RWE AG (RWE.DE) stock analysis

In our weekly check, RWE AG is graded C (A to F). Of 25 checks on debt, profit, cash flow and trend: 14 pass, warnings: 3, red flags: 8.

About RWE AG

RWE AG is an Utilities company (Diversified Utilities) based in Germany, listed on XETRA as RWE.DE.

What our checks show for RWE.DE

Red flags

• Operating profit does not cover the interest bill (0x): interest is paid from cash or new debt.
• The gross margin fell by 16.6 points, to 9.3%: costs are rising faster than prices.
• Analysts expect the net margin to shrink by 8.6 points from today's 21.3%.
• Revenue fell 26.6% a year over the last 3 years.
• Free cash flow is negative (-26.2% of revenue): the business spends more cash than it brings in.
• The stock has fallen as much as 91% from a peak. Would you have held through that?
• Return on capital (ROCE) is only 0.1%.
• Pay in shares equals 0% of free cash flow: it dilutes shareholders.

Warning signs

• Net debt is 3.7x a year of EBITDA (debt/equity 0.61). That limits room in a downturn and raises refinancing risk.
• Analysts expect earnings per share to shrink about 6.8% a year.
• The stock is still below its previous peak.

Strengths

• The net margin rose by 18.3 points over 5 years, to 21.3%.
• Operating cash flow is 1.9x net profit: the profit arrives as real cash.
• Analysts expect revenue to grow about 16.4% a year over the next years.
• The company keeps 21.3% of its revenue as net profit.
• The dividend takes 23% of profit: there is a cushion.
• The price is 13 times earnings (P/E), reasonable for its growth.

Next earnings report: 2026-11-11

Similar companies

EOAN.DE · SRE · ENGI.PA · ENEV3.SA · SSE.L · ORG.AX

Questions

What grade does RWE AG (RWE.DE) have?

In our weekly check, RWE AG is graded C (A to F). Of 25 checks on debt, profit, cash flow and trend: 14 pass, warnings: 3, red flags: 8. The grade is a risk check, not a buy or sell recommendation.

What are the main risks of RWE.DE stock?

This week's biggest flags for RWE AG: Weak interest cover, Gross margin falling, Margins expected to shrink. In total 11 of 25 checks show a warning or a red flag.

What does RWE AG do?

RWE AG is an Utilities company (Diversified Utilities) based in Germany, listed on XETRA as RWE.DE.

When does RWE AG report earnings next?

The next earnings report is expected on 2026-11-11. We re-run the checks every week, so the grade can change after it.

The grade is a risk check, not a price forecast, and not investment advice. In our 10-year test (S&P 500, 2016-2026), stocks we graded A or B fell more than 30% 2-3 times less often than D or F, without a lower average return.

Updated 2026-10-24

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