E.ON SE (EOAN) AI Stock Analysis

• Market Cap: €46.89B
• Dividend Yield: 3.44%
• Average Volume (3M): 3.65M
• Price to Earnings (P/E): 15.6
• Beta (1Y): 0.15
• 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: €17.48
• Price Target Upside: -2.56% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 13
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 61 Neutral
• Price Target: €19.00 ▲(5.91% 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

Diversified revenue streams

E.ON's multi-pronged revenue model across supply, trading, renewables and energy services provides structural resilience. Diverse income sources reduce dependence on any single market cycle, support cross-selling of services, and help the company adapt across the energy transition over the next several years.

Leading market position in Europe

Scale and market leadership in European generation, distribution and retail create durable competitive advantages: regulated network exposure, large customer base and bargaining power with suppliers. These structural benefits support steady cash flows and long-term investment capacity.

Substantial asset base and stable operating cash flow

A large asset base, particularly in networks and generation, underpins regulated and contract-backed earnings. Positive operating cash flow, even if FCF is challenged, provides ongoing funding for operations and incremental investments, enabling continued participation in the energy transition.

Negative Factors

High financial leverage

Significant leverage raises refinancing and interest-rate sensitivity risks and limits financial flexibility. High debt levels can constrain capital allocation for renewables and grid upgrades, increase vulnerability in downturns, and slow deleveraging efforts over the medium term.

Negative free cash flow and weak cash conversion

Persistent negative free cash flow and poor cash conversion constrain the company's ability to self-fund growth, pay down debt, or increase shareholder distributions. Reliance on external financing for capex and acquisitions adds execution and refinancing risk over the coming cycles.

Declining top-line and margin pressure

Falling revenue growth and shrinking gross/EBIT margins signal structural pricing or cost pressures and weaken reinvestment capacity. Declining ROE indicates lower efficiency in capital use, which undermines long-term returns and could limit funding for strategic transition initiatives.

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 performance is mixed, with declining revenue growth and profitability margins, high leverage, and challenges in cash flow generation. Despite these issues, there are areas of profitability and a strong asset base.

Income Statement

E.ON SE's income statement shows a mixed performance. The company has experienced a decline in revenue growth, with a negative growth rate in the TTM period. Gross profit margins have decreased from previous years, indicating potential pricing or cost challenges. However, the net profit margin remains positive, suggesting some level of profitability. The EBIT and EBITDA margins have also declined, reflecting operational challenges. Overall, while there are profitability aspects, the declining revenue and margins are concerning.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio, indicating significant leverage, which could pose financial risks. The return on equity has decreased over time, showing reduced efficiency in generating returns for shareholders. The equity ratio is relatively low, suggesting a heavy reliance on debt financing. While the company has a substantial asset base, the high leverage and declining ROE are potential concerns.

Cash Flow

E.ON SE's cash flow statement indicates challenges in free cash flow generation, with negative free cash flow in recent periods. The operating cash flow to net income ratio is low, suggesting limited cash conversion efficiency. The free cash flow to net income ratio is negative, highlighting cash flow challenges. Despite these issues, the company maintains positive operating cash flow, which provides some stability.

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: 17.94
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

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 17.94 is above the 20-day moving average (MA) of 17.32, above the 50-day MA of 16.35, and above the 200-day MA of 15.82, indicating a bullish trend. The MACD of 0.44 indicates Negative momentum. The RSI at 72.73 is Negative, neither overbought nor oversold. The STOCH value of 85.19 is Negative, 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	€40.00B	17.54	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	€46.89B	15.63	17.74%	3.44%	0.77%	67.07%
EBK	53 Neutral	€22.82B	83.66	2.13%	2.23%	-8.11%	-60.54%
MVV1	51 Neutral	€2.06B	16.56	5.62%	4.07%	-8.49%	-31.95%