RWE AG (RWE) Quote - XETR | Morningstar

Skip to Content

Is it the right time to buy or sell?

Find out with Morningstar Premium

Is it the right time to buy or sell?

Find out with Morningstar Premium

1-Star Price

PREMIUM

5-Star Price

PREMIUM

Economic Moat

PREMIUM

Capital Allocation

PREMIUM

Market Is Wrong To Shrug Off High European Power Prices, Engie and RWE Are Still Our Preferred Plays

Senior Equity Analyst Tancrede Fulop

Tancrede Fulop, CFA Senior Equity Analyst

Analyst Note

| Tancrede Fulop, CFA | Dec 9, 2021

European forward power prices have rallied massively in 2021, reaching all-time highs of EUR 180 per megawatt-hour because of the surge of gas and CO2 prices. As many coal and nuclear plants will be shut down while intermittent renewables growth will accelerate, we expect CCGTs to remain the marginal source of electricity supply. Therefore, power prices will continue to be driven by CO2 and gas prices.

Read Full Analysis

Company Profile

Business Description

After the deal with E.On, pro forma RWE is refocused on power generation, mostly in Europe. It owns 40.7 gigawatts of power generation capacity: 27% from lignite and hard coal plants, 35% from gas plants, 25% from renewables, 7% from nuclear (which will be shut down by 2022), and 6% from other sources. Besides Germany, RWE’s power plants are chiefly located in the United Kingdom, the Netherlands, Turkey, and the United States for many onshore wind farms.

Contact

RWE Platz 1
Essen, NW, 45141, Germany

T +49 20151790

Sector Utilities

Industry Utilities - Diversified

Most Recent Earnings Sep 30, 2021

Fiscal Year End Dec 31, 2021

Stock Type —

Employees 19,075

Related

Stock Strategist

Utilities' Dividends Still Attractive, but Headwinds Remain

Even though the utilities sector appears fairly valued, there are pockets of opportunities and potential pitfalls that investors must watch carefully in the coming months.

Quarter-End Insights

Utilities: Repeating a Stellar 2014 Performance Will Be Tough

Utilities' 23% total return through mid-December topped all sectors except for M&A-fueled health care.

Quarter-End Insights

Utilities: Roller-Coaster Ride Continues, but Fundamentals Are Strong

Stock price volatility offers opportunities for investors committed to holding utilities for the long run.

Quarter-End Insights

Utilities Power Past Fair Value

Some of the most defensive companies in the utilities sector have performed the best this year and could face a sharp drop if interest rates start to creep up.

Quarter-End Insights

Our Outlook for Utilities Stocks

Finally, utilities with good growth and attractive yields are on sale.

Quarter-End Insights

Our Outlook for Utilities Stocks

Interest rate fears leave several high-quality dividend-paying utilities looking cheap.

Quarter-End Insights

Our Outlook for Utilities Stocks

With interest rates rising, will dividend yields keep utilities afloat?

Quarter-End Insights

Our Outlook for Utilities Stocks

With interest rates leveling off and power markets stalled, utilities face a tough near-term outlook.

Stock Strategist Industry Reports

EDF's Moat Remains Intact Despite Structural Changes

With power market reform in the wings and big questions around multi-billion-dollar investments in nuclear stations, EDF has some big challenges on its hands. But we believe its expertise, political clout, and size will keep the group on track and provide profitable growth for investors.

Stock Strategist Industry Reports

GDF Suez: A European Giant Continues to Turn Outward

With International Power fully in the fold, we think this global energy company is set to leave its diversified peers behind.

Quarter-End Insights

Our Outlook for Utilities Stocks

Low gas prices and a warm winter are burning power generators.

German Utilities Oversold on Nuclear Fears

Concerns that Germany will permanently ban nuclear power have created two very attractive short-term dividend yield plays with a lot of long-term potential, according to Morningstar's Travis Miller.

Quarter-End Insights

Our Outlook for Utilities Stocks

Utilities look increasingly attractive going into critical summer months.

Transparency is our policy. Learn how it impacts everything we do.

Transparency is how we protect the integrity of our work and keep empowering investors to achieve their goals and dreams. And we have unwavering standards for how we keep that integrity intact, from our research and data to our policies on content and your personal data.

We’d like to share more about how we work and what drives our day-to-day business.

How we make money

We sell different types of products and services to both investment professionals and individual investors. These products and services are usually sold through license agreements or subscriptions. Our investment management business generates asset-based fees, which are calculated as a percentage of assets under management. We also sell both admissions and sponsorship packages for our investment conferences and advertising on our websites and newsletters.

How we use your personal data

How we use your information depends on the product and service that you use and your relationship with us. We may use it to:

Verify your identity, personalize the content you receive, or create and administer your account.
Provide specific products and services to you, such as portfolio management or data aggregation.
Develop and improve features of our offerings.
Gear advertisements and other marketing efforts towards your interests.

To learn more about how we handle and protect your data, visit our privacy center.

How we approach editorial content

Maintaining independence and editorial freedom is essential to our mission of empowering investor success. We provide a platform for our authors to report on investments fairly, accurately, and from the investor’s point of view. We also respect individual opinions––they represent the unvarnished thinking of our people and exacting analysis of our research processes. Our authors can publish views that we may or may not agree with, but they show their work, distinguish facts from opinions, and make sure their analysis is clear and in no way misleading or deceptive.

To further protect the integrity of our editorial content, we keep a strict separation between our sales teams and authors to remove any pressure or influence on our analyses and research.

Read our editorial policy to learn more about our process.