E.ON SE (EOAN) AI Stock Analysis

• Market Cap: €41.44B
• Dividend Yield: 3.4%
• Average Volume (3M): 3.65M
• Price to Earnings (P/E): 13.2
• Beta (1Y): 0.21
• Revenue Growth: 1.60%
• EPS Growth: 76.73%
• Country: DE
• Employees: 69,668
• Sector: Utilities
• Sector Strength: 65
• Industry: Diversified Utilities
• EPS (TTM): 0.25
• Shares Outstanding: 2,641,318,800
• 10 Day Avg. Volume: 3,038,990
• 30 Day Avg. Volume: 3,652,347
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: €16.41
• Price Target Upside: 1.55% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 10
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 60 Neutral
• Price Target: €16.00 ▼(-0.99% Downside)

E.ON SE's overall stock score is primarily influenced by financial performance challenges, particularly in revenue growth and high leverage. Technical analysis indicates weak momentum, while valuation metrics are relatively favorable, providing some support to the score.

Positive Factors

Negative Factors

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, high debt levels and negative cash flow growth are concerning. The company needs to improve cash flow management and reduce leverage to enhance 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	82.15B	80.12B	93.69B	115.66B	77.36B	60.94B
Gross Profit	20.37B	22.64B	30.87B	8.16B	45.00M	14.52B
EBITDA	10.85B	13.83B	6.00B	7.00B	11.09B	7.42B
Net Income	3.15B	4.53B	517.00M	1.83B	4.69B	1.02B
Balance Sheet
Total Assets	109.44B	111.36B	113.51B	134.01B	119.76B	95.39B
Cash, Cash Equivalents and Short-Term Investments	3.24B	7.03B	6.96B	8.92B	5.23B	3.78B
Total Debt	39.54B	39.06B	35.44B	34.15B	34.66B	32.84B
Total Liabilities	85.62B	87.19B	93.54B	112.14B	101.87B	86.33B
Stockholders Equity	17.43B	17.84B	14.11B	15.92B	12.05B	4.92B
Cash Flow
Free Cash Flow	-1.04B	-1.30B	-356.00M	5.47B	-418.00M	951.00M
Operating Cash Flow	6.20B	5.67B	5.65B	10.04B	4.07B	5.31B
Investing Cash Flow	-6.82B	-6.63B	-5.59B	-3.15B	-5.40B	-1.86B
Financing Cash Flow	-663.00M	1.11B	-1.84B	-3.15B	2.26B	-2.62B

E.ON SE Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 16.16
• 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 16.16 is below the 20-day moving average (MA) of 16.17, above the 50-day MA of 15.84, and above the 200-day MA of 14.66, indicating a neutral trend. The MACD of 0.03 indicates Positive momentum. The RSI at 53.06 is Neutral, neither overbought nor oversold. The STOCH value of 55.39 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
MVV1	70 Outperform	€2.06B	13.43	7.01%	3.99%	-11.39%	-4.89%
RWE	69 Neutral	€31.58B	12.14	7.90%	2.58%	-7.36%	-25.03%
Sector *	66 Neutral	$17.65B	18.10	5.60%	3.62%	6.62%	11.55%
EOAN	60 Neutral	€41.44B	13.16	18.90%	3.40%	1.60%	76.73%
EBK	58 Neutral	€21.92B	52.39	3.57%	2.25%	-10.30%	0.96%