The selling pressure regarding EON SE shares could subside shortly. In fact, the support area that is currently being tested around 14.59 EUR has come into play and could, at least in the short term, keep the downside pressure at bay.
Summary
● Overall, and from a short-term perspective, the company presents an interesting fundamental situation.
● According to MSCI, the company's ESG score for its industry is good.
Strengths
● With a P/E ratio at 13.81 for the current year and 14.72 for next year, earnings multiples are highly attractive compared with competitors.
● This company will be of major interest to investors in search of a high dividend stock.
● Considering the small differences between the analysts' various estimates, the group's business visibility is good.
● Analysts' price targets are all relatively close, reflecting good visibility on the company's valuation.
Weaknesses
● The potential for earnings per share (EPS) growth in the coming years appears limited according to current analyst estimates.
● The company does not generate enough profits, which is an alarming weak point.
● One of the major weak points of the company is its financial situation.
● For the last twelve months, sales expectations have been significantly downgraded, which means that less important sales volumes are expected for the current fiscal year over the previous period.
● Most analysts recommend that the stock should be sold or reduced.
● The overall consensus opinion of analysts has deteriorated sharply over the past four months.
● Over the past twelve months, analysts' consensus has been significantly revised downwards.
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E.ON SE is one of the leading producers and distributors of electricity and gas. Net sales break down by activity as follows:
- sale of electric energy (66.8%);
- distribution of gas (24.8%);
- other (8.4%).
Net sales are distributed geographically as follows: Germany (51.8%), the United Kingdom (20.7%), Sweden (2.8%), the Netherlands (3.4%), Europe (21.2%) and other (0.1%).
This super rating is the result of a weighted average of the rankings based on the following ratings: Global Valuation (Composite), EPS Revisions (4 months), and Visibility (Composite). We recommend that you carefully review the associated descriptions.
Investor
Investor
This super composite rating is the result of a weighted average of the rankings based on the following ratings: Fundamentals (Composite), Global Valuation (Composite), EPS Revisions (1 year), and Visibility (Composite). We recommend that you carefully review the associated descriptions.
Global
Global
This composite rating is the result of an average of the rankings based on the following ratings: Fundamentals (Composite), Valuation (Composite), Financial Estimates Revisions (Composite), Consensus (Composite), and Visibility (Composite). The company must be covered by at least 4 of these 5 ratings for the calculation to be performed. We recommend that you carefully review the associated descriptions.
Quality
Quality
This composite rating is the result of an average of the rankings based on the following ratings: Capital Efficiency (Composite), Quality of Financial Reporting (Composite), and Financial Health (Composite). The company must be covered by at least 2 of these 3 ratings for the calculation to be performed. We recommend that you carefully review the associated descriptions.
ESG MSCI
ESG MSCI
The MSCI ESG score assesses a company’s environmental, social, and governance practices relative to its industry peers. Companies are rated from CCC (laggard) to AAA (leader). This rating helps investors incorporate sustainability risks and opportunities into their investment decisions.
