RWE AG Class A
RWE: XETR (DEU)
| Morningstar Rating for Stocks | Fair Value | Economic Moat | Capital Allocation |
|---|---|---|---|
| €49.00 | Fpz | Pnkhcmnwg |
RWE Keeps Outperforming Thanks to Its Competitive Power Generation Mix and Operational Excellence
Business Strategy and Outlook
After splitting off its noncommodity businesses into Innogy in October 2016, RWE retained only its conventional generation and commodities businesses, along with a 77% share of Innogy. Under a large asset swap with E.On, RWE sold its stake in Innogy to the latter while retaining Innogy’s renewables business, receiving E.On's renewables division as well as a 15% stake in E.On. The deal was completed in 2019. The rationale was stronger for RWE, which doubled its renewable capacity and became the second-largest global offshore wind firm.