E.ON SE EOAN

Morningstar Rating

Company Report

European Utilities Rallied in Q3 on Falling Interest Rates; We See Further Upside Potential

While wholesale power prices stabilized, government bonds’ yields fell on weak economic indicators and lower inflation in the US and Europe. Second-quarter results were boosted by very favorable hydro conditions that led to some guidance upgrades. This goldilocks scenario bolstered a rally in European utilities, enabling them to massively outperform the market and recover much of their earlier underperformance.

Price vs Fair Value

EOAN is trading at a 487% premium.
Price
€13.01
Fair Value
€61.00
Uncertainty
Medium
1-Star Price
€43.20
5-Star Price
€63.20
Economic Moat
Rqgthyp
Capital Allocation
Jplxktqw

Bulls Say, Bears Say

Bulls

Rising interests are triggering hikes in networks' allowed returns across the board.

Bears

The rationale of the deal with RWE is poor, owing to full exposure to networks and retail. The former is very capital-intensive while the latter is damped by fierce competition and spiraling energy costs that are challenging to pass through.

News

Trading Information

Previous Close Price
Day Range
52-Week Range
Bid/Ask
/
Market Cap
Volume/Avg
/

Key Statistics

Price/Earnings (Normalized)
10.56
Price/Sales
0.42
Dividend Yield (Trailing)
4.08%
Dividend Yield (Forward)
4.08%
Total Yield
4.61%

Company Profile

Since completing the transformative deal with RWE in 2019, E.On has two core businesses: energy networks and customer solutions. Its retail supply serves around 47 million customers primarily in Germany, the United Kingdom, Eastern Europe, the Netherlands, Belgium, and Sweden. Its networks business operates in Germany, Sweden, Eastern Europe, and Turkey.
Sector
Utilities
Industry
Utilities - Diversified
Stock Style Box
Large Value
Total Number of Employees
74,543

Competitors

Valuation

Metric
EOAN
IBE
CNA
Price/Earnings (Normalized)
10.5614.592.25
Price/Book Value
2.141.601.25
Price/Sales
0.421.880.31
Price/Cash Flow
6.498.558.80
Price/Earnings
EOAN
IBE
CNA

Financial Strength

Metric
EOAN
IBE
CNA
Quick Ratio
0.800.601.38
Current Ratio
0.860.771.77
Interest Coverage
1.644.985.36
Quick Ratio
EOAN
IBE
CNA

Profitability

Metric
EOAN
IBE
CNA
Return on Assets (Normalized)
2.23%4.79%−16.07%
Return on Equity (Normalized)
16.55%14.40%−74.67%
Return on Invested Capital (Normalized)
6.94%7.51%−38.24%
Return on Assets
EOAN
IBE
CNA

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