E.ON SE (EONGY)
OTHER OTC:EONGY
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EON SE
(OTC:EONGY)
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Rating:60Neutral
Price Target:
$22.50
▲(25.07% Upside)
Action:Reiterated
Date:05/21/26
The score is primarily held back by weak cash-flow quality (negative free cash flow) and still-elevated leverage, despite improved near-term profitability. Valuation is a major positive (very low P/E with a solid dividend yield). The earnings call was supportive due to reaffirmed guidance and funding progress, but regulatory and interest-rate headwinds remain. Technically, momentum is soft with the stock below key short-term averages.
Positive Factors
Regulated network investment focus
Sustained capex into regulated German power networks supports durable earnings visibility through allowed returns and long-lived assets. Higher investment-backed regulated asset base can grow tariff-linked revenue and justify future allowed returns, strengthening medium-term cash flow predictability despite near-term cash intensity.
Negative Factors
Elevated leverage and weak cash conversion
A sizable debt load (~2.0x equity) combined with negative free cash flow and low cash conversion constrains financial flexibility. Ongoing heavy capex and working‑capital needs increase refinancing reliance and interest expense sensitivity, elevating execution and rating risk unless cash conversion materially improves.
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Positive Factors
Negative Factors
Regulated network investment focus
Sustained capex into regulated German power networks supports durable earnings visibility through allowed returns and long-lived assets. Higher investment-backed regulated asset base can grow tariff-linked revenue and justify future allowed returns, strengthening medium-term cash flow predictability despite near-term cash intensity.
Read all positive factors
EON SE (EONGY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$54.78B
Dividend Yield3.27%
Average Volume (3M)24.09K
Price to Earnings (P/E)13.8
Beta (1Y)-0.09
Revenue Growth-1.34%
EPS Growth-16.55%
CountryUS
Employees69,668
SectorUtilities
Sector Strength65
IndustryDiversified Utilities
Share Statistics
EPS (TTM)1.33
Shares Outstanding2,641,318,800
10 Day Avg. Volume0
30 Day Avg. Volume24,090
Financial Highlights & Ratios
PEG Ratio-0.40
Price to Book (P/B)2.19
Price to Sales (P/S)0.56
P/FCF Ratio-46.80
Enterprise Value/Market Cap1.56
Enterprise Value/Revenue1.13
Enterprise Value/Gross Profit5.44
Enterprise Value/Ebitda8.68
Forecast
1Y Price Target
$22.60Price Target Upside25.63% Upside
Rating ConsensusHold
Number of Analyst Covering1
EPS Forecast (FY)1.26
Revenue Forecast (FY)$93.78B
EON SE Business Overview & Revenue Model
Company Description
E.ON SE functions as a significant international energy enterprise, with substantial activities spanning Germany, the United Kingdom, Sweden, the Netherlands, Belgium, and across wider European and global markets. The company structures its divers...
How the Company Makes Money
E.ON primarily makes money through two core businesses: (1) regulated energy networks and (2) customer solutions/energy retail and related services. In its Networks segment, E.ON earns revenue by operating electricity distribution and gas distribu...
EON SE Earnings Call Summary
Earnings Call Date:May 13, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 12, 2026
Earnings Call Sentiment Positive
The call communicated a predominately positive operational and financial picture: strong Q1 EBITDA (EUR 3.3bn) and ANI (~EUR 1.3bn), confirmed full-year guidance, active funding execution (EUR 3.0bn secured), and strategic value from the announced OVO acquisition (EPS accretive by 2030 and headroom enhancement). These positives are tempered by meaningful regulatory uncertainty in Germany (WACC, cost of debt mechanics and benchmarking), near-term higher interest expense pressure, Q1 seasonal negative operating cash flow and announced OVO integration costs (low triple-digit million-euro range). On balance the company presented multiple clear strengths, explicit mitigation plans, and reaffirmed targets, while acknowledging identifiable near-term headwinds and regulatory risks.Positive Updates
Strong Q1 Financials
Adjusted EBITDA of EUR 3.3 billion and adjusted net income of around EUR 1.3 billion in Q1 2026, with management stating performance firmly on track to achieve full-year guidance.
Negative Updates
Regulatory Uncertainty in Germany
Key regulatory parameters remain uncertain: concern over a proposed 7-year look-back for cost of debt without mark-to-market adjustments, unclear WACC for power (final clarity expected end-2027), benchmarking results and some OpEx adjustment factor parameters only available in 2028 — management cannot yet quantify financial impact.
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Q1-2026 Updates
Positive
Negative
Strong Q1 Financials
Adjusted EBITDA of EUR 3.3 billion and adjusted net income of around EUR 1.3 billion in Q1 2026, with management stating performance firmly on track to achieve full-year guidance.
Read all positive updates
Company Guidance
Management fully reconfirmed its full‑year 2026 guidance, 2030 outlook and dividend policy: Q1 adjusted EBITDA was €3.3bn and adjusted net income ~€1.3bn, economic net debt was ~€46bn (reflecting typical Q1 working‑capital seasonality and a negative operating cash flow), and year‑end economic net‑debt guidance remains at or below 5.0. Investments materially exceed depreciation (with most capex into German Power Networks), the cash‑conversion target is 100%, and €3.0bn of 2026 funding has already been secured (€1.6bn in the Eurobond market + €1.4bn from other investors) covering >50% of 2026 requirements; S&P and Fitch affirmed BBB+ with stable outlook. Management warned that higher interest expenses (from higher net debt and refinancing of low‑coupon bonds) will offset some ANI growth during the year, and said the OVO deal is expected to be cumulatively broadly neutral to ANI over the guidance period (2028 burdened by integration/restructuring costs, ANI accretive from 2029 with a high‑double‑digit‑€ benefit in 2030), with integration/restructuring costs guided in the low triple‑digit € range and a high triple‑digit € increase to balance‑sheet headroom.EON SE Financial Statement Overview
Summary
Income Statement
58
Neutral
Balance Sheet
54
Neutral
Cash Flow
42
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 75.47B | 75.60B | 80.12B | 95.02B | 115.66B | 77.36B |
| Gross Profit | 15.73B | 8.75B | 22.64B | 30.76B | 8.16B | 45.00M |
| EBITDA | 9.86B | 9.15B | 13.83B | 6.00B | 7.00B | 11.09B |
| Net Income | 3.46B | 1.67B | 4.53B | 517.00M | 1.83B | 4.69B |
Balance Sheet | ||||||
| Total Assets | 117.34B | 116.36B | 111.36B | 113.51B | 134.01B | 119.76B |
| Cash, Cash Equivalents and Short-Term Investments | 5.79B | 4.35B | 7.02B | 6.96B | 8.92B | 5.23B |
| Total Debt | 43.29B | 41.14B | 39.06B | 35.44B | 34.15B | 34.66B |
| Total Liabilities | 88.48B | 89.77B | 87.19B | 93.54B | 112.14B | 101.87B |
| Stockholders Equity | 21.88B | 19.25B | 17.84B | 14.11B | 15.92B | 12.05B |
Cash Flow | ||||||
| Free Cash Flow | -445.69M | -900.02M | -1.30B | -356.00M | 5.47B | -418.00M |
| Operating Cash Flow | 7.31B | 6.73B | 5.67B | 5.65B | 10.04B | 4.07B |
| Investing Cash Flow | -6.56B | -6.74B | -6.63B | -5.59B | -3.15B | -5.40B |
| Financing Cash Flow | 1.39B | -2.19B | 1.11B | -1.84B | -3.15B | 2.26B |
EON SE Technical Analysis
Negative
17.99
Price Trends
21.61
Negative
21.35
Negative
19.68
Positive
Market Momentum
-0.17
Positive
45.58
Neutral
41.60
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EONGY, the sentiment is Negative. The current price of 17.99 is below the 20-day moving average (MA) of 21.21, below the 50-day MA of 21.61, and below the 200-day MA of 19.68, indicating a neutral trend. The MACD of -0.17 indicates Positive momentum. The RSI at 45.58 is Neutral, neither overbought nor oversold. The STOCH value of 41.60 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for EONGY.
EON SE Peers Comparison
UnderperformOutperform
Sector (66)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
66 Neutral | $17.65B | 18.10 | 5.60% | 3.62% | 6.62% | 11.55% | |
60 Neutral | $54.78B | 13.82 | 17.97% | 3.27% | -1.34% | -16.55% | |
59 Neutral | $6.83B | 9.31 | 16.88% | 12.98% | 10.16% | -29.63% | |
56 Neutral | $58.18B | 28.10 | 6.53% | 2.91% | 2.23% | -35.44% | |
55 Neutral | $17.87B | 42.64 | 7.74% | 4.92% | 13.02% | ― | |
53 Neutral | $10.49B | 7.86 | 28.87% | 5.06% | 2.76% | 5.46% |
* Utilities Sector Average
EONGY
EON SE
20.97
3.91
22.92%
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38.67
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21.84%
CIG
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2.04
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22.52%
SRE
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89.00
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20.73%
AES
AES
14.71
3.97
36.99%
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.