RWE AG Class A RWE

Morningstar Rating
€32.33 +0.02 (0.06%)
View Full Chart

Company Report

European Utilities Rallied in Q3 on Falling Interest Rates; We See Further Upside Potential

While wholesale power prices stabilized, government bonds’ yields fell on weak economic indicators and lower inflation in the US and Europe. Second-quarter results were boosted by very favorable hydro conditions that led to some guidance upgrades. This goldilocks scenario bolstered a rally in European utilities, enabling them to massively outperform the market and recover much of their earlier underperformance.

Price vs Fair Value

RWE is trading at a 124% premium.
Price
€32.33
Fair Value
€93.00
Uncertainty
Medium
1-Star Price
€13.90
5-Star Price
€56.10
Economic Moat
Fzqdr
Capital Allocation
Zcdymnhwl

Bulls Say, Bears Say

Bulls

Having shifted its targets from net income to EPS, the group could finally concede to do share buy backs.

Bears

Electricity demand destruction from the accelerated deindustrialization of Europe could herald a long period of depressed power prices and clean spark spreads, similar to 2009-2016.

News

Trading Information

Previous Close Price
€32.31
Day Range
€32.0132.45
52-Week Range
€30.0842.33
Bid/Ask
€0.00 / €0.00
Market Cap
€24.05 Bil
Volume/Avg
1.6 Mil / 2.0 Mil

Key Statistics

Price/Earnings (Normalized)
62.18
Price/Sales
0.97
Dividend Yield (Trailing)
3.09%
Dividend Yield (Forward)
3.09%
Total Yield
3.25%

Company Profile

Since the deal with E.On, RWE is refocused on power generation, mostly in Europe. It owns 38 gigawatts of power generation capacity: 28% from lignite and hard coal plants, 37% from gas plants, 40% from renewables including pumped storage and batteries. Besides Germany, RWE’s power plants are chiefly located in the United Kingdom, the Netherlands, Turkey, and the United States for many onshore wind farms.
Sector
Utilities
Industry
Utilities - Diversified
Stock Style Box
Large Value
Total Number of Employees
20,542

Competitors

Valuation

Metric
RWE
ENGI
ORSTED
Price/Earnings (Normalized)
62.182.598.10
Price/Book Value
0.751.153.18
Price/Sales
0.970.543.52
Price/Cash Flow
8.513.7611.63
Price/Earnings
RWE
ENGI
ORSTED

Financial Strength

Metric
RWE
ENGI
ORSTED
Quick Ratio
0.760.481.08
Current Ratio
1.740.991.48
Interest Coverage
4.422.98−3.35
Quick Ratio
RWE
ENGI
ORSTED

Profitability

Metric
RWE
ENGI
ORSTED
Return on Assets (Normalized)
3.01%2.67%−1.56%
Return on Equity (Normalized)
9.82%17.02%−7.23%
Return on Invested Capital (Normalized)
5.37%8.43%−1.32%
Return on Assets
RWE
ENGI
ORSTED

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