E.ON SE (EOAN.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:EOAN - DE000ENAG999 - Common Stock
16.925 EUR
-0.07 (-0.41%)
Taking everything into account, EOAN scores 3 out of 10 in our fundamental rating. EOAN was compared to 17 industry peers in the Multi-Utilities industry. EOAN has a medium profitability rating, but doesn't score so well on its financial health evaluation. EOAN is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
- In the past year EOAN was profitable.
- In the past year EOAN had a positive cash flow from operations.
- In the past 5 years EOAN has always been profitable.
- In the past 5 years EOAN always reported a positive cash flow from operatings.
1.2 Ratios
- EOAN's Return On Assets of 2.80% is in line compared to the rest of the industry. EOAN outperforms 41.18% of its industry peers.
- EOAN's Return On Equity of 16.77% is amongst the best of the industry. EOAN outperforms 82.35% of its industry peers.
- The Return On Invested Capital of EOAN (5.08%) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.8% | ||
| ROE | 16.77% | ||
| ROIC | 5.08% |
ROA(3y)1.96%
ROA(5y)2.17%
ROE(3y)13.52%
ROE(5y)20.03%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
- EOAN has a Profit Margin of 3.69%. This is in the lower half of the industry: EOAN underperforms 70.59% of its industry peers.
- EOAN's Profit Margin has improved in the last couple of years.
- EOAN has a worse Operating Margin (6.70%) than 82.35% of its industry peers.
- EOAN's Operating Margin has improved in the last couple of years.
- EOAN has a worse Gross Margin (25.30%) than 70.59% of its industry peers.
- EOAN's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.7% | ||
| PM (TTM) | 3.69% | ||
| GM | 25.3% |
OM growth 3YN/A
OM growth 5Y26.47%
PM growth 3Y-2.3%
PM growth 5Y8.28%
GM growth 3Y686.04%
GM growth 5Y3.45%
2. Health
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), EOAN is destroying value.
- The number of shares outstanding for EOAN remains at a similar level compared to 1 year ago.
- Compared to 5 years ago, EOAN has more shares outstanding
- Compared to 1 year ago, EOAN has a worse debt to assets ratio.
2.2 Solvency
- Based on the Altman-Z score of 1.25, we must say that EOAN is in the distress zone and has some risk of bankruptcy.
- EOAN's Altman-Z score of 1.25 is fine compared to the rest of the industry. EOAN outperforms 70.59% of its industry peers.
- A Debt/Equity ratio of 1.95 is on the high side and indicates that EOAN has dependencies on debt financing.
- The Debt to Equity ratio of EOAN (1.95) is worse than 76.47% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.95 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.25 |
ROIC/WACC0.98
WACC5.19%
2.3 Liquidity
- A Current Ratio of 0.85 indicates that EOAN may have some problems paying its short term obligations.
- Looking at the Current ratio, with a value of 0.85, EOAN is doing worse than 76.47% of the companies in the same industry.
- A Quick Ratio of 0.79 indicates that EOAN may have some problems paying its short term obligations.
- The Quick ratio of EOAN (0.79) is worse than 64.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.85 | ||
| Quick Ratio | 0.79 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an impressive 26.97% over the past year.
- The Earnings Per Share has been growing by 20.96% on average over the past years. This is a very strong growth
- EOAN shows a small growth in Revenue. In the last year, the Revenue has grown by 0.77%.
- EOAN shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 14.45% yearly.
EPS 1Y (TTM)26.97%
EPS 3Y3.96%
EPS 5Y20.96%
EPS Q2Q%-17.65%
Revenue 1Y (TTM)0.77%
Revenue growth 3Y1.18%
Revenue growth 5Y14.45%
Sales Q2Q%-4.77%
3.2 Future
- Based on estimates for the next years, EOAN will show a small growth in Earnings Per Share. The EPS will grow by 5.74% on average per year.
- Based on estimates for the next years, EOAN will show a small growth in Revenue. The Revenue will grow by 1.44% on average per year.
EPS Next Y7.32%
EPS Next 2Y-0.03%
EPS Next 3Y5.29%
EPS Next 5Y5.74%
Revenue Next Year-2.99%
Revenue Next 2Y-3.44%
Revenue Next 3Y-0.86%
Revenue Next 5Y1.44%
3.3 Evolution
- The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
- EOAN is valuated correctly with a Price/Earnings ratio of 14.98.
- EOAN's Price/Earnings ratio is in line with the industry average.
- Compared to an average S&P500 Price/Earnings ratio of 27.30, EOAN is valued a bit cheaper.
- Based on the Price/Forward Earnings ratio of 15.54, the valuation of EOAN can be described as correct.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of EOAN indicates a slightly more expensive valuation: EOAN is more expensive than 64.71% of the companies listed in the same industry.
- When comparing the Price/Forward Earnings ratio of EOAN to the average of the S&P500 Index (24.32), we can say EOAN is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.98 | ||
| Fwd PE | 15.54 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of EOAN indicates a slightly more expensive valuation: EOAN is more expensive than 64.71% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 8.27 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
PEG (NY)2.05
PEG (5Y)0.71
EPS Next 2Y-0.03%
EPS Next 3Y5.29%
5. Dividend
5.1 Amount
- EOAN has a Yearly Dividend Yield of 3.20%.
- Compared to an average industry Dividend Yield of 4.55, EOAN's dividend is way lower than its industry peers. On top of this 88.24% of the companies listed in the same industry pay a better dividend than EOAN!
- Compared to an average S&P500 Dividend Yield of 1.82, EOAN pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.2% |
5.2 History
- The dividend of EOAN is nicely growing with an annual growth rate of 6.30%!
Dividend Growth(5Y)6.3%
Div Incr Years0
Div Non Decr Years6
5.3 Sustainability
- EOAN pays out 47.88% of its income as dividend. This is a bit on the high side, but may be sustainable.
- EOAN's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP47.88%
EPS Next 2Y-0.03%
EPS Next 3Y5.29%
E.ON SE / EOAN.DE FAQ
What is the fundamental rating for EOAN stock?
ChartMill assigns a fundamental rating of 3 / 10 to EOAN.DE.
What is the valuation status for EOAN stock?
ChartMill assigns a valuation rating of 2 / 10 to E.ON SE (EOAN.DE). This can be considered as Overvalued.
What is the profitability of EOAN stock?
E.ON SE (EOAN.DE) has a profitability rating of 5 / 10.
Can you provide the financial health for EOAN stock?
The financial health rating of E.ON SE (EOAN.DE) is 1 / 10.
What is the expected EPS growth for E.ON SE (EOAN.DE) stock?
The Earnings per Share (EPS) of E.ON SE (EOAN.DE) is expected to grow by 7.32% in the next year.