Rankings Utilities & power RWE
RWE
80
15070100
A view of the same findings, not a new score. How it works
In the 70+ zone: a score above 70 with more than 20% upside to the median analyst target.
Biggest deductions
- Multiples vs own history−6
- Returns−4
- FCF yield−4
Strengths
- Raised guidance+2
- Contracted earnings+2
- Validation (partner sale)+1
How the score is built
From 100 to 80, step by step: points off for the business, the price and the cracks, back for documented strengths, then three data adjustments.
Start
Score
Hover or select a step to see what drove it. Steps with findings open them below.
Key numbers
As of 2 Nov 2026. Analyst targets tend to be optimistic; read upside as a hint, not a forecast.
- Price
- 56.52 EUR
- Median analyst target
- 68.25 EUR
- Upside to median
- +20.8%
- Analysts
- 18
- Target range
- 55.00 – 76.00 EUR
- 52-week change
- +32%
- P/E (trailing)
- 12.5
- Forward P/E
- 17.5
- PEG
- 1.24
Findings
Every deduction and every plus, with its source. Open a step to read them.
Business
Is the company getting stronger, not just bigger? · 3 findings−9 of −30
- −4ReturnsAdjusted net result guided at €1.95–2.45bn in 2026 vs equity of €47.6bn, i.e. about 4–5% return vs a WACC of 5.5%; ROE was 15.7% in 2023 and has fallen to 8.6% TTM (incl. revaluations).
- −2Quality of growthAdjusted EBITDA rose about 43% to €3.0bn in H1, but the lift came partly from a one-off compensation of €332m in the Netherlands, UK capacity payments and normalised wind after a weak 2025; Supply & Trading contributed only €134m.
- −3Capital allocationInvestments of about €10bn a year since 2024 vs operating cash flow of €5–6.6bn; FCF has been negative every year since 2022 (−€5.1bn in 2025, −€4.0bn TTM). At the same time, buybacks of €1.0bn TTM and €1.7bn to raise the stake in Amprion to 55%; the US offshore wind venture has been abandoned.
Price
Today's multiples against the company's own history and its peers. · 2 findings−10 of −35
- −6Multiples vs own historyForward P/E 18.6 vs 10.9–19.0 in 2021–2025, i.e. at the top of its own forward history (12.4 in 2024), after +55% in 52 weeks; P/B 0.88 vs 0.63–1.42. More expensive than Veolia (12.4) and E.ON (14.7) on forward P/E.
- −4FCF yieldFCF yield −9.5% TTM, and analysts expect FCF of −€4.05bn in 2026 (−€5.5bn in 2025); the value rests entirely on new plants later delivering returns above the cost of capital.
Cracks
Cash flow, customers, debt, insiders, guidance and what sits behind the headline numbers. · 4 findings−10 of −35
- −3DebtNet debt is expected to rise to about €15bn at year-end (€11.2bn financial net debt at June vs 2.4bn in 2023), and operating cash flow was −€759m in H1 due to working capital.
- −3Market prices of electricityFlexible Generation and Supply & Trading accounted for about 40% of H1 EBITDA and depend on power prices, spreads and capacity markets; trading guidance of €100–500m shows the swing, and management describes a tight European gas and power market with low storage.
- −2Regulation (Amprion)With 55% of the transmission company Amprion, RWE is exposed to German grid regulation after 2029; in August Bundesnetzagentur proposed a flat 3.76% return for gas grids, seen as a template for electricity grids in 2027.
- −2US politicsRWE has given up its US offshore wind rights in return for a refund of 1.2 bn $ from the US government, and earnings from the US energy terminal have been postponed to 2031; the US remains a growth market for solar, wind and gas with political uncertainty.
Plus
Only documented strengths. · 3 findings+5 of +15
- +2Raised guidance2026 guidance raised to adjusted EBITDA of EUR 5.57–6.35bn and adjusted net profit of EUR 1.95–2.45bn (midpoint EPS EUR 2.95); dividend target of EUR 1.32 (+10%) maintained.
- +2Contracted earnings75% of 2031 EPS is already secured through long contracts (CfDs, PPAs, capacity markets), and new investments require contracted earnings; RWE has won UK CfDs for 6.9 GW of offshore wind.
- +1Validation (partner sale)KKR has bought 50% of the Norfolk Vanguard offshore wind projects, and Masdar joins the German offshore wind auctions in 2027 (over €3bn), which shares the capital need and confirms the asset values.
Caveats
What the score does not capture, or where the data is weak.
Stockanalysis' IFRS figures are distorted by unrealised fair-value adjustments of derivatives: operating profit €0.48bn and EBITDA €2.4bn TTM vs. the company's adjusted EBITDA guidance of €5.57–6.35bn for 2026, so ROIC 0.5%, EV/EBITDA 18.6 and interest cover 0.9x are not representative; the findings are based on the company's own adjusted figures where possible. The 'share issuance' item of €8.4bn TTM is probably capital from partner sales of minority stakes (incl. KKR), not new RWE shares – the share count is −3.1% over a year. Cyclical is set to false: about 40% of H1 EBITDA came from Flexible Generation and Supply & Trading (market prices, spreads, capacity payments), but the majority is contracted or regulated renewable energy, and 75% of 2031 EPS is secured via long contracts; the assessment is borderline. Credit rating and insider trading have not been investigated.
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