E.ON is an investor-owned energy company. The Generation global unit consists of all Co.'s existing (fossil and nuclear) generation assets in Europe. The Renewables unit is engaged in managing Co.'s carbonsourcing and renewables businesses. The Global Commodities unit buys and sells electricity, natural gas, liquefied natural gas, oil, coal, freight, biomass, and carbon allowances. The Exploration & Production unit is a active in the focus regions of the North Sea (U.K., Norway), Russia and North Africa. The New Build & Technology unit include Co.'s project-management and engineering operations to support the construction of new power plants and the operation of existing plants.
  • TickerEOAN
  • ISINDE000ENAG999
  • SectorGas, Water & Multi-utilities
  • CountryGermany

E.ON SE: Update to credit analysis

Our credit view of E.ON, reflecting a defensive business profile but also weaker credit metrics following a complex asset swap with RWE.

E ON SE sees an upgrade to Positive due to a better fundamental star rating

The general evaluation of E ON SE (DE), a company active in the Multiutilities industry, has been upgraded by the independent financial analyst theScreener with the addition of a star. Its fundamental valuation now shows 3 out of 4 possible stars while its market behaviour can be considered as defensive. theScreener believes that the additional star(s) merits the upgrade of its general evaluation to Positive. As of the analysis date June 30, 2020, the closing price was EUR 9.97 and its potential was estimated at EUR 11.05.

Expert Corporate Governance Service (ECGS)

E.ON – AGM 28 May 2020

General: The AGM is to be held in the form of a virtual AGM in accordance with the German Law to Mitigate the Consequences of the COVID-19 Pandemic. The physical presence of shareholders or their authorised proxies is not possible. The voting rights may therefore be exercised solely by (electronic) postal vote or by granting authority to the proxies designated by the Company.   General: Supervisory Board member Ulrich Grillo is a member of the Presidency of DSW, the local partner of ECGS. This report has been prepared using standard ECGS guidelines.   Item 2: We recommend to oppose the Com...

Jérôme VINERIER

Analyse court terme - E.ON : La reprise est une consolidation.

La tendance de fond est clairement orientée à la baisse. Le MACD est négatif, il confirme cette tendance. La reprise est une consolidation qui va buter sur 9,050 € prochainement. Le prochain objectif est à 7,629 €, puis 7,245 €. Le franchissement de 9,050 € remettrait en cause la suite de la baisse.

Jérôme VINERIER

Short term view - E.ON : Rising consolidation.

The background trend is clearly bearish. The negative MACD confirms the trend. The rise is a consolidation that will soon bump against the level at €9.050. The next target is at €7.629, then €7.245. Passing €9.050 would question the continuation of the fall.

Jérôme VINERIER

Analyse court terme - E.ON : La tendance de fond est clairement orientée à la baisse.

La tendance de fond est clairement orientée à la baisse. Les prix baissent à nouveau, mais le mouvement est devenu hésitant. Le prochain support est à 7,629 €. La tendance de fond serait remise en cause en cas de franchissement de 9,050 €.

Jérôme VINERIER

Short term view - E.ON : The background trend is clearly bearish.

The background trend is clearly bearish. Prices are falling again, but the movement has become hesitant. The next support is at €7.629. The background trend would be questioned should prices rise above €9.050.

Valérie GASTALDY

Medium term view - E.ON : The recent fall is getting more vigorous.

The trend is bullish. The recent fall is getting more vigorous. The next support is at €8.400. A break below €7.652 would challenge the trend.

Louis Boujard, CFA ...
  • Philippe Ourpatian

E.ON : Resilience to the health crisis

>Q1 in line with expectations - E.ON yesterday morning reported Q1 2020 results broadly in line with forecasts. EBITDA was stable at € 2,184m (ODDO BHF € 2,086m and consensus € 2,150m). EBIT came in at € 1,460 (ODDO BHF € 1,450m and consensus € 1,419m). Adjusted net profit amounted to € 691m versus € 700m forecast. Economic net debt was in line with forecasts at € 40.2bn. By division, we do not note any particular deviation from our estimates (see table page 2)....

Louis Boujard, CFA ...
  • Philippe Ourpatian

E.ON : Résilience à la crise sanitaire

>T1 en ligne avec les attentes - E.ON a publié hier matin ses résultats pour le T1 2020 qui étaient globalement en ligne avec les attentes. L'EBITDA est resté stable à 2 184 M€ (ODDO BHF à 2 086 M€ et Cs à 2 150 M€). L'EBIT est ressorti à 1 460 M€ (ODDO BHF à 1 450 M€ et consensus à 1 419 M€). Le résultat net ajusté s'est élevé à 691 M€ contre 700 M€ attendus. L'endettement net économique est ressorti, conforme aux prévisions, à 40.2 Md€. Par division, nous ne const...

Louis Boujard, CFA ...
  • Philippe Ourpatian

E.ON : Q1 in Line with expectations

>Results in line with expectations - EON released this morning 1Q20 figures in line with expectations. EBITDA came in at € 2,184m (stable) vs € 2,086m expected (€ 2,167m consensus). EBIT was slightly higher than expected to €1,460m (-5.7%) vs € 1,450m expected (ODDO BHF) and € 1,424m (consensus). Net income is in line with expectations to € 69m (-8.1%). The ND came from € 39.4bn last year to € 40.2bn at the end of the Q1 mainly impacted by the seasonal weak operating ...

Louis Boujard, CFA ...
  • Philippe Ourpatian

E.ON : Q1 in Line with expectations

>Results in line with expectations - EON released this morning 1Q20 figures in line with expectations. EBITDA came in at € 2,184m (stable) vs € 2,086m expected (€ 2,167m consensus). EBIT was slightly higher than expected to €1,460m (-5.7%) vs € 1,450m expected (ODDO BHF) and € 1,424m (consensus). Net income is in line with expectations to € 69m (-8.1%). The ND came from € 39.4bn last year to € 40.2bn at the end of the Q1 mainly impacted by the seasonal weak operating ...

Anis Zgaya ...
  • Louis Boujard, CFA
  • Philippe Ourpatian

ODDO : Although it is of great utility, the sector is not immune

Utilities meet fundamental needs, but are not immune to the public health crisis. Several groups (Encavis, Verbund, Neoen, Suez, Engie and Veolia) have already factored the crisis into or suspended their guidance. Others (Fortum and Naturgy) have not communicated at this stage. Finally, the remaining companies (E.ON, EDF, Iberdrola, Enel, RWE, Nordex and Voltalia) have confirmed their trajectory for 2020. The revisions to our estimates impact a limited number of stocks (EDF, Fort...

E.ON SE: Update to credit analysis

Our credit view of E.ON, reflecting a defensive business profile but also weaker credit metrics following a complex asset swap with RWE.

E.ON SE: Update following affirmation of Baa2 rating

Our credit view of E.ON, reflecting a defensive business profile, partly offset by weaker credit metrics following a complex asset swap with RWE.

ING
Hendrik Wiersma ...
  • Jeroen van den Broek
  • Nadège Tillier
  • Suvi Platerink Kosonen

Coffee, Croissants & Credit/E.ON

Utilities: E.ON plans to acquire Innogy's remaining minority shares, bonds now fairly priced

ING
Nadège Tillier

Utilities green bonds/There is more to green bonds than just a marketing tool

With c.€19bn of green bonds issued in the first eight months of 2019, utilities are set to break their record of €21bn issuance for the full year of 2017. A number of utilities celebrated their first green instrument in 2019: A2A, EDP, E.ON and Vattenfall. A number of utilities returned to the green bond market: Duke Energy, Engie, EnBW, Enel, Hera, Iberdrola, MidAmerican Energy and Orsted. Since 2014, utilities across the globe have issued c.€77bn and have been the most active corporate sector. This makes sense when we know that the Energy sector is responsible for the largest part of the gre...

ING
Nadège Tillier

E.ON and Innogy/Regulatory and UK pain will continue

E.ON and Innogy reported their interim report. E.ON management expects the European anti-trust authorities to provide their decision on the merger with Innogy in September 2019. The company has offered remedies to speed up the process. Meanwhile, 1H19 results suffered from a weaker UK retail market and higher pension provisions. The remuneration on German networks is lower since the beginning of the year. Remuneration on Swedish networks is planned to be drastically reduced in the period 2020-2023. Despite the fact that the companies' share price resisted after the expected weak results, we co...

Anis Zgaya ...
  • Benoit Valleaux
  • Emmanuel Matot
  • Fehmi Ben Naamane
  • Jerôme Bodin
  • Johanna Jourdain
  • Louis Boujard, CFA
  • Matthias Desmarais
  • Nicolas David
  • Philippe Ourpatian
  • Pierre Tegner
  • Roland Pfaender,MBA,CFA,CCRA
  • Stephane Houri
  • Sven Edelfelt
  • Virginie Rousseau
  • Yan Derocles

ODDO BHF SECURITIES MORNING NEWS – DETAILED COMMENTS 05/13/2020

This crisis has provided an opportunity for the telecoms sector to demonstrate its operational resilience and strategic importance. We have upgraded Proximus and Orange BE to Buy, Iliad and Deutsche Telekom remain our Top Picks whilst Telefonica is suffering from its presence in Latin America. Cf. report published today. - ...

Anis Zgaya ...
  • Benoit Valleaux
  • Emmanuel Matot
  • Fehmi Ben Naamane
  • Jerôme Bodin
  • Johanna Jourdain
  • Louis Boujard, CFA
  • Matthias Desmarais
  • Nicolas David
  • Philippe Ourpatian
  • Pierre Tegner
  • Roland Pfaender,MBA,CFA,CCRA
  • Stephane Houri
  • Sven Edelfelt
  • Virginie Rousseau
  • Yan Derocles

ODDO BHF SECURITIES MORNING NEWS – COMMENTAIRES DETAILLES 13/05/2020

Cette crise aura été l’occasion pour les télécoms de démontrer leur résilience opérationnelle et leur aspect stratégique. Nous upgradons à l’Achat Proximus et Orange BE, Iliad et DT restent nos top pick, Telefonica souffre de sa présence au Latam. - ...

Alain William ...
  • Alexandre Iatrides
  • Alfred Glaser
  • Anis Zgaya
  • Christophe-Raphaël Ganet
  • Delphine Brault
  • Florent Laroche-Joubert
  • Jean Sassus
  • Louis Boujard, CFA
  • Philippe Ourpatian
  • Pierre Tegner
  • Steven Gould

ODDO BHF SECURITIES MORNING NEWS – DETAILED COMMENTS 05/12/2020

...

Alain William ...
  • Alexandre Iatrides
  • Alfred Glaser
  • Anis Zgaya
  • Christophe-Raphaël Ganet
  • Delphine Brault
  • Florent Laroche-Joubert
  • Jean Sassus
  • Louis Boujard, CFA
  • Philippe Ourpatian
  • Pierre Tegner
  • Steven Gould

ODDO BHF SECURITIES MORNING NEWS – COMMENTAIRES DETAILLES 12/05/2020

...

Alexandre Iatrides ...
  • Anis Zgaya
  • Antoine Boivin-Champeaux
  • Charles Lepetitpas
  • Christophe-Raphaël Ganet
  • Louis Boujard, CFA
  • Nicolas David
  • Philippe Ourpatian
  • Sylvain Goyon, CFA
  • Virginie Rousseau
  • Yan Derocles

ODDO BHF SECURITIES MORNING NEWS – DETAILED COMMENTS 04/02/2020

From its low point of 23 March, the Stoxx 600 has clawed back around 15%. Even so, we know that a recession is inevitable and that it will be unprecedented in its magnitude, for a duration that remains unknown and that the adjustment of earnings estimates has not run its course. In this context, it seems futile to think that we can have our cake (the current rise in share prices), eat it (the unprecedented support measures) and come back for second helpings (the expected rally once th...

E ON SE sees an upgrade to Positive due to a better fundamental star rating

The general evaluation of E ON SE (DE), a company active in the Multiutilities industry, has been upgraded by the independent financial analyst theScreener with the addition of a star. Its fundamental valuation now shows 3 out of 4 possible stars while its market behaviour can be considered as defensive. theScreener believes that the additional star(s) merits the upgrade of its general evaluation to Positive. As of the analysis date June 30, 2020, the closing price was EUR 9.97 and its potential was estimated at EUR 11.05.

Systematic Idea - Long E.On (EOAN GY) & August long only picks - 4 Aug

Long E.ON (EOAN GY) E.On’s restructuring is well underway as it positions itself as a renewable energy company. Its strong record of generating free cash flows and the refund of €2.4 billion in nuclear taxes has bolstered their deleveraging plans and strengthened their balance sheet. Net margins have been improving over the last few years & the stronger balance sheet provides E.On more flexibility. The company is fairly insulated from commodity price swings while the externalization of nuclear-waste liabilities improves both E.On’s risk profile and net income. An increased dividend payout ra...

Ford Equity International Rating and Forecast Report

Ford Equity International Research Reports cover 60 countries with over 30,000 stocks traded on international exchanges. A proprietary quantitative system compares each company to its peers on proven measures of business value, growth characteristics, and investor behavior. Ford's three recommendation ratings buy, hold and sell, represent each stock’s return potential relative to its own country market.. The rating reports which are generated each week, include the fundamental details behind each recommendation and reflect the fundamental and price data as of the last trading day of the week...

Expert Corporate Governance Service (ECGS)

E.ON – AGM 28 May 2020

General: The AGM is to be held in the form of a virtual AGM in accordance with the German Law to Mitigate the Consequences of the COVID-19 Pandemic. The physical presence of shareholders or their authorised proxies is not possible. The voting rights may therefore be exercised solely by (electronic) postal vote or by granting authority to the proxies designated by the Company.   General: Supervisory Board member Ulrich Grillo is a member of the Presidency of DSW, the local partner of ECGS. This report has been prepared using standard ECGS guidelines.   Item 2: We recommend to oppose the Com...

Expert Corporate Governance Service (ECGS)

E.ON - AGM 14 May 2019

General: In March 2018, E.ON and RWE announced a complex EUR 43bn deal, see section 3.1 for details. Item 2: Management and Supervisory Board are proposing a dividend of EUR 0.43 per share which corresponds to a payout ratio of 26.86% per share. The dividend is covered by earnings but is not covered by free cash flow. We note that over the past four years, the dividend has not been covered by earnings and moreover has not been covered by free cash flow already in financial year 2016. ECGS believes that dividends should be covered by consolidated earnings and/or free cash flow and supported by...

E.on.Se – Proxinvest Corporate Governance Rating ® : C

Proxinvest Corporate Governance Rating ® helps investors integrate governance into their investment decision and identify governance risks and opportunities within their portfolio. Proxinvest Corporate Governance Rating ® Service rates European issuers through the analysis of four main themes : Ownership & Shareholder rights, Board & Committees, Audit & Process, Remuneration. Each theme is rated taking into account several comprehensive sub-categories. Our unique two-step process to achieve each rating includes a first step quantitative valuation and a second step qualitative filter...

Expert Corporate Governance Service (ECGS)

Proxy Report - 09/05/2018

General: In February 2018, E.ON and RWE announced a complex EUR 43bn deal, see section 3.1 for details. Item 2: Management and Supervisory Board are proposing a dividend of EUR 0.30 per share which corresponds to a payout ratio of 16.30% per share. The dividend is covered by earnings but is not covered by free cash flow. We note that over the past three years, the dividend has not been covered by earnings and moreover has not been covered by free cash flow already in financial year 2016. ECGS believes that dividends should be covered by consolidated earnings and/or free cash flow and supporte...

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