| RWE AG (DE0007037129) | |||
36,05 EURStand (close): 01.07.25 |
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| Datum / Uhrzeit | Titel | Bewertung |
| 25.06.25 20:00:00 | RWE commissions first solar project in Kentucky |  |
| Ashwood Solar's 86-megawatt (MW) project in Lyon County, Kentucky will provide electricity to more than 15,000 households Kentucky Municipal Energy Agency (KYMEA) committed to a 20-year power purchase agreement (PPA) for all energy produced RWE's addition to its 11 gigawatts (GW) of U.S. energy assets ensures local energy security and economic growth AUSTIN, Texas, June 25, 2025 /PRNewswire/ -- RWE, the third largest renewable energy company in the United States, has commissioned its first energy project in Kentucky, Ashwood Solar, located in Lyon County. Originally developed by a joint venture between Open Road Renewables and Eolian, L.P. (Eolian), the 86 MW facility will generate enough electricity to power the equivalent of more than 15,000 Kentucky Municipal Energy Agency (KYMEA) member customers, strengthening energy independence and fostering economic growth.RWE Logo (PRNewsfoto/RWE) Andrew Flanagan, Chief Executive Officer, RWE Clean Energy: "RWE is proud to add to the growing energy mix in the commonwealth with our first operational solar project in the state. By partnering with KYMEA, Ashwood Solar is helping the Bluegrass State ensure energy security while also providing local jobs and boosting the Kentucky economy." Today, a ribbon-cutting ceremony onsite marks this significant achievement, joined by leaders from RWE, KYMEA's executive team, KYMEA Board of Directors, key government stakeholders and local community organizations. With more than 11 GW of energy assets across the United States, RWE continues its robust growth with the addition of Ashwood Solar to its regionally diverse generating portfolio. As demand for energy grows nationwide, RWE's strategically positioned assets ensure availability of homegrown energy solutions to meet these evolving needs. The 20-year power purchase agreement with KYMEA underscores both companies' commitment to regional energy supply. Doug Buresh, President & Chief Executive Officer, KYMEA: "The commissioning of Ashwood Solar marks a proud milestone for KYMEA and our member communities. This project reflects our long-term commitment to delivering clean, reliable, and cost-effective energy to the people of Kentucky. Our 20-year partnership with RWE ensures that our members benefit from homegrown solar power while supporting local economic development and environmental stewardship. We are excited to see this vision come to life in Lyon County and look forward to the positive impact it will have for decades to come." Generating Impact In addition to offering reliable energy supply, RWE remains dedicated to generating impactful investments across the United States, including the creation of 250 local jobs during the construction of Ashwood Solar. Further, Ashwood Solar will feature local pollinator plants onsite which promote bee pollination, enhancing biodiversity in the region. Additionally, the project will generate $6 million in state property tax revenue over its operating lifetime. Story Continues For more information, visit americas.rwe.com. For further inquiries: Patricia Kakridas Sr. Manager, Media & Public Relations Corporate Communications RWE Clean Energy M + 619-753-5206 E patricia.kakridas@rwe.com RWE in the US Through its subsidiary RWE Clean Energy, RWE is the third largest renewable energy company in the United States, with a presence in most U.S. states from coast to coast. RWE's team of about 2,000 employees in the U.S. stands ready to help meet the nation's growing energy needs. With its homegrown and fastest-to-market product, RWE supports the goal of American Energy dominance and independence. To that end, RWE Clean Energy is committed to increasing its already strong asset base of over 10 gigawatts of operating wind, solar and battery projects, focusing on providing high-quality jobs. RWE invests in local and rural communities while strengthening domestic manufacturing supporting the renaissance of American industry. This is complemented by RWE's energy trading business. RWE is also a major offtaker of American liquified natural gas (LNG). As an energy company with a successful history spanning more than 125 years, RWE has an extensive knowledge of the energy markets and an excellent expertise in all major power generation and storage technologies, from nuclear, coal and gas to hydro, batteries, wind and solar. About Eolian Eolian operates a growing portfolio of battery energy storage projects and develops and invests in clean energy and co-located datacenter projects across the US. For over 20 years, Eolian's founding management has worked together to build the assets at the core of the company, creating unique and proprietary structures that have directly funded the development of nearly 30 GW of operating or under-construction energy storage, solar, and wind generating capacity across the country. Eolian is owned by its employees and funds that are managed by Global Infrastructure Partners (GIP), a BlackRock company and leading global infrastructure investor. For more information, follow Eolian on LinkedIn or visit www.eolianenergy.com. About Open Road Renewables Open Road Renewables boasts one of the most experienced teams of developers in the country, directly responsible for the development of more than 2 GW of renewable energy projects currently under construction or operating and an additional 5 GW under development from Ohio to Texas. Members of our team have been involved in some of the most challenging and exciting renewable energy projects in the United States, including the largest solar project of its kind in the state of Maryland, the first utility-scale solar project to go through permitting in Ohio, dozens of solar projects from California to Maryland, and enough wind and solar generation capacity to power hundreds of thousands of homes.Cision View original content to download multimedia:https://www.prnewswire.com/news-releases/rwe-commissions-first-solar-project-in-kentucky-302490455.html SOURCE RWE |
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| 17.04.25 11:59:25 | RWE (ETR:RWE) Is Looking To Continue Growing Its Returns On Capital |  |
| If you're not sure where to start when looking for the next multi-bagger, there are a few key trends you should keep an eye out for. Firstly, we'd want to identify a growing return on capital employed (ROCE) and then alongside that, an ever-increasing base of capital employed. This shows us that it's a compounding machine, able to continually reinvest its earnings back into the business and generate higher returns. So on that note, RWE (ETR:RWE) looks quite promising in regards to its trends of return on capital. AI is about to change healthcare. These 20 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10bn in marketcap - there is still time to get in early. What Is Return On Capital Employed (ROCE)? For those that aren't sure what ROCE is, it measures the amount of pre-tax profits a company can generate from the capital employed in its business. Analysts use this formula to calculate it for RWE: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) 0.096 = €6.8b ÷ (€98b - €28b) (Based on the trailing twelve months to December 2024). Thus, RWE has an ROCE of 9.6%. Even though it's in line with the industry average of 9.6%, it's still a low return by itself. View our latest analysis for RWE XTRA:RWE Return on Capital Employed April 17th 2025 Above you can see how the current ROCE for RWE compares to its prior returns on capital, but there's only so much you can tell from the past. If you'd like, you can check out the forecasts from the analysts covering RWE for free. So How Is RWE's ROCE Trending? We're delighted to see that RWE is reaping rewards from its investments and is now generating some pre-tax profits. Shareholders would no doubt be pleased with this because the business was loss-making five years ago but is is now generating 9.6% on its capital. In addition to that, RWE is employing 60% more capital than previously which is expected of a company that's trying to break into profitability. This can indicate that there's plenty of opportunities to invest capital internally and at ever higher rates, both common traits of a multi-bagger. The Bottom Line To the delight of most shareholders, RWE has now broken into profitability. And with a respectable 59% awarded to those who held the stock over the last five years, you could argue that these developments are starting to get the attention they deserve. In light of that, we think it's worth looking further into this stock because if RWE can keep these trends up, it could have a bright future ahead. Story Continues RWE does have some risks, we noticed 3 warning signs (and 2 which are potentially serious) we think you should know about. While RWE may not currently earn the highest returns, we've compiled a list of companies that currently earn more than 25% return on equity. Check out this freelist here. Have feedback on this article? Concerned about the content?Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. View Comments |
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| 28.03.25 05:49:19 | RWE (ETR:RWE) Strong Profits May Be Masking Some Underlying Issues | |
| RWE Aktiengesellschaft's (ETR:RWE) healthy profit numbers didn't contain any surprises for investors. We believe that shareholders have noticed some concerning factors beyond the statutory profit numbers.XTRA:RWE Earnings and Revenue History March 28th 2025 A Closer Look At RWE's Earnings As finance nerds would already know, the accrual ratio from cashflow is a key measure for assessing how well a company's free cash flow (FCF) matches its profit. To get the accrual ratio we first subtract FCF from profit for a period, and then divide that number by the average operating assets for the period. The ratio shows us how much a company's profit exceeds its FCF. Therefore, it's actually considered a good thing when a company has a negative accrual ratio, but a bad thing if its accrual ratio is positive. While having an accrual ratio above zero is of little concern, we do think it's worth noting when a company has a relatively high accrual ratio. That's because some academic studies have suggested that high accruals ratios tend to lead to lower profit or less profit growth. For the year to December 2024, RWE had an accrual ratio of 0.22. Therefore, we know that it's free cashflow was significantly lower than its statutory profit, which is hardly a good thing. In the last twelve months it actually had negative free cash flow, with an outflow of €2.8b despite its profit of €5.14b, mentioned above. Coming off the back of negative free cash flow last year, we imagine some shareholders might wonder if its cash burn of €2.8b, this year, indicates high risk. Having said that, there is more to the story. The accrual ratio is reflecting the impact of unusual items on statutory profit, at least in part. View our latest analysis for RWE That might leave you wondering what analysts are forecasting in terms of future profitability. Luckily, you can click here to see an interactive graph depicting future profitability, based on their estimates. How Do Unusual Items Influence Profit? RWE's profit suffered from unusual items, which reduced profit by €941m in the last twelve months. If this was a non-cash charge, it would have made the accrual ratio better, if cashflow had stayed strong, so it's not great to see in combination with an uninspiring accrual ratio. While deductions due to unusual items are disappointing in the first instance, there is a silver lining. When we analysed the vast majority of listed companies worldwide, we found that significant unusual items are often not repeated. And, after all, that's exactly what the accounting terminology implies. Assuming those unusual expenses don't come up again, we'd therefore expect RWE to produce a higher profit next year, all else being equal. Story Continues Our Take On RWE's Profit Performance In conclusion, RWE's accrual ratio suggests that its statutory earnings are not backed by cash flow, even though unusual items weighed on profit. Given the contrasting considerations, we don't have a strong view as to whether RWE's profits are an apt reflection of its underlying potential for profit. Keep in mind, when it comes to analysing a stock it's worth noting the risks involved. Every company has risks, and we've spotted 3 warning signs for RWE (of which 2 shouldn't be ignored!) you should know about. Our examination of RWE has focussed on certain factors that can make its earnings look better than they are. But there are plenty of other ways to inform your opinion of a company. For example, many people consider a high return on equity as an indication of favorable business economics, while others like to 'follow the money' and search out stocks that insiders are buying. While it might take a little research on your behalf, you may find this free collection of companies boasting high return on equity, or this list of stocks with significant insider holdings to be useful. Have feedback on this article? Concerned about the content?Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. View Comments |
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| 24.03.25 08:25:46 | Elliott Urges RWE to Boost Buybacks After Building 5% Stake | |
| (Bloomberg) -- Elliott Investment Management LP called on RWE AG to ramp up buybacks after amassing a stake of close to 5% in the German utility. Most Read from Bloomberg They Built a Secret Apartment in a Mall. Now the Mall Is Dying. Chicago Transit Faces ‘Doomsday Scenario,’ Regional Agency Says LA Faces $1 Billion Budget Hole, Warns of Thousands of Layoffs New York Subway Ditches MetroCard After 32 Years for Tap-And-Go Despite Cost-Cutting Moves, Trump Plans to Remake DC in His Style “We share the market’s disappointment with the lack of clarity regarding the company’s commitment to enhance shareholder returns,” Elliott said in a statement. “There is a compelling opportunity to significantly increase and accelerate the ongoing share buyback program.” RWE has been under pressure from investors due to its falling share price and its focus on a huge investment program. When presenting earnings last week, the firm signaled it was keeping the option open for further share purchases, after already announcing a €1.5 billion ($1.6 billion) buyback last November. An increasingly uncertain environment for renewables investments has forced RWE to put some of its previous spending plans on hold. Last week, it shaved €10 billion from its planned investment on green technologies by the end of the decade — particularly citing risks in the US following President Donald Trump’s election. Bloomberg reported in November that Elliott had built up a sizable stake in RWE and was pushing management to consider a buyback. RWE’s capital expenditure cuts and offshore wind disposals could allow for further share purchases totaling €2.5 billion from 2025 to 2027, according to Ahmed Farman, an analyst at Jefferies International Ltd. “In our high scenario, we estimate buybacks could reach €4 billion,” he wrote in a report last week. Elliott, one of the world’s most aggressive activist investors, has been snapping up stakes in several large energy companies to push for changes. It recently acquired an interest in BP Plc and revealed a stake of more than $2.5 billion in Phillips 66. On Monday, Elliott welcomed RWE’s decision to reduce its 2025-2030 spending program, while also implementing stricter investment criteria and accelerating a strategy to divest stakes in projects. RWE’s shares jumped as much as 3% following the statement. (Update with analyst quote in sixth paragraph and share moves in last paragraph.) Most Read from Bloomberg Businessweek A New ‘China Shock’ Is Destroying Jobs Around the World How TD Became America’s Most Convenient Bank for Money Launderers Tesla’s Gamble on MAGA Customers Won’t Work One Man’s Crypto Windfall Is Funding a $1 Billion Space Station Dream The Real Reason Trump Is Pushing ‘Buy American’ ©2025 Bloomberg L.P. View Comments |
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| 21.03.25 14:00:00 | Best Momentum Stock to Buy for March 21st | |
| Here are three stocks with buy rank and strong momentum characteristics for investors to consider today, March 21st: RWE AG RWEOY: This company which is active in the generation and transmission as well as the sale and trading of electricity, gas and water business in Continental Europe, has a Zacks Rank #1(Strong Buy), and witnessed the Zacks Consensus Estimate for its current year earnings increasing 2.2% over the last 60 days. RWE AG Price and ConsensusRWE AG Price and Consensus RWE AG price-consensus-chart | RWE AG Quote RWE AG’s shares gained 17.8% over the last three month compared with the S&P 500’s loss of 5.2%. The company possesses a Momentum Score of A. RWE AG PriceRWE AG Price RWE AG price | RWE AG Quote AerSale ASLE: This company which provides an integrated, diversified aviation aftermarket products and services for aircraft owners and operators to realize savings in the operation, maintenance and monetization of their aircraft, engines and components, has a Zacks Rank #1, and witnessed the Zacks Consensus Estimate for its current year earnings increasing 62.5% over the last 60 days. AerSale Corporation Price and ConsensusAerSale Corporation Price and Consensus AerSale Corporation price-consensus-chart | AerSale Corporation Quote AerSale’s shares gained 36.9% over the last three month compared with the S&P 500’s loss of 5.2%. The company possesses a Momentum Score of A. AerSale Corporation PriceAerSale Corporation Price AerSale Corporation price | AerSale Corporation Quote Concentra Group Holdings Parent, Inc. CON: This company which is a provider of occupational health services principally in the United States, has a Zacks Rank #1, and witnessed the Zacks Consensus Estimate for its current year earnings increasing 3.9% over the last 60 days. Concentra Group Holdings Parent, Inc. Price and ConsensusConcentra Group Holdings Parent, Inc. Price and Consensus Concentra Group Holdings Parent, Inc. price-consensus-chart | Concentra Group Holdings Parent, Inc. Quote Concentra’s shares gained 5.2% over the last three month compared with the S&P 500’s loss of 5.2%. The company possesses a Momentum Score of B. Concentra Group Holdings Parent, Inc. PriceConcentra Group Holdings Parent, Inc. Price Concentra Group Holdings Parent, Inc. price | Concentra Group Holdings Parent, Inc. Quote See the full list of top ranked stocks here Learn more about the Momentum score and how it is calculated here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report RWE AG (RWEOY) : Free Stock Analysis Report AerSale Corporation (ASLE) : Free Stock Analysis Report Concentra Group Holdings Parent, Inc. (CON) : Free Stock Analysis Report Story Continues This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research View Comments |
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| 21.03.25 07:01:31 | RWE AG (RWEOY) (Q4 2024) Earnings Call Highlights: Strong Financial Performance and Strategic ... | |
| Adjusted EBITDA: EUR5.7 billion for 2024, exceeding the midpoint of guidance. Adjusted Earnings Per Share (EPS): EUR3.1, surpassing the guidance midpoint. Share Buyback Program: EUR1.5 billion until Q2 2026. Planned Investments (2025-2030): Reduced by 25% or EUR10 billion, now planning EUR35 billion net. CO2 Emission Reduction: 13% decrease in 2024 compared to the prior year. Dividend Increase: Targeting an increase by EUR0.10 to EUR1.2 per share for 2025. Offshore Wind EBITDA (2025): Expected range of EUR1.3 billion to EUR1.7 billion. Onshore Wind and Solar EBITDA (2025): Expected range of EUR1.65 billion to EUR2.15 billion. Flexible Generation EBITDA (2025): Expected range of EUR1 billion to EUR1.4 billion. Adjusted Operating Cash Flow (2024): EUR5.9 billion. Leverage Factor (End of 2024): 2.0, targeting closer to 3.0 times in 2025. Warning! GuruFocus has detected 6 Warning Sign with RWEOY. Release Date: March 20, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Positive Points RWE AG (RWEOY) delivered strong financial and operational performance in 2024, with adjusted EBITDA of EUR5.7 billion, exceeding the guidance midpoint. The company introduced a EUR1.5 billion share buyback program, demonstrating its commitment to returning capital to shareholders. RWE AG (RWEOY) achieved a 13% reduction in CO2 emissions in 2024, aligning with its decarbonization goals. The company has a robust pipeline with 12.5 gigawatts of capacity under construction, ensuring future growth. RWE AG (RWEOY) confirmed its long-term target of EUR4 adjusted earnings per share by 2030, indicating confidence in sustained growth. Negative Points RWE AG (RWEOY) faces higher uncertainty in the investment environment, leading to a 25% reduction in its 2030 investment program. The company is cautious about additional investment commitments due to geopolitical tensions and energy policy uncertainties, particularly in the US. RWE AG (RWEOY) has increased its internal return requirements, which may limit future investment opportunities. The company expects 2025 to be an earnings trough as earnings in Flexible Generation and Trading normalize. RWE AG (RWEOY) has reduced planned net investments by EUR10 billion for the period 2025 to 2030, potentially impacting long-term growth. Q & A Highlights Q: Could you provide details on the potential RWE installations for the 20 gigawatts of CCGT the incoming German government is discussing? What sort of CapEx are we talking about, and how quickly could you begin construction? A: Markus Krebber, CEO: We are well-positioned to secure a significant portion of this capacity, given our current 20% market share in Germany. We have pre-contracts with suppliers and reserved turbine slots. However, we will only invest if we achieve very attractive returns, as competition is limited. Story Continues Q: On the 2030 EPS target of EUR4 per share, how confident are you in achieving this despite the EUR8.5 billion reduction in incremental CapEx? A: Michael Mueller, CFO: We are confident due to our higher return expectations and the flexibility to balance between investments and share buybacks. This approach allows us to manage depreciation and financing costs effectively, ensuring we meet our EPS targets. Q: Regarding the EUR9 billion CapEx reduction, can you split this between gross CapEx reduction and farm downs/disposals? A: Markus Krebber, CEO: The reduction includes no expected US offshore investments and significantly lower hydrogen investments. We also anticipate less net offshore CapEx due to announced farm downs and a reluctance to take additional merchant risk in the current environment. Q: What is your view on the potential for locational pricing in the UK, and what could be the implications for your assets? A: Markus Krebber, CEO: We believe moving to zonal pricing now would create significant uncertainties and risk investments. Our CCGTs are located in the south, likely benefiting from higher prices, but we think the timing for such a change is not ideal. Q: Can you provide an update on the Amprion sales process and how the potential proceeds fit into your current plans? A: Markus Krebber, CEO: We are exploring options for Amprion, including partial sell-downs. Proceeds from any sale are not included in our current net CapEx plans, which would increase our flexibility for capital allocation decisions. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. View Comments |
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| 21.03.25 04:43:20 | RWE Full Year 2024 Earnings: EPS Beats Expectations, Revenues Lag | |
| RWE (ETR:RWE) Full Year 2024 Results Key Financial Results Revenue: €29.8b (up 4.2% from FY 2023). Net income: €5.14b (up 254% from FY 2023). Profit margin: 17% (up from 5.1% in FY 2023). The increase in margin was primarily driven by lower expenses. EPS: €6.91 (up from €1.95 in FY 2023). Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit.XTRA:RWE Earnings and Revenue Growth March 21st 2025 All figures shown in the chart above are for the trailing 12 month (TTM) period RWE EPS Beats Expectations, Revenues Fall Short Revenue missed analyst estimates by 7.7%. Earnings per share (EPS) exceeded analyst estimates by 98%. Looking ahead, revenue is forecast to stay flat during the next 3 years compared to a 6.4% decline forecast for the Renewable Energy industry in Germany. Performance of the German Renewable Energy industry. The company's share price is broadly unchanged from a week ago. Risk Analysis You still need to take note of risks, for example - RWE has 3 warning signs (and 2 which are concerning) we think you should know about. Have feedback on this article? Concerned about the content?Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. View Comments |
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| 20.03.25 13:40:10 | Is Centrica (CPYYY) Stock Outpacing Its Utilities Peers This Year? | |
| The Utilities group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Has Centrica PLC (CPYYY) been one of those stocks this year? A quick glance at the company's year-to-date performance in comparison to the rest of the Utilities sector should help us answer this question. Centrica PLC is one of 104 individual stocks in the Utilities sector. Collectively, these companies sit at #6 in the Zacks Sector Rank. The Zacks Sector Rank includes 16 different groups and is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. The Zacks Rank is a successful stock-picking model that emphasizes earnings estimates and estimate revisions. The system highlights a number of different stocks that could be poised to outperform the broader market over the next one to three months. Centrica PLC is currently sporting a Zacks Rank of #2 (Buy). Within the past quarter, the Zacks Consensus Estimate for CPYYY's full-year earnings has moved 1.4% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger. Based on the latest available data, CPYYY has gained about 13.2% so far this year. Meanwhile, the Utilities sector has returned an average of 4.7% on a year-to-date basis. This shows that Centrica PLC is outperforming its peers so far this year. Another Utilities stock, which has outperformed the sector so far this year, is RWE AG (RWEOY). The stock has returned 22.8% year-to-date. Over the past three months, RWE AG's consensus EPS estimate for the current year has increased 1.5%. The stock currently has a Zacks Rank #2 (Buy). To break things down more, Centrica PLC belongs to the Utility - Gas Distribution industry, a group that includes 13 individual companies and currently sits at #132 in the Zacks Industry Rank. On average, stocks in this group have lost 6% this year, meaning that CPYYY is performing better in terms of year-to-date returns. RWE AG, however, belongs to the Utility - Electric Power industry. Currently, this 60-stock industry is ranked #75. The industry has moved +5.4% so far this year. Centrica PLC and RWE AG could continue their solid performance, so investors interested in Utilities stocks should continue to pay close attention to these stocks. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Centrica PLC (CPYYY) : Free Stock Analysis Report Story Continues RWE AG (RWEOY) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research View Comments |
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| 12.03.25 04:37:28 | Is There Now An Opportunity In RWE Aktiengesellschaft (ETR:RWE)? | |
| Today we're going to take a look at the well-established RWE Aktiengesellschaft (ETR:RWE). The company's stock saw a decent share price growth of 10% on the XTRA over the last few months. Shareholders may appreciate the recent price jump, but the company still has a way to go before reaching its yearly highs again. With many analysts covering the large-cap stock, we may expect any price-sensitive announcements have already been factored into the stock’s share price. However, what if the stock is still a bargain? Let’s take a look at RWE’s outlook and value based on the most recent financial data to see if the opportunity still exists. Check out our latest analysis for RWE Is RWE Still Cheap? According to our valuation model, RWE seems to be fairly priced at around 3.85% above our intrinsic value, which means if you buy RWE today, you’d be paying a relatively fair price for it. And if you believe that the stock is really worth €29.93, then there isn’t really any room for the share price grow beyond what it’s currently trading. Furthermore, RWE’s low beta implies that the stock is less volatile than the wider market. Can we expect growth from RWE?XTRA:RWE Earnings and Revenue Growth March 12th 2025 Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. Although value investors would argue that it’s the intrinsic value relative to the price that matter the most, a more compelling investment thesis would be high growth potential at a cheap price. Though in the case of RWE, it is expected to deliver a highly negative earnings growth in the next few years, which doesn’t help build up its investment thesis. It appears that risk of future uncertainty is high, at least in the near term. What This Means For You Are you a shareholder? Currently, RWE appears to be trading around its fair value, but given the uncertainty from negative returns in the future, this could be the right time to de-risk your portfolio. Is your current exposure to the stock optimal for your total portfolio? And is the opportunity cost of holding a negative-outlook stock too high? Before you make a decision on the stock, take a look at whether its fundamentals have changed. Are you a potential investor? If you’ve been keeping tabs on RWE for a while, now may not be the most advantageous time to buy, given it is trading around its fair value. The stock appears to be trading at fair value, which means there’s less benefit from mispricing. Furthermore, the negative growth outlook increases the risk of holding the stock. However, there are also other important factors we haven’t considered today, which can help gel your views on RWE should the price fluctuate below its true value. Story Continues Keep in mind, when it comes to analysing a stock it's worth noting the risks involved. For instance, we've identified 3 warning signs for RWE (1 makes us a bit uncomfortable) you should be familiar with. If you are no longer interested in RWE, you can use our free platform to see our list of over 50 other stocks with a high growth potential. Have feedback on this article? Concerned about the content?Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. View Comments |
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| 23.02.25 08:41:34 | RWE (ETR:RWE) investors are sitting on a loss of 22% if they invested three years ago | |
| For many investors, the main point of stock picking is to generate higher returns than the overall market. But in any portfolio, there are likely to be some stocks that fall short of that benchmark. Unfortunately, that's been the case for longer term RWE Aktiengesellschaft (ETR:RWE) shareholders, since the share price is down 27% in the last three years, falling well short of the market return of around 13%. With that in mind, it's worth seeing if the company's underlying fundamentals have been the driver of long term performance, or if there are some discrepancies. View our latest analysis for RWE In his essay The Superinvestors of Graham-and-Doddsville Warren Buffett described how share prices do not always rationally reflect the value of a business. One flawed but reasonable way to assess how sentiment around a company has changed is to compare the earnings per share (EPS) with the share price. During the unfortunate three years of share price decline, RWE actually saw its earnings per share (EPS) improve by 4.5% per year. Given the share price reaction, one might suspect that EPS is not a good guide to the business performance during the period (perhaps due to a one-off loss or gain). Alternatively, growth expectations may have been unreasonable in the past. It's pretty reasonable to suspect the market was previously to bullish on the stock, and has since moderated expectations. Looking to other metrics might better explain the share price change. The company has kept revenue pretty healthy over the last three years, so we doubt that explains the falling share price. There doesn't seem to be any clear correlation between the fundamental business metrics and the share price. That could mean that the stock was previously overrated, or it could spell opportunity now. You can see below how earnings and revenue have changed over time (discover the exact values by clicking on the image).XTRA:RWE Earnings and Revenue Growth February 23rd 2025 RWE is well known by investors, and plenty of clever analysts have tried to predict the future profit levels. Given we have quite a good number of analyst forecasts, it might be well worth checking out this freechart depicting consensus estimates. What About Dividends? As well as measuring the share price return, investors should also consider the total shareholder return (TSR). Whereas the share price return only reflects the change in the share price, the TSR includes the value of dividends (assuming they were reinvested) and the benefit of any discounted capital raising or spin-off. So for companies that pay a generous dividend, the TSR is often a lot higher than the share price return. As it happens, RWE's TSR for the last 3 years was -22%, which exceeds the share price return mentioned earlier. This is largely a result of its dividend payments! Story Continues A Different Perspective While the broader market gained around 18% in the last year, RWE shareholders lost 3.0% (even including dividends). However, keep in mind that even the best stocks will sometimes underperform the market over a twelve month period. Longer term investors wouldn't be so upset, since they would have made 1.2%, each year, over five years. It could be that the recent sell-off is an opportunity, so it may be worth checking the fundamental data for signs of a long term growth trend. While it is well worth considering the different impacts that market conditions can have on the share price, there are other factors that are even more important. For instance, we've identified 3 warning signs for RWE (1 is significant) that you should be aware of. We will like RWE better if we see some big insider buys. While we wait, check out this freelist of undervalued stocks (mostly small caps) with considerable, recent, insider buying. Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on German exchanges. Have feedback on this article? Concerned about the content?Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. View Comments |
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