E.On Se

E.ON SE has a debt-to-equity ratio of 2.54, indicating a capital structure that is heavily leveraged, with liabilities significantly exceeding equity. The company's liquidity position is assessed as medium, with a current ratio of 0.9, suggesting that it may struggle to meet short-term obligations without relying on asset sales or additional financing. The negative net cash position, after subtracting total debt, further highlights the company's liquidity constraints.

In terms of profitability, E.ON's return on equity (ROE) is 3.91%, which is relatively low, and its return on assets (ROA) is 0.51%, indicating that the company is not generating strong returns relative to its asset base. These metrics are below the typical performance of the multiline utilities industry, which generally expects higher ROE and ROA due to the stable and regulated nature of the sector.

E.ON's revenue is concentrated in Europe, with a significant portion derived from Germany, its home market. The company's exposure to the European energy market, particularly in Germany, makes it vulnerable to regulatory changes and energy price volatility. The company's operating cash flow is negative at -1.183 billion EUR, which is a concern for sustaining operations and funding capital expenditures.

Looking at the growth trajectory, E.ON's capital expenditures are substantial at -1.168 billion EUR, reflecting ongoing investments in infrastructure and renewable energy projects. The company's free cash flow is positive at 526 million EUR, which provides some flexibility for dividends or further investments. However, the outlook for the next fiscal year is uncertain, with the company facing headwinds from energy price volatility and regulatory pressures.

The risk assessment for E.ON highlights liquidity and dilution risks. The company's liquidity risk is medium, primarily due to its negative net cash position and high debt levels. The dilution risk is assessed as low, with no immediate signs of share dilution through recent issuance or shelf registration. However, the company's reliance on debt financing could increase the risk of dilution in the future if it needs to raise additional capital.

Recent events, including regulatory filings and investor relations communications, indicate that E.ON is focusing on its transition to renewable energy and digitalization. The company has outlined plans to reduce its carbon footprint and expand its renewable energy capacity. These strategic moves are expected to drive long-term growth but may require significant capital investment in the short term.

Operating income surged to EUR 8.3 billion in FY2025, representing a significant recovery from the EUR 1.2 billion recorded in FY2024.

Net income rebounded sharply to EUR 4.5 billion in FY2025, up from EUR 517 million in the prior fiscal year.

Free cash flow turned positive at EUR 885 million in FY2025, reversing the EUR 3.3 billion outflow seen in FY2024.

Analysts maintain a mean price target of EUR 19.45, suggesting potential upside relative to current market expectations.

The company carries a high credit risk flag, indicating significant concerns regarding its ability to meet financial obligations.

The debt-to-equity ratio stands at 2.54, placing it in the bottom quartile compared to the 0.84 median of its peer cohort.

Revenue €21.19B, −11,1% YoY; Operating income −55,1% YoY.

• ▍Revenue €21.19B, −11,1% YoY
• ▍Operating income −55,1% YoY
• ▍Net income −60,8% YoY
• ▍Free cash flow −232,2% YoY
• ▍Net margin 3.9%

Revenue €15.96B, −4,8% YoY; Operating income −36,5% YoY.

• ▍Revenue €15.96B, −4,8% YoY
• ▍Operating income −36,5% YoY
• ▍Net income −153,1% YoY
• ▍Free cash flow −16,6% YoY
• ▍Net margin -0.3%

Revenue €16.34B, −3,2% YoY; Operating income −66,0% YoY.

• ▍Revenue €16.34B, −3,2% YoY
• ▍Operating income −66,0% YoY
• ▍Net income −75,1% YoY
• ▍Free cash flow −1 903,6% YoY
• ▍Net margin 2.7%

Revenue €23.84B; Operating income €3.15B.

• ▍Revenue €23.84B
• ▍Operating income €3.15B
• ▍Net margin 8.7%

Revenue €16.76B; Operating income €639.0M.

• ▍Revenue €16.76B
• ▍Operating income €639.0M
• ▍Net margin 0.6%

Revenue €16.88B; Operating income €3.24B.

• ▍Revenue €16.88B
• ▍Operating income €3.24B
• ▍Net margin 10.5%

Revenue €22.64B; Operating income €1.30B.

• ▍Revenue €22.64B
• ▍Operating income €1.30B
• ▍Net margin 2.6%

Revenue €78.70B, −1,8% YoY; Operating income −51,2% YoY.

• ▍Revenue €78.70B, −1,8% YoY
• ▍Operating income −51,2% YoY
• ▍Net income −61,7% YoY
• ▍Free cash flow −457,4% YoY
• ▍Net margin 2.2%

Revenue €80.12B, −14,5% YoY; Operating income +597,2% YoY.

• ▍Revenue €80.12B, −14,5% YoY
• ▍Operating income +597,2% YoY
• ▍Net income +776,4% YoY
• ▍Free cash flow +126,8% YoY
• ▍Net margin 5.7%

Revenue €93.69B, −19,0% YoY; Operating income +11,7% YoY.

• ▍Revenue €93.69B, −19,0% YoY
• ▍Operating income +11,7% YoY
• ▍Net income −71,8% YoY
• ▍Free cash flow −1 055,9% YoY
• ▍Net margin 0.6%

Revenue €115.66B, +49,5% YoY; Operating income −83,5% YoY.

• ▍Revenue €115.66B, +49,5% YoY
• ▍Operating income −83,5% YoY
• ▍Net income −61,0% YoY
• ▍Free cash flow −108,6% YoY
• ▍Net margin 1.6%

Revenue €77.36B; Operating income €6.49B.

• ▍Revenue €77.36B
• ▍Operating income €6.49B
• ▍Net margin 6.1%