RWE AG (RWE) AI Stock Analysis

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DE:RWE Dividends

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RWE AG

(XETRA:RWE)

68Neutral

RWE AG's stock performance is characterized by a stable financial base and efficient operations, despite challenges in revenue growth and free cash flow. The technical indicators suggest a positive trend, and the valuation metrics highlight potential undervaluation, making the stock appealing. However, the lack of earnings call and corporate events data limits additional insights.

Positive Factors

Renewable Energy Expansion

RWE was able to double its US renewable assets to more than 7GW, overtaking European peers such as Enel and Orsted in terms of renewable exposure in the US.

Share Buyback Programme

The new share buyback programme can help to support share price.

Strategic Shifts

RWE is positioned as a key beneficiary to US's and Europe's ongoing policy support for renewable energy, which is key to offsetting RWE's phase out of its last nuclear plant and the progressive phase-out of its coal fleet.

Negative Factors

Power Prices

Soft power prices remain headwinds, impacting profitability and leading to a cautious investment recommendation.

Tax Risks

The potential for a windfall tax poses a risk to RWE's earnings, with higher effective tax rates anticipated from the financial year 2023 onwards.

RWE AG (RWE) vs. S&P 500 (SPY)

Market Cap

€25.17B

Dividend Yield2.96%

Average Volume (3M)3.08M

Price to Earnings (P/E)4.9

Beta (1Y)0.44

Revenue Growth-15.16%

EPS Growth254.42%

CountryDE

Employees18,310

SectorEnergy

Sector Strength51

IndustryRegulated Utilities

Share Statistics

EPS (TTM)6.91

Shares Outstanding743,841,200

10 Day Avg. Volume1,924,108

30 Day Avg. Volume3,082,906

Financial Highlights & Ratios

PEG Ratio0.02

Price to Book (P/B)N/A

Price to Sales (P/S)0.74

Price to Cash Flow (P/CF)N/A

P/FCF Ratio0.00

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

€42.10

Price Target Upside24.41% Upside

Rating ConsensusStrong Buy

Number of Analyst Covering12

RWE AG Business Overview & Revenue Model

Company DescriptionRWE AG is a leading European energy company headquartered in Essen, Germany. The company operates across various sectors of the energy market, primarily focusing on electricity generation from renewable and conventional sources, trading, and energy management. RWE is one of the largest producers of electricity in Europe, emphasizing sustainability with significant investments in wind, solar, and battery storage technologies. The company is committed to driving the energy transition towards a low-carbon future through innovation and strategic partnerships.

How the Company Makes MoneyRWE AG generates revenue through several key streams. A significant portion of its income comes from the generation and sale of electricity, produced using both renewable sources like wind and solar, as well as conventional sources such as natural gas and lignite. The company also engages in energy trading, which involves buying and selling electricity, gas, and other commodities in the energy markets to optimize its portfolio and manage risks. Additionally, RWE provides energy management services, offering solutions for grid stability and energy storage. The company's strategic partnerships and investments in innovative technologies further enhance its revenue potential by expanding its capabilities in emerging energy sectors.

RWE AG Financial Statement Overview

Summary

Income Statement

Balance Sheet

Cash Flow

TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Breakdown
Income Statement		Total Revenue
23.57B	28.57B	38.37B	24.53B	13.69B	13.13B
	Gross Profit
6.09B	7.92B	6.69B	6.34B	3.47B	3.64B
	EBIT
5.26B	-367.00M	3.02B	2.87B	-1.58B	992.00M
	EBITDA
9.60B	8.05B	3.83B	4.43B	4.63B	1.59B
	Net Income Common Stockholders
2.82B	1.45B	2.72B	721.00M	1.05B	-660.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
10.51B	14.64B	20.46B	13.87B	8.99B	6.45B
	Total Assets
103.26B	106.49B	138.55B	142.31B	61.67B	64.19B
	Total Debt
17.29B	13.67B	15.62B	12.11B	3.35B	3.57B
	Net Debt
13.40B	6.75B	8.63B	6.29B	-1.43B	376.00M
	Total Liabilities
69.18B	73.35B	109.27B	125.31B	43.70B	46.74B
	Stockholders Equity
32.15B	31.57B	27.58B	15.25B	17.18B	16.95B
Cash Flow		Free Cash Flow
-11.41B	-5.74B	-2.08B	3.58B	817.00M	-3.29B
	Operating Cash Flow
2.85B	4.24B	2.41B	7.27B	4.17B	-1.52B
	Investing Cash Flow
-7.11B	-2.81B	-9.89B	-7.74B	-4.35B	-729.00M
	Financing Cash Flow
950.00M	-1.56B	8.62B	1.46B	1.77B	224.00M

RWE AG Technical Analysis

Technical Analysis Sentiment

Positive

Last Price33.84

Price Trends

50DMA

31.71

Positive

100DMA

30.54

Positive

200DMA

31.19

Positive

Market Momentum

MACD

0.58

Negative

RSI

59.32

Neutral

STOCH

77.03

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DE:RWE, the sentiment is Positive. The current price of 33.84 is above the 20-day moving average (MA) of 33.11, above the 50-day MA of 31.71, and above the 200-day MA of 31.19, indicating a bullish trend. The MACD of 0.58 indicates Negative momentum. The RSI at 59.32 is Neutral, neither overbought nor oversold. The STOCH value of 77.03 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DE:RWE.

RWE AG Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
EOAN	70 Outperform	€39.24B	8.74	28.36%	3.50%	-14.48%	775.28%
RWE	68 Neutral	€25.17B	4.93	16.28%	2.96%	-15.16%	254.42%
Sector *	55 Neutral	$7.10B	3.56	-6.61%	5.99%	-0.03%	-51.71%
PNE3	55 Neutral	€1.15B	―	-6.55%	0.27%	73.12%	-40.46%
S92	52 Neutral	€422.30M	5.94	-19.00%	3.29%	-19.65%	-152.17%

* Energy Sector Average

Performance Comparison

DE:RWE

RWE AG

33.84

1.84

5.74%

DE:EOAN

E.ON SE

15.03

3.05

25.51%

DE:S92

SMA Solar Technology

15.25

-35.22

-69.78%

DE:PNE3

PNE WIND

15.12

1.61

11.95%

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

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.