RWE AGMEX:RWEN 57 Return-on-Tangible-Equity is 0.30% as of Mar. 2026, which is 98% below its 10-year median of 15.35. GuruFocus rates MEX:RWEN with a GF Score™ of 57/100 and a GF Value™ of MXN279.56 (Significantly Overvalued). The stock has 6 warning signs investors should review. Among 497 Utilities - Regulated companies, RWE AG ranks worse than 55.13% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. RWE AG's annualized net income for the quarter that ended in Mar. 2026 was MXN1,668 Mil. RWE AG's average shareholder tangible equity for the quarter that ended in Mar. 2026 was MXN548,413 Mil. Therefore, RWE AG's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 0.30%.
The historical rank and industry rank for RWE AG's Return-on-Tangible-Equity or its related term are showing as below:
MEX:RWEN'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 6.74 Med: 15.35 Max: 88.12
Current: 9.52
During the past 13 years, RWE AG's highest Return-on-Tangible-Equity was 88.12%. The lowest was 6.74%. And the median was 15.35%.
MEX:RWEN's Return-on-Tangible-Equity is ranked worse than 55.13% of 497
companies
in the Utilities - Regulated industry
Industry Median: 10.83
vs MEX:RWEN: 9.52
RWE AG (MEX:RWEN) Return-on-Tangible-Equity Explanation
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
RWE AG Return-on-Tangible-Equity Related Terms
RWE AG Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for RWE AG's Return-on-Tangible-Equity can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
MEX:RWEN vs SRE, AES: Return-on-Tangible-Equity Comparison
For the Utilities - Diversified subindustry, RWE AG's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
RWE AG Return-on-Tangible-Equity vs Utilities - Regulated Industry
For the Utilities - Regulated industry and Utilities sector, RWE AG's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where RWE AG's Return-on-Tangible-Equity falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In the calculation of annual Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Mar. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 0.30% mean?
RWE AG (MEX:RWEN) has a Return-on-Tangible-Equity of 0.30% as of Mar. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on RWE AG and its competitors. This is 98% below median its historical median of 15.35. Over the past decade, RWE AG's Return-on-Tangible-Equity has ranged from 6.74 to 88.12. According to the industry distribution chart, RWE AG ranks #274 out of 497 companies in the Utilities - Regulated industry, placing it in the top 55.1%.
Is RWE AG's Return-on-Tangible-Equity too high?
RWE AG's current Return-on-Tangible-Equity of 0.30% is 98% below median its 10-year median of 15.35. Over the past 10 years, this metric has ranged from a low of 6.74 to a high of 88.12. The Utilities - Regulated industry median Return-on-Tangible-Equity is 10.83. RWE AG's value of 0.30% is 97.2% below this industry median. Based on the distribution chart, RWE AG ranks #274 out of 497 companies in the Utilities - Regulated industry, which is below the industry midpoint. Overall, RWE AG has a GF Score™ of 57/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does RWE AG's Return-on-Tangible-Equity compare to SRE and AES?
According to the Utilities - Regulated industry distribution chart, RWE AG ranks #274 out of 497 companies for Return-on-Tangible-Equity. This places RWE AG in the lower half of its industry. The industry median Return-on-Tangible-Equity is 10.83. RWE AG's value of 0.30% is 97.2% below this benchmark. Historically, RWE AG's own Return-on-Tangible-Equity has ranged from 6.74 to 88.12 over the past decade. While the company's 10-year median is 15.35 vs. the industry median of 10.83, RWE AG has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Return-on-Tangible-Equity for an Utilities - Regulated company?
The median Return-on-Tangible-Equity among Utilities - Regulated companies is 10.83, based on 497 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. RWE AG's current Return-on-Tangible-Equity of 0.30% is 97.2% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Return-on-Tangible-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on RWE AG and its competitors. For the Utilities - Regulated industry, the median Return-on-Tangible-Equity is 10.83 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. RWE AG's current Return-on-Tangible-Equity is 0.30%, which is 98% below median its own 10-year median of 15.35. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is RWE AG stock overvalued right now?
Based on GuruFocus' analysis, RWE AG (MEX:RWEN) is currently considered Significantly Overvalued. The stock's GF Value™ is MXN279.56, compared to a current price of MXN1,116.47 — trading 299.4% above its estimated fair value. The current Return-on-Tangible-Equity is 0.30%, which is 98% below median its 10-year median of 15.35 and 97.2% below the Utilities - Regulated industry median of 10.83. RWE AG's overall GF Score™ is 57/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For RWE AG (MEX:RWEN), the current Return-on-Tangible-Equity is 0.30% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is RWE AG (MEX:RWEN) Overvalued in 2026?
Based on GuruFocus' analysis, RWE AG stock appears to be overvalued.
The current stock price of MXN1,116.47 is trading 299.4% above its estimated GF Value™ of MXN279.56.
GuruFocus considers RWE AG to be Significantly Overvalued.
Key valuation signals for MEX:RWEN:
Return-on-Tangible-Equity: 0.30% (98% below median its 10-year median of 15.35)
GF Value™: MXN279.56 vs. price of MXN1,116.47 (299.4% above fair value)
Industry Position: 97.2% below the Utilities - Regulated median (#274 of 497)
No single metric tells the full story. See the MEX:RWEN stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Since the deal with E.ON, RWE is refocused on power generation. It owns 49 gigawatts of power generation capacity: 17% from lignite and hard coal plants, 32% from gas plants, 51% from renewables including pumped storage and batteries. Besides Germany, RWE's power plants are chiefly located in US, the UK, the Netherlands and Turkey.
57GF Score
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