EON SE (EONGY) AI Stock Analysis

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EON SE

(OTC:EONGY)

Rating:73Outperform

Price Target:―

EON SE shows a strong financial foundation with improvements in cost management and balance sheet, though declining revenues and negative free cash flow are concerns. Technical indicators suggest upward momentum, but caution is advised due to overbought conditions. The company is attractively valued with a low P/E ratio and reasonable dividend yield. The recent earnings call reinforces the company's growth potential, despite regulatory challenges.

EON SE (EONGY) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$47.54B

Dividend Yield3.38%

Average Volume (3M)16.04K

Price to Earnings (P/E)10.0

Beta (1Y)-0.03

Revenue Growth-14.38%

EPS Growth748.91%

CountryUS

Employees69,668

SectorUtilities

Sector Strength80

IndustryDiversified Utilities

Share Statistics

EPS (TTM)0.55

Shares Outstanding2,641,318,800

10 Day Avg. Volume30,277

30 Day Avg. Volume16,038

Financial Highlights & Ratios

PEG Ratio-8.20

Price to Book (P/B)2.25

Price to Sales (P/S)0.00

P/FCF Ratio-23.97

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

$20.05

Price Target Upside9.80% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering3

EON SE Business Overview & Revenue Model

Company DescriptionEON SE (EONGY) is a prominent energy company based in Germany, primarily engaged in the sectors of energy networks and customer solutions. The company focuses on providing innovative and sustainable energy solutions, including electricity and gas distribution. EON SE operates through various subsidiaries to deliver high-quality services across Europe, ensuring energy efficiency and reliability. Its core offerings include energy distribution, renewable energy solutions, and energy management services for both residential and commercial clients.

How the Company Makes MoneyEON SE makes money through a diversified revenue model primarily centered on energy networks and customer solutions. The company generates significant income from its regulated energy network operations, where it earns stable and predictable revenues by distributing electricity and gas to millions of customers across Europe. Additionally, EON SE benefits from its customer solutions segment, which includes selling energy-related products and services, such as energy efficiency solutions, smart home technologies, and renewable energy products. The company also engages in power generation, with a focus on renewable energy sources, which contributes to its earnings. Strategic partnerships and collaborations with other energy firms and technology providers further enhance its revenue streams, enabling EON SE to maintain a competitive edge in the energy sector.

EON SE Earnings Call Summary

Earnings Call Date:May 14, 2025

(Q1-2025)

% Change Since: 14.27%|

Next Earnings Date:Aug 13, 2025

Earnings Call Sentiment Positive

The earnings call reflected a strong financial performance with notable growth and solid balance sheet management. However, some challenges were noted in the energy retail segment and regulatory uncertainty in Germany. Overall, the positive aspects significantly outweighed the negative, indicating a positive outlook for E.ON.

Q1-2025 Updates

Positive Updates

Strong Financial Performance

E.ON delivered a strong operational financial performance in Q1 2025, with adjusted EBITDA reaching EUR 3.2 billion and adjusted net income at around EUR 1.3 billion, reflecting an increase of 18% and 22% respectively.

Investment-Backed Growth

Increased earnings driven by investment-backed growth, strong operational execution, and timing effects from network loss recoveries, particularly in Southeastern Europe. CapEx spending accelerated by around 13% year-over-year.

Solid Balance Sheet

Economic net debt outturn of around EUR 44 billion, reflecting typical Q1 cash flow seasonality. Balance sheet remains solid, with ratings confirmed by S&P and Moody's.

Confirmation of Guidance

Full confirmation of short- and long-term guidance, including dividend policy. The company remains on track for full-year 2025 guidance with high single-digit underlying adjusted net income growth.

Negative Updates

Challenges in Energy Retail

Slight customer losses experienced due to rescheduling of customer acquisition campaigns. Some elements of weather-related volume effects and customer churn were highlighted.

Regulatory Uncertainty

Uncertainty surrounding future regulatory returns in Germany, with expectations for consultation documents and methodologies for the next regulatory period still pending.

Company Guidance

In the first quarter of 2025, E.ON delivered strong financial results, achieving an adjusted EBITDA of EUR 3.2 billion and an adjusted net income of approximately EUR 1.3 billion, reflecting increases of 18% and 22% year-over-year, respectively. This growth was driven by investment-backed growth, strong operational performance, network loss recoveries, and higher volumes due to normalized weather conditions. Capital expenditure (CapEx) increased by 13% year-over-year, with a significant portion directed towards Energy Networks. The company reported economic net debt of around EUR 44 billion, consistent with typical first-quarter cash flow seasonality. E.ON confirmed its guidance for the full year 2025 and its long-term outlook, including its dividend policy. The company expects to maintain a high single-digit growth in adjusted net income and is on track to achieve its mid-term targets.

EON SE Financial Statement Overview

Summary

EON SE exhibits a mixed financial performance with strengths in balance sheet improvement and cost management. However, declining revenues, negative free cash flow, and operational inefficiencies pose potential risks. Continued focus on revenue growth and operational efficiency would be beneficial.

Income Statement

Positive

EON SE has shown volatility in revenue and profitability. Gross Profit Margin and EBITDA Margin are healthy in the latest year, but lack of EBIT indicates potential operational inefficiency. Net Profit Margin has improved significantly, indicating better cost management. However, revenue has decreased over the past few years, which could be a concern if the trend continues.

Balance Sheet

Positive

The company has improved its equity base significantly, reflected in a stronger Equity Ratio. Debt levels have decreased to zero, indicating a strong balance sheet. ROE is positive, showing profitability relative to equity. However, the total assets have decreased, which could limit future growth potential.

Cash Flow

Neutral

Operating cash flow remains stable, but Free Cash Flow has been negative, indicating potential issues in covering capital expenditures. Free cash flow to net income ratio suggests inefficiency in translating income to cash. Positive operating cash flow to net income ratio indicates good cash generation from operations.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	80.12B	95.02B	115.66B	77.36B	60.94B
Gross Profit	22.64B	30.76B	8.16B	45.00M	14.52B
EBITDA	13.83B	6.00B	7.00B	11.09B	7.42B
Net Income	4.53B	517.00M	1.83B	4.69B	1.02B
Balance Sheet
Total Assets	111.36B	113.51B	134.01B	119.76B	95.39B
Cash, Cash Equivalents and Short-Term Investments	7.02B	6.96B	8.92B	5.23B	3.78B
Total Debt	0.00	35.44B	34.15B	34.66B	32.84B
Total Liabilities	87.19B	93.54B	112.14B	101.87B	86.33B
Stockholders Equity	17.84B	14.11B	15.92B	12.05B	4.92B
Cash Flow
Free Cash Flow	-1.30B	-356.00M	5.47B	-418.00M	951.00M
Operating Cash Flow	5.67B	5.65B	10.04B	4.07B	5.31B
Investing Cash Flow	-6.63B	-5.59B	-3.15B	-5.40B	-1.86B
Financing Cash Flow	1.11B	-1.84B	-3.15B	2.26B	-2.62B

EON SE Technical Analysis

Technical Analysis Sentiment

Positive

Last Price18.26

Price Trends

50DMA

18.10

Positive

100DMA

16.84

Positive

200DMA

14.49

Positive

Market Momentum

MACD

0.06

Positive

RSI

48.14

Neutral

STOCH

8.70

Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EONGY, the sentiment is Positive. The current price of 18.26 is below the 20-day moving average (MA) of 18.56, above the 50-day MA of 18.10, and above the 200-day MA of 14.49, indicating a neutral trend. The MACD of 0.06 indicates Positive momentum. The RSI at 48.14 is Neutral, neither overbought nor oversold. The STOCH value of 8.70 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for EONGY.

EON SE Peers Comparison

Overall Rating

UnderperformOutperform

Sector (60)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CIG	76 Outperform	$6.03B	4.10	26.38%	4.67%	-4.14%	13.02%
ELP	74 Outperform	$6.13B	12.13	9.22%	6.54%	-7.02%	17.33%
SRE	74 Outperform	$53.27B	17.97	9.76%	3.10%	-0.39%	0.75%
EONGY	73 Outperform	$47.54B	9.96	26.35%	3.38%	-14.38%	748.91%
AES	62 Neutral	$9.36B	7.18	21.38%	5.35%	-3.22%	141.11%
BIP	61 Neutral	$20.35B	436.97	1.06%	5.35%	8.86%	―
Sector *	60 Neutral	C$5.14B	-23.87	-19.26%	4.50%	12.16%	-71.33%

* Utilities Sector Average

Performance Comparison

EONGY

EON SE

18.49

5.10

38.09%

BIP

Brookfield Infrastructure

31.14

2.29

7.94%

CIG

Companhia Energetica Minas Gerais

1.82

0.24

15.19%

ELP

Companhia Paranaense de Energia Pfd

8.54

1.88

28.23%

SRE

Sempra Energy

80.97

1.81

2.29%

AES

13.23

-2.94

-18.18%

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: Mar 25, 2025