E.ON SE (EOAN) AI Stock Analysis

• Market Cap: €40.90B
• Dividend Yield: 3.05%
• Average Volume (3M): 5.49M
• Price to Earnings (P/E): 9.1
• Beta (1Y): 0.32
• Revenue Growth: -0.11%
• EPS Growth: 281.22%
• Country: DE
• Employees: 69,668
• Sector: Energy
• Sector Strength: 47
• Industry: Diversified Utilities
• EPS (TTM): 0.49
• Shares Outstanding: 2,641,318,800
• 10 Day Avg. Volume: 5,826,436
• 30 Day Avg. Volume: 5,488,037
• PEG Ratio: -0.37
• Price to Book (P/B): 2.40
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -79.09
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: €16.27
• Price Target Upside: 4.16% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 14

• Rating: 70 Outperform
• Price Target: €17.00 ▲(8.83%Upside)

E.ON SE's overall stock score of 70 reflects strong technical indicators and appealing valuation metrics. The stock shows bullish momentum and is attractively priced with a solid dividend yield. However, the mixed financial performance with revenue contraction and negative free cash flow tempers the score. The robust balance sheet offsets some financial concerns, but the company needs to address liquidity challenges.

Positive Factors

Green Energy Transition

E.ON is uniquely positioned to capture the booming investment trends in electrification market amid the green energy transition.

Infrastructure Fund

Germany's planned new infrastructure fund could enhance growth opportunities across E.On’s energy networks, services and retail divisions.

Regulatory Review

E.On's shares could benefit from a potentially favorable outcome in the upcoming regulatory review.

Negative Factors

Regulatory Environment Risk

Key risk is the regulatory environment, especially in Germany, if policies become less supportive and affects RAB returns.

E.ON SE Business Overview & Revenue Model

Company Description

E.ON SE operates as an energy company in Germany, the United Kingdom, Sweden, the Netherlands, Belgium, rest of Europe, and internationally. It operates through two segments, Energy Networks and Customer Solutions. The Energy Networks segment operates power and gas distribution networks, as well as provides maintenance, repairs, and related services. The Customer Solutions segment supplies power, gas, and heat, as well as with products and services that enhance energy efficiency to residential, small and medium-sized enterprises, large commercial and industrial, sales partners, and public entities. In addition, the company operates, generates, and dismantles nuclear power stations in Germany and Turkey. Further, it provides SmartSim, a software solution that allows renewable gases to be fed into gas grids; gas quality tracking solutions; GasPro, a mobile gas sample collector; metering solutions; and GasCalc, a software that calculates natural gases, LNG, and biogases properties. The company was founded in 1923 and is headquartered in Essen, Germany.

How the Company Makes Money

E.ON SE makes money primarily through its energy networks and customer solutions. The energy networks segment generates revenue by operating electricity and gas distribution systems, facilitating the delivery of energy to customers. The customer solutions segment includes the sale of electricity, gas, and heat to residential, commercial, and industrial customers. Additionally, E.ON invests in renewable energy sources, including wind and solar power, contributing to its revenue. Key partnerships with other energy companies and investments in technology and innovation also play a significant role in E.ON's revenue generation, helping the company meet the growing demand for sustainable energy solutions.

E.ON SE Financial Statement Overview

Summary

E.ON SE exhibits a mixed financial performance. The income statement shows improving profit margins and operational efficiency, yet revenue contraction is a concern. The balance sheet is robust with improved equity and reduced debt, enhancing financial stability. However, cash flow analysis reveals liquidity challenges due to negative free cash flow. Overall, the company shows strengths in profitability and balance sheet metrics, but must address revenue growth and cash flow constraints.

Income Statement

E.ON SE shows a fluctuating revenue pattern, with recent revenue contraction in 2024 to €80.1 billion from €93.7 billion in 2023. Gross profit margin in 2024 is approximately 28.2%, a slight improvement from 2023. Net profit margin in 2024 stands at 5.7%, indicating moderate profitability. Notably, EBIT has improved from a negative in 2023 to break-even in 2024, and the EBITDA margin is 17.3%, reflecting operational efficiency. However, the revenue decline and previous volatility in profitability are concerns.

Balance Sheet

E.ON SE has strengthened its equity position with a stockholders' equity increase to €17.8 billion in 2024. The debt-to-equity ratio has improved significantly due to the reduction of total debt to zero, enhancing financial stability. The equity ratio stands at 16.0%, reflecting a moderate reliance on equity to finance assets. Return on equity (ROE) is a robust 25.4% in 2024, indicating effective use of shareholder funds. The balance sheet is solid, but the relatively low equity ratio could be a risk.

Cash Flow

E.ON SE's free cash flow in 2024 is negative at €-1.3 billion, down from a less negative position in 2023. The operating cash flow to net income ratio is 1.25, suggesting that operating cash flow adequately supports net income. However, free cash flow to net income ratio is negative, indicating cash outflows exceed inflows after capital expenditures. The negative free cash flow trend presents a liquidity concern, though operating cash flow remains stable.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	80.12B	93.69B	115.66B	77.36B	60.94B
Gross Profit	22.64B	30.87B	8.16B	45.00M	14.52B
EBITDA	13.83B	4.47B	7.00B	11.09B	7.23B
Net Income	4.53B	517.00M	1.83B	4.69B	1.02B
Balance Sheet
Total Assets	111.36B	113.51B	134.01B	119.76B	95.39B
Cash, Cash Equivalents and Short-Term Investments	7.03B	6.96B	8.92B	5.23B	3.78B
Total Debt	39.06B	35.44B	34.15B	34.66B	32.84B
Total Liabilities	87.19B	93.54B	112.14B	101.87B	86.33B
Stockholders Equity	17.84B	14.11B	15.92B	12.05B	4.92B
Cash Flow
Free Cash Flow	-1.30B	-356.00M	5.47B	-418.00M	951.00M
Operating Cash Flow	5.67B	5.65B	10.04B	4.07B	5.31B
Investing Cash Flow	-6.63B	-5.59B	-3.15B	-5.40B	-1.86B
Financing Cash Flow	1.11B	-1.84B	-3.15B	2.26B	-2.62B

E.ON SE Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 15.62
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DE:EOAN, the sentiment is Positive. The current price of 15.62 is above the 20-day moving average (MA) of 15.44, above the 50-day MA of 15.18, and above the 200-day MA of 12.71, indicating a bullish trend. The MACD of 0.14 indicates Positive momentum. The RSI at 57.37 is Neutral, neither overbought nor oversold. The STOCH value of 76.34 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DE:EOAN.

E.ON SE Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
EOAN	70 Outperform	€40.90B	9.14	26.61%	3.05%	-0.11%	281.22%
Sector *	52 Neutral	C$2.91B	-0.99	-3.26%	6.30%	2.20%	-43.43%
0IHQ		€18.49B	17.93	9.65%	2.02%	―	―
0FCK		€1.98B	12.91	7.20%	4.15%	―	―
0HA0		€26.60B	6.63	12.22%	2.64%	―	―