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EON SE
(OTC:EONGY)
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Rating:56Neutral
Price Target:
$21.00
â–²(2.09% Upside)
Action:Reiterated
Date:08/17/26
The score is held back primarily by financial quality concerns—especially persistently weak/negative free cash flow and elevated leverage—despite improved TTM profitability. Technical indicators also remain bearish with the stock trading below key moving averages and negative MACD. Offsetting these pressures are a reasonable valuation (P/E ~13.6; ~3.29% yield) and an earnings call that reaffirmed 2026 guidance and highlighted a strong investment/pipeline backdrop, though regulatory and safety risks are meaningful.
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.
Read all positive and negative factors
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
$53.06B
Dividend Yield3.28%
Average Volume (3M)85.05K
Price to Earnings (P/E)13.6
Beta (1Y)-0.11
Revenue Growth-1.29%
EPS Growth16.49%
CountryUS
Employees78,270
SectorUtilities
Sector Strength65
IndustryDiversified Utilities
Share Statistics
EPS (TTM)1.31
Shares Outstanding2,641,318,800
10 Day Avg. Volume46,066
30 Day Avg. Volume85,048
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 Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$24.50Price Target Upside19.11% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)1.26
Revenue Forecast (FY)$91.70B
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 main business areas: (1) regulated energy networks and (2) customer solutions (energy retail and related services). In its networks business, E.ON earns revenue by owning and operating electricity distributio...
EON SE Earnings Call Summary
Earnings Call Date:Aug 12, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 11, 2026
Earnings Call Sentiment Positive
The call presented a predominantly constructive operational and financial picture: H1 2026 results showed modest year-over-year earnings growth (EBITDA +1%, net income +5%), strong performance in Energy Infrastructure Solutions (+19%), heavy ongoing investments (EUR 3.0bn in H1) and substantial network, battery and data center connection pipelines. Management reaffirmed full-year guidance and highlighted digital and project wins. However, the tone was tempered by material lowlights — two fatal workplace accidents, regulatory uncertainty that could materially affect returns and future investment decisions, security vulnerabilities (drones), customer service/IT migration issues and some market risks (gas storage levels, weather-related capex timing). On balance the highlights (financial delivery, pipeline, investments, innovation awards and strategic moves like the OVO acquisition) outweigh the lowlights, but several risks — particularly regulatory and safety/security — are significant and warrant close monitoring.Positive Updates
Solid Group Financial Performance
Adjusted group EBITDA rose 1% year-over-year to EUR 5.4 billion in H1 2026; adjusted group net income increased 5% to EUR 1.9 billion. Management reaffirmed full-year 2026 guidance of adjusted EBITDA EUR 9.4–9.6 billion and adjusted group net income EUR 2.7–2.9 billion (EPS EUR 1.03–1.11).
Negative Updates
Workplace Safety Incidents
Two fatal workplace accidents occurred (one in Germany, one in Turkey). Management described these as 'totally unacceptable' and reiterated a Vision Zero goal, underscoring a serious safety and human-cost issue.
Read all updates
Q2-2026 Updates
Positive
Negative
Solid Group Financial Performance
Adjusted group EBITDA rose 1% year-over-year to EUR 5.4 billion in H1 2026; adjusted group net income increased 5% to EUR 1.9 billion. Management reaffirmed full-year 2026 guidance of adjusted EBITDA EUR 9.4–9.6 billion and adjusted group net income EUR 2.7–2.9 billion (EPS EUR 1.03–1.11).
Read all positive updates
Company Guidance
E.ON reaffirmed it is on track for 2026 after reporting H1 results of adjusted group EBITDA up 1% to EUR 5.4 billion and adjusted group net income up 5% to EUR 1.9 billion, having invested EUR 3.0 billion in the first six months (planned full-year investments ~EUR 8.7 billion), and confirming full-year guidance of adjusted group EBITDA EUR 9.4–9.6 billion, adjusted group net income EUR 2.7–2.9 billion (adjusted EPS EUR 1.03–1.11). Division metrics: Energy Networks adjusted EBITDA >EUR 3.8 billion with H1 investments of ~EUR 2.3 billion; Energy Infrastructure Solutions EBITDA ~EUR 390 million (up 19%) with ~EUR 360 million invested; Energy Retail adjusted EBITDA EUR 1.2 billion with ~EUR 240 million invested. Operational volumes and approvals cited included >130,000 new German grid connections, >5 GW of renewables connected (equivalent to >1,000 turbines), approvals for >26 GW of new battery capacity ( >1/4 of Germany’s peak load), and >13 GW of approved data‑center connections, while longer‑term capex plans total EUR 48 billion for 2026–2030 (≈EUR 40 billion for Energy Networks).EON SE Financial Statement Overview
Summary
Income Statement
68
Positive
Balance Sheet
56
Neutral
Cash Flow
38
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 75.66B | 75.60B | 80.12B | 95.02B | 115.66B | 77.36B |
| Gross Profit | 11.99B | 8.75B | 22.64B | 30.76B | 8.16B | 45.00M |
| EBITDA | 9.78B | 9.15B | 13.83B | 6.00B | 7.00B | 11.09B |
| Net Income | 3.41B | 1.67B | 4.53B | 517.00M | 1.83B | 4.69B |
Balance Sheet | ||||||
| Total Assets | 115.40B | 116.36B | 111.36B | 113.51B | 134.01B | 119.76B |
| Cash, Cash Equivalents and Short-Term Investments | 4.61B | 4.35B | 7.02B | 6.96B | 8.92B | 5.23B |
| Total Debt | 42.78B | 41.14B | 39.06B | 35.44B | 34.15B | 34.66B |
| Total Liabilities | 87.43B | 89.77B | 87.19B | 93.54B | 112.14B | 101.87B |
| Stockholders Equity | 21.21B | 19.25B | 17.84B | 14.11B | 15.92B | 12.05B |
Cash Flow | ||||||
| Free Cash Flow | -195.33M | -900.02M | -1.30B | -356.00M | 5.47B | -418.00M |
| Operating Cash Flow | 7.56B | 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 | 987.98M | -2.19B | 1.11B | -1.84B | -3.15B | 2.26B |
EON SE Technical Analysis
Negative
20.57
Price Trends
21.26
Negative
21.31
Negative
20.65
Negative
Market Momentum
-0.27
Positive
39.69
Neutral
17.03
Positive
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 20.57 is below the 20-day moving average (MA) of 20.73, below the 50-day MA of 21.26, and below the 200-day MA of 20.65, indicating a bearish trend. The MACD of -0.27 indicates Positive momentum. The RSI at 39.69 is Neutral, neither overbought nor oversold. The STOCH value of 17.03 is Positive, 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% | |
65 Neutral | $54.79B | 24.37 | 7.14% | 2.80% | 0.88% | -16.61% | |
64 Neutral | $45.39B | 16.25 | 9.61% | 3.45% | 6.56% | 3.72% | |
61 Neutral | $78.08B | 17.36 | 8.47% | 3.94% | 1.13% | 13.83% | |
60 Neutral | $47.17B | 20.80 | 9.64% | 2.85% | 4.57% | 1.46% | |
56 Neutral | $53.06B | 13.63 | 16.83% | 2.99% | -1.29% | 16.49% | |
52 Neutral | $58.09B | 23.11 | 8.89% | 3.76% | 21.98% | -0.39% |
* Utilities Sector Average
EONGY
EON SE
20.28
3.31
19.51%
D
Dominion Energy
66.79
10.49
18.62%
EXC
Exelon
44.53
2.33
5.51%
NGG
National Grid Transco
78.17
11.94
18.02%
SRE
Sempra Energy
84.57
4.76
5.96%
XEL
Xcel Energy
76.34
6.26
8.93%
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.