RWE RWE.DE
RWE is a German utility that generates electricity from renewables, gas, and coal, and trades energy. RWE shows strong momentum (8.67) and moderate valuation (P/E 13.29), but its financial health is weighed down by net debt/EBITDA of 4.68 and weak quality (ROIC 1.10, negative cash conversion). Earnings growth is high (137.40%), although revenue falls 9.10%, suggesting margin improvement rather than business expansion.
Detailed metrics
Market and fundamental data as of the analysis date.
Full AI report
Generated automatically from the metrics, the macro context and the company's news.
RWE is a German utility that generates electricity from renewables, gas, and coal, and trades energy. RWE shows strong momentum (8.67) and moderate valuation (P/E 13.29), but its financial health is weighed down by net debt/EBITDA of 4.68 and weak quality (ROIC 1.10, negative cash conversion). Earnings growth is high (137.40%), although revenue falls 9.10%, suggesting margin improvement rather than business expansion.
Score by category
| Category | Score |
|---|---|
| Financial health | 6.6 |
| Quality / Moat | 2.6 |
| Valuation | 4.5 |
| Growth | 5.4 |
| Dividend | 5.7 |
| Momentum | 8.7 |
| Risk & Context | 7.8 |
OVERALL SCORE: 5.8/10
Context and risks
Moderate regulatory risk in Germany due to tariff reviews and energy policy, with potential impact on generation asset profitability. Coal exposure adds transition and stranded asset risk.
News considered in the analysis
- European Utilities to Gain From Higher Natural Gas Prices — El gas más caro eleva los precios mayoristas de la electricidad, beneficiando a la generación de RWE, aunque el efecto se modera por su cobertura de precios.
- RWEOY vs. OGE: Which Stock Is the Better Value Option? — Comparativa genérica de valor entre dos utilities sin información nueva sobre RWE.
- RWE to build 400 MW battery to ease grid congestion in Noord-Brabant — Proyecto de batería de 400 MW anunciado; refuerza la estrategia de flexibilidad y renovables, aunque su impacto en beneficios a corto plazo es limitado.
- RWE to develop 400MW battery system at Moerdijk power station — Mismo proyecto de batería en Moerdijk; confirma la inversión en almacenamiento, positivo para el perfil de crecimiento a medio plazo.
- RWE (XTRA:RWE) Signs Masdar Offshore Wind Deal, Is The 13% Undervalued View Convincing? — Acuerdo con Masdar para desarrollar eólica marina; amplía la cartera de proyectos y refuerza la transición renovable, con potencial de valor a largo plazo.
Verdict: Hold; momentum and moderate valuation provide support, but debt and weak quality limit long-term appeal.
Main risk: High leverage (Net Debt/EBITDA 4.68) and exposure to coal, which could lead to stranded assets and regulatory pressure in the context of the German energy transition.
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