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E.ON SE (EONGY)
OTHER OTC:EONGY
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EON SE
(OTC:EONGY)
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Rating:65Neutral
Price Target:
$20.00
▲(11.17% Upside)
EON SE's overall stock score reflects a solid financial foundation with strong balance sheet improvements and reasonable valuation. However, declining revenues, negative free cash flow, and regulatory uncertainties pose challenges. The technical indicators suggest neutral momentum, and the earnings call highlighted both strengths and potential risks.
Positive Factors
Strong Balance Sheet
A zero debt level enhances financial stability, providing EON SE with greater flexibility to invest in growth opportunities and withstand economic downturns.
Investment-Driven Growth
Increased investments, particularly in the Energy Networks business, indicate a focus on long-term growth and infrastructure development, supporting future revenue expansion.
Positive Developments in Energy Infrastructure
Growth in energy infrastructure solutions, including smart metering, suggests EON SE is capitalizing on technological advancements, enhancing operational efficiency and customer service.
Negative Factors
Regulatory Uncertainty in Germany
Regulatory uncertainties can affect EON SE's ability to plan and execute long-term investments, potentially impacting profitability and strategic initiatives.
Challenges in Retail Business
Declining profitability in the retail segment may indicate competitive pressures and operational challenges, affecting overall business performance.
Customer Losses in Retail Markets
Losing customers despite aggressive pricing strategies suggests potential issues with customer retention and market competitiveness, impacting long-term revenue.
EON SE (EONGY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$51.18B
Dividend Yield3.27%
Average Volume (3M)6.95K
Price to Earnings (P/E)15.9
Beta (1Y)-0.11
Revenue Growth1.94%
EPS Growth65.73%
CountryUS
Employees69,668
SectorUtilities
Sector Strength65
IndustryDiversified Utilities
Share Statistics
EPS (TTM)0.16
Shares Outstanding2,641,318,800
10 Day Avg. Volume0
30 Day Avg. Volume6,953
Financial Highlights & Ratios
PEG Ratio<0.01
Price to Book (P/B)1.65
Price to Sales (P/S)0.37
P/FCF Ratio-22.62
Enterprise Value/Market Cap0.76
Enterprise Value/Revenue0.48
Enterprise Value/Gross Profit1.90
Enterprise Value/Ebitda3.55
Forecast
1Y Price Target
$20.70Price Target Upside15.06% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
EON SE Business Overview & Revenue Model
Company DescriptionEON SE (EONGY) is a leading German utility company focused on energy generation and distribution, specializing in renewable energy sources including wind, solar, and hydroelectric power. The company operates across various segments such as power generation, energy trading, and infrastructure management. EON SE aims to lead the transition to sustainable energy solutions, providing innovative products and services that support the decarbonization of the energy sector.
How the Company Makes MoneyEON SE generates revenue primarily through the sale of electricity and gas to residential, commercial, and industrial customers. The company's revenue model includes several key streams: the generation of electricity from its renewable energy assets, which are increasingly becoming a significant part of its portfolio, as well as traditional fossil fuel-based generation. Additionally, EON earns income from energy trading activities, balancing supply and demand in the energy market. The company's infrastructure services, including the management and maintenance of energy networks, also contribute to its revenue. Strategic partnerships with other energy companies and investments in new technologies further enhance EON's earnings, allowing it to capitalize on emerging market trends in energy efficiency and sustainability.
EON SE Earnings Call Summary
Earnings Call Date:Nov 12, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Feb 25, 2026
Earnings Call Sentiment Neutral
The earnings call presented a mixed sentiment. While financial performance and investment growth were strong, regulatory uncertainties in Germany and challenges in the retail segment were significant concerns.Q3-2025 Updates
Positive Updates
Strong 9 Months Financial Performance
Achieved an adjusted EBITDA of EUR 7.4 billion and an adjusted net income of EUR 2.3 billion, representing a year-over-year increase of 10% and 4%, respectively.
Investment-Driven Growth
Planned investments increased by 8% year-over-year at group level, with a significant contribution from the Energy Networks business.
Economic Net Debt Improvement
Economic net debt improved by roughly EUR 2 billion in the third quarter, driven by strong seasonal operational cash flow and positive structural effects.
Positive Developments in Energy Infrastructure Solutions
EBITDA growth driven by higher volumes due to normalized operations and business growth from new projects and increased smart metering installations in the U.K.
Negative Updates
Regulatory Uncertainty in Germany
Concerns about the regulatory framework for the cost of debt, lack of dynamic adjustment, and the framework not reflecting grid operators' financing costs accurately.
Challenges in Retail Business
EBITDA in the Retail segment declined by 18% over 9 months, with phasing and normalization effects impacting results.
Customer Losses in Retail Markets
Observed customer losses in both the German and U.K. retail markets, despite aggressive pricing strategies.
Company Guidance
During the call, the company provided a detailed financial update for the first nine months of 2025, highlighting key metrics such as an adjusted EBITDA of EUR 7.4 billion and an adjusted net income of EUR 2.3 billion, reflecting year-over-year increases of 10% and 4%, respectively. They have achieved approximately 76% of their full-year adjusted EBITDA and 78% of adjusted net income targets. Investment-driven earnings growth and robust operational execution remain crucial, with a year-over-year increase of 8% in planned investments, primarily from the Energy Networks business. Economic net debt is expected to align with a debt factor of around 4.5x economic net debt to adjusted EBITDA for the full year. The company also noted significant contributions to earnings growth from value-neutral timing effects, particularly in Germany and Southeastern Europe, and reported ongoing developments in their Energy Infrastructure Solutions and Energy Retail businesses. The recent regulatory developments in Germany were discussed, with emphasis on the framework concept affecting smaller network operators and the ongoing consultation process, which is expected to finalize between 2026 and 2028. Despite uncertainties, the company remains confident in achieving necessary regulatory outcomes to support investment growth.EON SE Financial Statement Overview
Summary
EON SE shows strong balance sheet improvements and cost management, with a zero debt level and improved net profit margin. However, declining revenues and negative free cash flow highlight potential risks.Income Statement
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
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
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 | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 81.35B | 80.12B | 95.02B | 115.66B | 77.36B | 60.94B |
| Gross Profit | 20.58B | 22.64B | 30.76B | 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 | 4.06B | 7.02B | 6.96B | 8.92B | 5.23B | 3.78B |
| Total Debt | 0.00 | 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 |
EON SE Technical Analysis
Positive
17.99
Price Trends
18.37
Positive
18.40
Positive
17.89
Positive
Market Momentum
0.35
Negative
73.09
Negative
94.40
Negative
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 17.99 is below the 20-day moving average (MA) of 18.70, below the 50-day MA of 18.37, and above the 200-day MA of 17.89, indicating a bullish trend. The MACD of 0.35 indicates Negative momentum. The RSI at 73.09 is Negative, neither overbought nor oversold. The STOCH value of 94.40 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 |
|---|---|---|---|---|---|---|---|
70 Outperform | $6.39B | 8.25 | 13.35% | 12.98% | -0.38% | -53.94% | |
69 Neutral | $15.54B | 52.79 | 6.28% | 4.92% | 8.14% | ― | |
66 Neutral | $17.65B | 18.10 | 5.60% | 3.62% | 6.62% | 11.55% | |
65 Neutral | $51.18B | 15.91 | 16.59% | 3.27% | 1.94% | 65.73% | |
65 Neutral | $10.13B | 8.72 | 23.02% | 5.06% | -1.55% | 12.83% | |
61 Neutral | $57.46B | 27.35 | 7.10% | 2.91% | 9.07% | -28.58% |
* Utilities Sector Average
EONGY
EON SE
19.77
9.23
87.60%
BIP
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33.64
3.72
12.43%
CIG
Companhia Energetica Minas Gerais
2.00
0.49
32.80%
SRE
Sempra Energy
88.03
11.80
15.47%
AES
AES
14.22
2.90
25.62%
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.