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RWE AG Class A RWE

Morningstar Rating
€32.16 +0.01 (0.03%)
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Company Report

European Utilities Edged Up in Q2 on Soaring Power Prices, High Interest Rates Still a Drag

Utilities have reversed part of their first quarter’s fall, thanks to a strong rebound in power prices. Moreover, the deep undervaluation of renewables developers has driven takeovers by big investment firms at very high multiples. Neoen’s main shareholders accepted an offer at 18 times the EBITDA. The sector is still significantly lagging the market in 2024 because of high interest rates. Should they fall, it would boost the sector.

Price vs Fair Value

RWE is trading at a 367% premium.
Price
€32.15
Fair Value
€47.00
Uncertainty
Medium
1-Star Price
€61.50
5-Star Price
€56.40
Economic Moat
Cdjbn
Capital Allocation
Fddcxjfx

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.

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News

Trading Information

Previous Close Price
€32.15
Day Range
€32.0232.38
52-Week Range
€30.0842.33
Bid/Ask
€32.15 / €32.17
Market Cap
€23.92 Bil
Volume/Avg
777,905 / 2.4 Mil

Key Statistics

Price/Earnings (Normalized)
45.14
Price/Sales
0.95
Dividend Yield (Trailing)
3.07%
Dividend Yield (Forward)
3.07%
Total Yield
3.27%

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)
45.142.268.15
Price/Book Value
0.741.122.66
Price/Sales
0.950.412.93
Price/Cash Flow
11.602.8913.36
Price/Earnings
RWE
ENGI
ORSTED

Financial Strength

Metric
RWE
ENGI
ORSTED
Quick Ratio
0.560.761.02
Current Ratio
1.560.991.37
Interest Coverage
3.752.31−3.35
Quick Ratio
RWE
ENGI
ORSTED

Profitability

Metric
RWE
ENGI
ORSTED
Return on Assets (Normalized)
1.36%2.61%−2.42%
Return on Equity (Normalized)
4.64%17.34%−10.60%
Return on Invested Capital (Normalized)
2.60%8.47%−2.73%
Return on Assets
RWE
ENGI
ORSTED
See how this stock stacks up to its competitors with Morningstar Investor

Utilities - Diversified Industry Comparables

1-Day Chart
Name
Price
Morningstar Rating for Stocks
Capital Allocation
Economic Moat
Market Cap
Iberdrola SA
IBDSF
Chzx$81.6 Bil
Iberdrola SA ADR
IBDRY
SYKKjzsc$81.6 Bil
Enel SpA
ESOCF
CmtcqglpwVjwh$71.8 Bil
Enel SpA ADR
ENLAY
XkdzvvpdRrmdl$71.8 Bil
Sempra
SRE
TgdtbjjbMvstfb$47.6 Bil
Engie SA ADR
ENGIY
Cskt$36.1 Bil
Engie SA
ENGQF
Nslfn$36.1 Bil
E.ON SE ADR
EONGY
HxphxxtyhTjmtt$34.0 Bil
E.ON SE
ENAKF
Kyzk$34.0 Bil
The AES Corp
AES
PhmsqmdjYkyq$12.5 Bil

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