E.ON SE (EOAN) AI Stock Analysis

• Market Cap: €44.25B
• Dividend Yield: 3.44%
• Average Volume (3M): 3.65M
• Price to Earnings (P/E): 14.7
• Beta (1Y): 0.16
• Revenue Growth: 0.77%
• EPS Growth: 67.07%
• Country: DE
• Employees: 69,668
• Sector: Utilities
• Sector Strength: 65
• Industry: Diversified Utilities
• EPS (TTM): 0.14
• Shares Outstanding: 2,641,318,800
• 10 Day Avg. Volume: 3,038,990
• 30 Day Avg. Volume: 3,652,347
• PEG Ratio: <0.01
• Price to Book (P/B): 1.65
• Price to Sales (P/S): 0.37
• P/FCF Ratio: -22.64
• 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: €16.73
• Price Target Upside: -2.73% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 12
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 61 Neutral
• Price Target: €18.00 ▲(4.65% Upside)

E.ON SE's overall stock score reflects mixed financial performance with challenges in revenue growth and cash flow, offset by a reasonable valuation and attractive dividend yield. Technical analysis suggests a neutral to slightly bearish outlook, contributing to a moderate overall score.

Positive Factors

Integrated European utility scale

E.ON's integrated utility model—covering generation, distribution and retail across Europe—creates durable scale advantages and stable retail cash flows. This vertical footprint supports revenue diversification, regulatory clout and operational synergies that persist over multi‑year energy transition cycles.

Diverse revenue streams and energy transition exposure

Multiple income streams (retail supply, wholesale trading, renewables, services and infrastructure) reduce single‑market dependence and align with structural demand for decarbonization. Recurring retail contracts plus growth in renewables and services support steady medium‑term cash generation and growth optionality.

Substantial asset base and operating footprint

A large asset base and extensive grid/customer footprint provide a durable competitive moat: scale in network assets and customer relationships enable economies of scale, bargaining power with suppliers, and the ability to deploy capital into renewables and grid upgrades over several years.

Negative Factors

High leverage and low equity ratio

Significant leverage and a low equity ratio constrain financial flexibility and raise refinancing and interest‑rate risk. This structural capital structure weakness limits the company’s ability to fund capex or acquisitions without raising costly capital or cutting returns, impacting resilience over months.

Weak free cash flow generation

Persistent negative free cash flow and poor cash conversion reduce internal funding for sustainable capex, dividend commitments and renewables rollout. Over a 2–6 month horizon this undermines strategic flexibility and increases dependence on external financing or asset sales to meet obligations.

Declining revenue and margin trends

Falling revenue growth and compressed margins indicate structural pressure on pricing or rising costs, reducing operating leverage. Sustained margin erosion limits retained earnings for reinvestment and weakens ROE, making it harder to fund the energy transition and maintain shareholder returns over the medium term.

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 generates revenue through multiple streams, primarily from the sale of electricity and natural gas to residential, commercial, and industrial customers. The company earns income from its energy generation activities, which include both renewable sources like wind and solar, as well as conventional power plants. Additionally, E.ON benefits from its energy networks segment, which involves the distribution of electricity and gas, allowing it to earn fees for the infrastructure used to deliver these resources. The company also provides energy management and efficiency services, smart home solutions, and other customer-centric offerings, further diversifying its revenue sources. Strategic partnerships with other energy providers and technology firms enhance its capabilities and market reach, contributing to its overall earnings.

E.ON SE Financial Statement Overview

Summary

E.ON SE's financial statements reflect challenges in revenue growth and high leverage. Despite stable profitability metrics, the high debt levels and negative cash flow growth are concerning. The company needs to address cash flow management and leverage to improve financial health.

Income Statement

E.ON SE's income statement shows mixed results. The TTM (Trailing-Twelve-Months) data indicates a decline in revenue growth rate at -0.66%, reflecting a challenging market environment. However, the company maintains a reasonable gross profit margin of 24.62% and a net profit margin of 5.41%, indicating operational efficiency. The EBIT and EBITDA margins are stable, but the decline in revenue growth is a concern.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio of 2.14, suggesting significant leverage, which could pose financial risks. However, the return on equity (ROE) is strong at 26.19%, indicating effective use of equity to generate profits. The equity ratio is moderate, reflecting a balanced asset structure. Overall, the high leverage is a potential risk factor.

Cash Flow

Cash flow analysis shows a negative free cash flow growth rate of -40.63%, indicating cash flow challenges. The operating cash flow to net income ratio is 0.19, suggesting moderate cash generation relative to net income. The negative free cash flow to net income ratio highlights cash flow management issues. Overall, cash flow stability is a concern.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	81.35B	80.12B	93.69B	115.66B	77.36B	60.94B
Gross Profit	20.58B	22.64B	30.87B	8.16B	45.00M	14.52B
EBITDA	11.00B	13.83B	6.00B	7.00B	11.09B	7.42B
Net Income	3.00B	4.53B	517.00M	1.83B	4.69B	1.02B
Balance Sheet
Total Assets	107.03B	111.36B	113.51B	134.01B	119.76B	95.39B
Cash, Cash Equivalents and Short-Term Investments	4.56B	7.03B	6.96B	8.92B	5.23B	3.78B
Total Debt	39.00B	39.06B	35.44B	34.15B	34.66B	32.84B
Total Liabilities	82.73B	87.19B	93.54B	112.14B	101.87B	86.33B
Stockholders Equity	17.89B	17.84B	14.11B	15.92B	12.05B	4.92B
Cash Flow
Free Cash Flow	-909.00M	-1.30B	-356.00M	5.47B	-418.00M	951.00M
Operating Cash Flow	6.40B	5.67B	5.65B	10.04B	4.07B	5.31B
Investing Cash Flow	-7.04B	-6.63B	-5.59B	-3.15B	-5.40B	-1.86B
Financing Cash Flow	-761.00M	1.11B	-1.84B	-3.15B	2.26B	-2.62B

E.ON SE Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 17.20
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 17.2 is above the 20-day moving average (MA) of 16.22, above the 50-day MA of 15.81, and above the 200-day MA of 15.56, indicating a bullish trend. The MACD of 0.33 indicates Negative momentum. The RSI at 67.97 is Neutral, neither overbought nor oversold. The STOCH value of 79.95 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
RWE	69 Neutral	€36.72B	15.89	6.75%	2.46%	-8.65%	-17.97%
Sector *	66 Neutral	$17.65B	18.10	5.60%	3.62%	6.62%	11.55%
EOAN	61 Neutral	€44.25B	14.74	17.74%	3.44%	0.77%	67.07%
EBK	53 Neutral	€22.43B	81.54	2.13%	2.23%	-8.11%	-60.54%
MVV1	51 Neutral	€2.06B	16.56	5.62%	4.07%	-8.49%	-31.95%