# RWE (RWEOY) Sector: Power generation and renewable energy | Field | Value | |---|---| | Price | $64.99 | | Intrinsic value source | AI estimate | | Data as of | 2026-11-11 | | Next earnings | 2027-03-04 (confirmed) | Analysts: Bullish Picks: Research only Discount category: Close to intrinsic value ## In short RWE trades close to the AI estimate because investors pay for its large build-out of wind, solar, batteries and gas plants, and only projects that earn their planned returns without many new shares can keep it there. ## Themes and gap - Themes: Power and energy (power-energy), Interest rates (interest-rates), Regulation and courts (regulation-legal) - Gap type: Slow (slow) - Why: RWE's earnings target runs to 2030 and 2031, so the gap closes only as new wind, solar, battery and gas projects start to earn their planned returns over several years. ## About RWE AG (RWE) generates and trades electricity. Its core business has four segments: Offshore Wind, Onshore Wind/Solar, Flexible Generation, with gas, hydro, biomass and battery storage plants, and Supply & Trading. Its Phaseout Technologies segment holds the Rhenish lignite operations and the dismantling of its old German nuclear plants. RWE generated 89,929 GWh in the first nine months of 2026, of which 41,761 GWh came from renewables. It holds 15% of E.ON and a stake in the German transmission grid operator Amprion. RWE operates mainly in Germany, the UK, the Netherlands and the United States. The shares trade on the Frankfurt Stock Exchange, and American depositary receipts trade over the counter as RWEOY. One ADR represents one share. The head office is in Essen, Germany. Markus Krebber is Chief Executive Officer. ## Thesis RWE trades close to the AI estimate because investors see it as a large builder of wind, solar, batteries and gas plants whose earnings must grow with a large investment plan. RWE plans net investments of €35 billion from 2026 to 2031 and targets adjusted net income per share of over €4 by 2030, from €2.48 in 2025. In 2026, strong trading and new assets lifted adjusted EBITDA by 35% in the first nine months. For the price to hold, three things must be true. New projects must earn at least the planned return of 8.5% on time, such as the Vanguard offshore wind farms with KKR. Earnings must keep growing when trading results fall back to normal. And RWE must fund the plan without too many new shares, after it sold about €4 billion of shares in June 2026. The annual report on March 4, 2027, with the 2027 guidance, is the next test. ## Checkpoints - Nov 11, 2026: Results for the first nine months of 2026. Status: Passed. Watch: 2026 guidance confirmed or raised passes; lower guidance fails. Outcome: RWE confirmed its 2026 guidance and expects results towards the upper ends of the ranges. - Mar 4, 2027: 2026 annual report and 2027 guidance. Status: Pending. Watch: 2027 guidance for adjusted net income per share above the 2026 result passes; a decline fails. - 2027 (estimate): Start of offshore construction at Vanguard West and East. Status: Pending. Watch: Offshore construction that starts in early 2027 within budget passes; delays or cost overruns fail. ## Valuation The intrinsic value for RWE is an AI estimate from November 11, 2026. It is not an analyst's value. An AI research agent calculated it from RWE's own reports. The values are per American depositary receipt (ADR) in U.S. dollars. The share page of RWE's investor website says that one ADR represents one RWE share, in a Level 1 programme with The Bank of New York Mellon as depositary bank. The company reports in euros. The method is a multiple of adjusted net income per share for 2027. The interim statement on the first three quarters of 2026 (November 11, 2026) gives adjusted net income per share of €2.52 for the first nine months, 2026 guidance for adjusted EBITDA of €5,750 million to €6,350 million and adjusted net income per share of €2.60 to €3.30, towards the upper ends of the ranges, a dividend target of €1.32 per share for 2026 and net debt of €17,027 million at September 30, 2026. It also says that RWE placed 36,143,952 new shares and 38,240,169 treasury shares at €54 per share at the end of June 2026 to fund its stake in Amprion. The share page gives 779,985,169 shares. The 2025 Annual Report gives 2025 adjusted net income per share of €2.48, net investments of €35 billion from 2026 to 2031, and a target for adjusted net income per share of over €4 by 2030 and about €4.40 by 2031. Adjusted net income is after interest, so the estimate makes no debt adjustment. It uses an exchange rate of $1.122 per euro, the market rate on November 10, 2026, as an assumption. The estimate assumes that trading earnings fall back from the high 2026 level, and that new wind, solar, battery and Amprion earnings add growth on the larger number of shares. The EPS for 2027 and the multiples are assumptions. The low case assumes low power prices, project delays and higher interest costs, with EPS of €2.70, at 15 times. It gives €40.50 per share and per ADR, or $45.44 in U.S. dollars. The base case assumes EPS of €3.10 at 18 times. It gives €55.80 per ADR, or $62.61. The high case assumes that RWE stays on the path to its 2030 target, with EPS of €3.50, at 21 times. It gives €73.50 per ADR, or $82.47. The estimate assumes weights of 25%, 50% and 25%. The weighted intrinsic value is $63.28 per ADR. The value moves with the euro. RWE has large positions in offshore wind and in gas power plants in Germany, the UK and the Netherlands, and a large stake in the Amprion transmission grid. But it sells most of its power at market prices or under contracts that it wins in competitive auctions, and regulators set the grid returns. The estimate does not expect an advantage that lasts 10 years or more. As of 2026-11-11. Sources: - https://www.rwe.com/-/media/RWE/documents/05-investor-relations/finanzkalendar-und-veroeffentlichungen/2026-Q3/rwe-interim-statement-q1-q3-2026.pdf - https://www.rwe.com/-/media/RWE/documents/05-investor-relations/finanzkalendar-und-veroeffentlichungen/2025-GJ/RWE-Annual-Report-2025.pdf - https://www.rwe.com/en/investor-relations/rwe-share/share-at-a-glance/ ## Balance sheet - Cash: €10.8B - Debt: €18.6B - Net debt: €7.8B - Undrawn credit line: €10.0B, to May 2028 - Ratings: Moody's Baa2 (stable outlook), Fitch BBB+ (stable outlook) RWE funds its business with senior and green bonds, hybrid bonds, commercial paper, cash flow, partner capital and new shares. At September 30, 2026, bonds, other notes, bank debt and commercial paper were €18,557 million, and other financial debt was €6,536 million. Cash and cash equivalents were €4,504 million and marketable securities €6,297 million. RWE's own net debt figure, which also includes pension, nuclear and wind farm dismantling provisions, was €17,027 million. Mining provisions of €5,342 million are not in net debt, and neither are the assets that RWE holds for them, such as its 15% stake in E.ON, worth €6,656 million. RWE expects net debt to adjusted EBITDA to stay well below its target range of 3.0 to 3.5. Three syndicated credit facilities of €10 billion were undrawn at the end of 2025: €5 billion runs to May 2028, and €3 billion and €2 billion run to May 2030. As of February 2026, Moody's rated RWE's senior debt Baa2 and Fitch BBB+, both with a stable outlook. The share page gives 779,985,169 shares. As of 2026-09-30. Sources: - https://www.rwe.com/-/media/RWE/documents/05-investor-relations/finanzkalendar-und-veroeffentlichungen/2026-Q3/rwe-interim-statement-q1-q3-2026.pdf - https://www.rwe.com/-/media/RWE/documents/05-investor-relations/finanzkalendar-und-veroeffentlichungen/2025-GJ/RWE-Annual-Report-2025.pdf - https://www.rwe.com/en/investor-relations/rwe-share/share-at-a-glance/ ## Dividends - Dividend yield: 2.1% (last 12 months, at the current price) - Paid per share, last 12 months: $1.386 (1 payment) - Current annual rate: $1.386 ($1.386 x 1 a year) - Latest ex-dividend date: 2026-05-05, $1.386 per share - Growth from 2020 to 2025: 6.6% a year - Growth from 2015 to 2025: 1.2% a year Dividends per share by year: 2016: $0.00, 2017: $0.00, 2018: $1.851, 2019: $0.788, 2020: $0.904, 2021: $1.009, 2022: $0.98, 2023: $0.948, 2024: $1.083, 2025: $1.246. Source: company filings and market data, read on 2026-11-10. ## Recent events - 2026-11-11: RWE reported results for the first nine months of 2026. Adjusted EBITDA rose 35% to €4,575 million, and adjusted net income per share rose to €2.52 from €1.77. RWE confirmed its 2026 guidance, now towards the upper ends of the ranges, and its dividend target of €1.32. It also won contracts in Germany's first capacity market auction for three new gas plants with 2.5 GW in total. - 2026-11-11: RWE and KKR completed their 50:50 joint venture for the Vanguard West and Vanguard East offshore wind farms in the UK, 2.8 GW in total, and closed non-recourse project financing of £11.1 billion. - 2026-08-13: RWE reported results for the first half of 2026 and raised its full-year earnings guidance. ## Risks - High: RWE plans net investments of €35 billion from 2026 to 2031. Cost overruns, delays or lower power prices on new wind, solar and battery projects would lower the return below the planned 8.5%. - Medium: Earnings from Supply & Trading and from power sales at market prices change a lot from year to year. The high trading earnings of 2026 may not repeat. - Medium: U.S. policy changes, such as the One Big Beautiful Bill, reduce tax credits for wind and solar. This can lower the returns of RWE's large U.S. business. - Medium: Net debt rose to €17,027 million at September 30, 2026, from €10,921 million at the end of 2025. Higher interest rates raise the cost of new debt. - Low: RWE must close its lignite plants by 2030 and pay for mine rehabilitation. Mining provisions were €5,342 million, and the state compensation payments are not yet fully received. - Low: The value of the ADR moves with the euro against the U.S. dollar. ## Links - Page: https://picks.utilarium.app/company/RWEOY/ - History of changes: https://picks.utilarium.app/company/RWEOY/history/ - JSON with full history: https://picks.utilarium.app/data/company/RWEOY.json > Picks is a personal record of stock picks. It gives general opinions about stocks, including a "Top pick" label. 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