E.ON SE (EOAN) AI Stock Analysis

• Market Cap: €48.80B
• Dividend Yield: 3.44%
• Average Volume (3M): 3.65M
• Price to Earnings (P/E): 24.3
• 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): 0.28
• Shares Outstanding: 2,641,318,800
• 10 Day Avg. Volume: 3,038,990
• 30 Day Avg. Volume: 3,652,347
• PEG Ratio: -0.39
• Price to Book (P/B): 2.19
• Price to Sales (P/S): 0.54
• P/FCF Ratio: -44.98
• 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: €18.00
• Price Target Upside: -4.66% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 14
• EPS Forecast (FY): 1.07
• Revenue Forecast (FY): €81.01B

• Rating: 55 Neutral
• Price Target: €20.50 ▲(8.58% Upside)
• Action: Reiterated Date: 02/27/26
• Date: Action: Reiterated 02/27/26

The score is held back primarily by weaker financial quality (declining revenue, 2025 margin compression, high leverage, and recurring negative free cash flow). Technicals are supportive due to a strong uptrend, but overbought momentum signals add near-term risk, while valuation is middling with a relatively high P/E only partly offset by a moderate dividend yield.

Positive Factors

Diversified scale and market position

E.ON's broad footprint across generation, distribution and retail plus push into renewables creates durable revenue diversification and regulatory scale. That multi-segment exposure supports resilience versus single-market peers and underpins long-term participation in the energy transition.

Consistently positive operating cash flow

Positive and improving operating cash flow provides a stable internal source to run networks and fund recurring operations. Over a multi-month horizon this underpins liquidity to service operations and interest, even if free cash flow remains uneven due to investments.

Stronger equity base since 2020

Rising equity reduces net leverage and improves the balance-sheet cushion, enhancing financial flexibility for capital expenditure and transition investments. This structural improvement helps absorb cyclical earnings shocks and supports creditworthiness longer term.

Negative Factors

High leverage burden

Sustained high debt relative to equity leaves limited room for additional borrowing and raises sensitivity to interest costs. For a capital-intensive utility, this constrains strategic moves, increases refinancing risk and weakens resilience to prolonged margin pressure.

Declining revenue trend

A multi-year revenue decline signals structural pressure on core sales or price/volume dynamics. Persisting top-line weakness reduces operating leverage, limits margin recovery potential and makes it harder to convert operating cash flow into sustainable profits and investment funding.

Persistent negative free cash flow

Recurring negative free cash flow indicates the company relies on external financing or asset sales to fund capex and dividends. Over months this reduces strategic autonomy, pressures credit metrics and can force higher leverage or curtailed shareholder returns during weaker cycles.

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

Mixed fundamentals: revenue has declined (2023–2025) and margins compressed in 2025 after a stronger 2024. Leverage remains high (debt roughly ~2.1x–2.9x equity), and free cash flow has been negative in four of the last five years despite positive operating cash flow, limiting financial flexibility.

Income Statement

Revenue has trended down over the last three years (2023–2025), and profitability has been volatile: net profit margin ranged from ~0.6% (2023) to ~5.7% (2024) before easing to ~2.2% (2025). Operating profitability also softened meaningfully from 2024 to 2025 (EBIT margin ~11.8% to ~7.3%; EBITDA margin ~17.3% to ~12.1%), signaling weaker earnings power in the most recent year. Offsetting this, the company remains profitable overall, with positive net income across all periods shown and a return to solid operating performance after the 2021–2022 EBIT losses/weakness.

Balance Sheet

The balance sheet shows consistently high leverage for a utility, with debt running at roughly ~2.1x–2.9x equity in 2021–2025 (and notably higher in 2020). Equity has grown since 2020, which has improved the leverage profile versus the earlier period, but total debt remains large in absolute terms. Returns on equity have been highly variable (very strong in 2021/2024, much lower in 2023/2025), highlighting earnings variability against a leveraged capital structure.

Cash Flow

Operating cash flow is positive each year and improved in 2025, but free cash flow has been negative in four of the last five years (2021, 2023, 2024, 2025), indicating recurring cash investment or working-capital pressure that limits internally funded flexibility. Cash conversion is mixed: operating cash flow is a relatively small share of debt (coverage ~0.10–0.27), and free cash flow relative to net income is negative in most years (except 2022). The one standout year (2022) showed strong positive free cash flow, but it has not been sustained.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	78.70B	80.12B	93.69B	115.66B	77.36B
Gross Profit	9.11B	22.64B	30.87B	8.16B	45.00M
EBITDA	9.53B	13.83B	6.00B	7.00B	11.09B
Net Income	1.73B	4.53B	517.00M	1.83B	4.69B
Balance Sheet
Total Assets	116.41B	111.36B	113.51B	134.01B	119.76B
Cash, Cash Equivalents and Short-Term Investments	4.35B	7.03B	6.96B	8.92B	5.23B
Total Debt	41.16B	39.06B	35.44B	34.15B	34.66B
Total Liabilities	90.58B	87.19B	93.54B	112.14B	101.87B
Stockholders Equity	19.26B	17.84B	14.11B	15.92B	12.05B
Cash Flow
Free Cash Flow	-937.00M	-1.30B	-356.00M	5.47B	-418.00M
Operating Cash Flow	7.00B	5.67B	5.65B	10.04B	4.07B
Investing Cash Flow	-7.02B	-6.63B	-5.59B	-3.15B	-5.40B
Financing Cash Flow	-2.28B	1.11B	-1.84B	-3.15B	2.26B

E.ON SE Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 18.88
• 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 18.88 is above the 20-day moving average (MA) of 18.62, above the 50-day MA of 17.61, and above the 200-day MA of 16.19, indicating a bullish trend. The MACD of 0.46 indicates Positive momentum. The RSI at 57.40 is Neutral, neither overbought nor oversold. The STOCH value of 45.94 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	€39.68B	8.08	6.75%	2.46%	-8.65%	-17.97%
Sector *	66 Neutral	$17.65B	18.10	5.60%	3.62%	6.62%	11.55%
EOAN	55 Neutral	€48.80B	24.31	17.74%	3.44%	0.77%	67.07%
EBK	53 Neutral	€21.79B	41.25	2.13%	2.23%	-8.11%	-60.54%
MVV1	51 Neutral	€2.10B	25.33	5.62%	4.07%	-8.49%	-31.95%