Operating Margin

Watchlist Manager

Watchlist

Price: 63.284 USD -1.06% Market Closed

Market Cap: $47.1B

10.4%

Declining

by 1.7%

Operating Margin shows how much profit a company makes from its regular business activities after covering operating costs. It helps measure how efficiently the company turns sales into profit.

Operating Margin

10.4%

Operating Income

€2.2B

Revenue

€21.5B

Operating Margin shows how much profit a company makes from its regular business activities after covering operating costs. It helps measure how efficiently the company turns sales into profit.

Operating Margin

10.4%

Operating Income

$2.2B

Revenue

€21.5B

Peer Comparison

Country		Company	Market Cap	Operating Margin
DE		RWE AG XETRA:RWE	38.8B EUR	Loading...
ES		Iberdrola SA MAD:IBE	122.1B EUR	Loading...
DE		Siemens Energy AG XETRA:ENR	124B EUR	Loading...
IT		Enel SpA MIL:ENEL	94.8B EUR	Loading...
UK		National Grid PLC LSE:NG	61.3B GBP	Loading...
FR		Electricite de France SA PAR:EDF	46.6B EUR	Loading...
DE		Uniper SE XETRA:UN0	14.7B EUR	Loading...
FR		Engie SA PAR:ENGI	60.9B EUR	Loading...
US		Sempra Energy NYSE:SRE	56.9B USD	Loading...
DE		E.ON SE XETRA:EOAN	46.6B EUR	Loading...
US	S	Sempra VSE:SREN	43.4B EUR	Loading...

Market Distribution

Min	-61 459.6%
30th Percentile	0.7%
Median	4.5%
70th Percentile	9.8%
Max	94 540%

Other Profitability Ratios

RWE AG
Glance View

Economic Moat

None

Market Cap

47.1B USD

Industry

Utilities

RWE AG, headquartered in Essen, Germany, stands as a prominent figure in the energy sector with a tenacious grip on the global market. Its origins date back to 1898, and over the decades, it has steadily transformed from a regional electric utility company into a leading international player in sustainable energy solutions. RWE's business essence lies in generating, trading, and supplying power, with a significant focus on renewable energy sources such as wind, solar, and hydroelectric power. This pivot towards clean energy demonstrates RWE's commitment to environmental sustainability, aligning its strategies with global climate agendas and the surging demand for green energy solutions. RWE's revenue engine is finely tuned with diverse streams. The company earns significant income from its power generation assets, where it produces electricity primarily through renewables but strategically balances it with transitional energy sources like natural gas as it phases out coal. Additionally, RWE engages in energy trading, navigating the complex global markets to optimize financial returns through strategic buy-and-sell arrangements. This segment capitalizes on its expertise in managing market risks and exploiting pricing opportunities. RWE's financial model is bolstered by its infrastructure and quality of service, which maintain a loyal client base, from industrial giants requiring steady power supply to residential consumers progressively leaning towards renewable energy options. In short, RWE AG is not just surviving the changing tides of the energy landscape; it is astutely navigating them.

View RWNFF Analysis

RWNFF Intrinsic Value

Show

What is Intrinsic Value?

Economic Moat is a concept popularized by Warren Buffett to describe a company's durable competitive advantage. It represents the 'moat' that protects a company from competitors and helps it sustain profitability over the long term. Our analysis of the past 10 years showed that companies with a wide economic moat significantly outperformed the market, delivering +645% returns compared to +189% for the S&P 500.

Our research into Economic Moat performance spans the past 10 years and focuses on companies with a wide economic moat. For this analysis, we calculated the average stock price returns of these companies, comparing them to the performance of the S&P 500 index over the same period.

The results were compelling: wide moat stocks achieved a remarkable +645% average return, compared to +188% for the broader market. This difference highlights the long-term benefits of investing in businesses that can maintain their market position and pricing power over time.

Note: This research does not account for survivorship bias. Past performance is not indicative of future results.

Determining whether a company has an economic moat requires both a deep dive into financial metrics and a qualitative assessment of its competitive position. Our analysts conduct a rigorous evaluation that focuses on identifying structural advantages that enable a company to sustain profitability and defend its market share over the long term.

The process begins with an analysis of a company’s historical financial performance. We assess how consistently the company has generated returns above its cost of capital and whether those returns have been stable or improving. However, financial performance alone doesn’t reveal the full picture. To understand the sources of these advantages, we evaluate five key drivers of economic moats:

Network Effect: We analyze whether the value of a company’s product or service grows as its user base expands. Platforms like payment systems or marketplaces benefit from this self-reinforcing.

Switching Costs: We assess whether customers face significant costs or disruptions when switching to a competitor’s product or service. High switching costs create customer stickiness and provide pricing power.

Intangible Assets: Strong brands, patents, and regulatory licenses can protect a company’s market position by creating barriers for competitors or enabling premium pricing. For example, a well-recognized consumer brand may command higher customer loyalty and margins.

Efficient scale: Occurs when a market is optimally served by one or a few players, making it unprofitable for new entrants to compete. This typically happens in industries with high fixed costs or geographic constraints, such as utilities or pipelines.

Cost Advantage: Companies with structural cost advantages can produce goods or services at a lower cost than their competitors, enabling them to offer competitive pricing or maintain higher margins. These advantages often arise from economies of scale, superior supply chain management, or proprietary technology. Firms like Walmart leverage their massive scale to negotiate better terms with suppliers, allowing them to undercut competitors on price.

By examining these factors in combination with a company’s financial performance and market positioning, we classify each company into one of three categories:

This rigorous evaluation ensures that our moat ratings are both comprehensive and reliable, giving investors the tools they need to make well-informed, long-term decisions.

The AI Assistant may sometimes provide inaccurate information.

Make your own investment decisions or consult a licensed financial advisor.

RWE AG
OTC:RWNFF

Peer Comparison

Market Distribution

Other Profitability Ratios

RWE AG
Glance View

See Also

Company

Help

Tools

Stocks

RWE AG OTC:RWNFF