tiprankstipranks
Trending News
More News >
E.ON SE (DE:EOAN)
XETRA:EOAN
Advertisement

E.ON SE (EOAN) AI Stock Analysis

Compare
107 Followers

Top Page

DE:EOAN

E.ON SE

(XETRA:EOAN)

Rating:70Outperform
Price Target:
€17.00
▲(7.53%Upside)
E.ON SE's strong valuation metrics and positive technical analysis are key strengths, indicating potential undervaluation and positive momentum. However, challenges in cash flow management temper the overall outlook. The company's solid financial performance supports its stability, but attention to liquidity management is required.
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 (EOAN) vs. iShares MSCI Germany ETF (EWG)

E.ON SE Business Overview & Revenue Model

Company DescriptionE.ON SE is a leading European utility company based in Essen, Germany. The company operates in the energy sector, focusing on the generation, distribution, and retail of electricity and gas. E.ON provides a range of energy solutions to residential, commercial, and industrial customers, with a strong emphasis on renewable energy sources and sustainable practices. It operates across multiple countries, primarily in Europe, and aims to drive the transition towards cleaner energy through innovative technologies and strategic partnerships.
How the Company Makes MoneyE.ON SE generates revenue through several key streams. The primary source is the sale of electricity and gas to residential, commercial, and industrial customers. The company owns and operates a diverse portfolio of power generation assets, including renewable energy sources such as wind, solar, and hydroelectric power, as well as conventional energy sources. E.ON also earns income through its energy distribution networks, which include extensive electricity and gas grid systems. These grids allow the company to charge fees for the transportation and distribution of energy. Additionally, E.ON offers a range of energy-related services, including energy consulting, efficiency solutions, and the development of energy infrastructure projects. The company engages in strategic partnerships and collaborations to enhance its capabilities in renewable energy and innovative technologies, which contribute to its revenue growth. E.ON's business model is heavily influenced by regulatory environments, energy market dynamics, and its commitment to sustainability and the energy transition.

E.ON SE Financial Statement Overview

Summary
E.ON SE exhibits solid revenue growth and profitability metrics, supported by a stable balance sheet. The company's operational efficiency and leverage are well-managed, but there are concerns regarding cash flow management, particularly around capital expenditures impacting free cash flow.
Income Statement
65
Positive
E.ON SE shows stable revenue growth with a recent TTM revenue of €82.69 billion, up from last year's €80.12 billion. Gross profit margin stands at 24.6%, indicating decent profitability. The net profit margin is at 5.4%, showing moderate efficiency in converting revenue to net income. EBIT and EBITDA margins are healthy at 10.8% and 15.7%, respectively. However, previous volatility in EBIT suggests some instability.
Balance Sheet
70
Positive
The company maintains a strong equity base with a debt-to-equity ratio of 2.14, highlighting a balanced use of leverage. Return on equity is solid at 23.9%, driven by efficient use of equity to generate profits. The equity ratio of 16.7% indicates a stable financial structure, though there is room for improvement in the equity buffer.
Cash Flow
55
Neutral
Cash flow from operations remains strong at €5.39 billion in TTM, with a challenging free cash flow situation of -€1.76 billion due to high capital expenditures. The operating cash flow to net income ratio is 1.20, reflecting strong cash generation relative to net income, but negative free cash flow raises concerns about liquidity management.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue80.12B93.69B115.66B77.36B60.94B
Gross Profit22.64B30.87B8.16B45.00M14.52B
EBITDA13.83B4.47B7.00B11.09B7.23B
Net Income4.53B517.00M1.83B4.69B1.02B
Balance Sheet
Total Assets111.36B113.51B134.01B119.76B95.39B
Cash, Cash Equivalents and Short-Term Investments7.03B6.96B8.92B5.23B3.78B
Total Debt39.06B35.44B34.15B34.66B32.84B
Total Liabilities87.19B93.54B112.14B101.87B86.33B
Stockholders Equity17.84B14.11B15.92B12.05B4.92B
Cash Flow
Free Cash Flow-1.30B-356.00M5.47B-418.00M951.00M
Operating Cash Flow5.67B5.65B10.04B4.07B5.31B
Investing Cash Flow-6.63B-5.59B-3.15B-5.40B-1.86B
Financing Cash Flow1.11B-1.84B-3.15B2.26B-2.62B

E.ON SE Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price15.81
Price Trends
50DMA
15.61
Positive
100DMA
14.63
Positive
200DMA
13.00
Positive
Market Momentum
MACD
0.15
Positive
RSI
49.93
Neutral
STOCH
47.60
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DE:EOAN, the sentiment is Neutral. The current price of 15.81 is below the 20-day moving average (MA) of 15.91, above the 50-day MA of 15.61, and above the 200-day MA of 13.00, indicating a neutral trend. The MACD of 0.15 indicates Positive momentum. The RSI at 49.93 is Neutral, neither overbought nor oversold. The STOCH value of 47.60 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for DE:EOAN.

E.ON SE Peers Comparison

Overall Rating
UnderperformOutperform
Sector (52)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
75
Outperform
€27.37B6.8212.22%3.04%-6.96%126.33%
73
Outperform
€22.56B19.509.65%2.16%-11.48%1824.35%
71
Outperform
€1.98B12.877.20%4.15%-11.72%-38.03%
70
Outperform
€41.50B9.2726.61%3.46%-0.11%281.22%
52
Neutral
C$2.95B-1.54-3.48%6.65%3.17%-49.19%
* Energy Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
DE:EOAN
E.ON SE
15.81
3.43
27.75%
DE:RWE
RWE AG
36.23
4.00
12.42%
DE:EBK
EnBW Energie Baden-Wurttemberg
70.20
7.50
11.96%
DE:MVV1
MVV Energie
30.10
0.88
3.02%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 09, 2025