BUSE:EON

Stock Analysis Report

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Executive Summary

E.ON SE operates as an energy company in Germany, the United Kingdom, Sweden, rest of Europe, and internationally.


Snowflake Analysis

Limited growth unattractive dividend payer.


Similar Companies

Share Price & News

How has E.ON's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: EON has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0%

EON

1.2%

HU Integrated Utilities

-1.9%

HU Market


1 Year Return

8.8%

EON

0.3%

HU Integrated Utilities

-15.0%

HU Market

Return vs Industry: EON exceeded the Hungarian Integrated Utilities industry which returned 0.3% over the past year.

Return vs Market: EON exceeded the Hungarian Market which returned -15% over the past year.


Shareholder returns

EONIndustryMarket
7 Day0%1.2%-1.9%
30 Day0.8%-0.7%-5.7%
90 Day7.5%13.5%10.6%
1 Year13.9%8.8%3.0%0.3%-14.5%-15.0%
3 Year53.1%35.3%17.6%2.8%5.7%-0.7%
5 Year11.1%-9.7%12.9%-12.2%72.1%53.3%

Price Volatility Vs. Market

How volatile is E.ON's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is E.ON undervalued compared to its fair value and its price relative to the market?

1.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: EON (HUF3449) is trading below our estimate of fair value (HUF3514.26)

Significantly Below Fair Value: EON is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: EON is poor value based on its PE Ratio (515.1x) compared to the Integrated Utilities industry average (19.5x).

PE vs Market: EON is poor value based on its PE Ratio (515.1x) compared to the Hungarian market (15.2x).


Price to Earnings Growth Ratio

PEG Ratio: EON is poor value based on its PEG Ratio (33.8x)


Price to Book Ratio

PB vs Industry: EON is overvalued based on its PB Ratio (4.2x) compared to the XE Integrated Utilities industry average (1.7x).


Next Steps

Future Growth

How is E.ON forecast to perform in the next 1 to 3 years based on estimates from 22 analysts?

15.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: EON's forecast earnings growth (15.3% per year) is above the savings rate (1.6%).

Earnings vs Market: EON's earnings (15.3% per year) are forecast to grow slower than the Hungarian market (18.5% per year).

High Growth Earnings: EON's earnings are forecast to grow, but not significantly.

Revenue vs Market: EON's revenue (2% per year) is forecast to grow slower than the Hungarian market (5.3% per year).

High Growth Revenue: EON's revenue (2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: EON's Return on Equity is forecast to be high in 3 years time (23.5%)


Next Steps

Past Performance

How has E.ON performed over the past 5 years?

26.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: EON has a large one-off loss of €679.0M impacting its March 31 2005 financial results.

Growing Profit Margin: EON's current net profit margins (0.1%) are lower than last year (7.7%).


Past Earnings Growth Analysis

Earnings Trend: EON has become profitable over the past 5 years, growing earnings by 26.7% per year.

Accelerating Growth: EON's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: EON had negative earnings growth (-97.9%) over the past year, making it difficult to compare to the Integrated Utilities industry average (4%).


Return on Equity

High ROE: EON's Return on Equity (3%) is considered low.


Next Steps

Financial Health

How is E.ON's financial position?


Financial Position Analysis

Short Term Liabilities: EON's short term assets (€24.5B) do not cover its short term liabilities (€28.5B).

Long Term Liabilities: EON's short term assets (€24.5B) do not cover its long term liabilities (€62.0B).


Debt to Equity History and Analysis

Debt Level: EON's debt to equity ratio (278.8%) is considered high.

Reducing Debt: EON's debt to equity ratio has increased from 66.6% to 278.8% over the past 5 years.

Debt Coverage: EON's debt is not well covered by operating cash flow (8.1%).

Interest Coverage: EON's interest payments on its debt are not well covered by EBIT (1.7x coverage).


Balance Sheet


Next Steps

Dividend

What is E.ON current dividend yield, its reliability and sustainability?

4.47%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: EON's dividend (4.47%) is higher than the bottom 25% of dividend payers in the Hungarian market (2.39%).

High Dividend: EON's dividend (4.47%) is low compared to the top 25% of dividend payers in the Hungarian market (6.98%).


Stability and Growth of Payments

Stable Dividend: EON's dividend payments have been volatile in the past 10 years.

Growing Dividend: EON's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (2302.9%), EON's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: EON's dividends in 3 years are forecast to be covered by earnings (58.2% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.8yrs

Average management tenure


CEO

Johannes Teyssen (61yo)

10.17yrs

Tenure

€5,315,864

Compensation

Dr. Johannes Teyssen serves as the Chairman of Management Board of E.ON Italia S.p.A. He serves as Chairman of Supervisory Board at innogy SE since October 10, 2019. Dr. Teyssen serves as Chairman of Manag ...


CEO Compensation Analysis

Compensation vs Market: Johannes's total compensation ($USD5.98M) is above average for companies of similar size in the Hungarian market ($USD3.99M).

Compensation vs Earnings: Johannes's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Johannes Teyssen
Chairman of Management Board & CEO10.17yrs€5.32mno data
Marc Spieker
CFO & Member of Management Board3.25yrs€2.44mno data
Leonhard Birnbaum
COO of Integration & Member of the Management Board7yrs€3.19mno data
Karsten Wildberger
COO of Commercial & Member of the Management Board4.25yrs€2.53mno data
Thomas König
COO of Networks & Member of Management Board2.08yrs€2.41mno data
Michael Wilhelm
Senior Vice President of Accountingno data€137.96kno data
Verena Nicolaus-Kronenberg
Head of Investor Relations0.50yrno datano data
Lars Rosumek
Head of Communications & Political Affairs0.50yrno datano data
Verena Volpert
Senior Vice President of Group Financeno datano datano data
Daren Carter
Head of Residential Marketing8.83yrsno datano data

3.8yrs

Average Tenure

53yo

Average Age

Experienced Management: EON's management team is considered experienced (3.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Karl-Ludwig Kley
Chairman of the Supervisory Board4.08yrs€452.00kno data
Andreas J. Schmitz
Supervisory Board Member4yrs€334.00kno data
Karen M. de Segundo
Supervisory Board Member12.25yrs€288.00kno data
Erich Clementi
Deputy Chairman of the Supervisory Board2.17yrs€334.00kno data
Ewald Woste
Supervisory Board Member4yrs€241.00kno data
Carolina Dybeck Happe
Supervisory Board Member4.08yrs€259.00kno data
Eugen-Gheorghe Luha
Employee Representative Supervisory Board Member7.67yrs€218.00kno data
Fred Schulz
Supervisory Board Member6.5yrs€283.86kno data
Elisabeth Wallbaum
Employee Representative Supervisory Board Member4.5yrs€259.00kno data
Albert Zettl
Supervisory Board Member4yrs€243.00kno data

4.1yrs

Average Tenure

60yo

Average Age

Experienced Board: EON's board of directors are considered experienced (4.1 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 20.3%.


Top Shareholders

Company Information

E.ON SE's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: E.ON SE
  • Ticker: EON
  • Exchange: BUSE
  • Founded: 1923
  • Industry: Multi-Utilities
  • Sector: Utilities
  • Market Cap: €26.830b
  • Listing Market Cap: €9.470t
  • Shares outstanding: 2.61b
  • Website: https://www.eon.com

Number of Employees


Location

  • E.ON SE
  • Brüsseler Platz 1
  • Essen
  • North Rhine-Westphalia
  • 45131
  • Germany

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
EOANDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJan 1992
EOANSWX (SIX Swiss Exchange)YesOrdinary SharesCHCHFJan 1992
0MPPLSE (London Stock Exchange)YesOrdinary SharesGBEURJan 1992
EOANBIT (Borsa Italiana)YesOrdinary SharesITEURJan 1992
EOANXTRA (XETRA Trading Platform)YesOrdinary SharesDEEURJan 1992
ENAK.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJan 1992
EONBUSE (Budapest Stock Exchange)YesOrdinary SharesHUHUFJan 1992
EOANDBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBEURJan 1992
EOAN NBMV (Bolsa Mexicana de Valores)YesOrdinary SharesMXMXNJan 1992
4334819SWX (SIX Swiss Exchange)YesOrdinary SharesCHEURJan 1992
EOANWBAG (Wiener Boerse AG)YesOrdinary SharesATEURJan 1992
EONENXTBR (Euronext Brussels)YesOrdinary SharesBEEURJan 1992
EOANSEP (The Stock Exchange Prague Co. Ltd.)YesOrdinary SharesCZCZKJan 1992
EONG.YOTCPK (Pink Sheets LLC)SPONS ADR EACH REPR 1 ORD NPVUSUSDOct 1997
EOAADB (Deutsche Boerse AG)SPONS ADR EACH REPR 1 ORD NPVDEEUROct 1997
EOAAXTRA (XETRA Trading Platform)SPONS ADR EACH REPR 1 ORD NPVDEEUROct 1997

Biography

E.ON SE operates as an energy company in Germany, the United Kingdom, Sweden, rest of Europe, and internationally. The company provides power and gas distribution networks and related services; and supplies energy solutions, such as power, gas, and heat to residential customers, small and medium sized enterprises, large commercial and industrial customers, and public entities. It also offers energy consulting, management, efficiency, and production solutions; heat pumping and energy storage solutions; metering services; e-mobility services for communities; and natural gas mobility solutions for municipalities and vehicle fleets, as well as operates combined heat and power, renewable, and biomass plants. Further, it provides SmartSim, a digital solution for gas grids; gas quality tracking solutions; GasPro, a mobile gas sample collector; and GasCalc, a software that calculates natural gases, LNG, and biogases properties, as well as solar panels and batteries. The company was founded in 1923 and is headquartered in Essen, Germany. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/07/05 21:16
End of Day Share Price2020/06/25 00:00
Earnings2020/03/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.