RWE AG
RWE AG Fundamental Analysis
RWE AG (RWEOY) shows weak financial fundamentals with a PE ratio of 16.54, profit margin of 10.52%, and ROE of 6.86%. The company generates $21.6B in annual revenue with weak year-over-year growth of -15.20%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 10.1/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze RWEOY's fundamental strength across five key dimensions:
Efficiency Score
WeakRWEOY struggles to generate sufficient returns from assets.
Valuation Score
ExcellentRWEOY trades at attractive valuation levels.
Growth Score
WeakRWEOY faces weak or negative growth trends.
Financial Health Score
ExcellentRWEOY maintains a strong and stable balance sheet.
Profitability Score
WeakRWEOY struggles to sustain strong margins.
Key Financial Metrics
Is RWEOY Expensive or Cheap?
P/E Ratio
RWEOY trades at 16.54 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, RWEOY's PEG of -1.75 indicates potential undervaluation.
Price to Book
The market values RWE AG at 1.10 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 2.69 times EBITDA. This is generally considered low.
How Well Does RWEOY Make Money?
Net Profit Margin
For every $100 in sales, RWE AG keeps $10.52 as profit after all expenses.
Operating Margin
Core operations generate -0.41 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $6.86 in profit for every $100 of shareholder equity.
ROA
RWE AG generates $2.36 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
RWE AG generates strong operating cash flow of $5.91B, reflecting robust business health.
Free Cash Flow
RWE AG generates weak or negative free cash flow of $-4.88B, restricting financial flexibility.
FCF Per Share
Each share generates $-6.72 in free cash annually.
FCF Yield
RWEOY converts -12.91% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
16.54
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-1.75
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.10
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.75
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.59
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.30
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.07
vs 25 benchmark
ROA
Return on assets percentage
0.02
vs 25 benchmark
ROCE
Return on capital employed
-0.00
vs 25 benchmark
How RWEOY Stacks Against Its Sector Peers
| Metric | RWEOY Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 16.54 | 19.20 | Better (Cheaper) |
| ROE | 6.86% | 1033.00% | Weak |
| Net Margin | 10.52% | 9191.00% | Weak |
| Debt/Equity | 0.59 | 6.63 | Strong (Low Leverage) |
| Current Ratio | 1.30 | 1.68 | Neutral |
| ROA | 2.36% | -237.00% (disorted) | Weak |
RWEOY outperforms its industry in 2 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews RWE AG's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
52.59%
Industry Style: Defensive, Dividend, Income
High GrowthEPS CAGR
743.25%
Industry Style: Defensive, Dividend, Income
High GrowthFCF CAGR
459.37%
Industry Style: Defensive, Dividend, Income
High Growth