E.ON SE (1EOAN.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:1EOAN - DE000ENAG999 - Common Stock
15.765 EUR
+0.18 (+1.12%)
Taking everything into account, 1EOAN scores 4 out of 10 in our fundamental rating. 1EOAN was compared to 17 industry peers in the Multi-Utilities industry. 1EOAN has a medium profitability rating, but doesn't score so well on its financial health evaluation. 1EOAN is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
- In the past year 1EOAN was profitable.
- 1EOAN had a positive operating cash flow in the past year.
- In the past 5 years 1EOAN has always been profitable.
- 1EOAN had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- 1EOAN's Return On Assets of 2.80% is in line compared to the rest of the industry. 1EOAN outperforms 50.00% of its industry peers.
- 1EOAN's Return On Equity of 16.77% is amongst the best of the industry. 1EOAN outperforms 83.33% of its industry peers.
- 1EOAN has a Return On Invested Capital (5.08%) which 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
- 1EOAN has a Profit Margin of 3.69%. This is in the lower half of the industry: 1EOAN underperforms 66.67% of its industry peers.
- In the last couple of years the Profit Margin of 1EOAN has grown nicely.
- The Operating Margin of 1EOAN (6.70%) is worse than 77.78% of its industry peers.
- 1EOAN's Operating Margin has improved in the last couple of years.
- 1EOAN's Gross Margin of 25.30% is on the low side compared to the rest of the industry. 1EOAN is outperformed by 61.11% of its industry peers.
- 1EOAN'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
- 1EOAN has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
- 1EOAN has about the same amout of shares outstanding than it did 1 year ago.
- 1EOAN has more shares outstanding than it did 5 years ago.
- 1EOAN has a worse debt/assets ratio than last year.
2.2 Solvency
- 1EOAN has an Altman-Z score of 1.23. This is a bad value and indicates that 1EOAN is not financially healthy and even has some risk of bankruptcy.
- With a decent Altman-Z score value of 1.23, 1EOAN is doing good in the industry, outperforming 66.67% of the companies in the same industry.
- A Debt/Equity ratio of 1.95 is on the high side and indicates that 1EOAN has dependencies on debt financing.
- With a Debt to Equity ratio value of 1.95, 1EOAN is not doing good in the industry: 83.33% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.95 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.23 |
ROIC/WACC1.01
WACC5.02%
2.3 Liquidity
- 1EOAN has a Current Ratio of 0.85. This is a bad value and indicates that 1EOAN is not financially healthy enough and could expect problems in meeting its short term obligations.
- Looking at the Current ratio, with a value of 0.85, 1EOAN is doing worse than 72.22% of the companies in the same industry.
- A Quick Ratio of 0.79 indicates that 1EOAN may have some problems paying its short term obligations.
- Looking at the Quick ratio, with a value of 0.79, 1EOAN is doing worse than 61.11% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.85 | ||
| Quick Ratio | 0.79 |
3. Growth
3.1 Past
- 1EOAN shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 26.97%, which is quite impressive.
- The Earnings Per Share has been growing by 20.96% on average over the past years. This is a very strong growth
- Looking at the last year, 1EOAN shows a small growth in Revenue. The Revenue has grown by 0.77% in the last year.
- 1EOAN 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
- The Earnings Per Share is expected to grow by 6.22% on average over the next years.
- Based on estimates for the next years, 1EOAN will show a small growth in Revenue. The Revenue will grow by 1.25% on average per year.
EPS Next Y6.98%
EPS Next 2Y-0.14%
EPS Next 3Y5.4%
EPS Next 5Y6.22%
Revenue Next Year-2.99%
Revenue Next 2Y-3.44%
Revenue Next 3Y-0.86%
Revenue Next 5Y1.25%
3.3 Evolution
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
- The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 13.95 indicates a correct valuation of 1EOAN.
- Based on the Price/Earnings ratio, 1EOAN is valued a bit cheaper than the industry average as 61.11% of the companies are valued more expensively.
- The average S&P500 Price/Earnings ratio is at 27.30. 1EOAN is valued slightly cheaper when compared to this.
- 1EOAN is valuated correctly with a Price/Forward Earnings ratio of 14.51.
- 1EOAN's Price/Forward Earnings is on the same level as the industry average.
- 1EOAN's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 24.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.95 | ||
| Fwd PE | 14.51 |
4.2 Price Multiples
- The rest of the industry has a similar Enterprise Value to EBITDA ratio as 1EOAN.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 7.93 |
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
PEG (5Y)0.67
EPS Next 2Y-0.14%
EPS Next 3Y5.4%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 3.41%, 1EOAN has a reasonable but not impressive dividend return.
- With a Dividend Yield of 3.41, 1EOAN pays less dividend than the industry average, which is at 4.55. 83.33% of the companies listed in the same industry pay a better dividend than 1EOAN!
- 1EOAN's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.41% |
5.2 History
- The dividend of 1EOAN is nicely growing with an annual growth rate of 6.30%!
Dividend Growth(5Y)6.3%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
- 1EOAN pays out 47.88% of its income as dividend. This is a bit on the high side, but may be sustainable.
- 1EOAN's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP47.88%
EPS Next 2Y-0.14%
EPS Next 3Y5.4%
E.ON SE / 1EOAN.MI FAQ
What is the fundamental rating for 1EOAN stock?
ChartMill assigns a fundamental rating of 4 / 10 to 1EOAN.MI.
What is the valuation status for 1EOAN stock?
ChartMill assigns a valuation rating of 3 / 10 to E.ON SE (1EOAN.MI). This can be considered as Overvalued.
How profitable is E.ON SE (1EOAN.MI) stock?
E.ON SE (1EOAN.MI) has a profitability rating of 5 / 10.
What is the valuation of E.ON SE based on its PE and PB ratios?
The Price/Earnings (PE) ratio for E.ON SE (1EOAN.MI) is 13.95 and the Price/Book (PB) ratio is 2.33.
How sustainable is the dividend of E.ON SE (1EOAN.MI) stock?
The dividend rating of E.ON SE (1EOAN.MI) is 4 / 10 and the dividend payout ratio is 47.88%.