E.ON SE (EOAN) AI Stock Analysis

• Market Cap: €39.24B
• Dividend Yield: 3.53%
• Average Volume (3M): 7.78M
• Price to Earnings (P/E): 8.7
• Beta (1Y): 0.31
• Revenue Growth: -14.48%
• EPS Growth: 775.28%
• Country: DE
• Employees: 71,613
• Sector: Energy
• Sector Strength: 51
• Industry: Regulated Utilities
• EPS (TTM): 1.73
• Shares Outstanding: 2,641,318,800
• 10 Day Avg. Volume: 5,388,174
• 30 Day Avg. Volume: 7,778,124
• PEG Ratio: 0.01
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.27
• Price to Cash Flow (P/CF): N/A
• P/FCF Ratio: 0.00
• 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: €15.35
• Price Target Upside: 2.20% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 12

E.ON SE demonstrates solid financial stability with improving profit margins and robust balance sheet metrics. However, the company faces challenges with declining revenues and negative free cash flow, which could impact long-term growth. On the technical front, the stock shows bullish trends, while valuation metrics indicate potential undervaluation. Overall, the stock presents a balanced risk-reward profile with strengths in profitability and valuation, but caution is warranted due to revenue and liquidity concerns.

Positive Factors

Financial Performance

Improved policy backdrop in Germany could double E.On’s EPS CAGR to 8.5-8.8%.

Growth Opportunities

Germany's planned new infrastructure fund could enhance growth opportunities across E.On’s energy networks, services and retail divisions.

Strategic Investments

Management reaffirmed their 2024 guidance and 2028 targets; underscoring their financial stability and strategic investments.

Negative Factors

Regulatory Environment

Key risk is the regulatory environment, especially in Germany, if policies become less supportive and affect RAB returns.

E.ON SE Business Overview & Revenue Model

Company Description

E.ON SE (EOAN) is a leading European utility company headquartered in Essen, Germany. The company operates in the energy sector, focusing on energy networks, customer solutions, and renewable energy. E.ON provides electricity, gas, and heat to millions of customers throughout Europe and is committed to driving the transition to a low-carbon energy system.

How the Company Makes Money

E.ON SE makes money primarily through its energy networks and customer solutions. The energy networks segment generates revenue by operating electricity and gas distribution systems, facilitating the delivery of energy to customers. The customer solutions segment includes the sale of electricity, gas, and heat to residential, commercial, and industrial customers. Additionally, E.ON invests in renewable energy sources, including wind and solar power, contributing to its revenue. Key partnerships with other energy companies and investments in technology and innovation also play a significant role in E.ON's revenue generation, helping the company meet the growing demand for sustainable energy solutions.

E.ON SE Financial Statement Overview

Summary

E.ON SE exhibits a mixed financial performance. The income statement shows improving profit margins and operational efficiency, yet revenue contraction is a concern. The balance sheet is robust with improved equity and reduced debt, enhancing financial stability. However, cash flow analysis reveals liquidity challenges due to negative free cash flow. Overall, the company shows strengths in profitability and balance sheet metrics, but must address revenue growth and cash flow constraints.

Income Statement

E.ON SE shows a fluctuating revenue pattern, with recent revenue contraction in 2024 to €80.1 billion from €93.7 billion in 2023. Gross profit margin in 2024 is approximately 28.2%, a slight improvement from 2023. Net profit margin in 2024 stands at 5.7%, indicating moderate profitability. Notably, EBIT has improved from a negative in 2023 to break-even in 2024, and the EBITDA margin is 17.3%, reflecting operational efficiency. However, the revenue decline and previous volatility in profitability are concerns.

Balance Sheet

E.ON SE has strengthened its equity position with a stockholders' equity increase to €17.8 billion in 2024. The debt-to-equity ratio has improved significantly due to the reduction of total debt to zero, enhancing financial stability. The equity ratio stands at 16.0%, reflecting a moderate reliance on equity to finance assets. Return on equity (ROE) is a robust 25.4% in 2024, indicating effective use of shareholder funds. The balance sheet is solid, but the relatively low equity ratio could be a risk.

Cash Flow

E.ON SE's free cash flow in 2024 is negative at €-1.3 billion, down from a less negative position in 2023. The operating cash flow to net income ratio is 1.25, suggesting that operating cash flow adequately supports net income. However, free cash flow to net income ratio is negative, indicating cash outflows exceed inflows after capital expenditures. The negative free cash flow trend presents a liquidity concern, though operating cash flow remains stable.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
80.12B	93.69B	115.66B	77.36B	60.94B
	Gross Profit
22.64B	30.87B	8.16B	45.00M	14.52B
	EBIT
8.54B	17.89B	-530.00M	-11.32B	3.10B
	EBITDA
13.83B	4.47B	4.45B	10.32B	7.23B
	Net Income Common Stockholders
4.53B	517.00M	1.83B	4.69B	1.02B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
7.02B	6.96B	8.92B	5.23B	3.78B
	Total Assets
111.36B	113.51B	134.01B	119.76B	95.39B
	Total Debt
0.00	35.44B	34.15B	34.66B	32.84B
	Net Debt
-5.75B	29.86B	26.83B	31.03B	30.17B
	Total Liabilities
87.19B	93.54B	112.14B	101.87B	86.33B
	Stockholders Equity
17.84B	14.11B	14.84B	11.27B	3.36B
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

E.ON SE Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 15.02
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DE:EOAN, the sentiment is Positive. The current price of 15.02 is above the 20-day moving average (MA) of 14.45, above the 50-day MA of 13.26, and above the 200-day MA of 12.48, indicating a bullish trend. The MACD of 0.57 indicates Negative momentum. The RSI at 65.74 is Neutral, neither overbought nor oversold. The STOCH value of 70.10 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DE:EOAN.

E.ON SE Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DB1	74 Outperform	€51.42B	26.50	19.07%	1.34%	14.88%	13.32%
EOAN	70 Outperform	€39.24B	8.74	28.36%	3.53%	-14.48%	775.28%
MVV1	69 Neutral	€2.01B	12.41	7.22%	4.19%	-9.49%	-52.30%
RWE	68 Neutral	€25.17B	4.93	16.28%	2.96%	-15.16%	254.42%
FME	60 Neutral	€12.59B	23.15	3.82%	2.77%	-0.60%	7.80%
Sector *	55 Neutral	$7.10B	3.56	-6.61%	5.99%	-0.03%	-51.71%
VNA	46 Neutral	€23.73B	―	-3.71%	3.11%	15.65%	86.00%