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EON SE (EONGY)
OTHER OTC:EONGY
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EON SE
(OTC:EONGY)
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Rating:67Neutral
Price Target:
$19.50
â–²(5.46% Upside)
EON SE's overall stock score reflects a solid financial foundation and promising earnings call insights, tempered by technical weaknesses and regulatory uncertainties. The company's strong balance sheet and attractive dividend yield are significant positives, while the bearish technical indicators and potential regulatory challenges in Germany are notable risks.
EON SE (EONGY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$48.51B
Dividend Yield3.8%
Average Volume (3M)9.98K
Price to Earnings (P/E)14.3
Beta (1Y)-0.05
Revenue Growth1.72%
EPS Growth75.80%
CountryUS
Employees69,668
SectorUtilities
Sector Strength65
IndustryDiversified Utilities
Share Statistics
EPS (TTM)0.29
Shares Outstanding2,641,318,800
10 Day Avg. Volume6,058
30 Day Avg. Volume9,983
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap2.01
Enterprise Value/Revenue1.19
Enterprise Value/Gross Profit4.79
Enterprise Value/Ebitda8.99
Forecast
1Y Price Target
$20.10Price Target Upside8.71% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EON SE Business Overview & Revenue Model
Company DescriptionEON SE (EONGY) is a leading energy company based in Germany, specializing in the production and distribution of renewable energy. The company operates across various sectors including electricity generation, natural gas, and energy services, with a strong focus on sustainability and environmentally friendly solutions. EON SE offers a range of core products and services including electricity and gas supply, energy management solutions, and innovative technologies for energy efficiency, catering to both residential and business customers.
How the Company Makes MoneyEON SE generates revenue primarily through the sale of electricity and natural gas to retail customers, as well as through wholesale energy trading. The company's revenue model is diversified, encompassing various segments such as electricity generation from renewable sources, conventional energy operations, and energy services. Key revenue streams include fixed contracts with large industrial clients, the retail sale of energy to households, and the provision of energy management services. EON SE also benefits from strategic partnerships with governmental bodies and other corporations aimed at advancing renewable energy initiatives, which enhance its market position and drive additional revenue growth. Factors such as regulatory incentives for renewable energy adoption and increased consumer demand for sustainable energy solutions further contribute to EON's earnings.
EON SE Earnings Call Summary
Earnings Call Date:Aug 13, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Nov 12, 2025
Earnings Call Sentiment Neutral
The earnings call reflects a robust financial and operational performance by E.ON, marked by significant growth in EBITDA and CapEx. The company continues to drive innovation and form strategic partnerships. However, regulatory uncertainty in Germany, particularly concerning efficiency benchmarking and redispatch costs, poses potential challenges. While E.ON remains optimistic about achieving a favorable regulatory framework, these uncertainties could impact future investment plans.Q2-2025 Updates
Positive Updates
Strong Financial Performance
E.ON reported an adjusted EBITDA of EUR 5.5 billion and an adjusted net income of EUR 1.8 billion for H1 2025, reflecting a year-over-year increase of 13% and 10%, respectively.
CapEx Growth
CapEx spending increased by 11% year-over-year, indicating strong investment in Energy Networks business.
Operational Excellence
E.ON has improved connection process times from 22 days to under 24 hours through digital platforms, showcasing significant operational efficiency.
Digital Innovation
E.ON has developed a complete digital twin of its 700,000 kilometers power grid using the envelio technology platform to enhance grid management.
Strategic Energy Partnerships
A strategic partnership with CyrusOne was announced to deliver up to 61 megawatts of power to Frankfurt campus, setting a new industry standard.
Positive Regulatory Developments
The German regulator's draft acknowledges the need for a more market-driven regulatory framework, with positive signs like the WACC model simplification.
Negative Updates
Regulatory Uncertainty
Concerns about the German regulatory framework include inadequate financial conditions for attracting capital and issues with efficiency benchmarking changes.
Redispatch Costs in Efficiency Benchmarking
Inclusion of redispatch costs in benchmarking penalizes grid operators advancing the energy transition, like E.ON, which incurred 80% of Germany's redispatching costs.
Potential Impact of German Regulatory Proposals
The proposed changes in regulatory returns could fall short of industry expectations, potentially impacting future CapEx plans.
Limited Clarity on Future Parameters
There is still uncertainty on the final regulatory parameters, especially concerning cost of equity and cost of debt.
Company Guidance
During the call, E.ON reported strong H1 2025 results, achieving an adjusted EBITDA of EUR 5.5 billion and an adjusted net income of EUR 1.9 billion, reflecting a year-over-year increase of 13% and 10%, respectively. Capital expenditures (CapEx) increased by 11% year-over-year, primarily driven by investments in energy networks. E.ON remains on track to meet its full-year guidance and confirmed the robustness of its financial and operational performance. The company emphasized its role in the energy transition, highlighting the connection of 28 gigawatts of solar capacity in Bavaria and significant progress in grid digitization. E.ON also discussed regulatory challenges in Germany, specifically the need for improvements in the proposed regulatory framework for the upcoming fifth regulatory period. Despite uncertainties, E.ON expressed confidence in achieving a favorable regulatory outcome and reiterated its commitment to sustained growth well into the 2030s.EON SE Financial Statement Overview
Summary
EON SE shows a mixed financial performance with strong balance sheet improvements and cost management. However, declining revenues and negative free cash flow highlight potential risks. Continued focus on revenue growth and operational efficiency is needed.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.65
Positive
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.72
Positive
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.60
Neutral
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 82.15B | 80.12B | 95.02B | 115.66B | 77.36B | 60.94B |
| Gross Profit | 20.37B | 22.64B | 30.76B | 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 | 7.02B | 6.96B | 8.92B | 5.23B | 3.78B |
| Total Debt | 0.00 | 39.06B | 35.44B | 34.15B | 34.66B | 32.84B |
| Total Liabilities | 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 |
EON SE Technical Analysis
Positive
18.49
Price Trends
18.37
Positive
17.93
Positive
15.37
Positive
Market Momentum
0.02
Negative
57.70
Neutral
96.33
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 18.49 is above the 20-day moving average (MA) of 18.00, above the 50-day MA of 18.37, and above the 200-day MA of 15.37, indicating a bullish trend. The MACD of 0.02 indicates Negative momentum. The RSI at 57.70 is Neutral, neither overbought nor oversold. The STOCH value of 96.33 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
Overall Rating
UnderperformOutperform
Sector (66)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | 6.79B | 5.18 | 26.00% | 14.92% | -3.27% | -3.44% | |
72 Outperform | 7.01B | 13.40 | 11.89% | 5.74% | -5.28% | 14.50% | |
71 Outperform | 53.93B | 20.03 | 8.56% | 3.06% | 0.46% | -11.77% | |
67 Neutral | $48.51B | 14.33 | 18.05% | 3.80% | 1.72% | 75.80% | |
65 Neutral | 20.05B | 1,604.12 | 4.04% | 5.52% | 8.86% | 0.00% | |
55 Neutral | 8.91B | 8.97 | 46.27% | 5.60% | -3.19% | 30.48% | |
66 Neutral | $17.65B | 18.10 | 5.60% | 3.62% | 6.62% | 11.55% |
* Utilities Sector Average
Performance Comparison
EONGY
EON SE
18.49
4.10
28.49%
BIP
Brookfield Infrastructure
30.73
-1.35
-4.21%
CIG
Companhia Energetica Minas Gerais
2.12
0.30
16.48%
ELP
Companhia Paranaense de Energia Pfd
9.73
2.84
41.22%
SRE
Sempra Energy
82.65
2.09
2.59%
AES
AES
12.51
-5.33
-29.88%
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.