E.ON SE (EOAN) AI Stock Analysis

• Market Cap: €38.98B
• Dividend Yield: 3.69%
• Average Volume (3M): 3.77M
• Price to Earnings (P/E): 12.3
• Beta (1Y): 0.25
• Revenue Growth: 1.60%
• EPS Growth: 76.73%
• Country: DE
• Employees: 69,668
• Sector: Utilities
• Sector Strength: 63
• Industry: Diversified Utilities
• EPS (TTM): 0.25
• Shares Outstanding: 2,641,318,800
• 10 Day Avg. Volume: 3,759,436
• 30 Day Avg. Volume: 3,771,720
• 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: €16.82
• Price Target Upside: 12.73% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 11

• Rating: 57 Neutral
• Price Target: €16.00 ▲(7.24% Upside)

E.ON SE's overall stock score is primarily impacted by its financial performance and technical analysis. The company's high leverage and negative cash flow growth are significant concerns, while bearish technical indicators suggest potential short-term weakness. However, the stock's reasonable valuation and attractive dividend yield provide some support.

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 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: Negative
• Last Price: 14.92
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DE:EOAN, the sentiment is Negative. The current price of 14.92 is below the 20-day moving average (MA) of 15.59, below the 50-day MA of 15.79, and above the 200-day MA of 13.53, indicating a neutral trend. The MACD of -0.24 indicates Positive momentum. The RSI at 31.74 is Neutral, neither overbought nor oversold. The STOCH value of 8.46 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for DE:EOAN.

E.ON SE Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	66 Neutral	$17.25B	17.87	5.54%	3.65%	6.63%	11.55%
EOAN	57 Neutral	€38.98B	12.31	18.90%	3.69%	1.60%	76.73%
0IHQ	―	€22.76B	54.40	3.57%	―	―	―
0FCK	―	€2.00B	13.22	7.01%	―	―	―
0HA0	―	€25.24B	9.70	7.90%	―	―	―