Management: RWE's management team is considered experienced (3.3 years average tenure).


Board Age and Tenure

3.5yrs

Average Tenure

70yo

Average Age

Experienced Board: RWE's board of directors are considered experienced (3.5 years average tenure).


Insider Trading

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


Ownership Breakdown


Management Team

  • Rolf Schmitz (62yo)

    Chairman of Executive Board

    • Tenure: 3yrs
    • Compensation: €4.07m
  • Stephan Muschick

    Head of Corporate Citizenship

    • Tenure: 0yrs
  • Jens Hüffer

    Head of Internal Audit

    • Tenure: 3.5yrs
  • Peter Heinacher

    Head of Corporate Affairs

    • Tenure: 11.7yrs
  • Claudia Mayfeld

    Head of Group Legal & Compliance

    • Tenure: 3.5yrs
  • Joachim Haaf

    Head of Group Insurance

    • Tenure: 0yrs
  • Markus Krebber (46yo)

    CFO & Member of the Executive Board

    • Tenure: 3yrs
    • Compensation: €3.12m
  • Stephanie Schunck

    Head of Group Communication and Public Affairs

    • Tenure: 0yrs
  • Gunhild Grieve

    Head of Investor Relations

    • Tenure: 0yrs
  • Martin Bröker (53yo)

    Member of Supervisory Board and Head of HR & Business Functions IT

    • Tenure: 1.1yrs
    • Compensation: €33.00k

Board Members

  • Jürgen Strube (79yo)

    Member of Economic Advisory Board

    • Tenure: 0yrs
  • Dietmar Kuhnt (82yo)

    Member of the Economic Advisory Board

    • Tenure: 13.5yrs
    • Compensation: €49.00k
  • Michael Frenzel (72yo)

    Member of Economic Advisory Board

    • Tenure: 0yrs
  • Erhard Schipporeit (70yo)

    Member of Supervisory Board

    • Tenure: 3.5yrs
    • Compensation: €480.00k
  • Werner Brandt (65yo)

    Chairman of Supervisory Board

    • Tenure: 3.5yrs
    • Compensation: €300.00k
  • Heinrich Karl Pierer Esch (78yo)

    Member of Economic Advisory Board

    • Tenure: 0yrs
  • Frank Bsirske (67yo)

    Deputy Chairman of Supervisory Board

    • Tenure: 0yrs
    • Compensation: €400.00k
  • Klaus Schneider

    Member of Economic Advisory Board

    • Tenure: 0yrs
  • Dagmar Mühlenfeld (68yo)

    Member of Supervisory Board

    • Tenure: 14.8yrs
    • Compensation: €120.00k
  • Martin Bröker (53yo)

    Member of Supervisory Board and Head of HR & Business Functions IT

    • Tenure: 1.1yrs
    • Compensation: €33.00k

Company Information

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


Key Information

  • Name: RWE Aktiengesellschaft
  • Ticker: RWE
  • Exchange: DB
  • Founded: 1898
  • Industry: Multi-Utilities
  • Sector: Utilities
  • Market Cap: €15.741b
  • Shares outstanding: 575.74m
  • Website: https://www.rwe.com

Number of Employees


Location

  • RWE Aktiengesellschaft
  • Huyssenallee 2
  • Essen
  • North Rhine-Westphalia
  • 45128
  • Germany

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
RWEADB (Deutsche Boerse AG)ADR EACH REPR 1 ORD NPVDEEURJan 1975
RWEO.YOTCPK (Pink Sheets LLC)ADR EACH REPR 1 ORD NPVUSUSDJan 1975
RWEAXTRA (XETRA Trading Platform)ADR EACH REPR 1 ORD NPVDEEURJan 1975
0HA0LSE (London Stock Exchange)YesCommon SharesGBEURJan 1992
RWEXTRA (XETRA Trading Platform)YesCommon SharesDEEURJan 1992
RWEBIT (Borsa Italiana)YesCommon SharesITEURJan 1992
RWNF.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDJan 1992
RWEDB (Deutsche Boerse AG)YesCommon SharesDEEURJan 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 supplies electricity and gas. It operates through four segments: Lignite & Nuclear; European Power; Supply & Trading; and Innogy. The company operates power stations based on lignite ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/20 20:47
End of Day Share Price2019/10/18 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.